Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 December 2017
Texas man sentenced to 20 years in prison for drug traffickingRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Texas man was sentenced last week to 240 months in prison for conspiring to transport methamphetamine and cocaine.
Erasmo Aviles Jr., 35, of Spring, Texas, was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to possess with intent to distribute controlled substances, one count of possession of methamphetamine with intent to distribute and one count of possession of cocaine with intent to distribute. He was also sentenced to five years of supervised release.
Evidence was admitted at a three-day trial in August of 2017, that on May 12, 2016, Aviles was traveling east on Interstate 20 in Bossier Parish in one car that was traveling in tandem with another vehicle driven by co-defendant Francisco Guardiola, 25, of Spring, Texas. Louisiana State Troopers conducted a traffic stop on the vehicles. Aviles denied any wrongdoing and a search of his vehicle produced a camouflaged two-way radio set to channel two. The vehicle Guardiola was driving was searched. Troopers found 1,048 grams of methamphetamine and 361.8 grams of powder cocaine. They also found a camouflaged two-way radio of the same type found in Aviles’ vehicle that was also set to channel two.
Guardiola pleaded guilty on March 15, 2017, to all three counts and was sentenced on September 5, 2017 to 121 months in prison and three years of supervised release.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorneys Allison D. Bushnell and Tennille M. Gilreath prosecuted the case.
Sweetwater Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Timothy Wade Barton, 55, of Sweetwater, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 97 months in federal prison, following his guilty plea in July 2017 to a superseding information charging one count of possession of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Barton, who has been on bond, was ordered to report to the Bureau of Prisons on January 17, 2018.
According to documents filed in his case, between May 9, 2011 and September 23, 2014, Barton possessed a custom-built desktop computer and hard disk drive that contained numerous images and videos of child pornography. Barton used his computer to search on the Internet to locate material depicting minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Straw Purchases of Firearms Lead to Prison Sentences for Shawano ManRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that two Shawano men were recently sentenced to prison sentences after convictions for firearms offenses in Northeastern Wisconsin. On December 12, 2017, Gary W. Hancock (age: 24) was sentenced to 15 months in prison and 36 months of supervised release. On December 18, 2017, Jesus Zepeda (age: 29) was sentenced to 12 months and 1 day in prison and 24 months of supervised release. The sentences were the result of guilty pleas in September 2017 to a count of Making False Statements During the Purchase of a Firearm, a violation of Title 18 United States Code, section 922(a)(6). The two men received the sentence from Chief United States District Judge William C. Griesbach.
The investigation revealed that on three separate dates in 2014, Hancock engaged in the straw purchase of three firearms at the urging of Zepeda, who assisted Hancock in obtaining the firearms from licensed dealers in the Green Bay area. Hancock made false statements on forms required as part of the firearms background check, and transferred the firearms, with assistance from Zepeda, to individuals who were prohibited from possessing the weapons under federal law. Two of the firearms were among a total of 16 recovered by US Customs and Border Patrol in August 2015 from a vehicle attempting to transport them into Mexico from the United States. Another was recovered in August 2015 as part of a drug-related search warrant executed at a residence in California.
In sentencing Hancock and Zepeda, Chief Judge Griesbach noted the serious nature of the offense, stating to Hancock “you didn’t pull the trigger, but your actions could have allowed someone else to.” During the sentencing hearing for Zepeda, Chief Judge Griesbach remarked that “a message needed to be sent to those who would buy firearms in order to transfer them” to people who cannot possess them lawfully.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Customs and Border Patrol; and Shawano County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Somerset County Man Admits Threatening the Vice President of the United StatesRead the Press Release
JOHNSTOWN, Pa. – A resident of Berlin, Pa., pleaded guilty in federal court to a charge of making a threat against the Vice President of the United States, Acting United States Attorney Soo C. Song announced today.
William R. Dunbar, 23, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Sept. 8, 2017, while on military duty in Johnstown, Pa., Dunbar, made a threat against the Vice President of the United States, who was to arrive in Johnstown on Sept. 11, 2017. Three witnesses heard Dunbar specifically state he would kill the Vice President.
Judge Gibson scheduled sentencing for April 12, 2018, at 1:30 p.m. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the prosecution of Dunbar.
Senior Executives of Medical Drug Repackager Sentenced for Defrauding Healthcare ProvidersRead the Press Release
Earlier today, in federal court in Brooklyn, Gerald Tighe and Stephen Kalinoski, were sentenced by United States District Court Judge I. Leo Glasser to six months’ home confinement, four years’ probation, and 300 hours of community service, for wire fraud conspiracy in connection with their operation of Med Prep Consulting, Inc. (Med Prep), a now-defunct Tinton Falls, New Jersey-based medical drug repackager and compounding pharmacy, which sold adulterated and contaminated drug products to healthcare providers across the country. As part of their sentences, Kalinoski will forfeit $140,000 of criminal proceeds to the government. The amount of forfeiture owed by Tighe and the amount of restitution both defendants must pay to Yale-New Haven Hospital, which discovered it had received drug products from Med Prep contaminated with mold, will be determined by the Court at a later date. The defendants pleaded guilty to the charges on July 14, 2017.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark McCormack, Special Agent-in-Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations, Metropolitan Washington Field Office (FDA OCI), announced the sentence.
According to court filings and facts presented during the sentencing, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs and operating room drugs, in purportedly aseptic conditions. In an effort to gain market share, Med Prep repeatedly misrepresented to its customers, who were hospitals and other healthcare providers, that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation. In fact, Med Prep produced drugs in a facility that fell far short of even the most basic industry standards of cleanliness, creating a risk to the health of already ill patients. Tighe, as Med Prep’s president and owner, and Kalinoski, as its director of pharmacy and registered pharmacist-in-charge, lied to healthcare providers about Med Prep’s failures to comply with basic sterility practices. Med Prep halted its production of drug products in the summer of 2013, following an incident in which it had distributed intravenous drugs containing visible mold to Yale-New Haven Hospital.
“Gerald Tighe and Stephen Kalinoski, motivated by a desire to increase profits and cut costs, put patients already suffering from serious illnesses at further risk by distributing drugs that were contaminated or mislabeled,” stated Acting United States Attorney Rohde. “We will continue to investigate and prosecute those drug repackagers and compounding pharmacies that would place corporate greed ahead of patient safety.” Ms. Rohde gratefully acknowledged the assistance and cooperation of the FDA’s Office of Criminal Investigations; the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.
“When people place profits over the public health and distribute unsafe and contaminated drugs, it is the U.S. consumer who is put at risk,” stated FDA OCI Special Agent-in-Charge McCormack. “The FDA will continue to pursue and bring to justice those who endanger the public’s health by distributing adulterated drugs.”
The case is being prosecuted by Assistant United States Attorneys Alixandra E. Smith, Ameet B. Kabrawala and Erin E. Argo, with assistance provided by Assistant United States Attorney Tanya Hill of the Office’s Civil Division.The Defendants:
GERALD TIGHE
Age: 59
West Long Branch, New JerseySTEPHEN KALINOSKI
Age: 53
Middletown, New JerseyE.D.N.Y. Docket No. 15 CR 62 (ILG)
Schuylkill County Man Sentenced to 13 Years’ Imprisonment for Attempted Enticement of A Minor for SexRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Tate, age 35, of Gordon, Pennsylvania, was sentenced on December 18, 2017, by Senior U.S. District Court Judge A. Richard Caputo to 156 months’ imprisonment for attempting to entice a minor to engage in illegal sexual activity.
According to United States Attorney David J. Freed, Tate previously pleaded guilty to traveling to a hotel to engage in sex with a six-year-old female. Between October 17, 2016 and November 9, 2016, Tate used the internet to arrange for the minor to be brought to the hotel to meet him for sex. Tate was arrested after he arrived at the hotel on November 9.
Judge Caputo also ordered that Tate serve 10 years on supervised release following his prison sentence. Tate must also comply with the Sex Offender Registration and Notification Act.
Tate was indicted by a grand jury in November 2016, following an investigation by agents of Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
# # #
Sacramento Man Pleads Guilty for Nationwide Debit Card Fraud Scheme Targeting Apple StoresRead the Press Release
SACRAMENTO, Calif. — Marcus Israel Butler, 33, of Sacramento, pleaded guilty today to access device fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, Butler traveled from Sacramento to cities throughout California and the rest of the United States, including the East Coast, Midwest, and Alaska, using a revoked debit card to purchase products from Apple stores. Butler told store associates that there was a problem with his debit card and invited the associates to call his bank. In fact, it was Butler’s conspirator with whom the associates spoke. The conspirator gave the sales associates a false code that allowed the transactions to be completed on Butler’s revoked debit card. Butler was arrested in Colorado after attempting further fraudulent purchases at Apple stores.
Butler also used the revoked debit card to purchase other goods and services. All totaled, the loss caused by Butler’s fraud scheme was approximately $353,000.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Butler is scheduled to be sentenced by Judge John A. Mendez on March 27, 2018. Butler faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will 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.
Registered Child Sex Offender Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A registered child sex offender was sentenced today by U.S. District Judge Jennifer A. Dorsey to 180 months in prison for receipt of child pornography, which was also a violation of his supervised release conditions, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Clayton Call, 64, of Las Vegas, pleaded guilty on July 25, 2017, to one count of receipt of child pornography. Call was previously convicted of receipt of child pornography and was sentenced to 72 months in prison and a lifetime of supervised release following his release.
According to the plea agreement, as a condition of the terms of his supervised release, a U.S. Probation Officer conducted an inspection of Call’s residence. During the inspection, the officer seized Call’s laptop after discovering that it contained child pornography. During a forensic analysis of the laptop, law enforcement found nearly 140 images and videos of child sexual exploitation.
The case was investigated by the FBI and the U.S. Probation Office. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.
To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
###
Raytown Man Sentenced to 20 Years for Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man was sentenced in federal court today for distributing child pornography over the Internet.
Cody Lee Davidson, 20, of Raytown, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole, which is the statutory maximum penalty. The court also sentenced Davidson to supervised release for the rest of his life following incarceration.
On May 2, 2017, Davidson pleaded guilty to distributing child pornography over the Internet. Davidson admitted that he took pornographic photos of a 7-year-old child victim, identified as Jane Doe, and posted those images on a Web site. Davidson also took a video of the child victim, which federal agents located on his cell phone. Davidson also admitted he took photos of an 8-year-old child victim, identified as Jane Doe 2.
The investigation began when agents with Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Boston discovered the images of child pornography posted on a website that is often used by traders of child pornography to distribute to one another. Law enforcement officers executed a search at Davidson’s residence and seized three cell phones and a camera. Analysis located photos and videos of child pornography on each of the seized cell phones, including pornographic photos and video of Jane Doe.
Analysis of Davidson’s cell phones located approximately 1,900 images and 400 videos that contain child pornography, including images and videos that depict adult males sexually assaulting female prepubescent children ranging in age from infants to 12 years old.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Queens Music School Teacher Sentenced to More Than 11 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that OLIVER SOHNGEN, a/k/a “Helmuth Moss,” a/k/a “Stephan Weierbach,” was sentenced today to 135 months in prison for sex trafficking of minors. SOHNGEN pled guilty on August 10, 2017, before U.S. Magistrate Judge Ronald L. Ellis, and was sentenced today by U.S. District Judge Lewis A. Kaplan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Oliver Sohngen, a teacher at a music school for children, was a sexual predator. He paid to have sex with minor girls at least twice, and attempted to engage in sex trafficking of girls under the age of 14. His significant sentence will ensure that he is no longer a threat to our community, in particular, our children. We remain committed to prosecuting all those who, like Sohngen, prey on our most innocent and vulnerable victims.”
According to the Complaint and Information filed against SOHNGEN, other court documents publicly filed in this case, and statements made in court proceedings, including today’s sentencing:
Between March 2013 and November 2013, SOHNGEN exchanged text messages with a co-conspirator to arrange paid sexual encounters with minor girls ranging in age from 8 to 17. On at least two occasions, SOHNGEN engaged in sexual contact with minor girls at the co-conspirator’s apartment in the Bronx, New York. In addition, between November 2015 and January 2016, SOHNGEN participated in recorded telephone conversations with an undercover NYPD officer who was posing as a 15-year-old girl. SOHNGEN proposed to meet with the purported 15-year-old girl in order to engage in sexual conduct.
* * *
In addition to the prison term, SOHNGEN, 52, of Queens, New York, was sentenced to 10 years of supervised release.
Mr. Kim praised the outstanding investigative work of HSI and the NYPD, and expressed gratitude for the efforts of HSI’s New York Trafficking in Persons Unit and the NYPD’s Vice Enforcement Division Major Case Team. Mr. Kim also expressed gratitude to the Bronx County District Attorney’s Office for its partnership in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Frank Balsamello and Michael Krouse are in charge of the prosecution, with assistance from Bronx County Assistant District Attorney Meagan Powers.
Providence Man Sentenced for Trafficking Opioid Addiction Medication Suboxone and CocaineRead the Press Release
PROVIDENCE, RI – Hector M. Figueroa, 34 of Providence, was sentenced to 45 months in federal prison today for attempting to receive 50 doses of Suboxone, a prescription medicine for treatment of opioid addiction, and for possessing approximately 300 grams of cocaine.
Suboxone, a controlled substance, helps to reduce withdrawal symptoms and curb cravings for opioids by tricking the brain into thinking that the individual has used heroin or oxycodone.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Figueroa to also serve 3 years of federal supervised release upon completion of his term of incarceration. Figueroa pleaded guilty on October 5, 2017, to a two-count information charging him with possession with the intent to distribute cocaine and possession with intent to distribute buprenorphine (Suboxone). The U.S. Sentencing Guidelines range of imprisonment in this matter is 46-57 months. The government recommended the court impose a sentence of 45 months in prison.
Figueroa will begin serving his sentence after he completes serving a 15-month prison sentence imposed on October 5, 2017, for violating terms of supervised release on a previous federal conviction for trafficking heroin.
Hector Figueroa’s sentence is announced by Acting U.S. Attorney Stephen G. Dambruch; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to information presented to the Court, on March 28, 2017, U.S. Postal Inspectors executed a court-authorized search warrant on a package addressed to the defendant. The package contained 50 Suboxone strips. U.S. Postal Inspectors then obtained an anticipatory court authorized search warrant for Figueroa’s residence. After the package was delivered and accepted by the defendant’s father on March 29, the federal search warrant was executed and the package was seized. During the search of the residence, U.S. Postal Inspectors and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force discovered and seized approximately 300 grams of cocaine, drug packaging paraphernalia and $17,000 in cash.
Figueroa was not at his residence at the time of the search and an arrest warrant was issued for him. After attempting repeatedly to locate Figueroa, the U.S. Marshals and Rhode Island States Police Fugitive Task Force arrested the defendant in late July. He has been detained since his arrest.
Previously, officers of the U.S. Customs and Border in San Juan, Puerto Ricco assisted the U.S. Postal Inspection Service with the seizure of two packages which led to the discovery and seizure of approximately $16,000 in U.S. currency. A review of video surveillance at two difference post offices by U.S. Postal inspectors determined that the packages were mailed by Hector Figueroa.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
###
Pilot Who Crash Landed Plane in Suffolk Pleads GuiltyRead the Press Release
NORFOLK, Va. – A Suffolk man pleaded guilty today to piloting an aircraft without a proper pilot’s license from the Federal Aviation Administration (FAA).
According to court documents, Robert R. Gray, Jr., 55, was flying a 1972 Piper Aircraft in July when he crashed it while attempting to land at the Umphlett Airstrip in Suffolk. Gray had a student pilot license but that license had expired and medical conditions, including a prosthetic leg, prevented Gray from obtaining the required medical clearance to fly an aircraft. It was during the crash landing that his prosthetic leg became stuck on the aircraft’s brake and caused it to spin out on landing. After initially denying he was the pilot of the aircraft, Gray admitted he had flown the plane, and told investigators he had no business flying the plane because he can barely drive a car.
Court records further indicate that Gray bought and sold aircraft, and reports to the FAA indicated Gray was flying airplanes in October 2016 and June 2017, despite officials specifically informing him on each occasion that he was not permitted to fly an aircraft.
Gray, Jr. pleaded guilty to serving as an airman without a certificate and faces a maximum penalty of three years in prison when sentenced on March 23, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Calvin L. Scovell, III, Inspector General of the Department of Transportation, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-140.
Owner of North Carolina Waste Disposal Company Pleads Guilty to Filing Fraudulent Tax ReturnRead the Press Release
A Greensboro, North Carolina, business owner pleaded guilty today in U.S. District Court for the Western District of Virginia to filing a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents and information provided to the court, David A. Crowley, 57, owned and operated Southern Logistics and Environmental LLC (SLE), a waste management and disposal company. From 2006 through 2013, SLE contracted with a television retail company to dispose of cosmetic products that were returned by its customers. Instead of destroying and disposing of the number of products as required under the contract, Crowley provided the returned cosmetics to other individuals, who then sold the products through online marketplaces. In exchange for supplying the merchandise, Crowley received a portion of the sales. Crowley did not report the proceeds he received from the returned cosmetic product sales on his income tax returns for 2006 through 2013; for 2011 he did not file an income tax return at all. For these tax years, Crowley received and did not report $3,331,341 from the returned cosmetic product sales, causing a tax loss to the Internal Revenue Service (IRS) of $895,654.
A sentencing date has not yet been scheduled. Crowley faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Charlene Day and Trial Attorney Daniel McGraw of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Oklahoma Man Sentenced to 5 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jose Luis Vaca, age 32, of Claremore, Oklahoma, was sentenced today to 60 months in federal prison followed by three years of supervised release and was ordered to pay a $3,000.00 fine on one count of Possession with intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on October 12, 2016, the Fourth Judicial Drug Taskforce (4th JDTF) received a tip from a confidential informant that a Hispanic male would be traveling from Tulsa, OK to a residence in Springdale, AR with approximately one-half pound of Methamphetamine. The residence was known to detectives as a drug trafficking residence. At 9:03pm, detectives observed a known white Infiniti M45 approach the aforementioned residence. After confirming the license tag on the vehicle, detectives made contact with the driver and sole occupant, Jose Vaca. Vaca initially provided a false name to law enforcement officers but confirmed that he intended to visit the residence he parked in front of although he did not know the occupants. After obtaining consent to search the vehicle, detectives located approximately one-half pound of Methamphetamine, in two separate packages, concealed inside the glove compartment. Vaca admitted to possessing the Methamphetamine, stating he regularly drives around with amounts of Methamphetamine in his vehicle.
The substance seized was sent to the Arkansas State Crime Lab for testing. The lab determined that it was a mixture of a substance that contained methamphetamine weighing approximately 163.98 grams.
Vaca was indicted by a federal grand jury in March, 2017 and plead guilty in August, 2017.
This case was investigated by the 4th JDTF. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Officers of Biodiesel Facility Convicted of Federal Grant Fraud ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – After a six-day trial, Lee John Maher, 59, of Orlando, Florida, was convicted yesterday afternoon of conspiracy to commit mail fraud and with retaining and concealing federal funds, knowing that they were wrongly taken. Co-defendant Larry Kenneth Long, 75, of Simpsonville, South Carolina, previously pled guilty to mail fraud conspiracy. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Maher and Long were officers of Clean Fuel Lakeland, which operated a biodiesel facility in Lakeland, Florida, in 2009 and 2010. When federal money became available for energy initiatives under the American Recovery and Reinvestment Act of 2009, the men applied for a $2,480,000 grant from the United States Department of Energy through the Florida Governor’s Energy Office. The Act was designed to encourage new energy investment by reimbursing grantees for monies invested in energy businesses. The defendants fraudulently obtained funds under the grant by falsely claiming that Clean Fuel had spent $2,480,000 to buy and install a generator to run the biodiesel plant. As proof that the generator had been purchased, the defendants submitted eight bogus bank checks to the Governor’s Energy Office, reflecting generator payments that had never actually been made. Based upon their submissions, $2,232,000 in grant funds were disbursed to the Clean Fuel bank account in December 2010. Immediately, the grant funds were disbursed through Maher’s other bank accounts, with Long receiving 1%, $22,320. None of the grant funds were ever spent toward the purchase of a generator. The defendants kept the fraud going until November 2012, through the submission of false progress reports. The grant funds were ultimately recovered through federal asset seizure and forfeiture actions.
Maher’s sentencing hearing is scheduled for March 9, 2018, at 9:30 a.m. at the United States Courthouse in Tallahassee. Maher faces a maximum of 20 years in prison on each count. Long’s sentencing is scheduled for later this week.
This case resulted from an investigation by the United States Secret Service, the Florida Department of Agriculture and Consumer Services Office of Inspector General, and the United States Department of Energy Office of Inspector General. Assistant U.S. Attorney Michael T. Simpson prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New Bedford Seafood Wholesaler Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A former New Bedford seafood wholesaler pleaded guilty yesterday in federal court in Boston to failing to file tax returns and filing a false tax return for his business’ income.
George F. Estudante, 57, formerly of Marion, Mass., pleaded guilty to two counts of failing to file tax returns and one count of filing a false income tax return. U.S. District Court Judge William G. Young scheduled sentencing for March 13, 2018.
Estudante failed to file an income tax return for 2010, even though his business, Basic Fisheries, received approximately $1,418,629 in payments. He also failed to file a tax return for 2011, although his business received approximately $1,607,726 in payments that year. Furthermore, Estudante falsely swore on his 2012 tax return that he had received approximately $533,078 in gross receipts when his bank account reflected that he had received over $740,000.
The charge of failing to file an income tax return provides for a sentence of no greater than one year in prison, one year of supervised release and a fine of $25,000. The charge of filing a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Morgan County man indicted on firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Dean Smith, of Great Cacapon, West Virginia, was indicted by a federal grand jury today on illegal firearms charges, United States Attorney Bill Powell announced.
Smith, age 39, was indicted on one count of “Possession of an Unregistered Firearm,” one count of “Unlawful Possession of Firearms,” and one count of “Unlawful Possession of Explosives.” Smith is accused of possessing an unregistered silencer, unlawfully possessing a .9mm pistol and .223 caliber rifle, and possessing explosive materials that had been shipped to him from another state. The crimes allegedly took place in Morgan County in October and December 2017.
Smith faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
More Than 30 Opioid Drug Traffickers Charged as Part of Operation Hot BatchRead the Press Release
Bradenton, Florida – Acting United States Attorney W. Stephen Muldrow, Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration, and Manatee County Sheriff Rick Wells announce drug trafficking charges against 34 individuals as a result of “Operation Hot Batch.” This joint law enforcement effort began in November 2016, to target drug trafficking organizations engaged in the illicit distribution of fentantyl, carfentanil, and other controlled substances. The chart below outlines the charges against each individual.
“The Department of Justice is committed to combatting the opioid epidemic,” said Acting United States Attorney Muldrow. “The charges announced today demonstrate that commitment, as well as the strength of our federal, state, and local law enforcement partnerships. Together, we will continue to use all available law enforcement tools to dismantle drug trafficking organizations.”
“Our goal for this investigation is to find drug traffickers who are destroying lives in this community, and hold them accountable,” said Sheriff Wells.
As a result of a committed collaboration between the DEA and its law enforcement partners, a criminal and dangerous drug trafficking organization that distributed deadly drugs such as fentanyl has been successfully dismantled,” said DEA Special Agent in Charge Wright. “Along with our partners at all levels of government, we will continue to stay committed and dedicate all our efforts and all our resources to ridding communities of this poison so that they are better able to live safe and drug free lives.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, U.S. Customs and Border Protection, the Manatee County Sheriff’s Office, the Bradenton Police Department, and the Sarasota Police Department as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as Operation Hot Batch. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases will be prosecuted by Assistant United States Attorneys Natalie Adams, Callan Albritton, Dan Baeza, Carlton Gammons, Michael Gordon, Shauna Hale, Frank Murray, James Preston, Michael Sinacore, and Taylor Stout.
Operation Hot Batch
Name
Age, Residence
Status
Traveous Anderson
31, Palmetto
Pleaded guilty to 1 count of possession with the intent to distribute and distribution of fentanyl.
Faces up to 20 years in federal prison.
George Calhoun
41, Bradenton
Charged with 3 counts of distribution of carfentanil.
Faces up to 20 years in federal prison.
Manvel L. Canady
26, Palmetto
Charged with 2 counts of distribution and possession with the intent to distribute carfentanil.
Faces up to 20 years in federal prison.
Michael Bernard Code
36, Bradenton
Pleaded guilty to 1 count of possession with the intent to distribute cocaine.
Faces up to 20 years in federal prison.
Gavino Corona
24, Bradenton
Charged with 2 counts of distribution and possession with the intent to distribute carfentanil.
Faces up to 20 years in federal prison.
Shane Daniels
26, Manatee County
Pleaded guilty to 3 counts of distribution of crack; 2 counts of distribution of carfentanil; 1 count of distribution of heroin and carfentanil; 1 count of distribution of heroin, fentanyl, and carfentanil; and 1 count of distribution of heroin.
Faces up to 20 years in federal prison on each count.
Tanikous Daughtry
39, Bradenton
Charged with 1 count of possession with the intent to distribute fentanyl and 1 count of possession with the intent to distribute crack cocaine.
Faces up to 30 years in federal prison.
Ever Marie Davis
46, Bradenton
Charged with possession with the intent to distribute fentanyl and heroin.
Faces up to 20 years in federal prison.
Kwame Henri
26, Bradenton
Pleaded guilty to 1 count of possession with the intent to distribute heroin and fentanyl.
Faces up to 20 years in federal prison.
Jamey Michael Hardy
44, Bradenton
Charged with 4 counts of distribution of methamphetamine and 1 count of distribution of heroin.
Faces up to 20 years in federal prison on each count.
Carla Marie Hendrickson
38, Bradenton
Pleaded guilty to possession with the intent to distribute fentanyl and heroin.
Faces up to 20 years in federal prison.
Shaunquez S. Houston
26, Bradenton
Pleaded guilty to distribution of crack cocaine, heroin, carfentanil, and methamphetamine.
Sentenced to 5 years’ probation.
Jerrell Jackson
29, Bradenton
Pleaded guilty to 1 count of conspiracy to distribute and possess with intent to distribute carfentanil and 1 count distribution and possession with intent to distribute carfentanil; sentenced to 18 months’ probation.
David E. Johnson
36, Bradenton
Charged with 1 count of distribution of fentanyl resulting in death and 1 count of distribution of fentanyl.
Faces 20 years, up to life, in federal prison on count 1 and up to 20 years in federal prison on count 2.
Tony Marvin Johnson
34, Bradenton
Pleaded guilty to 1 count of possession with the intent to distribute cocaine.
Faces up to 20 years in federal prison.
Andrew Aaron Kutt
46, Bradenton
Pleaded guilty to 1 count of possession with the intent to distribute methamphetamine.
Faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
Corey Matthews
29, Bradenton
Charged with 1 count of possession of fentanyl with the intent to distribute and 1 count of possession of crack cocaine with the intent to distribute. Faces up to 30 years in federal prison.
Jarvis McCants
29, Lecanto
Pleaded guilty to 1 count of conspiracy to possess with the intent to distribute fentanyl.
Sentenced to 12 years and 7 months in federal prison.
Kevon Melendez
22, Bradenton
Charged with 1 count of possession with the intent to distribute carfentanil and 1 count of possession with the intent to distribute cocaine.
Faces up to 20 years in federal prison.
Shavon Montgomery
37, Bradenton
Charged with 2 counts of distribution of crack cocaine; 1 count of distribution of heroin and fentanyl; and 1 count distribution of heroin, carfentanil, and fentanyl.
Faces up to 30 years in federal prison.
Troy J. Perkins
35, Bradenton
Pleaded guilty to 1 count of conspiracy to distribute and possess with the intent to distribute fentanyl.
Sentenced to 46 months in federal prison.
Woodrow Pressey
46, Bradenton
Charged with 1 count of possession of cocaine and fentanyl with the intent to distribute and 1 count of possessing firearms as a convicted felon.
Faces up to 20 years in federal prison on the narcotics charge and up to 10 years’ imprisonment on the firearm charge.
Brandon J. Randolph
29, Bradenton;
Pleaded guilty to conspiracy to distribute cocaine, crack cocaine, heroin, methamphetamine, carfentanil, and fentanyl.
Faces up to 30 years in federal prison.
Davion Rivers
22, Bradenton
Charged with 1 count of distribution of hydromorphone; 1 count of distribution of heroin, carfentanil, methamphetamine, and furanyl fentanyl; 1 count of distribution of furanyl fentanyl; and 1 count of distribution of heroin, fentanyl, and furanyl fentanyl.
Faces up to 20 years in federal prison on each count.
Bryan Luis Lopez Rosario
27, Bradenton
Charged with 2 counts of distribution of heroin and morphine and 4 counts distribution of heroin.
Faces up to 20 years in federal prison on each count.
Anthony Sanchez
25, Bradenton
Pleaded guilty to 1 count of distributing carfentanil and 1 count of possessing a firearm during a drug trafficking crime.
Sentenced to 11 years in federal prison.
Skyler C. Sanders
32, Bradenton
Charged with 1 count of conspiracy to distribute cocaine, crack cocaine, heroin, methamphetamine, carfentanil, and fentanyl; 1 count of distribution of crack cocaine; 1 count of distribution of crack cocaine, heroin, cocaine, carfentanil, and fentanyl; 1 count of conspiracy to distribute crack cocaine, heroin, methamphetamine, and carfentanil; and 1 count of conspiracy to distribute crack cocaine.
Faces up to 30 years in federal prison.
Jateria Simmons
28, Palmetto
Charged with 2 counts of distribution of heroin and fentanyl.
Faces up to 30 years in federal prison.
Jonathan Solomon
29, Bradenton
Charged with 5 counts of distribution and possession with the intent to distribute heroin.
Faces up to 30 years in federal prison.
Michael Taylor, Sr.
46, Bradenton
Pleaded guilty to 1 count of possession of fentanyl with the intent to distribute.
Sentenced to 27 months in federal prison.
Latessa Timmons
35, Bradenton
Charged with 4 counts of possession with the intent to distribute and distribution of fentanyl.
Faces up to 20 years in federal prison on each count.
Jennifer Lynn Varvel
35, Bradenton
Charged with possession with the intent to distribute fentanyl and heroin.
Faces up to 20 years in federal prison.
Sergio Viera
26, Bradenton
Pleaded guilty to possessing a firearm as a convicted felon.
Sentenced to six years and one month in federal prison.
Rakim Waters
27, Bradenton
Pleaded guilty to 1 count of conspiracy to distribute and possess with intent to distribute carfentanil; 2 counts of distribution and possession with the intent to distribute heroin and carfentanil; 2 counts of distribution and possession with the intent to distribute carfentanil; and 1 count distribution and possession with the intent to distribute heroin.
Sentenced to 48 months’ probation.
Mexican citizen pleads guilty to illegally possessing a rifleRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Mexico pleaded guilty to being an illegal alien in possession of a rifle.
Gerardo C. Rodriguez, 53, of Mexico, pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of possession of a firearm by an illegal alien. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Union Parish Sheriff’s deputies responded to a disturbing-the-peace call on December 11, 2016 in Bernice, La. The deputies found Rodriguez intoxicated, arrested him and towed his vehicle. Deputies noticed a gunshot wound in his leg. Rodriguez told deputies in an interview the next day that he had shot himself with a .22 caliber pistol while drinking heavily. He also told deputies that he owned the Savage rifle (Model 110E in .270 caliber), which was seized from his vehicle. He admitted to reentering the United States illegally and possessing the rifle as a convicted felon. Rodriguez was removed to Mexico on December 21, 2004 as an aggravated felon.
Rodriguez faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for April 11, 2017.
Homeland Security Investigations and the Union Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
Mexican Alien Sentenced for Meth TraffickingRead the Press Release
LAREDO, Texas – A 39-year-old undocumented alien who resided in Laredo has been ordered to federal prison following his conviction of conspiracy with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Isidro Rojas Lopez pleaded guilty Aug. 17, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a total of 151 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release.
Lopez had admitted to recruiting a driver to transport narcotics from Laredo to San Antonio. An associate of Lopez delivered a duffle bag containing 10 bundles of methamphetamine to an undercover agent posing as a truck driver. Authorities conducted a “mock arrest” of the agent at the IH-35 checkpoint north of Laredo, at which time the narcotics were seized. The methamphetamine had a net weight of 9.765 kilograms and a purity of 98.4%.
Lopez sought to obtain documentation of the arrest. He discussed with a confidential informant that if his superiors were satisfied that the driver had actually been arrested, Rojas and the informant could be hired to transport additional loads of drugs.
Rojas stated that he was to be paid $1,000 to locate a driver.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Michael Bukiewicz and Mike Eaton are prosecuting the case.
Massachusetts Man Sentenced to 28 Years in Prison for Supporting ISIS and Conspiring to Murder U.S. CitizensRead the Press Release
An Everett man was sentenced today to 28 years in prison for conspiring with others to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and kill persons in the United States.
David Daoud Wright, a/k/a Dawud Sharif Abdul Khaliq, a/k/a Dawud Sharif Abdul Khaliq, 28, of Everett, Mass., was sentenced by U.S. District Court Judge William G. Young to 28 years in prison. In October 2017, Wright was convicted by a federal jury of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice, and obstruction of justice.
“David Wright conspired with others to commit violent attacks here in the United States at the direction of ISIS,” said Acting Assistant Attorney General Boente. “This successful prosecution demonstrates that the Department of Justice will not waver in its commitment to bring justice to those who provide support and encourage violence on behalf of ruthless terrorist organizations.”
“Mr. Wright plotted to kill innocent Americans on behalf of ISIS,” said Acting United States Attorney William D. Weinreb. “Despite the fact that he was born in Massachusetts, Mr. Wright turned against his country and joined a radical terrorist organization. He became a soldier of ISIS and recruited U.S. citizens to commit attacks within the United States aimed at killing civilians and police officers. Today’s sentence affirms our commitment to protecting the public and prosecuting those who pledge alliance to our enemies.”
“Today's sentencing of David Wright finally holds him accountable for betraying his country, obstructing justice, and conspiring to support a brutally violent terrorist organization,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division. “The spread of the ISIS ideology and it’s savagery against innocents around the world, was found right here at home, by an extremely unpredictable and dangerous person who radicalized to support an imprudent call to jihad. Through the dogged efforts of the FBI and our partners within the Massachusetts and Rhode Island Joint Terrorism Task Forces, who tirelessly work day-in and day-out to identify and thwart those who pose a serious threat, we clearly showed Mr. Wright was a soldier of ISIS, and a very real threat to national security and public safety. This case truly highlights the importance of law enforcement collaboration here and around the world, and I'm grateful for the dedication of those committed to keeping the Commonwealth safe.”Beginning in at least February 2015, Wright began discussing ISIS’ call to kill non-believers in the United States with his uncle, Usaamah Abdullah Rahim, and co-defendant Nicholas Alexander Rovinski. Specifically, Wright created a “martyrdom” operation cell in Massachusetts. In April 2015, he created a Twitter page for the “Lions of America” and published a document entitled, Internal Conquest, on the internet in which Wright called on the “Lions of Allah” to kill Americans.
Wright also plotted with Rahim and Rovinski to behead U.S. citizens at the direction of ISIS, and identified a New York woman as the first beheading target. Rahim purchased three knives for this plot. In addition, Wright knew Rahim was communicating with an ISIS member in Syria, Junaid Hussain, who provided Rahim with an encrypted document containing details about the intended victim. In August 2015, Hussain was killed in an airstrike in Raqqah, Syria.
In preparation for their attack, Wright conducted extensive research on weapons, knives, machetes, bombing making components, and methods to subdue their victims. Wright also conducted research on “how to start a secret militia in the United States.”
On June 2, 2015, Rahim was shot and killed after he attacked law enforcement officers in a Roslindale, Mass., parking lot. Two hours before Rahim attacked the police, Wright had encouraged and motivated Rahim to pursue martyrdom by attacking the “boys in blue.” Within minutes of learning of his Uncle’s death from a family member, Wright deleted data from his laptop computer by restoring it to factory settings and deleted call logs on his cellphone that showed that he had spoken to Rahim that morning.
In September 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIS and conspiring to commit acts of terrorism transcending national boundaries, and will be sentenced tomorrow.
Acting U.S. Attorney Weinreb, Acting AAG Boente and FBI SAC Shaw made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF); Boston Police Department; Massachusetts State Police; Everett Police Department; U.S. Customs and Border Protection; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston. The Suffolk District Attorney’s Office; Rhode Island State Police; Warwick, R.I. Police Department; and police in the United Kingdom also provided valuable assistance. The case was prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Massachusetts Man Sentenced for Supporting ISIS and Conspiring to Murder U.S. CitizensRead the Press Release
Boston – An Everett man was sentenced today to 28 years in prison for conspiring with others to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and kill persons in the United States.
David Daoud Wright, a/k/a Dawud Sharif Abdul Khaliq, a/k/a Dawud Sharif Abdul Khaliq, 28, of Everett, Mass., was sentenced by U.S. District Court Judge William G. Young to 28 years in prison and a lifetime of supervised release. In October 2017, Wright was convicted by a federal jury of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice, and obstruction of justice.
“Mr. Wright plotted to kill innocent Americans on behalf of ISIS,” said Acting United States Attorney William D. Weinreb. “Despite the fact that he was born in Massachusetts, Mr. Wright turned against his country and joined a radical terrorist organization. He became a soldier of ISIS and recruited U.S citizens to commit attacks within the United States aimed at killing civilians and police officers. Today’s sentence affirms our commitment to protecting the public and prosecuting those who pledge alliance to our enemies.”
“David Wright conspired with others to commit violent attacks here in the United States at the direction of ISIS,” said Acting Attorney General Boente. “This successful prosecution demonstrates that the Department of Justice will not waver in its commitment to bring justice to those who provide support and encourage violence on behalf of ruthless terrorist organizations.”
“Today's sentencing of David Wright finally holds him accountable for betraying his country, obstructing justice, and conspiring to support a brutally violent terrorist organization,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The spread of the ISIS ideology and it’s savagery against innocents around the world, was found right here at home, by an extremely unpredictable and dangerous person who radicalized to support an imprudent call to jihad. Through the dogged efforts of the FBI and our partners within the Massachusetts and Rhode Island Joint Terrorism Task Forces, who tirelessly work day-in and day-out to identify and thwart those who pose a serious threat, we clearly showed Mr. Wright was a soldier of ISIS, and a very real threat to national security and public safety. This case truly highlights the importance of law enforcement collaboration here and around the world, and I'm grateful for the dedication of those committed to keeping the Commonwealth safe.”
Beginning in at least February 2015, Wright began discussing ISIS’ call to kill non-believers in the United States with his uncle, Usaamah Abdullah Rahim, and co-defendant Nicholas Alexander Rovinski. Specifically, Wright created a “martyrdom” operation cell in Massachusetts. In April 2015, he created a Twitter page for the “Lions of America” and published a document entitled, Internal Conquest, on the internet in which Wright called on the “Lions of Allah” to kill Americans. Wright also plotted with Rahim and Rovinski to behead U.S. citizens at the direction of ISIS, and identified a New York woman as the first beheading target. Rahim purchased three knives for this plot. In addition, Wright knew Rahim was communicating with an ISIS member in Syria, Junaid Hussain, who provided Rahim with an encrypted document containing details about the intended victim. In August 2015, Hussain was killed in an airstrike in Raqqah, Syria.
In preparation for their attack, Wright conducted extensive research on weapons, knives, machetes, bombing making components, and methods to subdue their victims. Wright also conducted research on “how to start a secret militia in the United States.”
On June 2, 2015, Rahim was shot and killed after he attacked law enforcement officers in a Roslindale, Mass., parking lot. Two hours before Rahim attacked the police, Wright had encouraged and motivated Rahim to pursue martyrdom by attacking the “boys in blue.” Within minutes of learning of his uncle’s death from a family member, Wright deleted data from his laptop computer by restoring it to factory settings and deleted call logs on his cellphone that showed that he had spoken to Rahim that morning.
In September 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIS and conspiring to commit acts of terrorism transcending national boundaries, and will be sentenced tomorrow.
Acting U.S. Attorney Weinreb, Acting AAG Boente and FBI SAC Shaw made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF); Boston Police Department; Massachusetts State Police; Everett Police Department; and Customs and Border Protection. The Suffolk District Attorney’s Office; Rhode Island State Police; Warwick, R.I. Police Department; and police in the United Kingdom also provided valuable assistance. The case was prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Maritime Captain Arraigned, Barred from Piloting Vessels While Awaiting Trial in Boater's DeathRead the Press Release
PROVIDENCE, RI – A U.S. District Court Magistrate Judge in Rhode Island today ordered a New Jersey maritime captain to surrender his United States Coast Guard 100-ton Merchant Marine license to the Court, and to refrain from piloting or operating any vessel, as conditions of his release on unsecured bond while awaiting trial on a charge of seaman’s manslaughter in the death of an 81-year-old Connecticut boater in waters off Rhode Island.
At his arraignment today in U.S. District Court in Providence before U.S. District Court Magistrate Judge Patricia A. Sullivan, Cooper “Chick” Bacon, 78, of Cape May, N.J., through his attorney, entered a plea of not guilty and was released on $50,000 unsecured bond. In addition to surrendering his Merchant Marine license, Bacon was ordered to surrender his passport and is prohibited from travelling outside of the United States.
A federal indictment returned on December 6, 2017, alleges that Bacon failed to take precautions required of the ordinary practice of a seaman when he was at the helm of a yacht on September 22, 2015, which collided with a 23-foot power boat, the Peggy K, in waters off Westerly, killing its sole occupant, Walter S. Krupinski, 81, of Stonington, Conn. It is alleged that, among other things, Bacon failed to take precautions required by the ordinary practice of seamen; adequately assess the risk of collision; proceed at a safe speed; post his First Mate to look-out; and properly overtake, give-way and steer well clear of the Peggy K.
The collision occurred in Fishers Island Sound, on the waters off Naptree Point in the town of Westerly, Rhode Island.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. Seaman’s manslaughter is punishable by statutory penalties of up to 10 years imprisonment, 3 years supervised release and a fine of up to $250,000.
Cooper Bacon’s arraignment is announced by Acting United States Attorney Stephen G. Dambruch; Admiral Steven Poulin, Commander of the First Coast Guard District, United States Coast Guard; and Richard Cox, Special Agent in Charge, Coast Guard Investigative Service, New England Region.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Coast Guard Investigative Service.
Acting United States Attorney Stephen G. Dambruch thanks the many local and state agencies in Rhode Island and Connecticut that provided assistance and information to the United States Attorney’s Office in Rhode Island and to the Coast Guard Investigative Service during the investigation of this matter.
###
Man Sentenced to 8 Years for Heroin and Gun CrimesRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to eight years in prison for possession with intent to distribute heroin and possessing a firearm with the heroin.
According to court documents, Tirado Johnson, 33, had two outstanding warrants for his arrest from Virginia Beach and Portsmouth. The Fugitive Squad from both police departments located and arrested Johnson at an apartment building in Virginia Beach after watching him exit the apartment building carrying a black backpack. Inside the backpack the police found 46 individually wrapped baggies of heroin and a 9mm handgun with an extended clip that held 28 rounds of ammunition.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-33.
Lexington Man Sentenced to 20 Years for Inducing A Minor to Produce Child PornographyRead the Press Release
LEXINGTON, Ky. – A Lexington man, Steven Michael Smith, 35, has been sentenced to 20 years in prison, to be followed by a life term of supervised release, for inducing a minor to produce sexually explicit images of themselves and transmit those images to him.
On Monday, Senior United States District Judge Joseph M. Hood formally sentenced Smith. Judge Hood also ordered that Smith’s federal sentence run concurrently with a 15- year sentence he was ordered to serve following convictions in Madison Circuit Court, for Rape Third Degree, Sexual Abuse First Degree, and Intimidating a Participant in the Legal Process, in 2012. Smith must serve 85 percent of his federal prison sentence.
Smith previously admitted in federal court that, in May of 2010, he persuaded, induced, coerced and enticed the minor victim to produce and send him the sexually explicit images.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, FBI; Richard Sanders, Commissioner, Kentucky State Police; and David Gregory, Chief of the Berea Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and Berea Police Department. The United States was represented by Assistant United States Attorney David Marye.
Leupp Man Sentenced to 22 Years in Federal Prison for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX – On Dec. 18, 2017, Marvin Benally, 47, of Leupp, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 264 months in prison followed by lifetime supervised release and sex offender conditions. Benally had previously pleaded guilty to abusive sexual contact of a child.
The case involved Benally repeatedly sexually abusing a child, who was then between the ages of 11 and 12 and also a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8130-PCT-DGC
RELEASE NUMBER: 2017-123_ Benally
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Leader of International Multi-Million Dollar Fraud Scheme Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
PHOENIX – Yesterday, Jason Todd Mogler, 49, formerly of Phoenix, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 years and 4 months in prison. Mogler had previously pleaded guilty to charges of conspiracy, wire fraud, and money laundering stemming from his role as one of the leaders in an $18 million investment fraud affecting 225 victims.
“Mogler’s crimes were particularly heinous, and deserving of a lengthy prison sentence, because he stole the life savings of everyday citizens, many of whom were near the end of their earning years,” stated Elizabeth A. Strange, First Assistant United States Attorney. “Our district will continue to work closely with the FBI to catch and prosecute financial predators like Mogler.”
"This sentence sends a strong message to criminals committing financial crimes. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors millions of dollars," said FBI Special Agent in Charge Michael DeLeon. “The FBI would like to remind investors to be diligent and gather as much information as possible before making any investment. The FBI will continue to work aggressively with our law enforcement partners to investigate and prosecute those who break the law and violate public trust."
From 2006 to 2012, Mogler and several others solicited millions of dollars from victims for purported investment in a variety of projects and companies, including land development in Mexico, recycling companies in Las Vegas and Chicago, and distressed real estate ventures in Phoenix. Mogler and his co-conspirators promoted their fraudulent investment schemes in legitimate-appearing seminars, magazine articles, and radio broadcasts, and they issued private offering documents that gave the fraudulent investments the appearance of legitimacy.
In reality, the solicitations and offering documents were riddled with false statements about the education and experience of Mogler and his co-conspirators, the ownership of property to be used in the projects and to serve as collateral, the feasibility of the projects and guaranteed returns, and other important matters. Ultimately, Mogler and his co-conspirators used the investor funds not only to line their own pockets, but also to make Ponzi payments to certain investors and to create the façade of a legitimate business. Mogler was also ordered to pay restitution to the victims for losses they incurred.
The investigation in this case was conducted by the Phoenix Division of the FBI. The prosecution was handled by Monica Klapper and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01118-PHX-SPL
RELEASE NUMBER: 2017-124_ Mogler
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Lancaster Physican Group Pays over $4 Million to Resolve Kickback Claims Involving HMA HospitalsRead the Press Release
PHILADELPHIA – The Justice Department today announced settlements with Physician’s Alliance Ltd. (PAL), for allegedly receiving illegal remuneration in exchange for patient referrals to hospitals owned by the now-defunct Health Management Associates (HMA).
PAL, headquartered in Lancaster, Pennsylvania, and three of its executives, Lee Meyers, Michael Warren, M.D. and Wallace Longton, M.D., agreed to resolve allegations that, from 2009 until 2012, PAL accepted illegal remuneration from HMA to refer patients to two HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center. Under the settlement, PAL and its executives will pay $4 million plus a percentage of proceeds from the sale of PAL’s interest in a joint venture with HMA.
“These physicians and executives prioritized their own financial interests over the needs of their patients,” said United States Attorney Louis D. Lappen. “Such conduct compromises patient care and undermines the integrity of our nation’s federal health care programs. This settlement should serve as a warning to all providers who allow financial incentives to displace their medical judgment.”
“The Hippocratic oath enjoins physicians to do no harm, not maximize profits by pocketing illegal referral bribes,” said Nicholas DiGiulio, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Physicians that stray from their oath should not be surprised when they come under law enforcement scrutiny.”
Under the qui tam, or whistleblower, provisions of the False Claims Act, private individuals may sue on behalf of the government for false claims and share in any recovery. George E. Miller and Michael J. Metts, former HMA hospital executives, filed suit in the Eastern District of Pennsylvania alleging the scheme between PAL and HMA. Miller’s and Metts’ share of the settlement has not yet been determined.
The settlement was the result of a civil prosecution by the United States Attorney’s Office for the Eastern District of Pennsylvania led by Assistant United States Attorneys Charlene Keller Fullmer and Veronica Finklestein. The investigations were conducted by the Office of Inspector General of the United States Department of Health and Human Services and the Federal Bureau of Investigation.
The case is captioned United States ex rel. Miller & Metts v. HMA, et al, Case No. 14-00339 (D.D.C.).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Jury Returns A Guilty Verdict Against Remaining Members of Chambersburg Sex Trafficking Ring Dismantled by Federal AuthoritiesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony “Tony” D’Ambrosio, age 35, of Chambersburg, Pennsylvania, and Armando Delgado, age 21, of Chambersburg, Pennsylvania were convicted on December 18, 2017, after a two-week jury trial in Harrisburg before Chief U.S. District Court Judge Christopher C. Conner on all charges. Both D’Ambrosio and Delgado were convicted of sex trafficking of children, conspiracy to transport any individual to engage in prostitution, transportation of any individual to engage in prostitution, conspiracy to transport a minor to engage in prostitution, conspiracy to distribute and possess with the intent to distribute oxycodone, cocaine and marijuana, and distribution and possession with the intent to distribute oxycodone.
According to United States Attorney David J. Freed, the jury returned with a verdict of guilty after approximately three hours of deliberation. D’Ambrosio, Delgado and their co-conspirators recruited and transported girls and young women between the ages of 13 and 21 years old to engage in commercial sex acts in Pennsylvania, Maryland, Virginia, West Virginia, Florida, Rhode Island and the District of Columbia and frequently paid them in drugs.
Following the entry of the verdict, Chief Judge Conner remanded D’Ambrosio to the custody of the U.S. Marshals, at the request of the U.S. Attorney’s Office. Delgado has been incarcerated on the superseding indictment since March 12, 2015.
D’Ambrosio, Delgado and their co-defendants, who previously pleaded guilty, participated in a conspiracy that began in approximately July 2012, and continued to January 2015. D’Ambrosio, Delgado and the others rented motel rooms and posted “escort” advertisements and photographs on backpage.com from July 2012 through January 2015. D’Ambrosio and the others would take the majority of the money made during the course of the prostitution business, and distributed various drugs to the women, including oxycodone, cocaine and marijuana.
Albert E. “Pipo” Martinez, age 35, of Chambersburg, Pennsylvania, pleaded guilty to all charges on March 31, 2016. On Tuesday, December 5, 2017, Keanu Martinez, age 21, of Chambersburg, Pennsylvania, son of Albert Martinez, pleaded guilty to one count of transporting minors to engage in prostitution. A sentencing date has not been set for either Martinez yet. Brandon Hill, age 30, of Harrisburg, Pennsylvania, previously pleaded guilty to drug trafficking counts and received a 37-month sentence.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Meredith A. Taylor and Scott Ford prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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 for the sex trafficking offenses is life imprisonment and includes a mandatory minimum sentence of ten years imprisonment. The maximum penalty for the drug trafficking offenses is a term of imprisonment of 20 years. 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 indicate of the potential sentence for a specific defendant.
# # #
Jury Convicts Pastor and Wife of $2 Million Investment FraudsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria pastor and his wife last night for a $2 million fraud scheme that victimized members of their congregation and prospective investors in a Nigerian oil scheme.
According to court records and evidence presented at trial, Terry Wayne Millender, 53, the former senior pastor of Victorious Life Church in Alexandria, and his wife Brenda Millender, 57, operated Micro-Enterprise Management Group (MEMG), a Virginia company that alleged to help poor people in developing countries by providing small, short-term loans to start or expand existing businesses by working with a network of established micro-finance institutions. The Millenders were founding members of MEMG, while Terry Millender served as chief executive officer. The Millenders recruited investors by emphasizing its Christian mission and use of the funds to help the poor, promising guaranteed rates of return, assuring investors that the loans’ principal was safe and backed by the assets of MEMG. The jury found that these representations were false and fraudulent, and that the money was actually used by the Millenders to conduct risky trading on the foreign exchange currency market, options trading, payments towards the purchase of a $1.75 million residence for the Millenders, and other personal expenses. To conceal how they had actually used the money, the Millenders falsely assured investors that they would get their money back and blamed delays in repaying investors on the 2008 financial crisis, among other things.
In addition, after MEMG failed, the Millenders created another entity called Kingdom Commodities Unlimited (KCU), which purportedly specialized in the brokering of Nigerian oil deals. Multiple victims entered into loan agreements with the Millenders, totaling over $600,000. Like the MEMG agreements, the KCU agreements lured prospective investors into giving the Millenders money by promising high rates of return and short term loans. The Millenders used the KCU lenders’ money to pay for their rent and golf trips, as well as a birthday party and other personal expenses.
The Millenders face a maximum penalty of 20 years in prison when sentenced on March 30, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Co-conspirator Grenetta Wells, 56, of Alexandria, who served as chief operating officer at MEMG, pleaded guilty to conspiracy to commit wire fraud and is scheduled for sentencing on Jan. 12, 2018.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys Katherine L. Wong, Jamar K. Walker, and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-239.
INTERPOL Washington Shares Best Practices in International Fugitive InvestigationsRead the Press Release
Investigative specialists from INTERPOL Washington―the U.S. National Central Bureau―and some 100 officials from 70 INTERPOL member countries met December 5th to 8th in Montego Bay, Jamaica, to review high priority fugitive and cold cases and to share best practices among the experts. The event, known as the 7th Global Operational Symposium, was hosted by the Jamaica Constabulary Force and INTERPOL’s Fugitive Investigative Support unit. The symposium featured several speakers during the first two days, while the last two days were focused on a detailed review of cases.
During the case reviews, three INTERPOL Washington representatives participated in more than 40 case study reviews. During this time, they explained how the United States processes Red Notices, and answered questions from other countries’ representatives. Participants learned that the United States does not make arrests solely on the basis of a Red Notice. In order to arrest a person in the United States, the U.S. Constitution requires an American court to issue a warrant based upon probable cause. Therefore, the United States treats foreign-issued Red Notices as “look out” requests for the subject of the notice. INTERPOL Washington enters the information about the Red Notice subjects into appropriate U.S. law enforcement databases.
In many other countries, INTERPOL personnel and national police are authorized to arrest pursuant to a Red Notice. The INTERPOL Washington staff found it very helpful to learn about how other governments’ execute the INTERPOL mission. They were also better able to understand some of the challenges facing other INTERPOL member countries, such as lack of technical infrastructure, limited internet access, and cumbersome bureaucratic hurdles for approval of routine actions.
INTERPOL Addresses Safeguarding Victims of Human TraffickingRead the Press Release
One of INTERPOL Washington’s Supervisory Investigative Analysts represented the agency at the 5th INTERPOL Global Trafficking in Human Beings and Smuggling of Migrants Conference held in Doha, Qatar, December 6-7, 2017. According to INTERPOL, the conference focused on the essential role both the public and private sector play in preventing, detecting, reporting, disrupting and ultimately prosecuting those responsible for crimes which have no borders, and no limits. Michele Ford-Stepney was among 300 experts from law enforcement, public and private sectors, and non-governmental and international organizations from more than 90 countries. The conference addressed key human trafficking and people smuggling issues, including:
· Poly-criminality and new trends in migrant smuggling
· Reframing responses to trafficking in humans
· And international cooperation with non-governmental organizations and the private sector.
Representatives from Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) and the Department of Justice Human Trafficking Prosecution Unit gave presentations on topics related to Human Trafficking and Human Smuggling in the United States. Key themes among the presenters were the need for dedicated resources, global cooperation, and initial and ongoing assistance for victims.
Prior to the conference, Ford-Stepney attended the INTERPOL Specialized Operations Network (ISON) Against People Smuggling Workshop. Several countries presented information on operational cases and initiatives, and provided an overview of case law, procedures, and best practices within their respective countries.
Harrold Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Harrold, South Dakota, man charged with Assaulting, Resisting, and Impeding a Federal Officer pled guilty and was sentenced on December 18, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Raynard Lee Howe, Jr., age 20, was sentenced to two years of probation, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 28, 2017, when Howe, who was brought into the BIA Correctional center in Lower Brule following his arrest, refused to cooperate by refusing to answer any questions and remained silent. A correctional officer began to collect Howe’s personal belongings, but Howe began to move, squirm, and resist the officer in an attempt to impede the booking process.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
Granby Woman Pleads Guilty to Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Tammy J. Lamere, age 46, of Granby, New York, pled guilty yesterday to crimes related to her sexual exploitation of a child, committed together with co-defendant Clif Seaway from 2010 – 2013, announced Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II, and Kevin M. Kelly, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations.
Lamere appeared yesterday before Senior United States District Judge Norman A. Mordue, and admitted that from 2010 – 2013 she and Seaway conspired to sexually abuse a child, and that she and Seaway engaged in various sexual acts with that child, for the purpose of producing visual depictions of that abuse. The child was between the ages of 6 and 11 during the time of the offenses, and images and videos of Lamere and Seaway took of their sexual abuse of the child were recovered in the investigation into their crimes. Seaway was convicted of these and other offenses last week, following a jury trial.
Sentencing is scheduled for April 18, 2018 in Syracuse. The defendant faces a minimum sentence of 15 years and up to 30 years for each count of conviction, for a maximum possible sentence of 60 years in prison. The defendant will also be sentenced to serve a term of supervised release of at least 5 years and up to life when released from imprisonment and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the New York State Police and Homeland Security Investigations with assistance provided by the Onondaga County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Carina Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Georgia Real Estate Investor Sentenced to 16 Months in Prison for Bid Rigging and Bank Fraud at Public Foreclosure AuctionsRead the Press Release
A real estate investor was sentenced to serve 16 months in jail for his role in a bid rigging conspiracy and bank fraud scheme involving public foreclosure auctions in Georgia, the Department of Justice announced yesterday.
Douglas L. Purdy was charged on Feb. 3, 2016, in an indictment returned by a federal grand jury in the Northern District of Georgia. Purdy was convicted following a two-week trial on June 16, 2017, of bid rigging and two counts of bank fraud at Forsyth County, Georgia, foreclosure auctions. The Honorable Richard W. Story sentenced Purdy to serve 16 months in prison, serve three years supervised release, and pay $100,979.86 in restitution to victims.
“Yesterday’s sentencing is yet another example of the Antitrust Division’s commitment to aggressively prosecute bid rigging schemes that subvert competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division. “Including yesterday’s sentencing, a total of 20 individuals have been sentenced to terms of incarceration for bid rigging and fraud at public foreclosure auctions in the Northern District of Georgia.”
The evidence at trial showed that Purdy and his co-conspirators agreed not to compete for residential real estate at foreclosure auctions in Forsyth County and defrauded lender banks and homeowners. Among other methods, the conspirators held secret “second auctions” of properties, dividing among themselves the auction proceeds that should have gone to pay off debts against the properties and, in some cases, to homeowners.
In addition to Purdy’s conviction, 22 real estate investors have pleaded guilty to similar charges as a result of the Department’s ongoing antitrust investigations into bid rigging and fraud at public foreclosure auctions in the Atlanta area.
The Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division conducted the investigation, with assistance from the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000 or https://www.justice.gov/atr/report-violations.
Garland Independent School District Employee Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
DALLAS — Kirk Patrick Keshler, 60, of Garland, Texas, appeared today in federal court in Dallas and pleaded guilty, before U.S. Magistrate Judge David L. Horan, to one count of transportation of child pornography. The announcement was made today by Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Keshler faces a maximum penalty of not less than five, nor more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. He will remain in custody pending sentencing which is set for April 4, 2018.
According to the plea agreement factual resume filed in the case, Keshler, a teacher for special needs children at Garland High School, used the internet and a peer-to-peer file-sharing account to send and receive visual depictions of minors engaged in sexually explicit conduct.
On August 16, 2017, law enforcement received a search warrant for Keshler’s residence in Garland, Texas. While conducting the search of the residence, law enforcement entered the master bedroom of the home and located a nude, realistic-looking child size doll lying on the floor of a closet with a wig covering the face of the doll. Additionally, law enforcement observed in the master bedroom a large television connected to a laptop computer. The laptop computer was powered on and Windows media player was open on the screen showing that Keshler was actively viewing child exploitative movies when law enforcement made contact at his residence.
A forensic review of the seized laptop computer, according to the factual resume, revealed over 10,000 images and 3,000 videos involving toddler aged children to early and pubescent teens, both male and female, engaged in sexual activity with adults and with other children. Some of the child pornography files depict sadistic and masochistic content and bestiality. Law enforcement also seized several pairs of female children’s panties in various child sizes.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
# # #
Gang Member Convicted of Sex Trafficking of a ChildRead the Press Release
CORPUS CHRISTI, Texas - A federal judge in Corpus Christi has issued a guilty verdict against a 25-year-old Corpus Christi resident on charges of sex trafficking of a child, announced Acting U.S. Attorney Abe Martinez.
The one-day trial occurred Dec. 14, 2017, before U.S. District Judge Nelva Gonzales Ramos. The court returned its verdict late yesterday against Marcus Anthony Tunchez.
During trial, U.S. District Judge heard about a joint investigation targeting gang members in the Corpus Christi area involved in narcotics trafficking and the sex trafficking of children. Tunchez was one of those identified as a member of the Mexican Mafia gang involved in both methamphetamine distribution and sex trafficking.
In May 2017, Tunchez began selling methamphetamine to an undercover officer and said he acted as a pimp to several young women. Tunchez explained he created and posted advertisements on a commercial sex website for the young women who then gave half the proceeds from their commercial sex acts to Tunchez.
In September 2017, Tunchez met with the undercover officer for the purpose of sex trafficking a child he believed was a 14-year-old girl. Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez expected to receive 20 percent of the proceeds. He was taken into custody upon his arrival at the designated meeting place.
At trial, he attempted to convince the court that he intended to rob the undercover officer and not commit a sex trafficking crime.
Judge Ramos did not believe his claims and found him guilty as charged.
On Dec. 7, 2017, Tunchez entered a guilty plea on the narcotics charges and an unrelated gun charge before Judge Ramos.
Sentencing will be set at a later date. At that hearing, Tunchez faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine. Upon completion of any prison term imposed, Tunchez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children. He also faces up to 40 years for the drug charges as well as another 10 years for the firearms offense.
Tunchez was arrested on federal charges in September 2017 and has been in custody since that time where he will remain pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former San Antonio Resident Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio today, a federal judge sentenced 54-year-old David Thayer Girard, formerly of San Antonio, to 15 years in federal prison for distribution of child pornography announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Fred Biery ordered that Girard pay $3,000 restitution and be placed on supervised release for the rest of his life after completing his prison term.
On August 2, 2017, Girard pleaded guilty to the charge. By pleading guilty, Girard admitted that he uploaded numerous video and image files depicting child pornography to the Internet. In December 2014, Girard gave the password to an electronic folder containing the child pornography to an FBI employee acting in an undercover capacity.
The FBI conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Former Real Estate Investor Sentenced to 17 Years in Prison for Multiple Fraud SchemesRead the Press Release
PHOENIX – Today, Yomtov Scott Menaged, 40, of Phoenix, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 17 years in prison for orchestrating multiple fraud schemes resulting in more than $30 million in losses. Menaged had previously pleaded guilty to bank fraud, money laundering, and aggravated identity theft. The Court also ordered Menaged to pay the various victims $33,558,407.76 in restitution.
Menaged, who operated a real estate investment business as well as retail furniture stores, embezzled millions in loans meant for real estate purchases and provided fake real estate purchase documents to conceal the fraud. Menaged used the embezzled money to support his lavish lifestyle that included travel, million dollar homes, and luxury vehicles.
When Menaged no longer had access to the embezzled funds, he orchestrated an elaborate identity theft scheme involving purported customers of his various retail furniture stores. Menaged obtained the names and personal identification information of recently deceased individuals and used their information to submit fake credit applications from his furniture stores to various banks. In fact, no real furniture purchases ever took place. The ID theft scheme resulted in more than $2 million losses to the banks.
“Menaged engaged in a multi-year fraud scheme and brazenly stole from his victims -- their money, their identities, and ultimately their trust,” stated First Assistant United States Attorney Elizabeth A. Strange. “Today’s lengthy sentence is a fitting punishment for his egregious crimes.”
“While the harm and damage the defendant caused by swindling more than $33 million from innocent investors can never be repaired, the 200 plus victims can now take some small measure of satisfaction that he is now looking at 17 years in federal prison and a substantial forfeiture as repayment for his crimes.” said Scott Brown, special agent in charge of Homeland Security Investigations (HSI) in Phoenix. “HSI special agents dedicated to uncovering financial fraud will continue to aggressively investigate those who seek to profit by taking advantage of others.”
“The criminal conduct by defendant Menaged was extensive. His actions caused personal and financial harm to many individuals, including his former business partner,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “The sentence is very appropriate based on the $33 million loss from his fraud scheme and the tragic human suffering he caused.”
The investigation in this case was conducted by the Department of Homeland Security, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation. The prosecution was handled by Monica B. Edelstein and Kevin M. Rapp, Assistant U.S. Attorneys, and Jennifer A. Giaimo, Special Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-000680-PHX-GMS
RELEASE NUMBER: 2017-122_Menaged
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Owner of Boston Forensic Accounting Firm Sentenced for Tax EvasionRead the Press Release
BOSTON – The former owner of a Boston forensic accounting firm was sentenced yesterday in federal court in Boston for understating his income by hundreds of thousands of dollars on his personal income tax returns.
James Carey, 50, was sentenced by U.S. District Court Judge Allison D. Burroughs to 18 months in prison, one year of supervised release and ordered to pay restitution of $355,535. In September 2017, Carey pleaded guilty to two counts of making material misstatements on his 2009 and 2010 personal income tax returns.
Carey, a certified public accountant, owned Carey & Company, a forensic accounting firm in Boston. Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies. In November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey transferred almost all of that money out of the account and used it for his own purposes. The money Carey misappropriated from the insurance company was taxable income, which Carey failed to report on his personal income tax return. In addition, in 2010, Carey reported less than one-third of his business’s actual income on his personal income tax return.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Stephen Heymann and Sara Bloom of Weinreb’s Economic Crimes Unit prosecuted the case.
Former Ogdensburg Police Officer Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
SYRACUSE, NEW YORK – Harry McCarthy, age 57, of Ogdensburg, New York, pled guilty today to sexually exploiting a child.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
McCarthy admitted that in 2013 and 2014, he used a child to engage in sexually explicit conduct for the purpose of producing images of that conduct. At the time of his crime, McCarthy was an officer at the Ogdensburg Police Department.
Sentencing is scheduled for April 18, 2018 in Syracuse before Chief United States District Judge Glenn T. Suddaby. McCarthy pled guilty as part of an agreement that, if accepted by Chief Judge Suddaby, would require him to serve 15 years in prison, to be followed by a lifetime term of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. McCarthy would also be required to register as a sex offender.
This case was investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Geoffrey Brown.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former New York Investment Broker Admits Accepting Hundreds of Thousands of Dollars in Bribes in Exchange for StockRead the Press Release
TRENTON, N.J. - A former broker of two New York investment banking firms today admitted accepting hundreds of thousands of dollars in bribe payments in exchange for more favorable stock allocations, Acting U.S. Attorney William E. Fitzpatrick announced.
Brian M, Hirsch, 42, of Farmingdale, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of violating the Travel Act by engaging in a commercial bribery scheme.According to documents filed in this case and statements made in court:
Hirsch was employed at the New York offices of two investment banking firms, identified as “Firm A” and “Firm B” in the information. Hirsch was responsible for allocating securities from initial and secondary public stock offerings to the firms’ clients.
Between January 2012 and November 2016, Hirsch accepted numerous cash kickbacks from three individuals – identified in the information as “CC#1,” “CC#2,” and “CC#3” – in exchange for securities from public stock offerings marketed by Firms A and B. The kickback payments were based on an agreed-upon percentage of the profits that CC#1, CC#2, and CC#3 would make from the stock offerings.
Hirsch did not disclose any of these payments to Firms A and B and took steps to conceal his corrupt arrangements with CC#1, CC#2, and CC#3. For instance, Hirsch signed periodic certifications to Firm A falsely representing that he had complied with the firm’s prohibition on “quid pro quo” arrangements or similar pre-determined agreements with investor clients in connection with stock allocations. Hirsch also falsely certified that he had complied with Firm A’s policies concerning conflicts of interest. Hirsch made similar misrepresentations and omissions to Firm B.
Over the course of the scheme, Hirsch accepted between $550,000 and $1.5 million in kickback payments from CC#1, CC#2, and CC#3.
Hirsch faces a maximum potential penalty of five years in prison and a $250,000 fine. Hirsch also agreed to pay a forfeiture money judgment in an amount to be determined prior to or at the time of sentencing, which is currently scheduled for Apr. 11, 2018.
In a separate civil action, the U.S. Securities and Exchange Commission (SEC) today filed a complaint against Hirsch in Trenton federal court.
.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s guilty plea. He also thanked the SEC’s New York Regional Office for its assistance.The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit in Newark.
Defense counsel: Elliot G. Sagor Esq., New York
Former Navy Sailor Sentenced to 120 Months in Prison for Attempted Enticement of a MinorRead the Press Release
PENSACOLA, FLORIDA – William Charles Huff Jr., 32, a former active duty Navy sailor stationed in Pensacola, was sentenced today to 120 months in prison followed by a lifetime of supervised release, after pleading guilty on October 6, 2017, to attempted enticement of a minor for sex. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2016, Huff began text messaging a 13-year-old girl from central Florida. Huff knew the child from a church they both attended. When the child’s parents discovered the content of the text messages, they told her to stop communicating with Huff and contacted law enforcement officers. The child’s parents gave permission for an undercover officer to assume her identity and take control of her cellular telephone.
In February 2017, Huff and the undercover officer, acting as the child, began communicating via text message and later through a shared e-mail account that Huff set up. During this time, Huff told the undercover officer about his sexual desires for the child. The undercover officer indicated that the child would be going to Destin, Florida, for spring break with a friend. In March 2017, Huff drove from his residence at the Naval Air Station Pensacola to Destin and was arrested when he arrived at the designated meeting location.
The case was investigated by the Naval Criminal Investigative Service, the Okaloosa County Sheriff’s Office, the Walton County Sheriff’s Office, the Highlands County Sheriff’s Office, and the Beech Grove, Indiana, Police Department. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Leader of the Gulf Cartel Extradited to the United States from Mexico for Funneling Massive Amounts of Marijuana and Cocaine into the United StatesRead the Press Release
Mario Ramirez-Trevino, also known as “Mario Pelon” and “X-20,” the alleged former leader of the Mexican Gulf Cartel, was extradited to the United States from Mexico to face drug conspiracy charges, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Chief of Operations Anthony D. Williams of the Drug Enforcement Administration (DEA).
Ramirez-Trevino, made his initial appearance today before U.S. Magistrate Judge Deborah A. Robinson in the District of Columbia, after being extradited to the United States on Dec. 18. Ramirez-Trevino was ordered detained in federal custody pending trial. Ramirez-Trevino had been in the custody of Mexican authorities pending extradition since his arrest on Aug. 17, 2013.
Ramirez-Trevino was charged, along with 25 other defendants, in a three-count superseding indictment returned on May 9, 2013. He is charged with conspiracy to manufacture and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States. He is also charged with two counts of attempted distribution of five kilograms or more of cocaine for importation into the United States for his involvement in
a shipment of approximately 10 tons of cocaine, seized by Mexican authorities in October 2007, and a 2,400 kilogram shipment of cocaine seized by the Panamanian authorities in November 2007.
“The Gulf Cartel is one of the most violent and brutal drug trafficking organizations, posing a threat to the citizens of both the United States and Mexico,” said Acting Assistant Attorney General John P. Cronan. “This significant extradition is the result of our strong law enforcement relationship with the Government of Mexico, and the Department of Justice’s continuing efforts to combat international narcotics trafficking.”
“The extradition of Mario Ramirez-Trevino is another demonstration of the outstanding partnership we have with the Government of Mexico,” said Chief Williams. “We appreciate and recognize the significant efforts of our Mexican partners in the pursuit of justice and the dismantlement of drug trafficking organizations and their command elements.”
On Dec. 6 and 7, Attorney General Jeff Sessions participated in the “Trilateral Summit Against Transnational Organized Crime” where representatives from Colombia, Mexico and the United States renewed their existing commitment to international judicial cooperation to deepen joint strategies in the fight against transnational organized crime. Additonally, last week, Attorney General Sessions joined Secretary of State Rex Tillerson and Homeland Security Secretary Kirstjen Nielsen, in meeting with the Mexican Secretary of Foreign Affairs Luis Videgaray Caso, Mexican Interior Secretary Miguel Angel Osorio Chong, and Acting Mexican Attorney General Elias Beltran for the second U.S.-Mexico Strategic Dialogue on Disrupting Transnational Criminal Organizations. The dialogue covered strategic approaches to disrupt the multi-billion dollar business model of those who profit from illicit drug trafficking and threaten our national security.
According to statements made in court, Ramirez-Trevino was allegedly the former leader of the Gulf Cartel when it worked in close partnership with Los Zetas, collectively known as “The Company.” The Company worked independently and with other drug trafficking organizations to finance, purchase, transport, and distribute cocaine and marijuana destined for the United States. The Company imported cocaine from Colombia and elsewhere into Mexico, where it was stored until its eventual importation into the United States. The Company also sourced marijuana from the mountainous regions in Mexico for importation into the United States. To accomplish its drug trafficking objectives, the Company relied on acts of violence and enlisted a group of former military officials known as “Los Zetas” to carry out those acts of violence. Ramirez-Trevino was actively involved in overseeing The Company’s drug trafficking activities in Mexico.
On April 15, 2009, under the Foreign Narcotics Kingpin Designation Act, the President identified Los Zetas as a Significant Foreign Narcotics Trafficker. On July 20, 2009, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also identified the leadership of Los Zetas, Heriberto Lazcano-Lazcano and Miguel Angel Trevino Morales, as Significant Foreign Narcotics Traffickers. Both men are named as co-defendants in the indictment charging Ramirez-Trevino. On March 24, 2010, OFAC also named Ramirez-Trevino as a derivative Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act.
The Department expresses its gratitude and appreciation to the Government of Mexico for its cooperation and assistance in the apprehension and extradition of Ramirez-Trevino.
The charges in the indictment are merely allegations, and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The investigation was led by the DEA’s Houston Field Division and the DEA Bilateral Investigation Unit. The case is being prosecuted by trial attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition.
Former Head of Non-Profit Organization Sentenced to 18 Months in Prison for Theft of More Than $400,000Read the Press Release
WASHINGTON – Blair Wynkoop, 59, the former executive director of a non-profit organization, was sentenced today to 18 months in prison on a charge stemming from the theft of more than $400,000 from the charity, announced U.S. Attorney Jessie K. Liu and Norbert E. Vint, Acting Inspector General for the U.S. Office of Personnel Management (OPM).
Wynkoop, of Portland, Oregon, pled guilty in December 2016 in the U.S. District Court for the District of Columbia to a charge of interstate transportation of stolen property. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Wynkoop will be placed on three years of supervised release. He also was ordered to pay $385,564 in restitution to a number of charitable organizations and $443,996 in a forfeiture money judgment. While on supervised release, Wynkoop is barred from having a job that gives him unmonitored access to financial accounts. He also can establish no new credit accounts while he is on release.
According to a statement of offense submitted at the time of the guilty plea, Wynkoop became executive director of the charity, identified in court documents as “Company A,” in 2008. The non-profit sought to address the needs of people with HIV or AIDS. It operated as a consortium of independent charities and received charitable donations itself and functioned as a pass-through for donations to its member charities.
At the outset of his tenure as executive director, Wynkoop caused “Company A” to make many of the required distributions of contributions to the member charities. However, from 2010 through 2012, he did not distribute all of the money and used funds for his own benefit.
While he was executive director, Wynkoop wrote checks and made wire transfers from the bank accounts of “Company A” to himself. For some, but not all, of these payments, he provided the non-profit’s part-time bookkeeper with justifications for expenses; many of these justifications were fabricated and designed to conceal the fraud. In the course of the scheme, Wynkoop defrauded the non-profit of more than $400,000.
In announcing the sentence, U.S. Attorney Liu and Acting Inspector General Vint expressed appreciation for the work of Special Agent Christopher Sulhoff and others who assisted with investigating the case from the OPM Inspector General’s Office. They also commended the efforts of those who handled the case for the U.S. Attorney’s Office, including former Document Management Analyst John Lowell and Assistant U.S. Attorney Thomas Swanton, who handled forfeiture issues. Finally, they commended the work of Assistant U.S. Attorney Peter C. Lallas, who prosecuted the case.
Former CEO and Former Chief Loan Officer of Failed Sonoma Valley Bank Convicted After Trial of Bank Fraud and Other CrimesRead the Press Release
SAN FRANCISCO - Sean Clark Cutting and Brian Scott Melland, respectively the former Chief Executive Officer and former Chief Loan Officer of Sonoma Valley Bank, were convicted yesterday of conspiracy, bank fraud, wire fraud, money laundering, falsifying bank records, lying to bank regulators, and other crimes, announced United States Attorney Brian J. Stretch; Federal Deposit Insurance Corporation (FDIC) Inspector General Jay N. Lerner; Special Inspector General for the Troubled Asset Relief Program (TARP) Christy Goldsmith Romero; and Federal Housing Finance Agency (FHFA), Office of Inspector General Western Region, Special Agent in Charge Jay N. Johnson. Co-defendant David John Lonich, an attorney for Marin and Sonoma County real estate developer Bijan Madjlessi (who had been indicted on these charges before his death on May 16, 2014) was also convicted of conspiracy, bank fraud, wire fraud, attempted obstruction of justice, and other offenses. The verdicts followed an eight-week trial before the Honorable Susan Illston, U.S. District Judge.
The evidence at trial demonstrated that Cutting, 48, of Sonoma, Calif.; Melland, 48, of Santa Rosa, Calif.; and Lonich, 63, of Santa Rosa, Calif.; were involved in multiple schemes to defraud Sonoma Valley Bank, which failed on August 20, 2010; its regulators at the FDIC; what was then called the California Department of Financial Institutions (“DFI”); and other financial institutions. The schemes involved years of excessive and illegal lending to Madjlessi, often using “straw” or nominee borrowers, for real estate projects in Santa Rosa, Calif., and Petaluma, Calif. As alleged in the indictments, the failure of Sonoma Valley Bank caused in excess of $20 million in losses to taxpayers, approximately $11.47 million to the FDIC, and $8.65 million to the TARP.
“Ultimately, this case was about senior bankers, and the persons with whom they conspired, putting their interests ahead of the federally-insured and federally-regulated bank they served,” United States Attorney Stretch stated. “The defendants resorted to bank fraud, lies to bank regulators, and other crimes in a multi-year scheme to conceal millions of dollars in failed and failing loans. By doing so, they put a respected community bank at ever greater risk of loss and jeopardy. I am proud of the collaboration between the United States Attorney’s Office and our law enforcement partners whose perseverance and dedication over a multi-year investigation made this just outcome possible.”
“Today’s verdict sends a strong message that bank executives and attorneys who devise and orchestrate multi-million-dollar bank fraud schemes will be held accountable for their crimes,” said FDIC Inspector General Lerner. “The FDIC Office of Inspector General is committed to working with U.S. Attorneys and its other law enforcement partners to deter such activity and help protect financial institutions against harm.”
“Today a federal jury brought justice to the top two officers of Sonoma Valley Bank for a massive fraud scheme designed to conceal bad loan after bad loan to a single customer, which ultimately cost the bank millions,” said Special Inspector General Romero. “An aspect of the scheme started weeks after the bank received an $8.65 million bailout from TARP, all of which was lost. An important source of lending to the Sonoma community was extinguished when this bank failed a little more than a year later. I thank the U.S. Attorney’s Office for the Northern District of California for its excellent work and commitment to fighting TARP-related crime.”
“The evidence at trial showed that the defendants used their positions of power to take advantage of the banking system and ultimately the taxpayers,” said FHFA Special Agent in Charge Johnson. “As the jury found in this case, their actions were unacceptable and will not be tolerated. We are appreciative of our law enforcement partners on this case. We will continue to work diligently to bring bad actors to justice.”
Much of the evidence at trial related to Madjlessi’s real estate projects at the Park Lane Villas in Santa Rosa and Petaluma Greenbriar Apartments in Petaluma. According to the evidence admitted at trial, between 2004 and 2010, Sonoma Valley Bank loaned Madjlessi and the persons and entities he controlled in excess of $35 million, approximately $24.7 million more than the legal lending limit set by the bank’s regulators. To conceal this high concentration of lending, Melland, the loan officer who worked most closely with Madjlessi, and Cutting recommended that the bank approve multi-million dollar loans to nominee or “straw” borrowers. The evidence at trial established that Melland and Cutting knew that millions in proceeds from loans to these other borrowers would go to Madjlessi and the companies he controlled. In sum, the evidence at trial proved that Cutting and Melland schemed to give Madjlessi and his companies in excess of $8.6 million in proceeds from loans nominally made in the name of other borrowers.
Melland was also convicted of receiving a bribe from Madjlessi of approximately $50,000 in April 2008. According to the trial evidence, one day after he received the bribe, Melland recommended a set of loans for approximately $3.65 million to a nominee or “straw” borrower controlled by Madjlessi.
Cutting and Melland also were convicted of making false statements to Sonoma Valley Bank’s regulators, the FDIC, and DFI. The evidence established that during joint examinations in May 2008, and again in December 2009, Cutting and Melland provided false and misleading information to the regulators about the true nature and extent of the bank’s lending to Madjlessi and the persons and entities he controlled.
Yet another scheme involved a conspiracy whereby Lonich, Madjlessi’s lawyer, conspired with Cutting and Melland to mislead Sonoma Valley Bank into lending millions more to Madjlessi, again in the name of a nominee or “straw” borrower, so Madjlessi could illegally buy back a debt he owed to IndyMac Bank. IndyMac Bank had failed and been taken over by FDIC. In early 2009, the defendants conspired to lend the money to Madjlessi’s nominee so that Madjlessi could buy the approximately $27 million debt back for only approximately $4 million. FDIC rules specifically prohibited delinquent borrowers, like Madjlessi, from purchasing their own notes at auction. Nonetheless, the defendants were convicted of an elaborate bank and wire fraud scheme to obtain the defaulted note by misleading Sonoma Valley Bank, the FDIC, and eventually other financial institutions about Madjlessi’s true role in the transactions.
In late 2009 and early 2010, Cutting helped Lonich gain control of additional units at the Park Lane Villas by issuing letters on Sonoma Valley Bank letterhead. The letters falsely stated that potential nominee buyers had sufficient funds at Sonoma Valley Bank to purchase the units. The evidence at trial also demonstrated that Lonich attempted to obstruct justice by, among other things, instructing the nominee to make false statements to federal agents.
On May 6, 2014, approximately two months after he was indicted in this case, Madjlessi was found dead after a single-person car accident in a steep ravine in the Marin Headlands off Highway 1 in Marin County.
The defendants were convicted of the following specific crimes, which carry the maximum statutory penalties specified below:
DEFENDANT
CHARGES
Cutting, Melland, and Lonich (one count each)
Conspiracy to Commit Bank Fraud, in violation of 18 U.S.C. § 371, with up to 5 years of imprisonment, 3 years of supervised release, and a fine of $250,000.
Cutting, Melland, and Lonich (one count each)
Bank Fraud, in violation of 18 U.S.C. § 1344, with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Cutting (six counts), Melland (eight counts), and Lonich (five counts)
False Bank Entries and Reports, in violation of 18 U.S.C. § 1005, each with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Cutting and Melland (one count each)
Conspiracy to Make False Statements to the FDIC, in violation of 18 U.S.C. § 371, with up to 5 years of imprisonment, 3 years of supervised release, and a fine of $250,000.
Cutting and Melland (one count each)
Misapplication of Bank Funds, in violation of 18 U.S.C. § 656, with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Cutting and Melland (one count each)
False Statements to the FDIC, in violation of 18 U.S.C. § 1007, with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Melland (one count)
Receipt of Gifts for Procuring Loans, in violation of 18 U.S.C. § 215, with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Cutting, Melland, and Lonich (one count each)
Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349, with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Cutting, Melland, and Lonich (five counts each)
Wire Fraud, in violation of 18 U.S.C. § 1343, each with up to 30 years of imprisonment, 5 years of supervised release, and a fine of $1,000,000.
Cutting, Melland, and Lonich (twelve counts each)
Money Laundering, in violation of 18 U.S.C. § 1957, each with up to 10 years of imprisonment, 3 years of supervised release, and a fine of $250,000.
Lonich (one count)
Attempted Obstruction of Justice, in violation of 18 U.S.C. § 1512(c), with up to 20 years of imprisonment, 3 years of supervised release, and a fine of $250,000.
In addition, the defendants face a $100 mandatory special assessment for each count of conviction against them as well as potential forfeiture and restitution. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Judge Illston scheduled the defendants’ sentencing hearing for April 27, 2018.
Assistant U.S. Attorneys Robert David Rees and Adam A. Reeves are prosecuting the case with the assistance of Philip Villanueva, Maryam Beros, Patricia Mahoney, and Bridget Kilkenny. The prosecution is the result of an investigation by the Special Inspector General for the Troubled Asset Relief Program, the Federal Housing Finance Agency Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General, with the assistance of the Marin County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the Santa Rosa Police Department.
Former Bethel Resident Who Distributed Heroin Involved in Non-Fatal Overdose is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN BUDD, 27, of Branford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to time served and three years of supervised release for distributing heroin that contributed to a non-fatal overdose last year. Judge Meyer ordered BUDD to perform 150 hours of community service during his term of supervised release.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe.
The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
At the service station, officers collected various items as evidence, including a second syringe, three folds of heroin and two cell phones.
The investigation identified BUDD as the heroin source of supply in this overdose case.
BUDD, who resided in Bethel at the time of the offense, was arrested on a federal criminal complaint on March 9, 2016, and has been released on a $100,000 bond since March 16, 2016. On July 7, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This investigation was conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the Danbury Police Department and the Wilton Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Former Air Force Member Sentenced to 15 Years in Prison for Assaulting and Stalking His SpouseRead the Press Release
SACRAMENTO, Calif. — Christopher Mroz, 26, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to 15 years in prison for stalking and two counts of assault resulting in serious bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mroz was a member of the Air Force stationed in Lakenheath, England from 2012 through 2014. Although he was discharged from the Air Force in 2014, Mroz remained on base with his wife, who was an active duty member of the Air Force. During the course of their time in England, Mroz subjected his wife to sustained physical and emotional abuse, which included incidents involving suffocation and strangulation. The defendant’s assaults sent the victim to the emergency room on two occasions. On one occasion, he repeatedly kicked her and stomped on her head and neck; on another occasion, he broke her arm after he became angry about the way she folded money. Mroz was also emotionally abusive, attempting to control her personal and work relationships and restricting her ability to leave the house. The victim ultimately reported the abuses to Air Force authorities in April 2015, which led to his return to Sacramento, California.
Mroz is subject to prosecution for the offenses in this case based on the Military Extraterritorial Jurisdiction Act of 2000.
This case was the product of an investigation by the Air Force Office of Special Investigations and the FBI. Assistant United States Attorneys Jill Thomas and Michele Beckwith prosecuted the case.
Flight Attendant Charged in Manhattan Federal Court with Airport Security Violations and Unlicensed Money TransmittingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the New York Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced yesterday’s arrest of SCOTT McKINNEY, a flight attendant, for conspiracy to violate airport security requirements and operation of an unlicensed money transmitting business. McKINNEY will be presented later today in federal court in San Diego, California, before United States Magistrate Judge Andrew G. Schopler.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Scott McKinney abused his privileges as an airline employee, misusing the Known Crewmember lane to smuggle hundreds of thousands of dollars through security, in furtherance of an illegal money transmitting business. Thanks to the dedicated investigative work of HSI, McKinney’s illegal money transmitting business has been grounded.”
HSI Special Agent in Charge Melendez said: “As a Known Crewmember, McKinney allegedly took advantage of the security access allowed with his position by transmitting large sums of money across the country without a license. Those who choose to use their position’s security clearance at our airports to smuggle cash, narcotics, or any other unlawful good, pose a significant threat to our national security and our efforts are centered to shut down that vulnerability.”
According to the Complaint filed today in Manhattan federal court:[1]
Between July and November 2017, McKINNEY, a flight attendant based in California, conspired with others to operate an unlicensed money transmitting business and to violate airport security requirements. On several occasions, McKINNEY flew from California to New York to pick up packages containing $50,000 or more in cash at JFK Airport or other locations in New York City. McKINNEY then flew back to California with the cash. On some of these occasions, McKINNEY was on the ground at JFK Airport for two hours or less before flying back to California. At the time of these trips, McKINNEY did not have a money transmitting license in New York or California, and was not registered as a money transmitter with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network. In a statement to HSI agents on or about September 15, 2017, McKINNEY admitted that he was aware of the licensing requirement and lacked such a license.
To facilitate the operation of his illegal money transmitting business, McKINNEY used the Known Crewmember (“KCM”) lane to bypass regular airport security screening. The KCM lane allows approved airline crewmembers to pass through security more quickly and, typically, without having their carry-on luggage screened. On several occasions, McKINNEY wore his crewmember uniform and used the KCM security lane – even though he was not working on those occasions – to smuggle bulk cash through airport security.
For example, on September 15, 2017, McKINNEY flew from Los Angeles, landed at JFK Airport not wearing his crewmember uniform, entered the terminal, changed into his uniform, and retrieved a package from a co-conspirator in the airport parking garage. McKINNEY then used the KCM lane to smuggle the package through security. HSI agents subsequently approached McKINNEY while he was waiting to board a return flight to Los Angeles. During a search of McKINNEY’s carry-on luggage, agents found the package that he had just received in the parking garage, which contained approximately $54,000 in cash. McKINNEY told the agents that, on several prior trips, he had transported bulk cash from New York to California and then given the cash to a co-conspirator at the airport in Los Angeles.
* * *
McKINNEY, 49, of San Diego, California, was arrested on December 18, 2017, in San Diego. McKINNEY is charged with one count of conspiracy to enter an aircraft or airport area in violation of security requirements and one count of conspiracy to operate an unlicensed money transmitting business. Each count carries a maximum sentence of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim thanked HSI for its outstanding work on this investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
EmCare, Inc. to Pay $29.8 Million to Resolve False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. – The Department of Justice today announced a settlement with Dallas based EmCare, Inc. a subdivision of Envision Healthcare Corporation that provides physicians to hospitals to staff their Emergency Departments (EDs). EmCare agreed to pay $29.8 million to resolve claims that, from 2008 to 2012, EmCare received remuneration from non-defunct Health Management Associates (HMA) to increase Medicare admissions at HMA Hospitals by recommending admission for patients whose medical care should have been billed as outpatient or observation services. These recommendations allegedly caused the medically unnecessary admission of Medicare beneficiaries.
On average Medicare pays at least three times as much for an inpatient admission as it does for care billed as observation or an ED visit. As part of the alleged scheme, HMA made certain bonus payments to EmCare ED physicians and tied EmCare’s retention of existing contracts and receipt of new contracts to increased ED admissions.
Envision Healthcare Corporation has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General as part of its resolution of these matters.
“Improper physician inducements not only compromise sound medical decision-making, but also cost American taxpayers millions in unnecessary medical costs,” said U.S. Attorney for the Western District of North Carolina Andrew Murray. “Such kickback arrangements will not be tolerated.”
The settlements resolve allegations filed in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Drs. Thomas Mason, Stephen Folstad and their medical practice, MEMA, which, until 2009, supplied ED physicians to HMA hospitals, Lake Norman Regional Medical Center and Davidson Regional Medical Center, in the Charlotte, North Carolina metropolitan area, filed suit against HMA and EmCare in the Western District of North Carolina. In connection with this settlement, Drs. Mason and Folstad and their medical practice will receive $6,222,907 of the funds recovered from EmCare. The settlement also resolves claims against made in a related case filed by former EmCare employee Jacqueline Meyer in the District of South Carolina.
“We thank Drs. Mason and Folstad for their invaluable contribution in this case. Together with their lawyers, they provided vital assistance to the government throughout this case. Without information from citizens like Drs. Mason and Folstad detecting fraud and conserving government program funds would be far more difficult,” said U.S Attorney Murray.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorneys’ Offices for the Western District of North Carolina and the District of South Carolina. The investigation was conducted by the Office of Inspector General of the United States Department of Health and Human Services, the Federal Bureau of Investigation, and the Medicaid Investigations Unit of the State of North Carolina Attorney General’s Office.