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15 December 2017
Two from Lorain County charged with distributing carfentanil and fentanylRead the Press Release
Two Lorain County men were charged in federal court for crime related to the trafficking of opioids, law enforcement officials said.
Manuel Latorre, 26, of Lorain, was named in a two-count indictment after possessing with intent to sell more than nine grams of carfentanil this year.
Tony O. Carter, 28, of Elyria, was charged in a criminal complaint with possession with intent to distribute a mix of fentanyl and heroin. Carter was out on bond from Lorain County Court of Common Pleas when he committed the new offense, according to court records.
The charges were announced by U.S. Attorney Justin E. Herdman, Lorain County Prosecutor Dennis Will, FBI Special Agent in Charge Stephen D. Anthony, DEA Special Agent in Charge Timothy Plancon, Elyria Police Chief Duane Whitely, Lorain Police Chief Cel Rivera and Lorain County Sheriff Sheriff Phil Stammitti of the Lorain County Sheriff’s Department. These charges represent the continuation of a coordinated effort on behalf of federal, state and local law enforcement to target those who sell illegal opioid narcotics in Lorain County.
“The drugs involved in these cases could have wiped out a city block,” Herdman said. “We will continue to work together and seek prison sentences for those who sell the drugs that kill our friends and neighbors.”
“These arrests and indictments make the citizens of Lorain County safer,” said Lorain Police Capt. Roger Watkins.
Among those those previously indicted and prosecuted in federal court as part of this coordinated effort are:
Octavious Smith was sentenced in March 2017 to 20 years in federal prison for distribution of cocaine and heroin and being a felon in possession of a firearm..
Jason Vasquez, 37, of Lorain, was sentenced to 10 years in federal prison for trafficking heroin in Lorain County, as well as being a felon in possession of a firearm and ammunition.
Anetaeus Spencer, 33, of Lorain, was sentenced to more than 12 years in prison for being a felon in possession of ammunition and several firearms, as well as selling heroin and crack cocaine.
Siarres Noble, 29, of Elyria was sentenced to 20 years in prison for distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident.
Anthony Paul Montoy, 40, of Elyria and Fred Alston, 60, of Elyria were convicted of conspiracy to distribute kilograms of cocaine in Lorain County. Montoy was sentenced to 11 years in federal prison and Alston was sentenced to eight years in federal prison.
Two Texas Fishermen Sentenced for False Statements to Law Enforcement AgentsRead the Press Release
Jamal Marshall was sentenced to six months imprisonment and six months home confinement today following a hearing in federal district court in Houston, Texas, for making false statements to law enforcement agents regarding the illegal harvest of snapper in the Gulf of Mexico. A second fisherman, Jacob Brown, was previously sentenced on November 29, 2017, to 2 months imprisonment and 4 months home confinement. The sentences were announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and the National Oceanic and Atmospheric Administration Fisheries Office for Law Enforcement.
In August 2017, Marshall and Brown pleaded guilty to making false statements to agents with the Coast Guard Investigative Service and the National Oceanic and Atmospheric Administration – Office of Law Enforcement. According to court documents filed at the time of the plea, the two illegally harvested more than 1,900 pounds of fish, including 642 snapper, weighing approximately 1,846 pounds. The two subsequently lied to law enforcement agents regarding the possession of these fish in order to hide their illegal harvest from Texas waters.
“This case highlights the superb partnership between Texas Parks and Wildlife, NOAA's Office of Law Enforcement, and the Coast Guard here in southeast Texas,” said Capt. Kevin Oditt, Commander of the Coast Guard Sector Houston/Galveston. “As a team, we work together to enforce laws that ensure the sustainability of our fisheries. In protecting our living marine resources, we also protect the livelihoods of commercial fishermen and the ability of recreational anglers to enjoy the sport for generations to come.”
“I am extremely proud of the combined effort by the USCG, NOAA, and Texas Game Wardens who work tirelessly day and night to protect of our natural resources in the Gulf of Mexico,” said Col. Grahame Jones of the Texas Parks and Wildlife's Law Enforcement Division.
Reef fish, such as red snapper and vermilion snapper, provide significant economic benefits to the state of Texas from both commercial and recreational fishing. Red snapper, the most popular reef fish in the Gulf of Mexico, are a top predator in the Gulf ecosystem, prized among recreational fishermen, and a valued offering at restaurants. Unsustainable catch rates have led to declines in the populations of these two fish. At their lowest point, vermilion snapper stocks were estimated to be at 20 percent of their historical abundance, and red snapper stocks were estimated to be at only three percent.
The case was investigated by the National Oceanic and Atmospheric Administration – Office of Law Enforcement, the Coast Guard Investigative Service, and the Texas Parks and Wildlife Department.
Two Men Involved in Federal Fentanyl Sweep Plead GuiltyRead the Press Release
BOSTON - A Dominican national and a Lowell man each pleaded guilty today in federal court in Boston to their roles in a widespread Lawrence-based heroin and fentanyl trafficking conspiracy.
Caonablo Mayobanex Pol Montero, a/k/a Cesar Eliel Echavarria Navarez; a/k/a Ely Manzano; a/k/a Mayo Baney Pol; a/k/a Mayo Pol; a/k/a Eddie Soto; a/k/a Jorge Mercado; a/k/a Israel Cortes; a/k/a Israel Cortez; a/k/a Ismael Guerra Cortez; a/k/a Ismael Cortez; a/k/a Israel P. Cortez; a/k/a Ismael Guerra; a/k/a Jorge L. Santiago; a/k/a Albertoz Vasquez; a/k/a Mayo Baney Montero; a/k/a Mayo Bane Montero; a/k/a Bani, 45, a Dominican national residing in Lawrence; and Shawn Keefe, 27, of Lowell, each pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl. Pol Montero also pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled their sentencings for March 22, 2018, and Dec. 17, 2018, respectively. Keefe has been accepted to the Court’s RISE program, therefore his sentencing is delayed one year while he is enrolled in the program.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Pol Montero and Keefe were arrested and charged along with Patrone and approximately 30 co-conspirators.
Pol Montero supplied drugs to Patrone as well as to other customers, including Keefe, who redistributed drugs for Pol Montero and sold drugs to support his own habit. When search warrants were executed on May 30, 2017, over 350 grams of heroin, 22 grams of fentanyl, and drug paraphernalia were found at Pol Montero’s home. Pol Montero has previously been deported three times.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The illegal re-entry charge provides for a sentence of no greater than two years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is the result of a joint investigation conducted by the DEA Cross Border Initiative - comprised of the DEA, the Massachusetts State Police, and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments - and the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two G.E.O. Guards Indicted for Attempting to Provide Contraband to PrisonersRead the Press Release
In San Antonio, a federal grand jury indicted two prison employees at the Central Texas Detention Facility – GEO (GEO) for allegedly attempting to provide contraband to inmates inside the federal detention facility announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division.
In the first of two indictments returned last week, 37-year-old GEO guard Jewel Roberto Jefferson of San Antonio, 38-year-old GEO detainee Brian Keith Gonzalez of San Antonio and 36–year-old Stephanie Ann Villarreal of San Antonio are charged with one count of providing contraband in prison. According to court records, Jefferson allegedly agreed to smuggle crystal methamphetamine, heroin and hydroponic marijuana into the facility and give it to Gonzalez in exchange for $1,000. On November 21, 2017, agents arrested Jefferson immediately after he accepted payment but before he could smuggle in the contraband. DEA agents investigated this case.
In the second indictment, 27-year-old GEO guard Abigail Jolynn Abrego and 55–year-old Leonard Belmares of San Antonio are charged with one count of providing contraband in prison. According to court records, on November 12, 2017, Abrego and Belmares met with an undercover agent and agreed that Abrego would smuggle crystal methamphetamine to a GEO detainee in exchange for $1,500. Agents arrested Abrego and Belmares after Belmares took possession of the cash and a package containing sham crystal methamphetamine. FBI agents investigated this case.
If convicted, the defendants face up to 20 years in federal prison and a maximum $250,000 fine. All of the defendants, with the exception of Gonzalez, are currently on bond.
Assistant United States Attorney Sarah Wannarka is prosecuting these cases on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Two Brothers Sentenced to 21 Months and 16 Months in Prison for Illegally Trafficking Threatened Alligator Snapping TurtlesRead the Press Release
WASHINGTON – Travis Leger of Sulphur, Louisiana, and his half-brother Jason Leckelt of Wilburton, Oklahoma, were sentenced today in federal court in Beaumont, Texas, to 21 months and 16 months in prison, respectively, followed by three years of supervised release for conspiring to violate the Lacey Act by illegally trafficking alligator snapping turtles.
Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Brit Featherston of the Eastern District of Texas made the announcement.
The third defendant in the case, Rickey Simon of Sulphur, Louisiana, was sentenced to three years of probation. U.S. District Court Judge Marcia A. Crone ordered the sentences.
Alligator snapping turtles are among the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“The illegal trafficking of wildlife undermines the vital conservation work being done to protect imperiled species like the alligator snapping turtle,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. ‘Today's sentencing will hopefully serve as a deterrent to others seeking to exploit and profit from the illegal wildlife trade. I applaud the hard work of everyone here at the Service, as well as our partners at Texas Parks and Wildlife and Louisiana Wildlife and Fisheries, for their dedication to the pursuit of justice in cases such as this.”
On August 22, 2017, Leger, Leckelt, and Simon all pleaded guilty to the conspiracy charge. As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken 171-pound turtle, for $1,000 and another live, illegally taken 168-pound turtle, for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer. Simon admitted that he sold an illegally-trafficked, 120-pound turtle to an undercover Special Agent of the U.S. Fish and Wildlife Service on May 19, 2016.
“This investigation illustrates the outstanding working relationship Texas Game Wardens have with our counterparts at the U.S. Fish and Wildlife Service and the Louisiana Department of Wildlife and Fisheries,” said Col. Grahame Jones, Director of Law Enforcement with the Texas Parks and Wildlife Department. “We commend the U.S. Attorney’s Office and the Justice Department for their efforts to bring these miscreants to justice.”
In April of 2017, Leger, Leckelt, and Simon were all charged in a six-count Indictment. The conspiracy charged all the defendants with illegally taking more than 60 large turtles during multiple fishing trips they took to Texas in the spring and summer of 2016, and then transporting the turtles back to a property in Sulphur, Louisiana, for sale. Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. The market value of the turtles that were illegally trafficked by Leckelt was between $15,000 and $40,000.
In July of 2016, Federal agents seized about 30 large turtles from ponds located at Leger’s property in Sulphur, Louisiana, pursuant to a federal search warrant. As part of his guilty plea, Leger agreed to forfeit all of the seized turtles and will permit the U.S. Fish and Wildlife Service to return to his property, drain the ponds, and seize any turtles remaining in the ponds. All of the turtles seized by the government in this case will be cared for at the U.S. Fish and Wildlife Service Natchitoches Fish Hatchery in Louisiana and used as part of a breeding program to restock the species in its native waterways in the southwestern United States.
In a related case, Montaro Alabimo Williams of Elton, Louisiana, pleaded guilty on December 6, 2017, in federal court in Beaumont, Texas, to a misdemeanor violation of the Lacey Act for knowingly attempting to transport two alligator snapping turtles, which he illegally caught in Texas, to Louisiana on August 12, 2013. The maximum statutory sentence for this crime is a fine of not more than $100,000 and prison for not more than one year.
Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section and Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas prosecuted the case. The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.
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Two Brothers Sentenced to 21 Months and 16 Months in Prison for Illegally Trafficking Threatened Alligator Snapping TurtlesRead the Press Release
Travis Leger of Sulphur, Louisiana, and his half-brother Jason Leckelt of Wilburton, Oklahoma, were sentenced today in federal court in Beaumont, Texas, to 21 months and 16 months in prison, respectively, followed by three years of supervised release for conspiring to violate the Lacey Act by illegally trafficking alligator snapping turtles.
Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Brit Featherston of the Eastern District of Texas made the announcement.
The third defendant in the case, Rickey Simon of Sulphur, Louisiana, was sentenced to three years of probation. U.S. District Court Judge Marcia A. Crone ordered the sentences.
Alligator snapping turtles are among the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“The illegal trafficking of wildlife undermines the vital conservation work being done to protect imperiled species like the alligator snapping turtle,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. ‘Today's sentencing will hopefully serve as a deterrent to others seeking to exploit and profit from the illegal wildlife trade. I applaud the hard work of everyone here at the Service, as well as our partners at Texas Parks and Wildlife and Louisiana Wildlife and Fisheries, for their dedication to the pursuit of justice in cases such as this.”
On August 22, 2017, Leger, Leckelt, and Simon all pleaded guilty to the conspiracy charge. As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken 171-pound turtle, for $1,000 and another live, illegally taken 168-pound turtle, for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer. Simon admitted that he sold an illegally-trafficked, 120-pound turtle to an undercover Special Agent of the U.S. Fish and Wildlife Service on May 19, 2016.
“This investigation illustrates the outstanding working relationship Texas Game Wardens have with our counterparts at the U.S. Fish and Wildlife Service and the Louisiana Department of Wildlife and Fisheries,” said Col. Grahame Jones, Director of Law Enforcement with the Texas Parks and Wildlife Department. “We commend the U.S. Attorney’s Office and the Justice Department for their efforts to bring these miscreants to justice.”
In April of 2017, Leger, Leckelt, and Simon were all charged in a six-count Indictment. The conspiracy charged all the defendants with illegally taking more than 60 large turtles during multiple fishing trips they took to Texas in the spring and summer of 2016, and then transporting the turtles back to a property in Sulphur, Louisiana, for sale. Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. The market value of the turtles that were illegally trafficked by Leckelt was between $15,000 and $40,000.
In July of 2016, Federal agents seized about 30 large turtles from ponds located at Leger’s property in Sulphur, Louisiana, pursuant to a federal search warrant. As part of his guilty plea, Leger agreed to forfeit all of the seized turtles and will permit the U.S. Fish and Wildlife Service to return to his property, drain the ponds, and seize any turtles remaining in the ponds. All of the turtles seized by the government in this case will be cared for at the U.S. Fish and Wildlife Service Natchitoches Fish Hatchery in Louisiana and used as part of a breeding program to restock the species in its native waterways in the southwestern United States.
In a related case, Montaro Alabimo Williams of Elton, Louisiana, pleaded guilty on December 6, 2017, in federal court in Beaumont, Texas, to a misdemeanor violation of the Lacey Act for knowingly attempting to transport two alligator snapping turtles, which he illegally caught in Texas, to Louisiana on August 12, 2013. The maximum statutory sentence for this crime is a fine of not more than $100,000 and prison for not more than one year.
Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section and Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas prosecuted the case. The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.
Tonawanda Man Arrested, Charged with Multiple Counts of Drug DistributionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James Nelson, 61, of Tonawanda, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, alprazolam and buprenorphine; possession with intent to distribute marijuana; and possession with intent to distribute oxycodone, hydrocodone, butalbital, buprenorphine, and alprazolam. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on two occasions on June 8, 2016, Buffalo Police Department Investigators completed controlled undercover purchases of Alprazolam, a Schedule IV controlled substance, and Buprenorphine from Nelson.
On December 11, 2017, Special Agents with the Drug Enforcement Administration and Investigators of the Town of Tonawanda Police Department executed a search warrant at the defendant’s Fayette Avenue residence in Tonawanda. Nelson was found in the living room area of the residence. Officers recovered oxycodone pills; acetaminophen pills containing butalbital; suboxone strips containing buprenorphine; suboxone pills containing buprenorphine; hydrocodone pills; alprazolam pills; crack cocaine; marijuana; two digital scales; and approximately $1,400 in U.S. currency.
The defendant is being held following a detention hearing this morning.
The criminal complaint is the result of an investigation by the Tonawanda Police Department, under the direction of Chief Jerome Uschold and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Toledo woman indicted for obstructing an investigation into the sex trafficking of minorsRead the Press Release
A Toledo woman was indicted for obstructing an investigation into the sex trafficking of minors, U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony said.
Laura Lloyd-Jenkins, 43, was indicted on one count of obstructing of a sex trafficking investigation and one count of making a false statement.
The charges were filed as part of a 13-count superseding indictment in which Kenneth Butler, Cordell Jenkins, and Anthony Haynes, are all charged with conspiracy to sex traffic children.
Lloyd-Jenkins obstructed a sex trafficking investigation by notifying a defendant of the forthcoming investigation on March 29, 2017, according to the indictment.
Lloyd-Jenkins made false statements to law enforcement about her knowledge of the conduct alleged in the indictment on April 12, 2017, according to the indictment.
Haynes, Butler and Jenkins sexually assaulted a juvenile girl beginning in 2014 through 2017, according to court documents.
The girl was 14 when the conduct began and she was in the custody of Hayne. Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to court documents.
Haynes routinely gave the victim money after the acts and told her not to say anything. He told her that if she said anything, it would ruin his family and his church, according to court documents.
Haynes also facilitated the victim being sexually exploited by several other men, including Jenkins, according to court documents.
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
Jenkins also caused another juvenile girl to engage in commercial sex acts in March 2017, according to the indictment
Butler also caused another juvenile girl to engage in commercial sex acts from 2015 through 2017, according to indictment.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
The Resurgence of the Justice DepartmentRead the Press Release
By Jay Town, the United States Attorney for the Northern District of Alabama. The former Marine Corps officer, and career prosecutor, was nominated by President Trump in June and confirmed by the Senate, and thereafter sworn, in August.
Like any division of government, the Department of Justice has found its share of headlines this year. There is a stark contrast between the headlines of the day and the underlying news. The headlines come with clever pageantry and facile strobe. The news in the finer font below is more often the circumstance without the pomp. Critical thought about government, including and especially the DOJ, is inevitable, but too often any intellectual curiosity about the news eludes us. As 2017 begins to give up her fight to a new year, it is perhaps a wise resolution to reflect more often upon the DOJ news than to gaze dimly at those headlines.
Violent crime is at its highest levels in decades. Under Attorney General Jeff Sessions' leadership, this frightening reality was confronted immediately. FBI data suggests that overall violent crime rates were up approximately 4 percent the last two years while the murder rates have risen at disturbing rates with a 10.8 percent increase in 2015 followed by 8.6 percent last year. In response, partnerships between federal, state, and local law enforcement have re-emerged as the force-multiplier needed to combat the increasing violence. Project Safe Neighborhoods has been revitalized, creating more robust partnerships that target violent criminals and drug traffickers in our communities. Defendants will "smartly" be prosecuted for the most serious, readily provable offenses and no longer will it be a unique approach to law enforcement to reserve bed-space in prisons for our worst offenders.
The news is that the DOJ will not cede our safety and security in one city, in one neighborhood, or on one street corner to crime.
The opioid crisis in America is the deadliest in our history. In fact, 77 percent of the 64,000 drug overdoses last year were a result of prescription opioids, synthetic opioids like Fentanyl, or heroin. Opioid abuse is the number one cause of death for anyone under the age of 50. No part of our society -- not young or old, rich or poor -- has been spared the bane of drug addiction. The DOJ has responded by aggressively leading the prosecution of "pill mill" doctors and health care providers who have traded the efficacy of care for the poison of their own greed. President Trump declared the opioid crisis a public health emergency and requested over $1 billion for anti-opioid treatment and law enforcement measures. The Department continues to stem the flow of deadly fentanyl across our borders and into our homes.
The news is that never before has there been such impactful measures to combat illegal narcotics.
The current administration has relieved law enforcement from the doldrums of previous policies by the trade winds of the freedom to pursue our worst offenders. The FBI continues to be at the forefront of not only traditional aspects of law enforcement, but also the emerging cyber and intelligence threats to our nation. The ATF and DEA continue to rid our streets of illegal guns and illicit drugs. The U.S. Marshals remain the best manhunters in the world. Our other federal partners are engaged at the highest levels. Perhaps more important, however, the morale of law enforcement is emboldened by believing once again that we have their backs, and they have our thanks.
The news is that crime again has sanction and sanction is again aggressively pursued.
Illegal immigration is at its lowest point in years while deportations continue to rise. Illegal immigrants who commit crimes are being prosecuted, not just deported, and justice given to victims of crime. Combating illegal immigration remains among DOJ's highest priorities. Transnational gangs like MS-13 can no longer take advantage of a porous border without notice. The President's travel ban was successfully defended by the Justice Department and the sanctuary of sanctuary cities is diminishing.
The news is that our borders are more secure.
There are myriad other successes of the Department of Justice. They won't fit neatly in a headline. They are too complex for the lower-third chyrons. Indeed, they are oft overshadowed by the shrewd headline's bold print. Read onward! The triumphs of the Department of Justice will continue in the finer font.
And the news is good!
Ten Area Residents Indicted for $5.4 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that 10 area residents have been indicted by a federal grand jury for their roles in a $5.4 million conspiracy to distribute methamphetamine.
Michaela Joeanne Hernandez,36, of Raymore, Mo., Brandy Michael Morgan, 44, of Kansas City, Mo., Anthony Dewayne Fifer, 46, of Mexico, Mo., Sharmyn Leanne Shryock, 27, and Jeffery Allen Jennings, 31, both of St. Joseph, Mo., Charlsie Kim Harris, 33, of Garden City, Mo., Eric Edward Ballard, 25, and Linda Kay Ballard, 65, both of Atchison, Kan., Brian Joe Russell, 36, of Amazonia, Mo., and Adrian Leon Madrigal, 27, address unknown, were charged in a five-count indictment returned under seal by a federal grand jury on Nov. 16, 2017. The indictment has been unsealed following the arrests and initial court appearances of some of the defendants.
The federal indictment alleges that all 10 co-defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2015, to Nov. 16, 2017. The indictment alleges the distribution of more than 321 kilograms of methamphetamine during the conspiracy. The five co-defendants are also charged together in one count of conspiracy to commit money laundering in connection with the drug-trafficking conspiracy.
In addition to the conspiracy counts, Hernandez is charged with one count of possessing methamphetamine with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms and ammunition. Hernandez allegedly was in possession of a Springfield Armory 9mm handgun and a loaded Taurus 9mm handgun between April 1 and Oct. 14, 2017.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hernandez has a prior felony conviction for possession of a controlled substance.
The indictment also contains a forfeiture allegation, which would require all 10 co-defendants to forfeit to the government any property derived from the proceeds of the alleged drug-trafficking conspiracy, including a money judgment of $5.4 million. This represents the amount of money received in exchange for the unlawful distribution of methamphetamine, the indictment says, based on an approximate sale price of $600 per ounce and distribution of at least 9,000 ounces (approximately 321.4 kilograms) of methamphetamine.
According to an affidavit filed in the original criminal complaint, law enforcement officers executed a search warrant at Hernandez’s prior residence in Grandview, Mo., on April 5, 2017. Hernandez was arrested and officers seized approximately 1.46 kilograms of methamphetamine, the Springfield Armory 9mm handgun and drug paraphernalia. Hernandez allegedly told officers she distributed approximately 200 pounds of methamphetamine per month during the three to six months prior to her arrest.
On Oct. 14, 2017, law enforcement officers executed a search warrant at Hernandez’s Raymore residence. Hernandez was arrested and officers seized approximately 228 grams of methamphetamine, the loaded Taurus 9mm handgun and drug paraphernalia. According to the affidavit, Hernandez told investigators that she pays between $4,700 and $6,500 per pound of methamphetamine. Hernandez allegedly stated she resupplies with the pound quantities approximately every four days.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Plattsburg, Mo., Police Department; the Atchison County, Kan., Sheriff’s Department; the Buchanan County Drug Strike Force and Sheriff’s Department; the Jackson County Drug Task Force; the Clinton County, Mo., Sheriff’s Department; the Missouri State Highway Patrol; the Cass County, Mo., Sheriff’s Department; and the Clay County Drug Task Force.
Staten Island Lawyer and Three Others Charged in Fraud, Kidnapping and Extortion SchemeRead the Press Release
An 11-count indictment was unsealed today in federal court in Brooklyn charging Richard Luthmann, George Padula III, and Michael Beck with kidnapping and kidnapping conspiracy, extortionate collection of credit, conspiracy to commit extortionate collection of credit and brandishing a firearm during the commission of those crimes. Luthmann and Padula were also charged with conspiracy to commit wire fraud, money laundering, money laundering conspiracy and aggravated identity theft, and Luthmann was additionally charged with access device fraud and a second count of aggravated identity theft. A fourth defendant, Stephen Cotogno, was charged by complaint with participating in the same wire fraud conspiracy as Luthmann, Padula and Beck. Luthmann, Padula, Beck and Cotogno were arrested earlier today and will be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (Commerce), announced the charges.
“As alleged, Richard Luthmann crossed the line from attorney to violent criminal and fraudster,” stated Acting United States Attorney Rohde. “Luthmann and his coconspirators cheated scrap metal customers in order to make easy money for themselves, took advantage of a disabled man to conceal their fraud, and used gunpoint extortion to collect a purported debt. Whether such crimes are committed on the street or in a law office, this Office and our law enforcement partners will investigate and prosecute them to the fullest extent of the law.” Ms. Rohde expressed her grateful appreciation to the FBI and Commerce, who are responsible for leading the investigation, and thanked the Department of Homeland Security, Homeland Security Investigations, the New York City Police Department and the Social Security Administration for their assistance.
“After allegedly devising a scheme to cheat potential business partners, an attorney and his cohorts threatened using a purported organized crime syndicate to manage those who disagreed with the fraud,” stated FBI Assistant Director-in-Charge Sweeney. “They are even accused of forcing a blind man to take part in their criminal attempt at profiting in business without working for it. The FBI Organized Crime Task Force will continue going after those who think the law doesn't apply to them.”
The Fraud Scheme
According to court documents, beginning in the summer of 2015, Luthmann, who is a practicing lawyer on Staten Island, New York, along with Padula and another co-conspirator
(“Co-Conspirator 1”) agreed to defraud companies seeking to purchase scrap metal. In part, the scheme involved contracting with victims to ship them containers of valuable scrap metal, but then filling the shipping containers primarily with cheap filler material. Luthmann had encouraged Co-Conspirator 1 to involve Padula in the fraud because Padula claimed that his father was a member of a New York-based organized crime family and that his uncle was a high-ranking member of that crime family. Luthmann said Padula could use his organized crime connections to settle any disputes that arose with disgruntled victims. Cotogno participated in the scheme by renting his warehouse to the co-conspirators at an above-market price, making suggestions for filler material and helping procure filler material.To facilitate the fraud, Luthmann registered fake companies, including one called Omni Metal Corporation (“Omni”), with the New York Department of State, and recruited a client of his law practice (the “client”), who was blind and living on public assistance, to be the nominal president of Omni. When the client expressed concern that he could face criminal exposure or lose his public assistance if the government learned about the arrangement, Luthmann assured the client that the government would not find out.
Luthmann, Padula and Co-Conspirator 1 agreed to have the client open bank accounts to facilitate the fraud, and between October 2015 and December 2015, victims wired over half-a-million dollars into these accounts. That money was then transferred into accounts controlled by Luthmann or Co-Conspirator 1, including Luthmann’s attorney trust account, or was withdrawn in cash and split among Luthmann, Padula and Co-Conspirator 1.
The Kidnapping and Extortion
On December 5, 2016, Luthmann asked Co-Conspirator 1 to meet him at his law office to sign some paperwork and said that they would then go out together for the evening. When Co-Conspirator 1 arrived at the office, Luthmann was not there. Co-Conspirator 1 contacted Luthmann, who told him to wait inside a conference room in the office. While
Co-Conspirator 1 was waiting, Padula and Beck entered the room and blocked him from exiting. Beck pulled out a gun, aimed it at Co-Conspirator 1’s head and knee and said he (Beck) was owed $10,000 because he had purchased a $7,000 debt that Co-Conspirator 1 owed Padula, and had added a $3,000 “vig,” or interest payment. Co-Conspirator 1 was eventually allowed to leave, but Padula told him not to contact the police.Padula and Luthmann had previously told Co-Conspirator 1 that Beck was an enforcer for the organized crime family to which Padula’s family members belonged, and that he was “muscle” for Padula. Moreover, in August 2016, Luthmann and Padula told
Co-Conspirator 1 that they had arranged for Beck to conduct a “sit down” with members of Chinese organized crime to resolve a conflict that arose out of the scrap metal fraud.The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of the charges, defendants Luthmann, Padula, and Beck each face up to life imprisonment. Cotogno faces up to 20 years’ imprisonment if convicted of wire fraud conspiracy.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Moira Kim Penza is in charge of the prosecution.
The Defendant:
RICHARD LUTHMANN
Age: 38
Residence: Staten Island, New YorkGEORGE PADULA III
Age: 29
Residence: Staten Island, New YorkMICHAEL BECK
Age: 59
Residence: Staten Island, New YorkSTEPHEN COTOGNO
Age: 48
Residence: Holmdel, New JerseyE.D.N.Y. Docket No. 17-CR-664 (JBW)
Senate Confirms United States AttorneyRead the Press Release
BOSTON – Andrew E. Lelling has been confirmed by the U.S. Senate as the United States Attorney for the District of Massachusetts.
“I am honored to be confirmed as the United States Attorney and I look forward to serving the residents of Massachusetts,” said Mr. Lelling. “As a federal prosecutor I have had the privilege of working with some of the best federal and state law enforcement officers in the country. As U.S. Attorney, I will continue to collaborate with these distinguished public servants to fulfill the mission of the Department of Justice.”
Mr. Lelling has worked for the U.S. Department of Justice for 16 years, serving first in the Civil Rights Division at Main Justice and then as an Assistant U.S. Attorney in the Eastern District of Virginia and the District of Massachusetts. In September 2017, President Donald J. Trump nominated Mr. Lelling to serve as U.S. Attorney for the District of Massachusetts; he was confirmed by the U.S. Senate late yesterday.
As an Assistant U.S. Attorney, Mr. Lelling has prosecuted complex frauds, international drug trafficking, immigration offenses and other matters. Most recently, he led the successful prosecution of one of the largest pyramid schemes ever prosecuted by the Justice Department, TelexFree, Inc., which involved nearly two million victims worldwide who lost over $3 billion. Mr. Lelling has also prosecuted major drug trafficking organizations, including the Hells Angels, domestic branches of Mexican drug cartels, and global drug traffickers based in Eastern Europe. In his role as the Senior Litigation Counsel for the office, Mr. Lelling developed enforcement policy for criminal prosecutions and trained prosecutors and law enforcement officers on criminal practice.
Before serving as a federal prosecutor, Mr. Lelling was Counsel to the Assistant Attorney General for the Civil Rights Division, focusing on voting rights enforcement and civil rights-related criminal prosecutions. Before joining the Justice Department in 2001, Mr. Lelling was a senior litigation associate at Goodwin LLP in Boston and, before that, a litigation associate at LeBoeuf, Lamb, Greene & MacRae LLP in New York. In 1994-1995, he clerked for Chief Judge B. Avant Edenfield in the United States District Court for the Southern District of Georgia.
Mr. Lelling graduated cum laude from University of Pennsylvania Law School in 1994 and received his Bachelor of Arts in Literature & Rhetoric from Binghamton University in 1991. Until recently, Mr. Lelling taught an upper-level seminar on securities regulation and enforcement at New England Law Boston. He is a member of the Federalist Society and a former member of the Boston Bar Journal’s Board of Editors.
Saratoga Doctors Convicted of Providing False Billing Statements to Health Care Benefit ProgramsRead the Press Release
SAN JOSE- Vilasini Ganesh and Gregory Belcher were convicted of providing false statements to health benefit programs by a federal jury yesterday, announced United States Attorney Brian Stretch and Special Agent in FBI Special Agent in Charge John F. Bennett. The verdicts followed an eight-week jury trial before the Honorable Lucy H. Koh, U.S. District Court Judge.
The jury found Ganesh, 47, of Saratoga, guilty of five counts of health care fraud and five counts of making false statements relating to claims fraudulently submitted to health care benefit programs. Belcher, 56, also of Saratoga, was found guilty of one count of making a false statement relating to a health care benefit program. The defendants were acquitted of conspiracy and money laundering counts, and Belcher was also acquitted of four other health care fraud counts and one other count of making a false statement relating to a health care benefit program.
Evidence at trial showed that Ganesh submitted false and fraudulent claims to several health care benefit programs for services that she knew were not properly payable, by including claims for days when the patient had not been seen by the provider, and claims that the patients had been seen by another physician provider who was no longer affiliated with her practice. Evidence at trial further demonstrated that Belcher had on at least one occasion submitted a false claim in connection with a billing matter related to his physical therapy practice. On July 13, 2017, a federal grand jury indicted the defendants, charging them with one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); and multiple counts health care fraud, in violation of 18 U.S.C. § 1347, and 2 and false statement relating to health care matters, in violation of 18 U.S.C. § 1035.
The defendants are currently out of custody, on a $350,000 bond as to Ganesh and a $250,000 bond as to Belcher.
Judge Koh scheduled the defendants’ sentencing hearing for April 4, 2018. The maximum statutory penalty for each count in violation of 18 U.S.C. Section 1347 is 10 years imprisonment and a $250,000 fine plus restitution, if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. Section 1035 is five years imprisonment and a $250,000 fine plus restitution, if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Patrick Delahunty and Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider and Nina Burney Williams. The prosecution is the result of a two-year investigation by the Federal Bureau of Investigation.
Sacramento Man Sentenced to Prison for Criminal Trademark InfringementRead the Press Release
SACRAMENTO, Calif. — Xavier L. Johnson, 37, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years and six months in prison and three years of supervised release for trafficking in goods bearing counterfeit trademarks, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from 2008 to 2011, Johnson and co-defendant Kristin Caldwell imported DVDs from China that contained counterfeit versions of children’s movies. They advertised and sold those DVDs throughout the United States using websites on which they claimed that they had obtained limited quantities of the movies. The DVDs bore counterfeit trademarks, including the names of the movies, the names of the movie studios, and other terms that were registered with the United States Patent and Trademark Office.
This case was the product of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Morris prosecuted the case.
Other defendants charged in this case and the status of their charges are:
- Kristin M. Caldwell, 35, of Sacramento, was sentenced by Judge Burrell on August 4, 2017, and was ordered to spend six months on home confinement as a condition of probation.
- William L. Brown, of Sacramento, pleaded guilty on May 5, 2017 to aiding and abetting criminal copyright infringement. He is scheduled to be sentenced on January 19, 2018.
Richardson Man Sentenced to 300 Months in Federal Prison for Attempting to Produce Child PornographyRead the Press Release
DALLAS — Donald Golden, 62, of Richardson, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 300 months in federal prison, following his guilty plea in July 2017 to one count of attempted production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Golden has been in custody since the time of his arrest in March 2017.
According to the plea agreement factual resume filed in the case, on January 5, 2017, Golden sent a series of text messages and emails to John Doe #1, a minor boy under 15 years of age, requesting that he produce sexual explicit images of himself and send the images to Golden via text messaging. The messages included the following: “So, are you going to send me some pics … I need to see what you look like naked … I want to see what you look like from the neck down, no face, naked pics, just body …”
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 case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Shane Read was in charge of the prosecution.
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Recidivist Child Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that James Campbell, 57, of Swanton, Vermont, was sentenced on December 14, 2017, in United States District Court in Rutland, Vermont, to serve 135 months in prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Campbell to serve a ten (10) year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in 2007, Campbell was convicted in Vermont Superior Court, Franklin County, of sexual assault of a child less than 16 years old. For that offense, Campbell received a sentence of 10 years imprisonment, all suspended except for 14 months. He was placed on probation upon his release.
In March 2016, law enforcement agents operating in an undercover capacity on a peer-to-peer network downloaded child pornography from another user, whom investigation determined was accessing the Internet from Campbell’s residence in Swanton, Vermont. Agents with Homeland Security Investigations executed a warrant at Campbell’s residence and seized approximately a dozen computers and hard drives. When questioned, Campbell admitted that he knowingly downloaded and possessed images of child pornography and would masturbate to those images.
Law enforcement examined Campbell’s devices. Images and videos depicting child pornography were found on 12 of the seized items. In total, approximately 1.348 million images (including some duplicates) and approximately 18,700 videos depicting child pornography, including sadistic and masochistic images and images of prepubescent children were found, with the majority being found on one of Campbell’s external hard drives. On that external hard drive, investigators discovered that the contents of the hard drive were meticulously organized into folders divided according to the month of download, victim, and the like.
United States Attorney Christina E. Nolan commended the efforts of Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Campbell. The prosecution of Campbell was handled by Assistant U.S. Attorney Barbara A. Masterson. Campbell was represented by Federal Public Defender Michael L. Desautels.
Randolph Pair Convicted of Trafficking Marijuana and Money LaunderingRead the Press Release
BOSTON – Two Randolph residents were convicted yesterday by a federal jury of distributing thousands of pounds of marijuana and laundering the proceeds.
Following a nine-day trial, Michael Gordon, 48, and Daphne Jean, 31, were convicted by a federal jury of conspiracy to distribute and possession with intent to distribute marijuana, and conspiring to launder drug money through real estate transactions. Gordon was also convicted of conspiracy to distribute and possession with intent to distribute more than 1000 kilograms (2200 pounds) of marijuana and various counts of money laundering involving the purchase of real estate in Florida and Randolph. U.S. District Court Judge Douglas P. Woodlock scheduled their sentencings for March 26, 2018.
From at least July 2011 to November 2014, Gordon shipped large amounts of marijuana from sources in California to Boston through the U.S. Postal Service and Federal Express, and then distributed the marijuana in the Boston area. Jean assisted Gordon by renting apartments that were used to receive the shipments of marijuana, and helping to launder drug proceeds. The operation produced millions of dollars in profits, and Gordon and Jean laundered the drug proceeds by participating in various financial transactions in Massachusetts and elsewhere.
Gordon faces a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, a $10 million fine, and forfeiture of the real estate and other assets involved in the offense. Jean faces a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Substantial assistance was also provided by Homeland Security Investigations in San Francisco; the Boston, Norwood, Randolph and Needham Police Departments; the Sonoma County (Calif.) Sheriff’s Department; and the Irwindale (Calif.) Police Department. Assistant U.S. Attorneys Karen Beausey and David G. Lazarus are prosecuting the case.
Randolph Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Randolph man was arrested and charged yesterday in federal court in Boston with distribution, receipt, and possession of child pornography.
Michael Lee, 51, was charged with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography. Lee appeared before Magistrate Judge Donald L. Cabell, who ordered Lee detained pending a probable cause and detention hearing scheduled for Dec. 18, 2017.
According to court records, law enforcement executed a search warrant at Lee’s Randolph home as part of an ongoing investigation into the online trade of child pornography through the use of Kik messenger. During the search, Lee admitted to trading images and videos of child pornography with other Kik users, including a New Hampshire man who provided Lee with images and videos documenting the sexual abuse of the man’s eight-year-old daughter. Preliminary on-scene forensic analysis of Lee’s cell phone confirmed his admissions.
Possession of child pornography carries a sentence of no greater than 10 years in prison; the charges of distribution and receipt of child pornography carry a mandatory minimum sentence of five years and up to 20 years in prison. All three charges provide for a mandatory minimum sentence of five years and up to a lifetime of supervised release and a fine of up to $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Quincy Woman Charged with Stealing Nearly $600,000 from EmployerRead the Press Release
BOSTON – An accountant/bookkeeper at a Boston-based company was arrested yesterday and charged in federal court in Boston with stealing approximately $588,000 of her employer’s funds.
Thanh Tam Thao Huynh, a/k/a Tiffany Huynh, 30, a Canadian national residing in Quincy, was arrested yesterday and charged with three counts of wire fraud. Huynh will appear before U.S. District Court Magistrate Judge Donald L. Cabell for a detention and probable cause hearing today.
It is alleged that from March 2016 to December 2017, Huynh was employed by a Boston-based company as an accountant/bookkeeper. Between February and October 2017, Huynh caused at least 30 unauthorized wire transfers, totaling at least $400,000, from the company’s account at Royal Bank of Canada (RBC) to unknown accounts. Huynh allegedly provided her supervisor with false information concerning the RBC’s account balance and gave him an incorrect password so that he could not check the balance himself. The complaint also alleges that from September 2016 to November 2017, Huynh caused dozens of unauthorized charges, totaling more than $160,000, to be made on the company’s business credit card for her own expenses, including her rent, car payments, and to purchase thousands of dollars’ worth of gift cards. Huynh, who was responsible for managing the company’s credit card statements, concealed her actions by deleting the details of her personal charges before providing the statements to her supervisor for review. When Huynh’s company discovered Huynh’s theft and unauthorized use of the credit card, they confronted her and Huynh admitted to both.
The charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, or twice to gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Queens Man Convicted of Enticing 16-Year-Old Girl to Travel from Abroad to Engage in Sexual ActivityRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Sean Price on four counts of a superseding indictment charging him with interstate and foreign enticement to engage in sexual activity, interstate and foreign transportation of a minor to engage in sexual activity, a Mann Act violation, and attempted sexual exploitation of a child. The verdict came after a four-day trial before United States District Judge Nicholas G. Garaufis.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations New York (HSI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The jury has held defendant Sean Price accountable for his predatory conduct, which included luring a teenage girl from her home in Australia across the world to the United States so that he could engage in an illicit sexual relationship with her,” stated Acting United States Attorney Rohde. “Today’s verdict should send a strong message that this Office, together with our law enforcement partners, will work tirelessly to identify those who would sexually exploit minors and prosecute those abusers to the fullest extent of the law.” Ms. Rohde expressed her appreciation to the New South Wales Police Force and the Australian Federal Police for their assistance in the investigation and prosecution of this matter, and commends the Australian authorities and the NYPD on the investigation and cooperation that ultimately led to the recovery of the missing girl.
“Price lured a teenage girl across the globe to satisfy his own sordid desires, taking advantage of her youth and preying on her vulnerability,” stated HSI Special Agent-in-Charge Melendez. “These cases are a harsh reminder of the importance of educating our young people on the dangers of sexual predators on the internet. HSI New York’s Trafficking in Persons Unit maintains an unwavering commitment to investigate these crimes around the world, targeting and arresting predators who transport minors for sex. And we continue to collaborate with our global partners, like the Australian Federal Police, while relying on local partnerships as with the NYPD.”
The evidence at trial established that in the fall of 2016, Price established an online relationship with a 16-year-old girl who lived in Australia. By January 2017, they were communicating with each other daily through messages on Facebook, with much of the discussion concerning Price’s desire to engage in sex with the girl, and how she could travel from Australia to join Price in New York City without law enforcement or her parents finding out. The Facebook chat messages demonstrated that Price, who was 39-years-old at the time, openly discussed the girl’s age with her, and Price told her repeatedly that he wanted to be sexually intimate with her.
Price and the girl also discussed obtaining a fake passport so the girl could travel internationally, and Price offered to impersonate her father to help her get through airport security in the United States. In chat messages, Price told the girl that they would soon be laughing at her parents and when she told Price that she did not need parental permission to fly internationally, Price responded: “So you coming to papa?” After months of planning, Price wired the girl over $900 to purchase a plane ticket to fly to Los Angeles in late March of this year. Shortly afterwards, on April 11, 2017, the girl flew on a roundtrip ticket from Sydney, Australia to Los Angeles, California, where Price was waiting for her arrival. Price hired a rental car, and he drove across the country to Price’s home in Jamaica, Queens.
Price admitted in a post-arrest statement that he and Jane Doe were involved sexually during their cross-country trip, and while they were living in Queens until she was found by law enforcement in his home four weeks later. Following her successful recovery by officers of the NYPD, Jane Doe was returned to her family in Australia.
When sentenced, Price faces up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn A. Merkl and Monica K. Castro.
The Defendant:
SEAN PRICE
Age: 39
Residence: Queens, New YorkE.D.N.Y. Docket No. 17-CR-301 (NGG)
Pennsylvania Man Admits Trading on Inside Information Related to Mercer County, New Jersey, Pharmaceutical CompanyRead the Press Release
NEWARK, N.J. – A Yardley, Pennsylvania, man today admitted his role in an insider trading conspiracy that profited from yet-to-be public information concerning a pharmaceutical company that developed a drug to treat cancer, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel Perez, 28, pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of securities fraud.
According to documents filed in the case and statements made in court:
Celator Pharmaceuticals Inc. (Celator) was a biopharmaceutical company headquartered in Ewing Township, New Jersey, that developed the drug Vyxeos to treat acute myeloid leukemia. In December 2012, Celator began Phase 3 clinical trials for Vyxeos, the results of which were highly confidential within the company. On March 14, 2016, Celator issued a press release announcing that the clinical trial results were positive.
Prior to the March 2016 announcement, Evan Kita, 27, of Yardley, who was a Celator employee from June 2013 through April 2016, learned that the Vyxeos clinical trials had produced positive results. Kita then shared that information with Perez and Richard Yu, 27, of Pennington, New Jersey, who both traded on the information.
On May 31, 2016, Celator and Jazz Pharmaceuticals PLC (Jazz) – a publicly-traded company headquartered in Dublin, Ireland – announced that they had entered an agreement for Jazz to purchase Celator in a transaction valued at approximately $1.5 billion. Jazz completed the acquisition of Celator in 2016, and now operates Celator as a wholly-owned subsidiary.
Kita learned of the potential acquisition prior to the public announcement from two close friends who still worked at Celator. Again, Kita shared the information with Perez and Richard Yu, who both traded on the information. Richard Yu, in turn, shared the information with his father, Chiang Yu, 55, of Pennington, who also traded on the information.
Perez admitted that the gain resulting from his insider trading scheme was more than $150,000, but less than $250,000.
The securities fraud charge carries a potential penalty of 20 years in prison and a $5 million fine. Kita, Richard Yu, and Chiang Yu pleaded guilty to their roles in the scheme on Aug. 31, 2017. Sentencing for all four defendants is currently set for April 18, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone, and its Philadelphia Regional Office, under the direction of G. Jeffrey Boujoukos.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Louis R. Busico Esq., Newton, Pennsylvania
Pasco County Woman Sentenced to Four Years in Prison for Tax Fraud and ObstructionRead the Press Release
Tampa, Florida – United States District Judge James D. Whittemore today sentenced Ingrid McBride Rich to four years in prison for presenting a false claim to an agency of the United States, and for obstructing and impeding the Internal Revenue Service (IRS) in the collection of taxes. As part of her sentence, the Court also ordered her to pay restitution to the IRS in the amount of $510,222.
Rich was found guilty by a federal jury on August 17, 2017.
According to evidence presented at trial, in March 2009, Rich submitted a fraudulent tax return to the IRS for tax year 2008, which resulted in her obtaining a refund check in the amount of $510,222. After obtaining the check, she deposited it into a brand new bank account, then immediately began transferring the money into various accounts, in her name and in the names of entities she owned. In an attempt to prevent the IRS from recouping the funds, Rich used cashier’s checks and at least 10 bank accounts and 4 banking institutions to hide the money. She bought nearly 100 cashier’s checks and engaged in hundreds of financial transactions over a period of nearly three years. The evidence also showed that Rich incorporated two companies in order to hide the tax refund, and hid additional money in accounts of corporations she had previously controlled.
Rich also sent the IRS various frivolous correspondence, including bogus money orders and tax documents, with the intent that it would impede the collection of the funds. Because of this obstruction, the IRS was only able to recoup a nominal amount of the fraudulently obtained funds.
This case was investigated by Internal Revenue Service–Criminal Investigation. It was prosecuted by Assistant United States Attorneys Rachel Jones and Adam Saltzman.
Ohio County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Quashad Maurante Pugh, of Wheeling, West Virginia, was indicted by a federal grand jury on December 5, 2017 on drug charges, United States Attorney Bill Powell announced.
Pugh, also known as “Q” and “Quavo,” age 23, was indicted on one count of “Distribution of Cocaine Base” and one count of “Possession with Intent to Deliver Cocaine Base within 1,000 Feet of a Protected Location.” Pugh is accused of selling cocaine and distributing cocaine near Jensen Playground in October 2017 in Ohio County.
Pugh faces up to 20 years incarceration and a fine of up to $1,000,000 for Count 1, and he faces up to 40 years incarceration and a fine of up to $2,000,000 for Count 2. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Norton Doctor Sentenced on Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Norton, Virginia physician who specialized in urology was sentenced this morning in the United States District Court for the Western District of Virginia in Abingdon on a federal drug distribution charge, United States Attorney Rick A. Mountcastle and Virginia Attorney General Mark Herring announced.
Felix Eugene Shepard, Jr., 57, was sentenced today to six months in federal prison. Shepard Jr. previously pleaded guilty to one count of distributing oxycodone, a Schedule II controlled substance.
According to evidence presented to the court by Special Assistant United States Attorney and Assistant Attorney General Suzanne Kerney-Quillen, Shepard admitted to writing 47 prescriptions for oxycodone to a person he was involved with in a sexual relationship. Over the course of two years, Shepard issued prescriptions for over 2,000 dose units of oxycodone to the person and later admitted to investigators that he had concerns the person was either addicted to or diverting the pills.
Shepard admitted to the Virginia Board of Medicine that the narcotic prescriptions were written to the person outside of a bona fide doctor-patient relationship and with whom he had a sexual relationship. Shepard continuously prescribed narcotic medications to the person without performing physical examinations, evaluations, or diagnostic testing, for conditions that were outside the scope of his urological practice. In statements Shepard made to the Virginia Board of Medicine, he expressed concern regarding the amount of oxycodone he had prescribed the person and said the amounts were indicative of addiction. However, Shepard took no action to address the person’s possible addiction and/or diversion of the oxycodone he prescribed.
The investigation of the case was conducted by the Drug Enforcement Administration-Tactical Diversion Squad. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Northfield Man Pleads Guilty to Methamphetamine, Heroin, Fentanyl, and Carfentanil Trafficking and Firearm OffensesRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced today that Justin Gauthier, 39, formerly of Northfield, New Hampshire, pleaded guilty to charges that he unlawfully possessed methamphetamine, heroin, fentanyl, and carfentanil with the intent to distribute and that he unlawfully possessed firearms in furtherance of drug trafficking crimes.
Court documents and statements in court showed that law enforcement officers executed two search warrants on Gauthier’s Northwood residence. During the first search on August 5, 2016, law enforcement officers seized quantities of methamphetamine and fentanyl, multiple firearms, and $13,980 in cash. During the second search on March 10, 2017, quantities of methamphetamine, fentanyl, carfentanil, multiple firearms, and $6,791 in cash were seized.
“Guns and drugs are a deadly combination and those who use guns as part of the drug trade present a substantial threat to our community,” said Acting U.S. Attorney Farley. “This case is particularly notable because the defendant was distributing carfentanil. Carfentanil is far more powerful than fentanyl and presents a serious public safety concern. In order to protect the public, we will work closely with all of our law enforcement partners to identify and prosecute those who seek to profit from the distribution of carfentanil and other deadly substances.”
"ATF will continue to work with our law enforcement counterparts, to aggressively combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade," said Mickey Leadingham, Special Agent in Charge, ATF Boston Field Division.
Gauthier’s sentencing is scheduled for March 27, 2018.
This case is being investigated by the New Hampshire State Police, Narcotics Investigation Unit, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tilton and Northfield, New Hampshire Police Departments. The case is being prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Northern District of Ohio to get two additional prosecutors to focus on violent crimeRead the Press Release
Today Attorney General Jeff Sessions announced the Department of Justice’s new steps in combating violent crime. The Department has selected 27 locations to receive aid in the fight against violent crime. Those locations will receive a total of 40 Assistant U.S. Attorneys, and new violent crime task forces will be launched in Charlotte, NC, and Pittsburgh, PA. The new violent crime task forces will focus on the proliferation of violent crime in the counties adjacent to Pittsburgh and Charlotte.
"Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime" said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."
More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:AUSA Breakdown by District
Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin - 2Summary of the Charlotte Violent Crime Task Force (CE VCTF) for the Western and Middle Districts of North Carolina
The CE VCTF is focused on the investigation of violent crime in the greater Charlotte metropolitan area, to include Mecklenburg, Gaston, Cleveland, Cabarrus, Union, Stanly, Anson and Montgomery Counties. The Task Force will be assigned to the FBI Charlotte Division Headquarters. The CE VCTF will focus on the significant proliferation of violent crime. Gang-related crime is already being addressed by the FBI’s Charlotte Division Safe Streets Task Force, and the new Task Force will concentrate on other violent criminal activity. Violent crime rates in Charlotte-Mecklenburg, Gaston, and Anson County exceed the national average. The CE VCTF will focus on crime exercising a significant impact on these communities. The CE VCTF will be staffed with local law enforcement as well as federal agents.
Summary of the Pittsburgh Violent Crime Task Force (PG VCTF) for the Western District of PennsylvaniaThe PG VCTF will focus on the proliferation of violent crime in the counties including and adjacent to Pittsburgh—Allegheny, Armstrong, Beaver, Butler, Clarion, Lawrence, and Mercer. The Task Force will be assigned to the FBI Pittsburgh Division Headquarters. Pittsburgh’s violent crime rating is significantly higher than the national median. With the exception of the city of Pittsburgh, each of the counties in the area of the proposed Task Force has a violent crime per capita rate that is higher than the city of Philadelphia as calculated based on 2015 FBI crime statistics. Despite the fact that violent crime has declined in several categories, the overall trend reflects a disturbing increase in violent crime. The PG VCTF will focus on violent crimes that impact public safety. The PG VCTF will enable law enforcement to work more strategically and to address violent crime with data-driven strategies. Staffing of the proposed Task Force will include federal law enforcement and representatives from local law enforcement agencies.
North Ogden Woman Pleads Guilty to Mail Fraud, Tax Evasion; Admits She Embezzled $843,673 from Her EmployerRead the Press Release
SALT LAKE CITY -- Hailey Keele, age 35, of North Ogden, pleaded guilty to one count of mail fraud and one count of tax evasion in federal court Wednesday afternoon in connection with a $843,673 embezzlement scheme at the business where she worked.
In court documents filed Wednesday, Keele admitted that from July 2006 through about November 2014, the company she worked for gave her access to its online American Express credit card account. She prepared checks drawn on her employer’s bank account to American Express and presented the checks to the company’s business manager for signature. She did this under the pretense the checks would be used to pay the company’s American Express account.
Keele admitted she did not disclose that the company’s American Express account would be fully paid by automatic online payments she set up using her online access. She also did not tell the company that she intended to use the checks to American Express for payments for her personal American Express account. Relying on her representations and omissions, the business manager signed the checks. She admitted she used the funds to pay for personal expenses and sometimes withdrew the funds in the form of cash advances, gift cards, and credit balance refund checks from American Express.
As a part of a plea agreement reached with federal prosecutors, Keele admitted she committed mail fraud in furtherance of the scheme when she contacted American Express in August 2012 to request a credit balance refund check of $36,681.15. She received the check by mail. The tax evasion conviction involves tax returns she filed for tax year 2014. According to the plea agreement, Keele knew that she had obtained significant income through her fraud scheme. However, she did not report or pay taxes on any of the $377,789 in income she obtained in 2014 through the scheme. The total amount of income tax due on the unreported income was $100,300.
U.S. District Judge Dee Benson set sentencing in the case for Feb. 21, 2018, at 2 p.m. The potential maximum penalty for the mail fraud conviction is 20 years in federal prison. The tax evasion count has a potential penalty of five years in prison. She also agreed to forfeit all property acquired or traceable to her criminal conduct, including as money judgment of $843.673.
Special agents of IRS-Criminal Investigation investigated the case. Assistant U.S. Attorneys Carl D. LeSueur and Kevin L. Sundwall of the U.S. Attorney’s Office are prosecuting the case.
North Country Man Sentenced on Methamphetamine ChargesRead the Press Release
SYRACUSE, NEW YORK – Eric Campbell, age 36, formerly of Lewis County, was sentenced today to 72 months imprisonment for possessing methamphetamine and for possessing pseudoephedrine knowing it would be used to manufacture methamphetamine, announced Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division and New York State Police Superintendent George P. Beach II.
The evidence against Campbell established that between January 2014 and November 2015, he and others purchased pseudoephedrine pills weighing more than 100 grams from different drug stores in and around Lewis County. Campbell knew there were restrictions on the sale of pseudoephedrine, and to avoid scrutiny often rotated the stores where he bought the pills. Campbell purchased the pseudoephedrine and possessed pseudoephedrine purchased by others knowing it would be used to illegally manufacture methamphetamine. On November 13, 2015, Campbell possessed approximately 107 grams of a liquid containing methamphetamine, the result of an unfinished methamphetamine “cook.”
After serving his term of imprisonment, Campbell will be on supervised release for 3 years.
This case was investigated by the New York State Police (NYSP), including the NYSP Contaminated Crime Scene Emergency Response Team (CCERT) and New York State Intelligence Center (NYSIC), the Lewis County Sheriff’s Office, and the U.S. Drug Enforcement Agency, and was prosecuted by Assistant U.S. Attorney Carl Eurenius.
New York Attorney Sentenced to over Four and A Half Years in Prison for Obstruction of Justice and PerjuryRead the Press Release
SAN FRANCISCO – Joel Zweig, an attorney who resides in New York, was sentenced to 56 months in prison for obstruction of justice and perjury, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The sentence was handed down yesterday by the Honorable William H. Orrick, U.S. District Judge, following Zweig’s guilty plea to the charges on September 19, 2017.
According to the plea agreement, Zweig, 54, admitted he manufactured evidence in an effort to establish damages in the lawsuit Pet Food Express, Limited v. Royal Canin USA, Inc., C09-1483 EMC. The lawsuit was pending in the Northern District of California. Zweig admitted he created a phony commercial lease, complete with fake signatures and a fake notarial stamp, as evidence that a business was being established in New York City. In addition, Zweig acknowledged he directed an architect to visit a property in New York City so the architect could create drawings showing a store was being opened at the property. Zweig admitted that at the time, he wrote to the architect it was unlikely that the store would be built. Nevertheless, Zweig then failed to produce his communications with the architect in response to a grand jury subpoena and lied to a postal inspector by denying he knew the phony lease would be used to support a claim for damages in the California litigation.
On May 17, 2016, a federal grand jury indicted Zweig, charging him with four counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of obstruction of justice, in violation of 18 U.S.C. § 1503; four counts of perjury, in violation of 18 U.S.C. § 1623(a); one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of false statements to a government agency, in violation of 18 U.S.C. § 1001. A trial on the charges commenced on September 11, 2017, however, on September 19, 2017, Zweig pleaded guilty to the obstruction of justice and perjury counts. Pursuant to the plea agreement, the remaining counts were dismissed.
Assistant U.S. Attorneys Robin Harris and William Frentzen are prosecuting the case. The prosecution is the result of an investigation by the FBI and the U.S. Postal Inspection Service.
New Hampshire Man Pleads Guilty to Obstruction of Justice in Connection with U.S. Department of Labor Investigation and LawsuitRead the Press Release
CONCORD, N.H. - Kevin Corriveau, 42, of Nashua, New Hampshire, pleaded guilty in federal court today to one count of obstruction of justice in connection with an investigation and litigation by the U.S. Department of Labor, Acting United States Attorney John J. Farley of the District of New Hampshire announced today.
According to court documents, Corriveau owned and operated a painting company, Kevin Corriveau Painting, Inc. Corriveau admitted that he caused an employee of his company to provide false information to investigators from the Department of Labor’s Wage and Hour Division in 2009 and 2011 regarding the extent of overtime hours worked by employees of the company.
From 2007 through April 2011, Corriveau had been directing employees to report only non-overtime work payroll and time records to conceal Fair Labor Standards Act overtime violations from being found in those records. In 2011, Corriveau himself also falsely stated to investigators that his employees did not work overtime on a Needham, Massachusetts, construction project.
In 2013, in connection with a civil suit filed against him by the Department of Labor for alleged overtime violations, Corriveau knowingly created and provided the Department’s attorneys with fraudulent invoices and an altered change order that falsely stated that his employees did not work overtime on the Needham project.
Corriveau is scheduled to be sentenced on March 26, 2018.
This is believed to be the first federal criminal prosecution arising from a Labor Department wage and hour investigation in New Hampshire. The U.S. Department of Labor’s Wage and Hour Division and Office of the Inspector General investigated the case with assistance from the Department’s Office of the Solicitor and Employee Benefits Security Administration.
The case is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella and Special Assistant U.S. Attorney Scott Miller. Scott Miller is also a Senior Trial Attorney at the Labor Department’s Office of the Solicitor in Boston, Massachusetts.
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New Castle Doctor Charged with Distributing Medications Outside the Course of Professional PracticeRead the Press Release
PITTSBURGH – On Dec. 13, 2017, a resident of New Castle, Pa., was indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The 26-count indictment named Dr. Thomas A. Ranieri, 64, of New Castle, Pa.
According to the indictment presented to the court, from Jan. 2, 2013 to June 26, 2013, Dr. Ranieri prescribed and distributed quantities of Schedule II controlled substances (i.e., Oxycodone, Fentanyl, and Opana ER) outside the usual course of professional practice.
The law provides for a maximum sentence, at each of the 26 counts, of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Ranieri.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Myrtle Beach Man Sentenced to 132 Months in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that James Coppers McKee, Jr., age 45, of Myrtle Beach, was sentenced in Florence yesterday to 132 months imprisonment followed by a three-year term of supervised release. On July 24, 2017, McKee entered a guilty plea in federal court to conspiracy to possess with intent to distribute and distribution of methamphetamine. United States District Judge R. Bryan Harwell, of Florence, imposed the sentence.
The evidence presented at the guilty plea hearing and sentencing hearing established that, as part of an extensive investigation into methamphetamine distribution in the Horry County, a team of law enforcement from multiple agencies learned that McKee was a possible methamphetamine distributor. In 2014 and 2015, agents made three controlled buys of methamphetamine from McKee. McKee was also identified as being in possession of multi-ounce quantities of methamphetamine during the conspiracy.
The case was investigated by agents with the Drug Enforcement Administration (DEA) in Florence, the Fifteenth Circuit Drug Enforcement Unit (DEU), the Florence County Sheriff’s Office (FCSO), and the Rockdale County Sheriff’s Office (RCSO) in Conyers, Georgia. Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
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Muskegon Man Sentenced to 120 Months in Federal Prison for Firearms OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Terrell Churchwell, 27, of Muskegon, Michigan was sentenced to 120 months (10 years) in federal prison for firearm offenses, U.S. Attorney Andrew B. Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 3-year term of supervised release that will commence once Churchwell is released from imprisonment.
Churchwell pled guilty on June 27, 2017, to two counts of being a felon in possession of a firearm. Churchwell admitted at the plea hearing that he possessed a handgun in the summer of 2015 and a rifle in the spring and summer of 2016. Investigation revealed that the handgun was stolen. Churchwell had previously been convicted of two felonies: a drug offense and failing to register as a sex offender.
In its sentencing memorandum, the U.S. Attorney’s Office noted that Churchwell had an "extensive history of violence – a history that started when he was 14 years old and has continued, unabated to the present." The United States detailed Churchwell’s long history of assaults, threats, and domestic violence, as well as his history of drug offenses, repeatedly failing to register as a sex offender, and other crimes. In addition, the United States proved at sentencing that Churchwell illegally possessed a number of additional firearms, which he used to threaten and intimidate others. The United States further proved that Churchwell obstructed justice in this case by tampering with witnesses. The U.S. Attorney’s Office wrote that Churchwell’s history and conduct warranted a ten-year sentence to "reflect the seriousness of the defendant’s conduct, promote respect for the law, deter future criminal conduct by the defendant, deter others from engaging in similar conduct, and provide just punishment for his criminal conduct."
U.S. Attorney Birge stated: "The defendant’s sentence sends a clear message that violence and witness tampering will not be tolerated, particularly not in Muskegon."
The charges in this case are the result of a joint investigation by the Muskegon City Police Department, the Michigan State Police, and the Bureau of Alcohol, Tobacco, and Firearms (ATF). Assistant U.S. Attorney Sean M. Lewis prosecuted the case. The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and witness tampering in the Muskegon area.
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Mount Pleasant Woman Sentenced to 6 Months Imprisonment for Tax ChargeRead the Press Release
Charleston, South Carolina---- United States Attorney Beth Drake stated that Cynthia Cave, age 45, of Mount Pleasant, was sentenced in federal court in Charleston for three counts of Filing False Tax Returns, in violation of 26 U.S.C. § 7206(1). United States District Judge Richard Mark Gergel, of Charleston, sentenced Cave to 6 months imprisonment followed by 6 months home detention.
Evidence presented at the change of plea and sentencing hearing established that Cave intentionally filed false tax returns for three separate tax years knowing that they did not accurately reflect her income. Specifically, Cave admitted that in 2010, she stated that her total income was $92,700, when in fact, her actual income was at least $148,262; in 2011, she stated that her total income was $99,975, when in fact her total income was at least $168,578; and in 2012, she stated that her total income was $95,400, when in fact her total income was at least $195,726.
Under the terms of a plea agreement reached between Cave and the Government, Cave agreed to pay Dr. Tom Funcik, her former employer, $130,000 to settle claims that she took excess compensation. Cave also agreed to pay restitution to the Government in the amount of $105,276 reflecting the tax loss to the Government.
The case was investigated by agents of the IRS and FBI. Assistant United States Attorneys Matt Austin and Winston Holliday prosecuted the case.
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More Than 20 People Sentenced to Federal Prison for Methamphetamine Trafficking and Money LaunderingRead the Press Release
Over the last year, more than twenty people have been sentenced to federal prison for their roles in a methamphetamine and money laundering conspiracy centered in Marshalltown, Iowa.
Michael Vincent Woodbury Bent, age 38, from Dubuque, Iowa, received a 300-month prison term after a November 15, 2016, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Dennis Sharkey II, age 51, from Dubuque, Iowa, received a 140-month prison term after a November 23, 2016, guilty plea to conspiracy to distribute methamphetamine.
Adam Fullbright, age 38, from Dubuque, Iowa, received a 58-month prison term after a November 23, 2016, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Chris Nauman, age 31, from Dubuque, Iowa, received an 85-month prison term after an October 27, 2016, guilty plea to conspiracy to distribute methamphetamine.
John Husemann, age 52, from Dubuque, Iowa, received a 24-month prison term after a December 21, 2016, guilty plea to conspiracy to distribute methamphetamine.
Heather Harris, age 38, from Waterloo, Iowa, received a 42-month prison term after a November 17, 2016, guilty plea to conspiracy to distribute methamphetamine.
Zach Miller, age 28, from Waterloo, Iowa, received a 90-month prison term after a November 3, 2016, guilty plea to conspiracy to distribute methamphetamine.
Jacob Burton, age 36, from Waterloo, Iowa, received a 154-month prison term after a December 21, 2016, guilty plea to conspiracy to distribute methamphetamine.
Edward Behrens, age 52, from La Crosse, Wisconsin, received a 53-month prison term after a December 28, 2016, guilty plea to conspiracy to distribute methamphetamine.
Chad Ellis Weyland, age 38, from Waterloo, Iowa, received a 144-month prison term after a February 21, 2017, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Deis Ray, age 41, from Waterloo, Iowa, received an 80-month prison term after an October 17, 2016, guilty plea to conspiracy to distribute methamphetamine.
Jay Seehase, age 38, from Waterloo, Iowa, received a 240-month prison term after a February 9, 2017, guilty plea to conspiracy to distribute methamphetamine.
Kevin Hemmer, age 42, from Waterloo, Iowa, received a 78-month prison term after a February 9, 2017, guilty plea to conspiracy to distribute methamphetamine.
Aldo Omar Lopez Martinez, age 23, of Marshalltown, Iowa, received a 360-month prison term, after a March 23, 2017, jury verdict finding him guilty of conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Adan Sanchez-Chavez, age 26, of Marshalltown, Iowa, received a 240-month prison term after a December 29, 2016, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Roque Rodriguez Arellano, age 33, of Marshalltown, Iowa, received a 48-month prison term after a January 3, 2017, guilty plea to conspiracy to distribute methamphetamine.
Susana Martinez Arreola, age 30, of Marshalltown, Iowa, received a 24-month prison term after a December 20, 2016, guilty plea to conspiracy to commit money laundering.
Michael Corwin, age 31, of Marshalltown, Iowa, received a 151-month prison term after a December 1, 2016, guilty plea to conspiracy to distribute methamphetamine.
Alejandro Hernandez, age 39, of Marshalltown, Iowa, received a 42-month prison term after a December 28, 2016, guilty plea to conspiracy to distribute methamphetamine.
Alfredo Morales, age 26, of Des Moines, Iowa, received a 120-month prison term after a December 28, 2016, guilty plea to conspiracy to distribute methamphetamine.
Isaias Lopez Martinez, age 40, of Marshalltown, Iowa, received a 144-month prison term after a May 4, 2017, guilty plea to conspiracy to distribute methamphetamine.
Ashley Marie Dean, age 30, of Waterloo, Iowa, received a 65-month prison term after a May 8, 2017, guilty plea to conspiracy to distribute methamphetamine.
Evidence at trial, and other court hearings throughout the case, showed that as early as the summer of 2013, a group of individuals agreed with each other to distribute methamphetamine. The group was centered in Marshalltown, Iowa, and was responsible for distributing hundreds of pounds of ice methamphetamine throughout Northern Iowa. Members of the conspiracy returned cash from the sale of methamphetamine to Mexico, either by wire transfer or by using cars to smuggle cash across the border. The investigation cumulated on May 9, 2016, when investigators executed 29 search warrants in Iowa and Wisconsin, and seized over $250,000, six pounds of methamphetamine, and 14 firearms. The methamphetamine had a street value of approximately $272,880.
All defendants were sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand and were ordered to pay a special assessment and to serve a term of supervised release after their prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff’s Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff’s Office).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 16-cr-1021, 16-cr-2027, 16-cr-2028, 16-cr-2046, and 17-cr-2025.
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Mobile Phone Industry Executive Convicted at Trial in Multimillion-Dollar Consumer Fraud SchemeRead the Press Release
Joon H. Kim, the United States Attorney for the Southern District of New York, announced today that DARCY WEDD, the CEO of a U.S. mobile aggregation company called Mobile Messenger, was convicted after a two-week jury trial on eight counts for his participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.”
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a Manhattan jury has unanimously found today, Darcy Wedd engaged in a scheme known as ‘auto-subscribing,’ forcing mobile phone users to pay charges for unsolicited and unwanted text messaging services, including horoscopes and celebrity gossip. The conduct of Wedd and his co-conspirators ultimately netted over a hundred million dollars in illegal profits. Thanks to the diligence of the IRS and FBI, the message is clear: perpetrators of consumer fraud schemes beware, federal investigators and prosecutors will protect everyday consumers and look to hold you accountable for your criminal fraud.”
According to the allegations contained in the Superseding Indictment and evidence presented at trial, from in or about 2011, through in or about 2013, WEDD and other co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, without the consumers’ knowledge or consent, through a practice known as “auto-subscribing.”
WEDD was the Chief Operating Officer, and eventually the Chief Executive Officer, of Mobile Messenger. In the relevant time period, mobile aggregators like Mobile Messenger compiled, or “aggregated,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills.
In or about 2010, Lin Miao, one of WEDD’s co-conspirators, who was the CEO of another company in the cellphone industry that provided premium text messaging content (the “Content Provider”), decided to begin auto-subscribing mobile phone users to the Content Provider’s premium text messaging services in order to boost the Content Provider’s sagging revenues. Miao and others built a computer program that could spoof the required consumer authorizations for premium text messaging services – i.e., a program that could generate the text message correspondence that one would ordinarily see if a consumer was genuinely signing up to receive the services (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011.
In or about October 2011, Miao met with WEDD and told him, in sum and substance, that MIAO wanted to auto-subscribe consumers through Mobile Messenger’s billing platform and needed phone numbers to do so. WEDD agreed to assist Miao. WEDD further told Miao, in sum and substance, that co-conspirator Michael Pajaczkowski, who was the Vice President of Compliance and Consumer Protection at Mobile Messenger, would provide phone numbers and assistance to Miao and that all payments needed to go through Pajaczkowski. WEDD later received his portion of the payments from Miao via Pajaczkowski.
Also in or about early 2012, WEDD, Pajaczkowski, and two other co-conspirators, Erdolo Eromo and Fraser Thompson, had discussions about how to increase revenues at Mobile Messenger, which were flagging because premium text messaging services had become less profitable. Among other things, WEDD, Pajaczkowski, Eromo, and Thompson agreed to allow co-conspirator Eugeni Tsvetnenko, who operated a content provider in Australia (“the Australian Content Provider”), to begin auto-subscribing consumers through Mobile Messenger. By at least in or about April 2012, Tsvetnenko had started auto-subscribing consumers. Over the course of the next several months through in or about mid-2013, Tsvetnenko and the Australian Content Provider auto-subscribed hundreds of thousands of phone numbers through Mobile Messenger and generated millions of dollars of revenue, which Tsvetnenko shared with WEDD, Pajaczkowski, Eromo, and Thompson.
The auto-subscription scheme affected hundreds of thousands of consumers and generated over $100 million dollars in proceeds, which the defendants apportioned among themselves and used to fund lavish lifestyles of expensive vacations, luxury cars, and gambling.
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WEDD, 40, was convicted of two counts of conspiracy to commit wire fraud, two counts of wire fraud, and two counts of conspiracy to commit money laundering, each of which carries a maximum term of 20 years in prison. WEDD was also convicted of two counts of aggravated identity theft, each of which carries a minimum term of two years in prison. WEDD was remanded into custody following the verdict and is scheduled to be sentenced on April 2, 2018, before Judge Katherine B. Forrest.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
To date, six additional defendants, Andrew Bachman, Miao, Pajackowski, Jonathan Murad, Francis Assifuah, and Eromo have pled guilty in connection with their participation in the fraud, and one additional defendant, Thompson, was convicted by a jury on September 5, 2017, following a three-week trial.
Assifuah was sentenced to 33 months in prison. Thompson is scheduled to be sentenced on January 12, 2018. Sentencing dates have not been set for Bachman, Miao, Pajackowski, Murad, or Eromo.
Mr. Kim praised the investigative work of the IRS-CI and the FBI, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul, Richard Cooper, and Jennifer L. Beidel are in charge of the prosecution.
Mississippi Doctor Sentenced to Prison for Bribery of Former Corrections CommissionerRead the Press Release
Jackson, Miss – Dr. Carl Reddix, 59, of Jackson, was sentenced today for paying bribes and kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps in exchange for receiving contracts involving the MDOC and its operations, announced United States Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Reddix was sentenced to serve 72 months in federal prison followed by 2 years of supervised release. He was also fined $15,000 and ordered to forfeit $1,266,438.00.
Reddix was a part owner of an inmate health care services provider known as Health Assurance, LLC. Reddix began paying bribes and kickbacks to Epps in 2012 to obtain contracts for Health Assurance to provide inmate health care services at East Mississippi Correctional Facility and Marshall County Correctional Facility. In 2013, Health Assurance obtained an additional contract to provide inmate health care services at Wilkinson County Correctional Facility. Reddix paid monthly bribes and kickbacks to Epps for these contracts and other potential contracts. When the scheme was discovered, Reddix had paid Epps a total of $187,500 in kickbacks. In return, Reddix and his company, Health Assurance, had obtained over $22 million in contracts with the MDOC.
"Today, justice was served. Dr. Carl Reddix personally bribed MDOC Commissioner Chris Epps at least 36 times over an approximately three-year period for numerous contracts worth millions of dollars. This wasn’t a mistake or a one-time occurrence. Sadly, it was simply greed, coupled with callousness for our government, public institutions and the criminal justice system," said U.S. Attorney Mike Hurst. "Those who allow greed and rapacity to corrupt our system of government and rule of law will be held to answer for their crimes and wrongdoings. Today’s sentence illustrates that the illegal sale of our jails will end in a jail cell."
FBI Special Agent in Charge Christopher Freeze applauded the investigators and prosecutors, whose hard work and determined efforts revealed these additional participants in this conspiracy of public corruption and led to the sentence announced today.
Reddix is scheduled to report to prison on January 29, 2018.
Mission Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 11, 2017, by U.S. District Judge Roberto A. Lange.
Richard William Neiss, age 46, was sentenced to 46 months in custody, followed by 3 years of supervised release, a $1,000 fine, forfeiture of $1,141.76 and ammunition seized by law enforcement on November 24, 2016, and a special assessment of $100 to the Federal Crime Victims Fund.
Neiss was indicted by a federal grand jury on March 15, 2017, for Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance. Neiss pled guilty to Conspiracy to Distribute a Controlled Substance (methamphetamine) on September 26, 2017.
Neiss admitted to possessing methamphetamine on three separate occasions, with the intent to further distribute it: 1) on July 22, 2014, Neiss was caught with 4 grams of methamphetamine at the Rosebud Sioux Tribe’s Casino; 2) on November 24, 2016, Neiss was stopped by Rosebud Sioux Tribal Police in Mission, and inside his vehicle was found 2.5 grams of methamphetamine, three digital scales, a large quantity of plastic baggies, $1,147.76 in U.S. currency, and a box of shotgun shells; and 3) on April 8, 2017, in Mission, Niess was arrested with 22.17 grams of methamphetamine, and a pipe and small plastic bowl with methamphetamine residue.
Further, Neiss admitted to distributing 11.1 grams of methamphetamine to another individual in Eagle Butte on February 8, 2017, for $1,050.00.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Cheyenne River Sioux Tribe Narcotics Division, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Niess was immediately turned over to the custody of the U.S. Marshals Service.
Miami Man Pleads Guilty to Bank Fruad ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Yordani Ramirez Salgado, 28, of Miami, Florida, pleaded guilty to conspiracy to commit bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that on January 18, 2017, the defendant and co-conspirators Ernesto Alvarez Santos and Abel Garcia Fernandez, flew from Miami, Florida to Hartford, Connecticut. After arriving in Connecticut, Salgado and Santos rented a car and drove to Hamburg, NY where they re-united with Fernandez. In Hamburg, Fernandez provided the defendant and Santos with numerous counterfeit access devices including gift cards re-encoded with account numbers for actual credit card or debit card accounts at various financial institutions.
Between January 23, and January 24, 2017, Salgado and Santos used 129 different counterfeit access devices to purchase gift cards at various Walmart stores in Erie, Niagara, and Orleans Counties. Upon purchasing the legitimate Walmart gift cards, the defendants transmitted the legitimate gift card numbers by cellular telephone to another co-conspirator. In addition, Salgado and Santos possessed an additional 102 different counterfeit access devices, which consisted of gift cards re-encoded with account numbers for actual credit card or debit card accounts at various financial institutions. The account holders of these credit card or debit card accounts did not authorize use of their credit card or debit card account information. The total estimated loss amount is $120,689.02.
Ernesto Alvarez Santos has previously been convicted and sentenced.The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for March 5, 2018, before Chief Judge Geraci.
Member of Cowboys Gang in South Carolina Sentenced to 20 Years in Prison for RICO ConspiracyRead the Press Release
The last indicted member of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina, was sentenced today to 20 years in prison in federal court in Charleston, South Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Dashawn Trevell Brown, aka TOB and Shawny, 24, of Walterboro, South Carolina, was sentenced to 240 months in prison by U.S. District Court Judge David C. Norton. Judge Norton sentenced Brown to three years of supervised release following his prison sentence, and restitution for victims injured as a result of his criminal activity.
According to the plea agreement, Brown was a member of the Cowboys gang, a violent street gang that originated in the “Eastside” area of Walterboro, South Carolina. Members of the Cowboys show their allegiance by wearing red, white, and blue clothing, and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body. The Cowboys gang was also, for a time, aligned with another violent street gang called the “Wildboys,” that originated out of the Green Pond area of Walterboro. In addition to sharing a common interest in posting threats, firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, Cowboys and Wildboys shared common enemies. These shared interests resulted in shootings, aimed at rival gang members, which left innocent by-standers seriously injured.
Brown was sentenced for his role in four shootings committed on behalf of his membership as a Cowboys. On May 12, 2011, after an encounter with an individual believed to be a member of a rival gang, Brown fired shots at the victim. The shooting occurred because of an on-going dispute between the Cowboys and the rival gang. Brown was identified by witnesses to the shooting. As a result of this, a retaliatory shooting occurred on May 14, 2011, during which, another innocent bystsander was shot and seriously injured. Brown was also identified as having fired shots during this incident.
Second, Brown was sentenced for his role in a June 30, 2013 shooting in the Druid Hills areas of Walterboro. Brown, who was in a vehicle occupied by two other members of the Cowboys, participated in a drive-by shooting of individuals believed to be members of a rival gang. Brown, who fired shots resulting in injuries to the victim’s arm, days later encountered the victim and told him, “I should have killed you.”
Third, Brown was sentenced for his role in the July 14, 2013 shooting at the Starlite Lounge in St. George. Brown, and other members of the Cowboys, attended a party at the lounge while dressed in Cowboys colors, including displays of red, white, and blue bandanas. While members of the Cowboys were on stage, members of the Cowboys exchanged words with a patron. After they believed they were disrespected by the patron, members of the Cowboys left the club and waited outside. As individuals began to leave the club, Brown and at least four other members of the Cowboys fired guns toward those coming out of the club. As a result of the shooting, at least three victims were shot and injured.
Lastly, Brown was sentenced for his role in a Nov. 6, 2015 attempted murder. Brown, along with co-defendants Khiry Broughton and Quintin Fishburne, attended a drag race outside of Walterboro. After bets were placed, Broughton questioned the results of the race and demanded the winnings, which were held by one of the race drivers. Broughton decided to rob the winner of the race and in so doing retrieved a backpack containing firearms from Fishburne’s vehicle. Broughton provided the firearms to Brown and other members of the Cowboys. After the winner refused to provide the money, the winner and another innocent bystander were shot and severely injured. After the shooting occurred, Fishburne, who transported Brown and Broughton, drove Brown and Broughton from the scene to avoid apprehension by the police.
Khiry Broughton, Clyde Naquan Hampton, Matthew Rashuan Jones, William Lamont Cox, Bryant Jameek Davis, Zaquann Ernest Hampton, Christopher Sean Brown, and Quintin Fishburne were all sentenced in November for their roles in criminal activity related to the Cowboys.
In August, Attorney General Jeff Sessions delivered remarks to the 2017 Gangs Across the Carolinas Training Symposium in Winston-Salem, North Carolina. Since the beginning of this year, the Department of Justice has secured more than 1,260 convictions against gang members.
The case was investigated by the ATF Charleston, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
McConnellsburg Man Charged with Distribution of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Clay Aaron Rasp, age 32, of McConnellsburg, Pennsylvania, was indicted on December 6, 2017, by a federal grand jury on charges relating to child pornography. The case was unsealed and Rasp is scheduled to appear before United States Magistrate Judge Susan E. Schwab on December 21, 2017, for his initial appearance and arraignment.
According to United States Attorney David J. Freed, the indictment alleges that Rasp possessed and distributed child pornography between and including January 2017 and July 2017. The indictment also alleges that Rasp produced a morphed image of child pornography.
The Lower Heidelberg Police Department, the Pennsylvania State Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Chelsea Schinnour is prosecuting 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."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Chiropractor Convicted of Filing Fraudulent Tax Returns and Obstructing the IRSRead the Press Release
A jury convicted a Salisbury, Maryland, chiropractor yesterday of filing fraudulent income tax returns and attempting to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the evidence presented at trial, Dr. Warren Gregory Belcher, 59, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that did not report that he operated a chiropractic business and fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting payments made to him for his services to the Internal Revenue Service (IRS) on a Form 1099-MISC. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. The evidence showed that Belcher himself submitted fraudulent Forms 1099-MISC to the IRS falsely representing that companies that had reported his income to the IRS had not actually paid him income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. The evidence established that Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
At trial, Belcher testified that he filed these “zero returns” based on a theory he read in a book called Cracking the Code. Belcher admitted that he knew the author of the book, Peter Hendrickson, and the author’s wife, Doreen Hendrickson, had both convicted of tax crimes.
U.S. District Judge Richard D. Bennett set sentencing for March 9, 2018. Belcher faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Sean R. Delaney of the District of Maryland, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Maryland Chiropractor Convicted of Filing Fraudulent Tax Returns and Obstructing the IRSRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A jury convicted a Salisbury, Maryland, chiropractor yesterday of filing fraudulent income tax returns and attempting to obstruct the internal revenue laws. The conviction was announced by Acting U.S. Attorney Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the evidence presented at trial, Dr. Warren Gregory Belcher, 59, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that did not report that he operated a chiropractic business and fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting payments made to him for his services to the Internal Revenue Service (IRS) on a Form 1099-MISC. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. The evidence showed that Belcher himself submitted fraudulent Forms 1099-MISC to the IRS falsely representing that companies that had reported his income to the IRS had not actually paid him income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. The evidence established that Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
At trial, Belcher testified that he filed these “zero returns” based on a theory he read in a book called Cracking the Code. Belcher admitted that he knew the author of the book, Peter Hendrickson, and the author’s wife, Doreen Hendrickson, had both convicted of tax crimes.
U.S. District Judge Richard D. Bennett set sentencing for March 9, 2018. Belcher faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release, restitution and monetary penalties.
U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg and Acting commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Sean R. Delaney and Trial Attorney Melissa S. Siskind of the Tax Division, who are prosecuting the case.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Marshall County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Carl N. Hooker, of Moundsville, West Virginia, was arraigned today in federal court after being indicted by a federal grand jury on December 5, 2017 on drug charges, United States Attorney Bill Powell announced.
Hooker, age 55, was indicted on one count of “Conspiracy to distribute and to possess with the intent to distribute oxycodone” and three counts of “Distribution of Oxycodone.” Hooker is accused of conspiring with others to distribute oxycodone, as well as selling oxycodone from 2009 to November 2017 in Marshall County.
Hooker faces up to 20 years incarceration and a fine of up to $1,000,000 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 Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Magistrate Judge James E. Seibert presided.
Manhattan U.S. Attorney Announces Charges Against President of Park Avenue Art Gallery in Manhattan for Defrauding Art Dealers and Collectors of Valuable Artwork and Millions of DollarsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Division (“FBI”), announced today the unsealing of a complaint charging EZRA CHOWAIKI with fraud and transportation of stolen property for using his art gallery located on Park Avenue in Manhattan to defraud art dealers and collectors of millions of dollars. EZRA CHOWAIKI surrendered this morning to FBI agents and will be presented before Magistrate Judge Katharine H. Parker this afternoon.
Acting U.S. Attorney Joon H. Kim said: “While Ezra Chowaiki appeared to buy and sell high-end artwork in his upscale Manhattan gallery, as alleged, he sold clients nothing more than an illusion. Chowaiki allegedly tricked his clients into investing hundreds of thousands of dollars in artwork that he never actually bought and secretly sold artwork that they had entrusted to him. As a result of Chowaiki’s alleged fraud, valuable works of art have been stolen from their rightful owners and unlawfully distributed all over the world.”
FBI Assistant Director William F. Sweeney Jr. said: “Investors believed the subject in this case had their best interests at heart, taking their money in an investment, but never followed through on his promises. When they dared to demand their money back, he allegedly refused. We believe there may be others out there who could be a victim of this scheme, and we ask that they contact us at [email protected].”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
Until November 2017, EZRA CHOWAIKI was the president and the minority owner of a private art gallery located on Park Avenue in New York, New York (the “Gallery”). CHOWAIKI founded the Gallery in or about 2004, and since that time, CHOWAIKI has used the Gallery to facilitate the purchase, sale, and consignment of works of fine art, as well as for the hosting of various art exhibitions featuring works of art and sculptures by well-known artists such as Pablo Picasso, Alexander Calder, Marc Chagall, and others. CHOWAIKI lost control of the Gallery in or about November 2017 when the Gallery filed for bankruptcy and was taken over by a trustee to oversee its liquidation.
Between at least in or about 2015 and 2017, through the Gallery, CHOWAIKI engaged in a scheme to deceive other dealers and collectors of fine artwork into sending him money or valuable artwork under the false pretenses that CHOWAIKI would engage in legitimate transactions such as the purchase, sale, or consignment of those artworks. In truth, however, CHOWAIKI did not, and often could not, conduct the transactions as promised, and instead kept funds and artwork for himself and the Gallery, or sold them to others both in and outside the United States, without authorization.
For example, a number of victims reported being asked by CHOWAIKI to invest money to purchase artwork through the Gallery that would then be sold by the Gallery, thereby generating profit for the investors. After a number of these investors sent hundreds of thousands of dollars to CHOWAIKI, CHOWAIKI did not use the funds to purchase the artwork, nor did he return the money to the investors. Similarly, other victims reported consigning artwork to CHOWAIKI for sale by the Gallery. After these victims attempted to cancel the consignments, CHOWAIKI refused to return the artwork and, in some cases, purported to sell the artwork to other galleries and auctioneers located in the United States and abroad with the authorization of the work’s rightful owner.
At the time the Gallery filed for bankruptcy and CHOWAIKI was removed as president, the Gallery purported to have only approximately $276,681 in assets, whereas the Gallery owed at least approximately $11.8 million in claims to dozens of art dealers and others, including those who had sent money to the Gallery to buy artwork or who had consigned artwork to the Gallery that was never returned.
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CHOWAIKI, 49, of Brooklyn, New York, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum potential sentence of 20 years in prison, and one count of interstate transportation of stolen goods, which carries a maximum potential sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the work of the FBI and the New York City Police Department’s Major Case Squad. Any person who believes he/she is a victim of this crime is encouraged to send an email to [email protected].
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Daniel M. Tracer is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety 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.
Man Sentenced for Conspiring to Distribute OpioidsRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 90 months in prison for his participation in a conspiracy to distribute oxycodone and methadone.
According to court documents, Robert T. Hancasky, III, 32, conspired with others, including his father, Robert T. Hancasky, Jr., to obtain oxycodone and methadone and distribute it to others. In particular, Hancasky, Jr. obtained oxycodone and methadone through a prescription from his doctor. The father and son duo then agreed to distribute these prescription opioids to customers and addicts in northern Virginia. Hancasky, III also participated in a scheme to obtain oxycodone by passing fraudulent prescriptions at local pharmacies. In furtherance of this scheme, Hancasky, III produced a fraudulent prescription for oxycodone, recruited “runners” to pass fake prescriptions at local pharmacies, and compensated the runners with oxycodone pills. In his plea papers, Hancasky, III also admitted to distributing heroin as well as buprenorphine, a Schedule III controlled substance.
Hancasky, Jr., pleaded guilty to his role in the conspiracy on December 8, and is scheduled to be sentenced on April 13, 2018.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Kyle Reynolds and Assistant U.S. Attorney Whitney Russell 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. 1:17-cr-158.
Los Angeles-Area Woman Charged in Federal Case that Alleges Murder-for-Hire Plot Against Boyfriend with Life Insurance PolicyRead the Press Release
LOS ANGELES – Federal authorities this week arrested a Bellflower woman on federal charges that she contracted with an FBI informant to kill her boyfriend in exchange for a portion of the proceeds she expected to collect from a life insurance policy.
Rasheeda Johnson Turner, 37, was arrested Wednesday evening and was charged in a criminal complaint with use of interstate commerce facilities in the commission of murder for hire.
Turner, who has used the online monikers “Fiesty” and “Mz. Fiesty,” made her first court appearance yesterday afternoon and was ordered detained pending trial.
The criminal complaint filed in United States District Court alleges that Turner sought assistance in murdering her boyfriend – who is identified in court documents by the initials L.G. – so that she could collect the proceeds from his life insurance policy. Turner told the informant she was the beneficiary of a $150,000 life insurance policy and that she would pay the killer $50,000.
During a series of conversations over the past two weeks that are outlined in the affidavit in support of the criminal complaint, Turner told the informant that she initially planned to kill the intended victim herself – and she had obtained “pure acid” as part of the scheme – but feared being discovered and did not follow through with the plan.
In the days after their initial meeting and discussion of the plot on December 4, Turner called the informant and made statements – such as “that fly needs to be swatted” – which the informant interpreted as meaning Turner wanted the murder to occur soon. During a meeting in a Lakewood park on December 8, Turner told the informant that she wanted the boyfriend killed before he could take her off the life insurance policy and cut off her access to his bank accounts, according to the affidavit. Turner labeled the murder plot “Operation Dumbo,” and told the informant that she wanted the man killed this week.
Turner had shown the informant an app on her mobile telephone which allowed her to track the location of the victim’s telephone. On Wednesday, the informant called Turner and asked where the victim was located at that moment. Turner provided the location of the intended victim and confirmed that the informant would be paid for the murder. The FBI then contacted the victim and arrested Turner.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
At yesterday’s court hearing, a United States Magistrate Judge scheduled a preliminary hearing for December 28 and ordered Turner to appear for an arraignment on January 4.
If she were to be convicted of the murder-for-hire charge alleged in the complaint, Turner would face a statutory maximum sentence of 10 years in federal prison.
The investigation into Turner’s alleged scheme is being conducted by the Federal Bureau of Investigation.
The case against Turner is being prosecuted by Assistant United States Attorney Justin Rhoades, Chief of the Violent and Organized Crime Section.
Los Angeles County Man Arrested in Fresno County for Possessing CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment Thursday against Omar Patron-Valdez, 25, of Santa Fe Springs, charging him with possession of one kilogram or more of cocaine with the intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on November 30, 2017, Patron-Valdez was driving northbound on I-5 near Nees Avenue in Fresno County when CHP stopped him for having illegally tinted windows. The CHP narcotics detection dog alerted to the vehicle Patron-Valdez was driving, and a hidden compartment was located. Officers found four kilogram-sized bricks in the compartment that tested positive for cocaine.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Patron-Valdez faces a mandatory term of five years in prison and a maximum statutory penalty of 40 years in prison and a $4 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of Violent International Drug Trafficking and Gambling Enterprise Sentenced to More than 21 YearsRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin Katz (619) 546-9714 or Mark W. Pletcher (619) 546-9604
NEWS RELEASE SUMMARY – December 15, 2017
SAN DIEGO – Owen Hanson, the leader of the violent “ODOG” racketeering enterprise, was sentenced to 255 months in prison and a lifetime of supervised release for leading an international drug trafficking, gambling and money laundering enterprise that operated in the United States, Central and South America and Australia from 2012 to 2016.
According to court records, ODOG trafficked thousands of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), marijuana, anabolic steroids and Human Growth Hormone (“HGH”). As Hanson admitted, ODOG’s drug operation routinely distributed controlled substances at wholesale and retail levels, including selling performing enhancing drugs to numerous professional athletes. The organization also operated a vast illegal gambling operation focused on high-stakes wagers placed on sporting events. The Enterprise used threats and violence against its gambling and drug customers to force compliance. One particular victim who owed ODOG more than $2 million described in graphic detail at today’s hearing how Hanson sought to collect the debt by sending DVD’s to the victim and the victim’s wife showing beheadings, as well as a photo of victim’s desecrated family’s gravestone.
United States District Judge William Q. Hayes explained that a severe sentence was warranted because of the “staggering” and “astounding” size and scope of ODOG’s criminal activities. Noting that Hanson moved hundreds of kilograms of drugs, all over the globe, month after month made him truly an “international drug trafficker.” Judge Hayes commented to Hanson: “It is difficult to understand how you got here, other than greed.”
According to the government’s sentencing papers, Hanson’s criminal activity started while he was a football player at the University of Southern California, where he “birth[ed] his drug trafficking empire by selling recreational drugs and steroids to his teammates” of a national championship football team, and used his business degree to “to build a criminal enterprise that exploited people at their lowest moments.”
“Transnational racketeering organizations like ‘ODOG’ represent a clear and present danger to the safety and security of our communities, our country, and our international partners,” observed United States Attorney Adam Braverman. “From shipping enormous quantities of dangerous drugs around the globe, to operating illegal bookmaking enterprises, to laundering millions of dollars in criminal proceeds, the breadth and scope of Hanson’s illicit activity was truly staggering, and is directly reflected by the more than two-decades long sentence imposed today.”
“Dismantling major international and national organized criminal enterprises is a longstanding area of Bureau expertise,” said FBI Special Agent in Charge Eric S. Birnbaum. “The goal of the FBI is to bring down entire organizations, especially those with a wide reach. Today's sentence, along with the 21 other convicted co-conspirators, emphasizes that the 'ODOG criminal organization' will no longer traffic drugs on our streets; will no longer run its illegal gambling ring; and will no longer bring violence upon those who are obstacles to their greed and desire to grow an illegal and dangerous enterprise.”
“The long prison sentence handed down today is appropriate and well deserved. Mr. Hanson was held accountable for his brazen actions as a leader and an organizer of a criminal enterprise,” stated Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation. “The government will now use asset forfeiture as the final lever to seize a significant portion of the illegal proceeds generated by this drug distribution and gambling operation. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
Hanson’s criminal career was ascendant when the FBI took down his operation. According to sentencing papers, “Hanson showed no signs of stopping this criminal activity. He bragged to undercover agents about the success of his operation and his aspirations to be even bigger. In the days leading up to his arrest, Hanson communicated with an undercover FBI agent to coordinate a methamphetamine deal. The night before Hanson was arrested, the undercover agent sent Hanson a message letting him know the deal was done and that the methamphetamine was ‘fine stuff.’ Hanson replied, ‘Told u – we don’t **** around.’ In response, the undercover agent thanked Hanson and told him to get a good night’s sleep. Hanson replied, ‘Money doesn’t sleep.’” Ultimately, the government argued that Hanson’s downfall brought down others, noting that associating with Hanson “turned gamblers into bookies, drug addicts into dealers, and friends into felons.”
In addition to serving more than 21 years in prison, Hanson was also sentenced to pay a criminal forfeiture in the amount of $5 million, including $100,000 in gold and silver coins, a Porsche Panamera, two Range Rovers, luxury watches, homes in Costa Rica, Peru and Cabo San Lucas, a sailboat, and interests in several businesses.
So far, 21 of the 22 defendants charged in connection with this case have pleaded guilty, including:
- Luke Fairfield, a San Diego based Certified Public Accountant who assisted Hanson with laundering the proceeds of his various illegal endeavors by setting up shell corporations and advising members of the Enterprise on how to structure bank transactions to avoid detection by bank security and law enforcement;
- Derek Loville, a former professional football player, who pleaded guilty to distributing retail quantities of drugs for the ODOG Enterprise in Arizona;
- Daniel Portley-Hanks, a Los Angeles based private investigator who assisted Hanson with tracking down delinquent gamblers and other individuals who owed the enterprise money; and
- Jack Rissell, an “enforcer” who, in one instance, travelled from Southern California to Minneapolis to attack a delinquent gambler
One remaining defendant, Khalid Petras, awaits trial.
The case arose out of a joint investigation by FBI and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015 after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine. Assistant U. S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case.
DEFENDANT Case Number: 15CR2310-WQH
Owen Hanson Age: 34
Luke Fairfield Age: 40
Kenny Hilinski Age: 39
Giovanni Brandolino Age: 42
Daniel Portley-Hanks Age: 70
Jack Rissell Age: 50
Derek Loville Age: 48
Chalie D’Agostino Age: 52
Marlyn Villareal Age: 32
Dylan Anderson Age: 34
Tim Bryan Age: 48
Jim Muse Age: 53
Jeff Bellandi aka “Jazzy” Age: 50
Curtis Chen Age: 33
James Duley Age: 41
Dee Foxx Age: 35
Khalid Petras Age: 55
Rahul Bhagat Age: 31
David Kipper Age: 35
Todd Oldham Age: 32
Daniel Ortega Age: 42
SUMMARY OF CHARGES
Count 1
Racketeering Conspiracy to Conduct RICO Enterprise Affairs, 18 U.S.C. § 1962(d)
Maximum penalty: Life in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of any property obtained or operated by RICO enterprise, 5 years’ supervised release.
Count 4
Conspiracy to Distribute Narcotics, 21 U.S.C. § 841(a)(1) and 846
Maximum penalty: Life in prison, fine of $10,000,000 or twice the gross gain or loss caused by the offense, forfeiture of any proceeds, 10 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
*As to defendant Khalid Petras, the charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Kaufman Man Sentenced to 123 Months in Federal Prison for Bank RobberiesRead the Press Release
DALLAS — A Kaufman man, Danny Hall, 51, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 123 months in federal prison for committing multiple bank robberies, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Hall pleaded guilty in June 2017 to one count of bank robbery. He has been in custody since the time of his arrest in January 2017.
According to the plea agreement factual resume, on January 9, 2017, Hall entered the Wells Fargo Bank branch located at 1405 E. Renner Road, Richardson, Texas, and approached a teller. He handed her a note that read, “I have a gun, this is a robbery, and give me cash.” The teller gave Hall cash from the teller drawer totaling $2,692. Hall collected the money and left the bank. Later, he was identified in a photographic line-up by the teller and then arrested.
According to the factual resume, Hall also admitted to the following robberies: November 28, 2016 robbery of the BB&T Bank branch located at 11800 Preston Road, Dallas; January 18, 2017 robbery of the Capital One Bank branch located at 4208 Lemmon Avenue, Dallas; and December 22, 2016 robbery of the Chase Bank branch located at 11611 Preston Road, Dallas.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Shane Read prosecuted.
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