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15 December 2017
Investment Fund Manager Sentenced in Brooklyn Federal Court to 55 Months’ Imprisonment for Orchestrating Multi-Million Dollar Fraud SchemesRead the Press Release
Earlier today, John R. Lakian, a manager of Capital L Financial Group, LLC (Capital L) and Aegis Capital Fund, LLC (Aegis Capital Fund), was sentenced to 55 months’ imprisonment, having pleaded guilty to two counts of securities fraud for defrauding investors out of millions of dollars in two separate schemes. The Court also ordered Lakian to pay restitution to the victims in the amount $15,640,582.46. The sentencing took place before United States District Judge Frederic Block at the federal courthouse in Brooklyn.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Lakian and his co-defendant stole millions of dollars entrusted to them by investors, many of them hard-working individuals who have been robbed of financial security in their retirement years by the defendants’ fraudulent scheme,” stated Acting United States Attorney Rohde. “This Office, together with our partners at the FBI, is committed to bringing to justice those who deceive the investing public in order to line their own pockets.”
“While Lakian and his co-defendant were living in the lap of luxury, those who invested not only their money with him, but their faith in him, were unwittingly funding this lavish lifestyle,” stated FBI Assistant Director-in-Charge Sweeney. “Today's sentencing should remind all investment fund managers of their obligation to put the interests of their clients ahead of their own. If you don't, we won't let you get away with it.”
Between 2009 and 2013, Lakian was involved in two schemes to steal investors’ money. In the first, he and his co-defendant, Diane Lamm, obtained more than $11 million by promising Capital L investors that their money would be used to purchase, consolidate, and sell registered investment advisory businesses. Instead, Lakian and his co-defendant diverted more than $3 million to themselves and to entities, including hospitality businesses, that they owned and controlled. In the second scheme, Lakian and his co-defendant embezzled money through their management of Aegis Capital Fund, a North Carolina-based investment fund that was placed into liquidation in 2011. Prior to the liquidation, Lakian and his co-defendant directed more than $2.4 million of Fund assets into hospitality businesses without informing the Fund’s investors that Lakian and his co-defendant owned and controlled these businesses. More than $1.9 million of the $2.4 million of fund assets was never recovered by the investors. Additionally, following the Fund’s liquidation, instead of returning investment proceeds to investors, Lakian and his co-defendant diverted more than $2 million of investors’ money to themselves and to their hospitality businesses. The government has identified credit card charges and company expenses or purposes unrelated to the purchase, consolidation and sale of registered investment advisers. Charges were incurred, for example, for clothing, furniture and fine art from luxury stores such as Bergdorf Goodman, Gucci, and Paul Stewart; stays at the Palace and Waldorf Astoria hotels in New York City; getaways at luxury resorts; and items for Lakian and his co-defendant’s restaurant business.
Lakian’s co-defendant, Diane Lamm, pleaded guilty in February 2016 to two counts of securities fraud and is scheduled to be sentenced on January 25, 2018.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Whitman G.S. Knapp is in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendants:
JOHN R. LAKIAN
Age: 74
New York, New York
E.D.N.Y. Docket No. 15-CR-0043 (FB)
Investment Adviser Sentenced in Brooklyn Federal Court to 42 Months’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Marc Broidy, the founder, Principal, and Chief Executive Officer of Broidy Wealth Advisors, LLC, was sentenced by United States District Judge Eric N. Vitaliano to 42 months’ imprisonment for committing investment adviser fraud, to be followed by three years of supervised release. The Court also ordered Broidy to pay $1,694,464.00 in restitution to his victims.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
According to court filings and facts presented at his guilty plea proceeding, from November 2010 to July 2016, Broidy engaged in a scheme to defraud his clients both by taking $640,000 in management fees to which he was not entitled, and also by stealing more than $865,000 worth of stock held in trusts, over which he was trustee, to repay a client who discovered his fraudulent overbilling scheme. Broidy used the money he stole to pay for personal expenses such as his home mortgage, overseas travel and car payments. To cover up his theft, Broidy falsified tax records and invoices, and lied to an accountant for one victim. When one of the victims discovered Broidy’s theft and demanded repayment, Broidy stole from the trust accounts of another client’s children, over which Broidy was trustee, to make the payments. Broidy also failed to disclose to his clients, as required by law, that he was receiving commissions from companies whose stock he caused his clients to purchase.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew Amatruda is in charge of the prosecution. Ms. Rohde thanked the U.S. Securities and Exchange Commission, New York Regional Office (SEC), for their assistance during the investigation.
The Defendant:
MARC BROIDY
Age: 43
Residence: Los Angeles, CaliforniaE.D.N.Y. Docket No. 17-CR-64 (ENV)
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on December 14, 2017 and entering pleas of Not Guilty were:
- LAFAVEN DESHAWN ADAMS, a 46-year-old resident of Paramount, California, appeared on charges of conspiracy to possess with intent to distribute oxycodone, and possession with intent to distribute oxycodone. If convicted of the most serious charge contained in the indictment, ADAMS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by Homeland Security Investigations and the Russell Country Drug Task Force. PACER Case Reference. 17-49
Appearing before U.S. Magistrate Johnston in Great Falls on December 12, 2017 and entering pleas of Not Guilty were:
- KORDELL KYLE BIG KNIFE, a 23-year-old resident of Box Elder, appeared on charges of assault resulting in substantial bodily injury. If convicted of the charge contained in the indictment, BIG KNIFE faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-79
- WACEY MOUNTAIN CHIEF, a 30-year-old resident of Browning, appeared on charges of strangulation. If convicted of the charge contained in the indictment, MOUNTAIN CHIEF faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the, Federal Bureau of Investigation. PACER Case Reference. 17-83
Appearing before U.S. Magistrate Lynch in Missoula on December 12, 2017 and entering pleas of Not Guilty were:
- TYRELL BELGARDE, a 27-year-old resident of Browning, appeared on charges of strangulation and assault resulting in substantial bodily injury. If convicted of the most serious charge contained in the indictment, BELGARDE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-72
Appearing before U.S. Magistrate Johnston in Great Falls on December 5, 2017 and entering pleas of Not Guilty were:
- CHERYLE WHITE HAWK JORDAN, a 50-year-old resident of Sidney, appeared on charges of mail fraud, false claim to the federal government, and false statement to federal agent. If convicted of the most serious charges contained in the indictment, JORDAN faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General. PACER Case Reference. 17-74
- GEORGIE ELAINE RUSSELL, a 36-year-old resident of Box Elder, appeared on charges of theft from an Indian tribal government receiving federal grants, theft from an Indian tribal organization, and false statements regarding federal funding. If convicted of the most serious charges contained in the indictment, RUSSELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the, Federal Bureau of Investigation, Bureau of Indian Affairs, and the U.S. Department of Interior Office of Inspector General. PACER Case Reference. 16-46
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Individual Indicted for Hobbs Act Robbery and Firearms ViolationsRead the Press Release
SAN JUAN, Puerto Rico – On December 14, 2017, a federal grand jury returned a seven-count indictment against Herbert Santiago-De Jesús for Hobbs Act (18 U.S.C. 1951 (Interference with commerce by robbery) (two counts), possessing, brandishing and discharging firearms and a machinegun in furtherance of a crime of violence (18 U.S.C.§ 924(c)(1)(A)(i)(ii),(iii), and (B)(ii)), and being a felon in possession of firearms (18 U.S.C. 922 (g)(1)), announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
According to the indictment, on September 17, 2016 Santiago-De Jesús did unlawfully take U.S. Currency four hundred and fifty dollars ($450.00), from Mi Barrita Familiar in Juana Díaz, PR, in the presence of employees and clients, against their will by means of actual and threatened force, violence, and fear of injury, immediate and future to their persons, that is, threatening the employees and clients with a machinegun in order to commit the robbery. In this incident, two persons were injured.
On or about September 10, 2017, the defendant herein, aided and abetted by others, did unlawfully take U.S. Currency from Delgens Bar, also in Juana Díaz, PR, threatening the employees and clients with a machinegun in order to commit the robbery. During the robberies, the defendant fired machineguns and patrons were injured.
For these crimes, the defendant is facing a maximum penalty of 20 years in prison for each robbery count, 10 years mandatory minimum for each count of discharging a firearm in furtherance of a crime of violence, and 30 years mandatory minimum on each count of possession of a machinegun in furtherance of a crime of violence. For the felon in possession charge, the maximum penalty is 10 years imprisonment. Special Assistant U.S. Attorney Penélope Castellanos-Diloné is in charge of the prosecution of the case.
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Illegal Alien from Mexico Sentenced to Prison after Returning to the United States Following Two DeportationsRead the Press Release
A Mexican man who had previously been deported two times was sentenced on December 12, 2017, to 18 months in federal prison.
Ramiro Abarca-Martinez, age 29, a native and citizen of Mexico illegally residing in Tama County, Iowa, received the prison term after a September 14, 2017, guilty plea to illegal reentry of a removed alien after a felony conviction.
Abarca-Martinez admitted he illegally reentered the United States without permission in 2014 after having been deported from the United States in November 2009 and in November 2012. Abarca-Martinez was first deported in 2009 after being convicted in Idaho of felony possession of cocaine. On August 3, 2017, Abarca-Martinez was convicted in Iowa District Court for Tama County of the felony offense of burglary in the third degree.
Abarca-Martinez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Abarca-Martinez was sentenced to 18 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Abarca-Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-58.
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Houston Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – A 37-year-old Houston man has been ordered to federal prison following his conviction of receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Jose Pico pleaded guilty July 26, 2017.
Today, U.S. District Judge Melinda Harmon handed Pico 121 and120 months for the receipt and possession convictions, respectively. Pico will also serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation revealed Pico was uploading and storing child pornography into a virtual storage account. Law enforcement conducted a search at Pico’s residence, at which time they seized a cell phone and gaming device that were forfeited as part of the sentence imposed today. Examination of his virtual storage account also revealed images of prepubescent minors who were under the age of 12. The virtual storage account contained 291 images and 446 videos of child pornography.
Pico was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri Zack prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARCIO RODOLFO OCHOA-BORJAS, age 31, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien after deportation.
According to the Bill of Information, OCHOA-BORJAS reentered the United States on or about June 30, 2017, after having been previously removed therefrom on or about August 16, 2012.
OCHOA-BORJAS faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for January 25, 2018.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
High Point Man Sentenced on Child Pornography ChargeRead the Press Release
GREENSBORO, N.C. – An individual who pleaded guilty to receipt of child pornography was sentenced yesterday, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
ROBERT EDWARD ABELL III, 35, of High Point, North Carolina, pleaded guilty on August 14, 2017, to one count of receipt of child pornography. He was sentenced by United States District Judge Catherine C. Eagles to 262 months imprisonment followed by lifetime supervised release. ABELL was previously convicted of taking Indecent Liberties with a Child in Guilford County in 2005.
Investigators searched ABELL’s apartment on March 8, 2016, after observing that someone using ABELL’s IP address was sharing child pornography via a peer-to-peer network. They found child pornography files depicting prepubescent children being sexually molested and peer-to-peer software on ABELL’s computer.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including the North Carolina State Bureau of Investigation, Homeland Security Investigations, and the High Point Police Department.
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 online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Hialeah Woman Sentenced to 36 Months Imprisonment for Embezzling over $2.6 Million from Local BusinessRead the Press Release
A Hialeah woman was sentenced to 36 months in prison, to be followed by three years of supervised release, for embezzling over $2.6 million from local business.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Carmen Silvia Rodriguez, 55, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the charging document, from April 2010 through May 2016, Rodriguez worked for Starboard Cruise Services, Inc. (“SCS”), a Florida company that operates tax- and duty-free retail stores aboard cruise ships.
During the course of the scheme, Rodriguez worked as a supervisor in SCS’s Finance and Administration Department. There, Rodriguez accessed company records related to two former SCS vendors (“SCS Vendor #1” and “SCS Vendor #2”) and added her own bank account information to the two vendors’ accounts. SCS Vendor #1 and SCS Vendor #2 did not do business with SCS after 2010.
Between April 1, 2010, and May 31, 2016, Rodriguez created false internal invoices that inflated the price of certain products purchased by SCS, often by overstating the shipping and handling costs associated with SCS’s purchase of the products. Rodriguez also created false internal invoices that purportedly reflected the purchase of certain products by SCS. For each of the inflated and/or false internal invoices, Rodriguez created a false purchase order, listing either SCS Vendor #1 or SCS Vendor #2 as the payee, for the difference between the money actually owed to the vendor, if any, and the inflated and/or false invoice price.
By creating the false purchase orders and making them payable to SCS Vendor #1 and/or SCS Vendor #2, Rodriguez caused approximately $2,669,372.30, in electronic Automated Clearinghouse payments to be transmitted from SCS’s bank account to Rodriguez’s personal bank accounts.
At sentencing, Rodriguez was ordered to pay restitution to SCS in the amount of $2,669,372.30.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Christopher Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Gulfport Man Sentenced for False Statement in Purchasing FirearmRead the Press Release
Gulfport, Miss. – Isaac Q. Coleman, 25, of Gulfport, Mississippi, was sentenced yesterday to seven months in federal prison and five months of home confinement, followed by 2 years of supervised release, for knowingly making a false statement in connection with the purchase of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Coleman was also ordered to pay a $3,500.00 fine. He pled guilty to the charge on September 20, 2017, before U.S. District Judge Louis Guirola, Jr.
On January 13, 2017, Coleman purchased a handgun at Cook’s Gun Shop, in D’Iberville, Mississippi, for Tony D. Crawford, a convicted felon. Coleman and Crawford entered the Gun Shop together and shopped for a firearm together. Crawford then paid Coleman, and Coleman purchased a 9mm pistol from the store. In purchasing the firearm, Coleman knowingly provided a false and fictitious written statement to the federal firearms licensee. Coleman knew his false statement on the ATF Form 4473 contained information which was required to be kept in official records, and that the gun shop could not complete the transaction if it was known that the firearm actually was being purchased in what is commonly known as a "straw purchase".
Ultimately, the firearm was found by ATF agents in the possession of Crawford. He was charged and pled guilty to illegal possession of a firearm by a convicted felon. Crawford is scheduled to be sentenced on January 22, 2018, by U.S. District Judge Sul Ozerden, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Biloxi Police Department, and the D’Iberville Police Department. It was prosecuted by Assistant U.S. Attorney Stan Harris.
Guilty Verdict for Connecticut Man Charged with Identity Theft and Related CrimesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that a federal jury unanimously convicted WALTER GLENN, of Connecticut, following a week-long jury trial before Chief U.S. District Judge Brian A. Jackson.
The defendant had been charged in a Superseding Indictment with conspiracy to make and pass counterfeit checks, produce fraudulent identification documents, and use unauthorized access devices, in violation of Title 18, United States Code, Sections 371 and 2, access device fraud, in violation of Title 18, United States Code, Sections 1029(a)(3) and (2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. GLENN is scheduled to be sentenced on April 6, 2018, and he faces a significant term of imprisonment, including a mandatory term of imprisonment of 2 years on the aggravated identity theft count, which, by statute, will be consecutive to the sentences imposed on the first two offenses. Following his convictions today, the Court revoked GLENN’s bond and remanded GLENN to the custody of the United States Marshal’s Service.
The evidence at trial demonstrated that GLENN and others obtained and possessed the personal identifying information of more than four hundred (400) individual victims, and used the information to create fraudulent identification cards and counterfeit checks that would allow them to engage in fraudulent transactions at retailers. Using rental vehicles, GLENN and others traveled across the country and engaged in fraudulent transactions using their victims’ identifiers. Through their scheme, between January of 2014 and August of 2015, GLENN and others attempted to cash almost $2,000,000 in counterfeit checks and defrauded various retailers out of almost $1 million.
Earlier this week, on the first day of the scheduled trial, GLENN’s co-conspirator, THOMAS JAMES, entered guilty pleas to the charges against him. JAMES also faces a significant term of imprisonment as a result of his convictions in this case.
Acting United States Attorney Corey R. Amundson stated, “Justice was served today. The evidence at trial demonstrated that the defendant was behind a significant identity theft and access device fraud scheme that victimized more than 400 individuals and caused nearly $1,000,000 in actual loss. I commend the excellent work of all of the prosecutors and agents who have worked on this matter, and I am especially appreciative of the successful teamwork demonstrated by the seven different law enforcement agencies who contributed to this conviction.”
This multi-jurisdictional investigation was led by the United States Secret Service, which received valuable assistance from the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Massachusetts State Police, the Connecticut State Police, the Hartford Police Department, and the Garland Police Department in Garland, Texas. The case is being prosecuted by Assistant U.S. Attorneys M. Patricia Jones, Kevin R. Sanchez, and Jessica M.P. Thornhill.
Greenville Man Pleads Guilty to Child Porn ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Micah R. Vickery, age 37, of Greenville, pled guilty in federal court in Anderson, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Timothy M. Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement conducted a proactive investigation involving a file-sharing network used by individuals with an interest in child pornography. An undercover officer downloaded a video that Vickery had available for sharing.
A federal search warrant was obtained and executed. Electronic devices were seized and law enforcement found 900 images of child pornography. Vickery admitted to having a problem with all sorts of pornography and admitted to searching for and downloading child pornography. Agents found images of children under the age of 18, and some prepubescent, engaged in the lascivious display of the genitals and sexual activity.
Ms. Drake stated the maximum penalty Vickery can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with ICE - Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Four Men Plead Guilty in Manhattan Federal Court to Two 2016 Bank BurglariesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that four defendants have pled guilty to participating in two bank burglaries. In April and May 2016, MICHAEL MAZZARA, CHARLES KERRIGAN, and ANTHONY MASCUZZIO, assisted by CHRISTOPHER KERRIGAN, stole more than $5 million in cash, jewelry, collectables, and other valuables from the banks’ vaults and safe deposit boxes.
Acting U.S. Attorney Joon H. Kim said: “Like a scene from a movie, these defendants used blow torches to cut into bank roofs, and subsequently vaults and safe deposit boxes, to steal more than $5 million in cash and customer valuables. But the scene in court today was of guilty pleas under oath and the prospect of real-life prison.”
According to the Complaint and Indictments filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
In April and May 2016, MAZZARA, CHARLES KERRIGAN, MASCUZZIO, and CHRISTOPHER KERRIGAN formed a crew that burglarized banks in Brooklyn and Queens, New York, by cutting into the banks’ vaults and the safe deposit boxes inside. Specifically, from about April 8 to April 10, 2016, MAZZARA, CHARLES KERRIGAN, and MASCUZZIO, with the assistance of CHRISTOPHER KERRIGAN, burglarized an HSBC Bank branch in Brooklyn, and from about May 19 to May 22, 2016, MAZZARA, CHARLES KERRIGAN, and MASCUZZIO, with the assistance of CHRISTOPHER KERRIGAN, burglarized a Maspeth Federal Savings Bank branch in Queens. On both occasions, the burglars used acetylene blowtorches to cut into the top of the banks’ vaults from the roof of the building. At the Maspeth Federal Savings Bank branch, they shielded their activities from view by constructing a plywood shed on the roof of the bank. The burglars then entered the vaults from above and took cash belonging to the bank and broke open customers’ safe deposit boxes, stealing the valuables inside. In total, the crew obtained more than $600,000 in cash and more than $4.3 million in valuables from both banks. Surveillance footage captured some of the burglars’ activities as they prepared for and executed the burglaries. Financial records and video surveillance also showed MAZZARA and MASCUZZIO purchasing some of the supplies that appear to have been used in the Maspeth burglary.
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MAZZARA, 45, of Brooklyn, New York, pled guilty before Hon. Katherine B. Forrest on December 13, 2017, to two counts of bank theft, each of which carries a maximum sentence of 10 years in prison. MAZZARA will be sentenced by Judge Forrest on April 13, 2017.
CHARLES KERRIGAN, 42, of Brooklyn, New York, pled guilty before Judge Forrest on December 11, 2017, to one count of conspiracy to commit bank burglary and bank theft, which carries a maximum sentence of five years in prison, two counts of bank burglary, each of which carries a maximum sentence of 20 years in prison, and two counts of bank theft, each of which carries a maximum sentence of 10 years in prison. CHARLES KERRIGAN also pled guilty to one count of witness retaliation while on pre-trial release, in connection with his assault of an individual who he believed had provided information regarding the burglaries to the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”). That count carries a maximum sentence of 20 years in prison, and a mandatory consecutive term of 10 years in prison. CHARLES KERRIGAN will be sentenced by Judge Forrest on April 6, 2017.
MASCUZZIO, 38, of Brooklyn, New York, pled guilty before Judge Forrest on December 15, 2017, to two counts of bank theft, each of which carries a maximum sentence of 10 years in prison. MASCUZZIO will be sentenced by Judge Forrest on May 4, 2018.
CHRISTOPHER KERRIGAN, 40, of Staten Island, New York, pled guilty before Judge Forrest on November 9, 2017, to one count of conspiracy to commit bank burglary and bank theft, which carries a maximum sentence of five years in prison, one count of bank burglary, which carries a maximum sentence of 20 years in prison, and one count of bank theft, which carries a maximum sentence of 10 years in prison. CHRISTOPHER KERRIGAN will be sentenced by Judge Forrest on March 30, 2018.
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.
Mr. Kim praised the outstanding investigative efforts of the FBI and NYPD.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Benet J. Kearney and David W. Denton, Jr., are in charge of the prosecution.
Four Individuals Indicted for Distribution of FentanylRead the Press Release
LEXINGTON, Ky. — A federal grand jury has indicted four individuals for drug crimes related to the distribution of large quantities of fentanyl. Gadiel Ortiz-Flores, age 39, of Lawrenceburg, Ky., Brian Walker Hensley, age 38, also of Lawrenceburg, Ky., Miguel Alberto Esparza, age 29, of Lexington, and Megan Nicole Slone, age 24, also of Lexington, were indicted yesterday for both conspiracy and distribution offenses related to fentanyl. Fentanyl is an extremely potent opioid, which is as much as 80 to 100 times more potent than morphine and 25 to 100 times more potent than heroin.
The indictment alleges that, beginning in August 2017 and continuing through December 5, 2017, the four named defendants conspired to distribute 400 grams or more of fentanyl in Fayette and Anderson counties. The indictment further alleges distribution of fentanyl in Fayette County, on specific dates in August, September, and November 2017. Finally, the indictment charges each of the defendants with possessing 400 grams or more of fentanyl with the intent to distribute it.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Chris Evans, Special Agent in Charge, DEA, jointly announced the return of the indictment.
The investigation preceding the indictment was conducted by the DEA and the Anderson County Sheriff’s Department. The indictment was presented to the grand jury by Assistant United States Attorney Todd Bradbury.
Appearances for the defendants, before the United States District Court, have not yet been set. If convicted, each defendant faces a maximum sentence of life in prison. However, any sentence following conviction would be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
Fort Wayne Man Sentenced to 74 MonthsRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that, Patrick Davis , 30 of Fort Wayne, Indiana, was sentenced by Chief District Court Judge Theresa L. Springmann, for Sex Trafficking of Children.
Davis was sentenced to 74 months imprisonment followed by 2 years of supervised release.
According to Court filings, between January, 2016 and March, 2016, Davis engaged a minor female in online conversation. Over a period of time, Davis convinced the minor female to run away from home with him. It was Davis’ intention to have the minor female engage in prostitution to make money for Davis.
This case was investigated by the Federal Bureau of Investigation and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Washington D.C.-Based Internal Revenue Service Attorney Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Jack Vitayanon pleaded guilty to conspiring with others to distribute over 500 grams of methamphetamine. According to court filings and facts presented during the plea proceeding, at the time of his February 2017 arrest in Washington, D.C., Vitayanon was employed as an Attorney-Advisor by the United States Treasury Department, Internal Revenue Service, Office of Professional Responsibility.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations New York (HSI), announced the guilty plea.
Ms. Rohde also expressed her grateful appreciation to the United States Treasury Department Inspector General, HSI’s High Intensity Drug Trafficking Area group in Washington, D.C. and the United States Attorney’s Office for the District of Columbia.
As detailed in the complaint, Vitayanon conspired with others in Arizona and on Long Island to distribute methamphetamine for several years. Vitayanon negotiated and consummated the sales of distribution quantities of methamphetamine to undercover HSI special agents on Long Island. The negotiations occurred via recorded internet-based video chats and text messages, and the defendant shipped the methamphetamine from his apartment in Washington D.C. to Long Island via Federal Express.
The recipient of the package, acting at the direction of law enforcement, recorded a video chat with Vitayanon over the internet on Dec. 15, 2016, and, during the recorded conversation, Vitayanon was observed in his residence smoking what appeared to be methamphetamine from a glass pipe, according to the complaint.
A search of the Vitayanon’s Washington D.C. apartment executed pursuant to a court-authorized search warrant led to the seizure of additional quantities of suspected methamphetamine, drug paraphernalia, packaging materials and drug ledgers.
Today’s proceeding took place before United States District Judge Joanna Seybert. When sentenced, Vitayanon faces up to life in prison, as well as forfeiture and a fine of up to $10 million.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
JACK VITAYANON
Age: 42
Washington, D.C.E.D.N.Y. Docket No. 17-CR-80 (JS)
Former Teacher Arrested for Production of Child PornographyRead the Press Release
LAREDO, Texas – A 37-year-olf former teacher has been charged in a criminal complaint with production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Ruben Guillermo Ulloa was taken into custody today and made his initial appearance before U.S. Magistrate Judge Guillermo Garcia. At that time, Ulloa was ordered into custody pending a probable cause and detention hearing set for Dec. 20.
The case originated when a 15-year-old who was receiving piano lessons from the Ulloa made a report to authorities, according to the complaint. Ulloa had allegedly been having a sexual relationship with the teenager, whom he had previously taught at a Laredo area school.
The criminal complaint alleges that authorities executed a search warrant on Ulloa’s home and recovered several computers and electronic devices. A forensic search of these devices uncovered pornographic images of the child, which Ulloa had allegedly taken.
Ulloa is charged with production of child pornography and faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas A&M International University Police and the Laredo Police Department.
Assistant U.S. Attorney Alfredo De La Rosa is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Substitute Teacher and Private Tutor Sentenced to more than 16 years in Prison for Child Pornography OffensesRead the Press Release
Assistant U. S. Attorneys Alessandra P. Serano (619) 546-8104 or Connie V. Wu (619) 546-8592
NEWS RELEASE SUMMARY – December 15, 2017
SAN DIEGO –Marlin Lee Gougher was sentenced today to 200 months in prison and 20 years of supervised release for distributing, receiving and possessing child pornography. Gougher, a former substitute teacher in the Temecula School District and private tutor, was convicted after a jury trial in September 2017.
At trial, Gougher was found to have possessed two laptop computers with over 300 videos of child pornography, some of which depicted children as young as four years of age. The FBI executed the search warrant on his Oceanside apartment in January 2013 where they located names of children Gougher had privately tutored over several years. To date, no one has come forward claiming any sexual misconduct by Gougher.
In imposing the 200 month sentence, United States District Court Judge William Q. Hayes commented that the images were “the worst I’ve ever seen.” Judge Hayes noted that the “horrific and heart-breaking nature” of the child pornography videos. Some videos depicted children under the age of five being raped by adult males. Judge Hayes said that the victims of child pornography suffer “psychological damage that can’t be undone. They don’t get a determinate sentence.”
U.S. Attorney Adam L. Braverman said, “All child exploitation cases are heinous, but the actions of this defendant, whose profession afforded him special access to young students, are particularly appalling. We will use the full resources of the Department of Justice to seek the longest sentences possible for those who victimize children.”
“Each video and each image that Mr. Gougher possessed represented the victimization of a child. This case is particularly disturbing given the defendant’s former position as a teacher and tutor.” said FBI Special Agent in Charge Eric S. Birnbaum. “We hope the resulting sentence from this investigation sends a clear message to anyone involved in the online sexual exploitation of a child: the FBI is steadfast and committed to identifying child predators and protecting the innocence of our children.”
DEFENDANT Case Number 14cr0635-WQH
Marlin Lee Gougher Age: 59 Oceanside, CA
SUMMARY OF CHARGES
Distribution and Receipt of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2)
Maximum penalty: 20 years’ imprisonment with a mandatory minimum sentence of 5 years. Lifetime of supervised release
Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(4)
Maximum penalty: 20 years’ imprisonment. Lifetime of supervised release
AGENCY
Federal Bureau of Investigation
Former School Janitor Sentenced to Five Years in Prison for 2005 Sexual Assault of 12-Year-Old GirlRead the Press Release
WASHINGTON – Mandell L. Whitted, 50, of Capitol Heights, Md., was sentenced today to five years in prison on a felony charge stemming from the sexual abuse of a 12-year-old girl, which took place in 2005 while he was a janitor at an elementary school in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Whitted pled guilty in August 2017, in the Superior Court of the District of Columbia, to a charge of attempted first-degree child sexual abuse. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of five years in prison. The Honorable Hiram E. Puig-Lugo accepted the plea and sentenced the defendant accordingly. Following his prison term, Whitted will be placed on six years of supervised release. He also will be required to register as a sex offender for 10 years.
According to a proffer of facts submitted at the plea hearing, Whitted worked in 2005 as a janitor at J.C. Nalle Elementary School, in the 200 block of 50th Street SE. During the summer between her fifth grade at that school and her sixth grade at another school, the 12-year-old girl worked at J.C. Nalle Elementary on a cleaning crew. Then, in the fall of 2005, she returned to the school to work at an after-school program. In the period between May 2005 through November 2005, according to the proffer, Whitted sexually assaulted the girl on numerous occasions at various locations, including the janitor’s office.
Whitted was arrested in February 2017, following an investigation by the Metropolitan Police Department (MPD). He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Supervisor Dr. Lorraine Chase, Paralegal Specialist T.J. McPhail, and Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the matter.
Former Police Sgt. Sentenced on Child Pornography ChargeRead the Press Release
PROVIDENCE – A former Attleboro, Mass., police sergeant was sentenced today to 60 months in federal prison and ordered remanded immediately into federal custody for attempted receipt of child pornography. Richard F. Woodhead, 54, of South Attleboro, Mass., was arrested in April by Homeland Security Investigations (HSI) agents and members of the Rhode Island State Police Internet Crimes Against Children (ICAC) task force following a court authorized search of his home and the seizure of digital media storage devices containing child pornography.
Woodhead pleaded guilty on August 18, 2017, to attempted receipt of child pornography.
The sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael S. Shea Acting Special Agent in Charge of Homeland Security Investigations for New England.
At sentencing, U.S. District Court Chief Judge Smith also ordered Woodhead to serve 10 years supervised release upon completion of his term of incarceration and imposed special assessments totaling $5,100. The statutorily required minimum sentence of 5 years imposed by the Court is greater than the U.S. Sentencing Guidelines imprisonment range in this matter of 46-57 months. The government recommended the Court impose a sentence of 60 months of incarceration.
According to court documents and information presented to the Court, between September 22, 2016, and January 19, 2017, Woodhead posted multiple online advertisements entitled “Perv on your daughter – m4m.” In the advertisement, the defendant requested to see nude pictures of people’s daughters. In January 2017, a Rhode Island State Police detective assigned to the ICAC task force discovered the posting and responded to the advertisement in an undercover capacity, pretending to be the guardian of a young child. He began communicating with Woodhead via email. During these conversations, Woodhead requested a photograph of the child and described in explicit terms the types of sexual relations he wanted to have with the child.
According to court documents and information presented to the Court, in late January 2017, Woodhead agreed to continue the conversations via telephone. An HSI agent, acting in an undercover capacity as the guardian of a child, had three conversations with Woodhead, all of which were recorded by law enforcement. During these telephone calls, the agent and the defendant discussed meeting so that Woodhead might engage in sexual relations with the child. Woodhead requested that the agent send him naked pictures of the child.
On April 6, 2017, HSI agents and ICAC task force members executed a court-authorized search of Woodhead’s residence. During that search, behind a wall in a secret compartment of a closet off the master bedroom, a state police detective located a thumb drive and four discs, nylons, two bottles of acetone, and a picture of a school-aged female. One disc contained a video, which depicted prepubescent boys masturbating and engaging in sexual acts. The thumb drive contained nude photographs of minor teenage girls engaged in the lascivious exhibition of their genitals.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Former Pelham Resident Sentenced to Two Years in Prison for Tax Evasion SchemeRead the Press Release
CONCORD, N.H. - Gary Peter Borak, 50, formerly of the Pelham, New Hampshire area, was sentenced to two years in prison for participating in a tax evasion scheme, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Borak filed a legitimate federal income tax return for 2007 – prepared by his accountant -- that established that he had an outstanding tax debt of more than $50,000. In response to IRS efforts to collect that debt after Borak failed to pay it, Borak engaged in a series of ploys in an attempt to defeat the payment of the tax and the assessment of new income taxes for future tax years.
Among other things, in 2011, Borak filed an amended return for 2007 and an original, but delinquent, tax return for 2008 in which he made bogus claims that he had large amounts of Original Issue Discount (often abbreviated “OID”) income and large amounts of corresponding withholding from a so-called non-existent “straw man” financial account. He claimed that the withholding not only satisfied his outstanding tax debt from 2007, but also qualified him for large tax refunds. To support his false claims, Borak created fake IRS forms purportedly prepared and issued by a particular bank and sent the IRS volumes of correspondence and other documents containing highly unconventional and meritless claims about the tax laws. Borak persisted in pressing his bogus claims even after the IRS and his accountant told him that they were frivolous. He also attempted to satisfy his tax debt by submitting sham financial instruments to the IRS.
Finally, until about two weeks before entering his guilty plea, Borak failed to file any tax returns for tax years 2009 through 2016, even though he earned substantial amounts of income in at least several of those years. Borak’s conduct resulted in an actual tax loss to the U.S. Treasury of about $168,147.
Borak previously had pleaded guilty to one count of tax evasion two counts of making false statements on his tax returns. After serving his two-year prison sentence, he will serve three years of supervised release. He also was ordered to pay full restitution to the United States Treasury.
“This case shows that there are substantial penalties for those who attempt to use fraudulent techniques to avoid their tax obligations,” said Acting U.S. Attorney Farley. “The defendant’s scheme of creating false documents in order to try to mislead the IRS was unlawful and he has been held accountable for his actions.”
“Our voluntary system of self-reported tax liability depends upon people to honestly report their income and timely pay their taxes,” said Joel Garland, Special Agent in Charge of IRS Criminal Investigation. “Those who willfully file false tax returns and obstruct the IRS in their collection efforts damage our nation’s system of taxation. Violators will be prosecuted, punished, and obligated to repay their taxes along with applicable penalties and interest, which are substantial.”
This matter was investigated by the Manchester office of Criminal Investigation of the Internal Revenue Service and the Treasury Inspector General for Tax Administration. They were assisted by the Rockingham County and Hillsborough County Sheriff Departments and the Atkinson, Hudson, Salem, and Pelham police departments. The case is being prosecuted by Assistant U.S. Attorneys Seth Aframe and Bill Morse.
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Former Louisville Area Teacher and Athletics Coach Sentenced to 72 Months in Prison for Violations of Child Exploitation LawsRead the Press Release
LOUISVILLE, Ky. – A Louisville man formerly employed by Kentucky Country Day of Louisville as a physical education teacher and assistant coach with the school’s athletics department was sentenced this week, in United States District Court, by Senior Judge Thomas B. Russell, to 72 months in prison and 20 years of supervised release, for violating child exploitation laws, announced United States Russell M. Coleman.
Matthew Graves, age 40, pleaded guilty to two counts of a federal indictment on September 8, 2017. According to the plea agreement, between the dates of December 8 and 9, of 2014, Graves, while in Kentucky, knowingly used KIK (a social media messaging application) to transport and receive images of minors engaged in sexually explicit conduct with another KIK user in Maryland.
At the time of sentencing, the United States moved for dismissal of Counts one and Counts two of the Indictment, and agreed that a sentence of 72 months was appropriate.
Graves was arrested by federal authorities on March 21, 2016, and has remained in in the custody of the U.S. Marshals Service.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the FBI and LMPD.
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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 and click on the tab "resources."
Former Honduran Congressman and Businessman Sentenced to 36 Months for Money LaunderingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that Yani Benjamin Rosenthal Hidalgo was sentenced to 36 months in prison for engaging in monetary transactions in property derived from drug trafficking offenses. ROSENTHAL pled guilty on July 26, 2017, before U.S. District Judge John G. Koeltl, who imposed today’s sentence. During the course of the money laundering scheme, ROSENTHAL was a Honduran congressman between 2010 and 2014, and a candidate for president of Honduras between 2012 and 2013.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he previously admitted in court, Yani Rosenthal was a prominent Honduran politician and businessman who moonlighted as a money launderer for the Cachiros, a violent Honduran drug organization. Now this former presidential candidate has received a prison sentence called for by his crimes committed on behalf of a ruthless criminal syndicate.”
According to the Indictment, other court filings, and statements made during court proceedings[1]:
ROSENTHAL and his co-defendants – including Jaime Rolando Rosenthal Oliva, ROSENTHAL’s father and a former vice president and congressman in Honduras – used entities associated with a holding company controlled by the Rosenthal family, Inversiones Continental (Panama), S.A. de C.V. (“Inversiones Continental”), to launder drug proceeds for the Cachiros, a prolific and violent Honduran criminal syndicate that distributed huge quantities of cocaine before being dismantled by the Drug Enforcement Administration (“DEA”). Through his conduct, which occurred over a period of at least approximately five years, ROSENTHAL provided the Cachiros with sources of funding for their criminal enterprise, a means to launder their narcotics proceeds, and public legitimacy, thereby contributing to an environment of impunity that allowed the Cachiros to thrive in Honduras and to import tons of cocaine into the United States.
ROSENTHAL and his co-defendants helped the Cachiros launder drug money and gain access to the international financial system. ROSENTHAL enriched himself through this conduct by profiting from business transactions with the Cachiros. In 2012, while ROSENTHAL acted as a Honduran congressman and campaigned for the Honduran presidency, he accepted hundreds of thousands of dollars in drug proceeds from one of the leaders of the Cachiros and another major Honduran drug trafficker who led a separate drug trafficking organization, which were styled as purported campaign contributions. Several aspects of the Cachiros money laundering scheme also received support from Fabio Porfirio Lobo, the son of a former president of Honduras. Lobo was sentenced on September 5, 2017, by U.S. District Judge Lorna G. Schofield in United States v. Lobo, No. 15 Cr. 174 (LGS) to 24 years in prison based on his conviction for participating in a conspiracy with members of the Cachiros and others to import cocaine into the United States.
ROSENTHAL’s money laundering conduct involved a trade-based scheme in which the Cachiros used a front company, Ganaderos Agricultores Del Norte S De RL De CV (“Ganaderos”), to purchase cattle with drug proceeds at auctions in Honduras. ROSENTHAL and others used Empacadora Continental, S.A. de C.V. (“Empacadora”), a cattle- and meat-processing firm affiliated with Inversiones Continental, to purchase the narcotics-derived cattle from Ganaderos. Between 2008 and 2013, while Rosenthal acted as the vice president of Empacadora, he caused Empacadora to buy cattle from Ganaderos, knowing that Ganaderos was financed and supported by drug trafficking proceeds of the Cachiros. By knowingly authorizing Empacadora to engage in transactions in criminally derived property, ROSENTHAL used the company in connection with a process that allowed the Cachiros to conceal the criminally derived nature of the Ganaderos assets, and to obtain fresh funds from Empacadora that were used to promote Cachiros drug trafficking activities and purchase other assets. Empacadora, in turn, processed and exported the meat to the United States, among other places, in exchange for payments to Empacadora from U.S.-based companies that totaled approximately $500,000 between 2008 and 2013. Over that same period, Empacadora paid a total of $6.8 million to Ganaderos in connection with the scheme.
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In addition to the prison term, ROSENTHAL, 52, was ordered to forfeit $500,000 and to pay a $2.5 million fine. ROSENTHAL also remains designated as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act, along with Rosenthal Oliva, Yankel Antonio Rosenthal Coello (ROSENTHAL’s cousin and co-defendant), Inversiones Continental, Empacadora, and Banco Continental, among other entities, as announced in October 2015 by the U.S. Department of Treasury, Office of Foreign Assets Control (“OFAC”).
Mr. Kim praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as OFAC and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Matthew J. Laroche, and Jane Kim are in charge of the prosecution.
The charges contained in the Indictment against Jaime Rolando Rosenthal Oliva are merely accusations, and Rosenthal Oliva is presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendant Jaime Rolando Rosenthal Oliva constitute only allegations, and every fact described should be treated as an allegation with respect to Rosenthal Oliva.
Former Homer police officer sentenced to 10 months in prison for conspiring to commit mail fraudRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a former Homer Police officer was sentenced to 10 months in prison for his role in a vehicle fraud theft and insurance scheme.
Donald W. Malray, 52, of Homer, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of mail fraud conspiracy. He was also sentenced to three years of supervised release, and he was ordered to pay $13,610.50 restitution and a $3,500 fine. According to the August 30, 2017 guilty plea, Malray and another individual planned a scheme to fake a vehicle and trailer theft, and then file an insurance claim to collect the money on the value of the property. On August 4, 2015, Malray and the other individual transferred the ATV and trailer to Malray’s possession after they met in Ruston, La. Malray then instructed the other individual to call the Homer Police Department and report the ATV and trailer stolen. The insurance company paid the individual in the conspiracy with Malray approximately $13,000 on September 8, 2015. Law enforcement agents recovered the ATV and trailer on January 31, 2017 in Ruston, La.
The DEA and the Claiborne Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Former Florida State Health Care Administration Official Sentenced to More Than Four Years in Prison for Accepting BribesRead the Press Release
A former employee of Florida’s Agency for Health Care Administration (AHCA) was sentenced today to 57 months in prison for accepting bribes in exchange for providing confidential information about health care facilities that received Medicare and Medicaid funds.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Bertha Blanco, 66, of Miami, Florida, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. Judge Ungaro also ordered Blanco to pay $441,000 in restitution and to forfeit $100,000, which represents the gross proceeds traced to Blanco’s commission of the offense. Blanco pleaded guilty on Oct. 13 to one count of bribery concerning a program receiving federal funds.
AHCA’s Division of Health Quality Assurance is responsible for the licensure and regulation of health care facilities in Florida that receive Medicare and Medicaid funds, including skilled nursing facilities (SNFs), assisted living facilities (ALFs) and home health agencies (HHAs). As part of her guilty plea, Blanco, who was employed by AHCA for approximately 30 years, admitted that, from at least 2007 through June 2015, she solicited and received thousands of dollars of cash bribes from Miami-area owners of SNFs, ALFs and HHAs, and intermediaries working with them, in exchange for providing the purchasers with sensitive, nonpublic AHCA reports and information related to their facilities. The information included the schedules of future unannounced inspections by AHCA surveyors and previously undisclosed patient complaints filed with AHCA. Blanco knew that the information she provided in exchange for bribes could ultimately be used to fabricate and falsify medical paperwork and to temporarily remedy deficiencies so that AHCA would not discover lapses in patient care and revoke the licenses of the facilities that had received the information.
The purchasers of information provided by Blanco included Philip Esformes, Isabel Lopez, Gustavo Mustelier, Gabriel Delgado, Guillermo Delgado, and Sila Luis. Esformes is awaiting trial, presently scheduled for March 2018, on numerous charges related to health care fraud, wire fraud, kickbacks, money laundering, bribery, and obstruction of justice. Lopez and Mustelier pleaded guilty in May 2017 to conspiracy to defraud the United States and are awaiting sentencing. Gabriel Delgado pleaded guilty in 2015 to money laundering and was sentenced to 55 months in prison. Guillermo Delgado pleaded guilty in 2015 to conspiracy to distribute a controlled substance and was sentenced to 110 months in prison. Luis pleaded guilty in June 2017 to conspiracy to commit health care fraud and was sentenced to 80 months in prison.
The FBI and HHS-OIG investigated this case. Trial Attorneys David Snider, Elizabeth Young and Drew Bradylyons of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Former Florida State Health Care Administration Official Sentenced to More Than Four Years in Prison for Accepting BribesRead the Press Release
A former employee of Florida’s Agency for Health Care Administration (AHCA) was sentenced today to 57 months in prison for accepting bribes in exchange for providing confidential information about health care facilities that received Medicare and Medicaid funds.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Bertha Blanco, 66, of Miami, Florida, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. Judge Ungaro also ordered Blanco to pay $441,000 in restitution and to forfeit $100,000, which represents the gross proceeds traced to Blanco’s commission of the offense. Blanco pleaded guilty on Oct. 13 to one count of bribery concerning a program receiving federal funds.
AHCA’s Division of Health Quality Assurance is responsible for the licensure and regulation of health care facilities in Florida that receive Medicare and Medicaid funds, including skilled nursing facilities (SNFs), assisted living facilities (ALFs) and home health agencies (HHAs). As part of her guilty plea, Blanco, who was employed by AHCA for approximately 30 years, admitted that, from at least 2007 through June 2015, she solicited and received thousands of dollars of cash bribes from Miami-area owners of SNFs, ALFs and HHAs, and intermediaries working with them, in exchange for providing the purchasers with sensitive, nonpublic AHCA reports and information related to their facilities. The information included the schedules of future unannounced inspections by AHCA surveyors and previously undisclosed patient complaints filed with AHCA. Blanco knew that the information she provided in exchange for bribes could ultimately be used to fabricate and falsify medical paperwork and to temporarily remedy deficiencies so that AHCA would not discover lapses in patient care and revoke the licenses of the facilities that had received the information.
The purchasers of information provided by Blanco included Philip Esformes, Isabel Lopez, Gustavo Mustelier, Gabriel Delgado, Guillermo Delgado, and Sila Luis. Esformes is awaiting trial, presently scheduled for March 2018, on numerous charges related to health care fraud, wire fraud, kickbacks, money laundering, bribery, and obstruction of justice. Lopez and Mustelier pleaded guilty in May 2017 to conspiracy to defraud the United States and are awaiting sentencing. Gabriel Delgado pleaded guilty in 2015 to money laundering and was sentenced to 55 months in prison. Guillermo Delgado pleaded guilty in 2015 to conspiracy to distribute a controlled substance and was sentenced to 110 months in prison. Luis pleaded guilty in June 2017 to conspiracy to commit health care fraud and was sentenced to 80 months in prison.
The FBI and HHS-OIG investigated this case. Trial Attorneys David Snider, Elizabeth Young and Drew Bradylyons of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Fargo Priest Extradited to United States from Philippines to Face Sexual Abuse ChargesRead the Press Release
FARGO – United States Attorney Christopher C. Myers announces that on December 15th, 2017, FERNANDO LAUDE SAYASAYA, was extradited to the United States and will face state child sexual abuse charges that were filed in Cass County District Court in December of 2002. The charges allege the offenses took place between July 1995 and June 1997 for one victim and June 1997 through August 1998 for another victim.
A federal indictment was returned on Sayasaya for Unlawful Flight to Avoid Prosecution on January 7, 2003, when Sayasaya failed to return to the United States following a visit to the Philippines in 1998.
Sayasaya was ordered extradited by a court in the Philippines on December 28, 2010 and appealed that order. An appellate court in the Philippines upheld the extradition order on February 29, 2012 and a warrant was issued after Sayasaya failed to appear on a summons. After close coordination with Philippines law enforcement, Sayasaya was arrested on November 19, 2017 in the Philippines and was transported to the United States by the United States Marshal’s Service. The United States will dismiss the federal charges to allow Cass County to proceed with their charges.
United States Attorney Myers stated: “This case illustrates the close cooperation at the international, federal, and state and local jurisdictions to locate, apprehend and extradite defendants who seek refuge outside of the United States to thwart justice. This successful extradition is a result of twenty years of relentless police work by Det. Greg Warren of the West Fargo Police Department and Philippine authorities. This case exemplifies the strong partnerships we have developed here in North Dakota and worldwide. We would like to express our gratitude for the cooperation provided by Philippine law enforcement agencies, including the National Bureau of Investigation, the Philippine National Police and the Philippines Department of Justice.”
This case was investigated by the Federal Bureau of Investigation, United States Marshal’s Service, West Fargo Police Department, Cass County State’s Attorney’s office, United States Department of Justice - Office of International Affairs, and law enforcement personnel assigned to the U.S. Embassy in Manila.
## The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial. ##
Former Dentist Sentenced to 16 and 1/2 Years in Prison for Sexually Assaulting Former Patients and EmployeeRead the Press Release
WASHINGTON – Bilal Ahmed, 45, a former dentist who practiced in Northwest Washington, was sentenced today to 16 ½ years in prison for sexually assaulting five former dental patients and one former employee and improperly touching another former employee. The victims, all males, were attacked in separate incidents between 2010 and 2014.
The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Ahmed, of Rockville, Md., pled guilty in May 2017, in the Superior Court of the District of Columbia, to five felony charges, including one count of first-degree sexual abuse of a patient with aggravating circumstances and four counts of second-degree sexual abuse of a patient with aggravating circumstances. He also pled guilty to three misdemeanor charges, including two counts of sexual abuse with aggravating circumstances, and one count of simple assault.
Ahmed was sentenced by the Honorable Zoe Bush. Following his prison term, he will be placed on three years of supervised release. He also will be required to register as a sex offender for the rest of his life.
"Bilal Ahmed used his dental practice and his position of authority to sexually abuse vulnerable victims, some of whom were his own patients and staff,” said U.S. Attorney Liu. “His victims included people who came to him for treatment and employment, caught off guard by his outrageous conduct. Today’s sentence holds him accountable for this criminal breach of trust.”
According to the government’s evidence, Ahmed was practicing as a dentist at Universal Smiles DC, in the 2300 block of M Street NW. The practice was originally called Bilal Ahmed DDS PC dba Universal Smiles DC. Ahmed is the owner of these dental practices, which are now closed.
The offenses against the dental patient victims took place at Universal Smiles and followed a typical pattern in which Ahmed would take patients into the procedure room, close the door, administer nitrous oxide through a facemask, and then sexually assault the victims while they were sedated. The attacks on patients took place on April 27, 2010, Aug. 30, 2012, April 24, 2013, April 25, 2013, and May 21, 2014. The incidents involving employees took place in July 2013 and January 2014.
Ahmed’s D.C. dental license was suspended on Nov. 3, 2014, and his Maryland dental license was suspended on April 6, 2016. Ahmed was arrested on Jan. 7, 2016.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Sexual Assault Unit of the MPD and the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Nicholas Miranda and Patricia A. Riley; Victim/Witness Advocate Veronica Vaughan; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Specialist LaJune Thames; Librarian Lisa Kosow; Paralegal Specialists Jason Manuel and Michelle Wicker; Criminal Investigator Nicole Hinson, and Financial Analyst Bryan Snitselaar. Finally, they commended the work of Assistant U.S. Attorneys Sharon Marcus-Kurn and Stuart D. Allen, who investigated and prosecuted the case.
Fargo Man Found Guilty of Threatening a United States SenatorRead the Press Release
FARGO - First Assistant U.S. Attorney Keith Reisenauer announced that on December 15, 2017, following a four-day trial, a federal jury convicted Kevin Lee Olson, age 56, Fargo, ND of Threatening Interstate Communications by knowingly transmitting an e-mail, for the purpose of issuing a threat to injure another person, and with knowledge that the communication would be viewed by another person as a threat.
On December 22, 2016, Olson sent an e-mail to United States Senator Heidi Heitkamp, Washington, District of Columbia, which stated: “It’s seems the only consideration one gets these days is when one becomes a criminal. I guess I should find you, you bitch, and shoot you in your red head!”
The sentencing of Olson will be scheduled at a later date, in Fargo, ND.
This case was investigated by US Border Patrol; US Capitol Police; Federal Bureau of Investigation; and Fargo Police Department.
Assistant United States Attorney Nicholas Chase and AUSA Janice Morley prosecuted the case.
Eagle Butte Woman Sentenced for Criminal ContemptRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Criminal Contempt was sentenced on December 12, 2017, by U.S. District Judge Roberto A. Lange.
Demi Marie Gunville, age 25, was sentenced to 3 days in the custody of the U.S. Bureau of Prisons, 27 days of home confinement, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $10.
Ms. Gunville was indicted by a federal grand jury on May 16, 2017. She pled guilty on December 12, 2017.
On January 27, 2017, Ms. Gunville agreed to be a third-party custodian for her brother, so he could be released on bond from federal custody. At the bond hearing, Ms. Gunville testified under oath before a U.S. Magistrate Judge. After the hearing, Ms. Gunville signed the Court’s order and agreed to live with and to supervise her brother at her residence at the family’s ranch outside of Eagle Butte.
In pleading guilty, Ms. Gunville admitted that she willfully and unlawfully disobeyed the Court’s order, because neither she nor her brother lived at the ranch, and she failed to supervise him at that ordered location.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Ms. Gunville was ordered to self-report to the custody of the U.S. Marshals Service on January 2, 2018.
Dominican National Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Dominican national formerly residing in Methuen pleaded guilty today in federal court in Boston to federal drug charges.
Jorge Luis Nunez Martinez, who used the name William Matos, pleaded guilty today to one count of conspiracy to distribute and possess with intent to distribute heroin, cocaine, and crack. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for March 15, 2018.
In October 2015, a confidential source reported that an individual named Javier Gonzalez Marcano was operating a large-scale drug trafficking organization in and around Lawrence and Lowell. The subsequent investigation revealed that Martinez was a runner for the Gonzalez Marcano drug trafficking organization. In October 2016, Martinez assumed control over the drug trafficking organization when Gonzalez Marcano returned to the Dominican Republic. Martinez and Juan Rodriguez Castro, another runner for the Gonzalez Marcano drug trafficking organization, were arrested in March 2017.
In June 2017, Rodriguez Castro pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, cocaine, and crack. Gonzalez Marcano is presently a fugitive.
The charging statute 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 $1 million. Martinez will face deportation upon completing his sentence. 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 Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
District Teenager Sentenced to Eight Years in Prison for Armed Robberies of Convenience StoresRead the Press Release
WASHINGTON – Ty’Juan Beynum, 17, of Washington, D.C., was sentenced today to eight years in prison for a pair of armed robberies that took place earlier this year at 7-Eleven stores in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Beynum, who was charged as an adult because of the nature of the crimes, pled guilty in September 2017 to two counts of armed robbery. He was sentenced in the Superior Court of the District of Columbia by the Honorable Anthony C. Epstein. Following his prison term, Beynum will be placed on five years of supervised release.
According to a proffer of facts submitted at the plea hearing, the first robbery took place on June 20, 2017. Shortly before 5 a.m., Beynum entered a 7-Eleven store in the 700 block of H Street NE, armed with a semiautomatic handgun. He ordered an employee to open the cash register and hand over money. The employee complied, and Beynum fled with about $250.
The second robbery took place on July 8, 2017, shortly before 4 a.m.at a 7-Eleven store in the 1300 block of Second Street NE. Beynum pointed a handgun at two employees and once again ordered that the cash register be opened. This time, he left with a plastic bag containing about $170. A detective with the Metropolitan Police Department (MPD) happened to be in a back office at the store to review surveillance footage in an unrelated case. He saw the robbery unfolding on a security monitor and alerted other officers, who apprehended Beynum nearby.
In announcing the sentence, U.S. Attorney Liu commended those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the work of Assistant U.S. Attorney Rizwan Qureshi, who investigated and prosecuted the case.
District Man Sentenced to Six Years in Prison for Shooting Man in Early Evening Attack in June 2017Read the Press Release
WASHINGTON – Deangelo Paris Belton, 24, of Washington, D.C., was sentenced today to six years in prison on a felony charge stemming from a shooting that occurred in June 2017 near a busy intersection in Northeast Washington, announced U.S. Attorney Jessie K. Liu.
Belton pled guilty in October 2017, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed. The plea, which was subject to the Court’s approval, called for an agreed-upon sentencing range of five to six years in prison. The Honorable Judith Bartnoff accepted the plea and sentenced Belton accordingly. Following his prison term, Belton will be placed on five years of supervised release.
According to the government’s evidence, on June 12, 2017, at approximately 6:20 p.m., the victim was walking near the intersection of Nannie Helen Burroughs and Minnesota Avenues NE when he passed Belton and two other males. The victim and Belton knew one another, and the victim is the father of Belton’s cousin’s child. Belton and the victim briefly exchanged words about whether Belton was still mad at the victim for a fistfight they had several months earlier.
During this exchange, Belton pulled out a handgun and fired several shots at the victim, hitting him and causing him to fall in the street. Belton then fired several more shots at the victim before fleeing. The victim sustained multiple gunshot wounds to his abdomen and waist that required surgery, hospitalization, and ongoing rehabilitation and treatment.
Following the shooting, Belton fled to Georgia. He was later apprehended by the U.S. Marshals Service and brought back to the District of Columbia in August 2017 to face charges.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the work of the U.S. Marshals Service. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle, Intelligence Analyst Zachary McMenamin, and Victim/Witness Advocate Jennifer Allen. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
District Man Sentenced to 15 Years in Prison for Armed CarjackingRead the Press Release
WASHINGTON – Eugene Shuler, 26, of Washington, D.C., was sentenced today to 15 years in prison for a 2016 carjacking in Southeast Washington in which he struck a husband and wife in their head with a firearm in front of their home and drove off with their automobile, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Shuler was found guilty by a jury in September 2017 of one count each of armed carjacking and first-degree theft, and two counts of assault with a deadly weapon. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Shuler will be placed on five years of supervised release.
According to the government’s evidence presented at trial, on July 13, 2016 at about midnight, the victims were in front of their home in Southeast Washington. The husband was sitting in the driver’s seat of the automobile talking to his wife through an open window. Shuler and an unidentified male approached the couple and demanded the wife step away from the car. Shuler then struck her in the head with a firearm, causing her to fall to the ground. Shuler then ordered the husband out of the car at gunpoint, striking him in the head with a firearm as well once he exited the automobile. Shuler fled the scene in the victim's car.
Several MPD officers responded to the scene, promptly obtaining valuable identification evidence, and broadcasting it over police radio channels. The stolen vehicle was spotted approximately 30 minutes later in the area of Eastern Avenue and Southern Avenue on the eastern tip of the District of Columbia. A brief car chase ensued, with Shuler and the other male stopping at a dead end road in Prince George’s County, Md. The other male fled through a wooded area and escaped. Shuler exited the automobile, threw the victim’s cell phone, and ran over an MPD officer while he tried to flee the scene, before ultimately being apprehended in the early morning hours of July 14, 2016.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kevin L. Rosenberg and Shehzad Akhtar, who prosecuted and tried the case, and Assistant U.S Attorneys C.B. Buente and Laura Bach, who investigated and supervised the prosecution respectively.
Department of Justice and Department of State Launch Intellectual Property Law Enforcement Coordinator NetworkRead the Press Release
Recent studies have concluded that the international trade in counterfeit and pirated goods are a multi-billion dollar industry globally that continues to grow. Trademark counterfeiting, copyright piracy and other forms of intellectual property rights (IPR) infringements are found in virtually every industry sector, and in many instances result in significant risks to the health and safety of consumers worldwide as well as harm to the global economy.
In order to combat this international problem, the State Department’s Bureau of International Narcotics and Law Enforcement Affairs and Department of Justice’s (DOJ) Criminal Division have worked to increase the speed and flexibility with which the U.S. government can develop international capacity, coordination, and partnerships, and provide training and technical assistance to law enforcement counterparts overseas. By placing Intellectual Property Law Enforcement Coordinators (IPLECs) in critical regions to address the growing transnational intellectual property crime problem, the United States has been able to work globally to increase the protection of intellectual property rights in a carefully tailored and efficient manner.
The IPLEC program was created in 2006, with the first IPLEC stationed in Bangkok, Thailand. The program now has grown to a network of five prosecutors, posted in Abuja, Nigeria; Bucharest, Romania; São Paulo, Brazil; Bangkok, Thailand and Hong Kong S.A.R. The network is designed to ensure that experienced U.S. prosecutors are located in high-impact regions to enhance the capacity of individual countries to investigate and prosecute IP crimes, and to develop regional networks to more effectively deter and detect IP crimes.
In announcing those efforts, Acting Assistant Attorney General John P. Cronan of the Criminal Division said, “Intellectual property rights form the foundation of American innovation and protect the American public from products that pose risks to health and safety. The protection of these rights requires robust international cooperation and coordination. The IPLEC network is dedicated to developing the capacity of our foreign partners to combat intellectual property violations and building relationships critical for that cooperation. Our strategically placed coordinators draw upon their subject matter expertise to help ensure that property holders’ rights are enforced across the globe, and that the American people are protected from harmful products entering the marketplace.”
“Combating intellectual property theft requires unprecedented real time international cooperation,” said Acting Principal Deputy Assistant Secretary of State for the Bureau of International Narcotics and Law Enforcement Affairs Richard Glenn. “The IPLEC Network is designed to meet this challenge.”
The Network works to:
- Assess the capacity of law enforcement authorities throughout the region to enforce intellectual property rights;
- Mentor and deliver training to investigators and prosecutors, designed to enhance the capacity of foreign justice sector personnel to enforce IPR;
- Assist in developing or strengthening institutions dedicated to enforcing IPR;
- Monitor regional trends in IPR protection and computer crimes; and
- Provide expert assistance in support of the United States’ IPR policies and initiatives in the region.
The IPLECs already have assisted our international partners in achieving concrete results in critical regions. Just this fall an IPLEC-mentored team of Brazilian law enforcement officials launched a series of significant enforcement actions on a U.S. Trade Representative-designated Notorious Market in São Paulo, seizing approximately 880 tons of counterfeit and contraband goods worth approximately $138 million, which ultimately resulted in the market’s closure.
Within DOJ’s Criminal Division, the Computer Crime and Intellectual Property Section (CCIPS) and the Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) have partnered to support this global network of IPR experts whose efforts have helped foreign partners successfully prosecute many key cases, including seizing and forfeiting millions of dollars, and coordinating on numerous transnational investigations with their U.S. counterparts—particularly in some of DOJ’s longest running programs in South America and Eastern Europe. To learn more about CCIPS and OPDAT, please visit https://www.justice.gov/criminal-ccips and https://www.justice.gov/criminal-opdat.
Convicted Sex Offender Sentenced to 30 Months for Illegally Reentering the United States and Failing to Register as A Sex OffenderRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington today sentenced Isidro Diaz-Sanchez (31), a Mexican national, to 30 months in federal prison for illegally reentering into the United States after deportation, and for failing to register as a sex offender. He pleaded guilty on September 28, 2017.
According to court documents, Diaz-Sanchez was previously deported from the United States as an aggravated felon on October 8, 2015. At the time of his deportation, he had been convicted of taking indecent liberties with a child in North Carolina, after having engaged in sexual activity and impregnating a minor child. As a result of his conviction, Diaz-Sanchez was required to register as a sex-offender and maintain his sex offender registration for a period of 30 years.
In January 2017, Diaz-Sanchez reentered the United States illegally and was subsequently found in the Hardee County Jail pending charges of resisting without violence and attempting to use the identification of another person. A review of the Florida Sex Offender Registry revealed that Diaz-Sanchez had failed to register as a sex offender.
“This criminal alien was a dangerous threat to our youth and ICE is proud to increase community safety by putting him behind bars,” said Michael W. Meade, acting field office director for the Miami Field Office of ERO.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Citrus County Woman Convicted of Federal Workers’ Compensation FraudRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury in Orlando today found Susan J. Gissy (54, Crystal River) guilty of one count of theft of government funds and two counts of concealing a material fact in connection with the receipt of workers compensation benefits. She faces a maximum penalty of 10 years in prison on the theft charge, and up to five years on each of the concealment offenses. Her sentencing hearing is scheduled for March 5, 2017.
A superseding indictment was returned against Gissy on June 14, 2017.
According to testimony and evidence presented at trial, Gissy was employed as a rural mail carrier with the United States Postal Service. In 2011, she filed a federal workers’ compensation disability claim in connection with a lower back injury. In 2014, based in part on her misrepresentations to her treating physician regarding her back injury, Gissy received a permanent disability impairment rating. In 2016, federal agents observed Gissy engaging in strenuous physical activity, including scuba diving, boating, and riding 12-meter-tall waterslides. Further investigation revealed that Gissy had systematically misrepresented the extent of her recovery. As a consequence, she had received over $112,000 in workers’ compensation disability benefits to which she was not entitled. Gissy had also knowingly concealed and covered up her recovery by twice filing false documentation in support of her claim.
This case was investigated by the United States Postal Service - Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys William S. Hamilton and Robert E. Bodnar, Jr.
Chico Man Charged with Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Christopher Lawrence, 23, of Chico, charging him with the sex trafficking of a child by force and coercion, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July and October 2017, Lawrence recruited a 17‑year-old girl, and by force and coercion, caused her to engage in commercial sex acts in various cities within the Eastern District of California.
According to the criminal complaint, on October 12, 2017, law enforcement agents found the victim in a Chico hotel during a multi-agency operation targeting child sex trafficking. Lawrence allegedly forced her to have sex with men in various cities, including Sacramento, Yuba City, Gridley, Oroville, Chico, Corning, Redding, Bakersfield, Los Angeles, and in the Bay Area. Lawrence allegedly supplied the victim with drugs and physically assaulted her.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Jill Thomas, Nirav Desai, and Amanda Beck are prosecuting the case.
If convicted, Lawrence faces a minimum term of 15 years in prison and a maximum statutory penalty of life in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Chardon attorney faces tax charges after embezzling $160,000Read the Press Release
A Chardon man was charged with filing false tax returns after embezzling nearly $161,000 from estates he managed, law enforcement officials said.
Donald A. Navastyk, 64, was a licensed attorney from 1980 through 2016, serving as a probate lawyer who served as an executor and administrator of estates established by wills and trusts. In the 2008 tax year, Navastyk diverted money from estates he managed as an executor and put the money in his personal bank account for his own personal use, according to the one-count information.
In filing his 2008 tax return, Navatsyk failed to claim approximately $160,975 as income, resulting in a tax due and owing approximately $35,690, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Suzana Koch following an investigation by the IRS.
An information is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canadian-Iranian Citizen Sentenced in White Plains Federal Court to 32 Months in Prison for Conspiring to Violate Iran SanctionsRead 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 in New York (“FBI”), announced that ALI SOOFI, a Canadian-Iranian dual citizen, was sentenced to 32 months in prison for his participation in a conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”). SOOFI was charged and arrested by special agents of the Federal Bureau of Investigation (“FBI”) following a federal investigation. SOOFI pled guilty to one count of conspiracy to violate IEEPA on September 7, 2017, before U.S. District Judge Nelson S. Román, who imposed today’s sentence.
According to the Indictment filed against SOOFI, other court documents publicly filed in this case, and statements made in court proceedings, including today’s sentencing:
Between 2014 and December 2016, SOOFI conspired to export military items from the United States to Iran, both directly and through transshipment to intermediary countries, without a license. In particular, SOOFI acted as a broker on behalf of Iranian clients, including a high-ranking official in the Iranian Revolutionary Guard Corps (“IRGC”), who sought American military technology. Over the course of the conspiracy, SOOFI sought to purchase and ship numerous items, including helicopters, high-tech machine gun parts, tank parts, and military vehicles, from the United States to Iran, all without a license and while knowing that such shipments were illegal under U.S. law. During the multi-year conspiracy, SOOFI worked to fill specific orders for the IRGC by contacting other individuals with access to the requested military items through email, phone, and in-person meetings.
The IRGC consists of an army, navy, and air force, Basij Resistance Force, and Qods Force. Current IRGC forces consist of approximately 150,000 naval, ground, and air fighters, although the number of Qods Force fighters is unknown. The IRGC has been designated as a Specially Designated Global Terrorist, for its activities in support of the Qods Force, which consistently provides support to terrorist groups including Hezbollah, Hamas, and the Taliban.
One of SOOFI’s customers was a Commander in the IRGC, who acted as a key figure at the Iranian Ministry of Defense responsible for procurement of parts and weapons. Among the weapons SOOFI sought on behalf of the IRGC were dampeners – or shock absorbers – which allow high-tech machine guns to be mounted on helicopters and boats. In addition, SOOFI sought to obtain slewing rings for tanks, military helicopters, target sights, jet engines, and military vehicles such as Humvees for the IRGC. During one meeting in December 2016 during which SOOFI sought to acquire some of these military items, SOOFI explained that the items he sought were “for military for defense” and emphasized that the IRGC specifically wanted American military technology.
* * *
In addition to the prison term, SOOFI, 63, of Canada, was sentenced to one year of supervised release.
Mr. Kim praised the outstanding investigative work of the FBI. SOOFI’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI, and the U.S. Department of Justice’s National Security Division.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Maurene Comey is in charge of the prosecution, with assistance from Trial Attorney Elizabeth Cannon from the National Security Division’s Counterintelligence and Export Control Section.
Barrington Woman Sentenced for Drug Trafficking and Gun PossessionRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Crystal Watson, 37, of Barrington, New Hampshire, was sentenced to 80 months in federal prison for drug trafficking and firearm offenses.
According to documents filed in court and statements made during the sentencing hearing, after an investigation of Watson’s drug trafficking activities, law enforcement officers executed search warrants and arrested Watson at her home in Barrington on April 7, 2015. During the search, officers seized $244,028 in United States currency, 570 grams of heroin, and three firearms.
On February 25, 2016, Watson pleaded guilty to conspiracy to distribute heroin, three counts of distribution of heroin, possession of heroin with intent to distribute, and possessing a firearm in furtherance of a drug crime. As part of her plea agreement, Watson agreed to forfeit the seized cash and firearms, as well as real estate, two log cabin style park trailers, and a vehicle.
“The law enforcement community is united in its effort to identify and prosecute those who are distributing heroin and other deadly drugs in the Granite State,” said Acting U.S. Attorney Farley. “Not only are drugs lethal, but those who possess firearms while trafficking in drugs present an added danger to the community. We will continue to do our utmost to prevent the distribution of drugs, reduce the risk of gun violence, and seize assets so that drug traffickers do not profit from their unlawful activities.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said Drug Enforcement Administration Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The DEA; the United States Marshals Service; the New Hampshire State Police; the Barrington Police Department; and the Rochester Police Department participated in the investigation of this case. It was prosecuted by Assistant U.S. Attorney Donald Feith.
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Attorney General Sessions Announces 40 New Assistant United States Attorney Positions and Two New Violent Crime Task ForcesRead 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.
Atlanta Georgia Man Convicted of Conspiracy to Distribute OxycodoneRead the Press Release
LEXINGTON, Ky. — Yesterday, Stanford Coleman, 49 of Atlanta, Georgia was convicted of Conspiracy to Distribute Oxycodone. The jury returned its guilty verdict after 4 days of trial.
The evidence at trial established that, between January 2015 and May 2017, Coleman was supplying large quantities of 30 milligram Oxycodone pills to people in Mt. Sterling and Montgomery County.
United States Attorney Robert M. Duncan, Jr., Special Agent in Charge, Stuart Lowery, ATF Louisville, Commissioner Richard Sanders, Kentucky State Police, and Police Chief David Charles, Mt. Sterling Police Department, jointly announced the verdict.
Coleman was remanded to the custody of the U.S. Marshals and is scheduled to be formally sentenced on March 23, 2018. The investigation was conducted by the ATF, the KSP, and the Mt. Sterling Police Department. The United States was represented by Assistant United States Attorney Roger West.
20 Arrested in Connection with Taylor-Based “Crack” Cocaine and Methamphetamine Trafficking OperationRead the Press Release
This week, federal and state authorities in the Austin area arrested 20 individuals, including ringleader Horace Caruther of Round Rock, TX, for their alleged roles in a narcotics distribution ring operating in the Taylor, TX area announced United States Attorney John F. Bash and Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division.
Those arrested include:
Name Age Residence
Horace Lee Caruther 42 Round Rock, TX
Trevor Deshaun Hunt 25 Taylor, TX
Gregory Bean Jr. 44 Pflugerville, TX
William Collins (aka “Bugs”) 61 Taylor
James Wilbert McNeal 70 Round Rock
Robert Carl White 38 Temple, TX
Daniel Sanchez-Benitez 38 Pflugerville
Angel Amado Rodriguez 23 Austin
Kenneth Xavier Garza 22 Pflugerville
Salomon Orozco-Benitez (aka “Viejito”) 33 Austin
David Ibarra 25 Broadway, NC
Esmeralda Rodriguez 22 Austin
Jesus Parra-Martinez (aka “Chuy”) 23 Austin
Jose Parra-Martinez 35 Austin
Sandra Parra-Velez (aka “La Coyota”) 33 Austin
Elias Montiel 26 Sandford, NC
Federico Alvarez-Mendoza 36 Cameron, NC
Maria Bustamante 52 Laredo, TX
Ana Gonzalez 47 Laredo
Adriana Deleza 42 Laredo
On November 21, 2017, a federal grand jury in Austin indicted the defendants charging them with one count of conspiracy to distribute five kilograms or more of cocaine. The grand jury also charged defendants Orozco, Montiel, Alvarez, Ibarra, Sanchez, Parra-Velez, Jesus Parra-Martinez, Deleza and Gonzalez with one count of conspiracy to commit money laundering.
Authorities allege that from July 2016 to October 2017, this organization was responsible for the distribution of large amounts of cocaine, methamphetamine and diverted pharmaceutical narcotics. The narcotics would be transported to areas across the United States, including North Carolina, for further distribution. Defendants would also collect, transport and launder cash proceeds derived from the sale of narcotics.
To date the investigation has resulted in the arrests of 26 defendants; and, the seizure of $161,020, six kilograms of cocaine, two ounces of “crack” cocaine, 42 pounds of marijuana and, three guns.
All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in Austin beginning next week. On the drug conspiracy charge, defendants face a mandatory ten years to life imprisonment upon conviction. The defendants face up to 20 years imprisonment upon conviction on the money laundering conspiracy charge.
The DEA Austin High Intensity Drug Trafficking Area (HIDTA) Task Force investigated this case. Participating agencies in the Task Force include the: Austin Police Department; Cedar Park Police Department; Georgetown Police Department; Lakeway Police Department; Texas Department of Public Safety; Williamson County Sheriff Office; Travis County Sheriff’s Office; Hays County Sheriff’s Office; Bastrop County Sheriff’s Office; Federal Bureau of Investigation (FBI); Homeland Security Investigations (HSI); and, the U.S. Immigration and Customs Enforcement (ICE).
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that 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.
14 December 2017
Youngstown men indicted for conspiring to order fentanyl from China to be sold in the Youngstown areaRead the Press Release
Two Youngstown men were indicted on charges of conspiring to order fentanyl from China to be distributed in the Youngstown area, said U.S. Attorney Justin E. Herdman.
Dainon L. Jones, 37, and Michael B. Lawrence, 43, were both indicted for drug trafficking violations.
Jones and Lawrence conspired to possess with the intent to distribute more than 40 grams of a mixture and substance containing a detectable amount of fentanyl in November 2017. It was part of the conspiracy that Jones ordered fentanyl to be sent through the U.S. mail from China to Ohio. It was further part of the conspiracy that Lawrence wired money from Ohio to China to pay for the fentanyl, according to the indictment.
Homeland Security Investigations special agents became aware on Nov. 20 of a suspicious package shipped by Wei Zhu of Shanghai, China, to an Erik Fields at 731 Judson Ave. in Youngstown. Previous packages shipped by Zhu have contained large amounts fentanyl seized in Seattle, New York and Detroit, according to court documents.
The package shipped to Youngstown was labeled as containing “pants zipper”. Law enforcement examined the parcel a discovered a white powder consistent with fentanyl. A forensic test revealed the contents to be approximately 273 grams of methoxyacetyl fentanyl, according to court documents.
A search of law enforcement databases revealed no Erik Fields living at 731 Judson Ave. Undercover agents made a controlled delivery at 731 Judson Ave. on Nov. 29. Jones arrived at the address approximately two minutes later in a silver Mercedes, made contact with the resident, retrieved the package and drove away with it, according to court documents.
Jones drove to 3311 Idlewood in Youngstown, where he picked up Lawrence. They drove to a nearby gas station, where Lawrence exited the Mercedes with the package. He took a bus to downtown Youngstown, where Jones again picked him up in his Mercedes. They then drove together to 57 East Wilson in Girard and entered the front door, according to court documents.
Both Jones and Lawrence took off running as law enforcement approached the home in Girard. Both eventually were arrested, according to court documents.
“The amount of fentanyl these defendants are accused of bringing to downtown Youngstown from China could have killed hundreds of people,” said U.S. Attorney Justin E. Herdman. “Aggressive enforcement, combined with increased prevention and education efforts, is our best chance to turn the tide on this epidemic.”
“The opioid crisis touches almost every American community,” said Steve Francis, Special Agent in Charge of Homeland Security Investigations’ Detroit office. “HSI and our partners are proud to be at the tip of the spear, using our broad authorities to combat the groups and individuals allegedly involved in this deadly trade.”
This case was investigated by HSI, the U.S. Postal Inspection Service, U.S. Customs and Border Protection, the Mahoning Valley Law Enforcement Task Force, the TAG Drug Task Force and the DEA. The case is being prosecuted by Assistant U.S. Attorney David Toeper.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown man charged wtih firearms offenses and trafficking heroin and crack cocaineRead the Press Release
A 20-count indictment was filed charging a Youngstown man with drug trafficking and firearms crimes, law enforcement officials said.
Antonio D. Young, 22, distributed heroin and crack cocaine from January 2016 through March 2017, according to the indictment.
Young also maintained place on Kendis Circle in Youngstown for the purpose of distributing drugs, according to the indictment.
Young possessed a Ruger, .40 caliber handgun, model SR-40, to further his drug trafficking crimes on March 10, 2017, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Mahoning Valley Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Yakima, Washington Man Sentenced to 25 Years for Sex Crimes Committed Against Nine ChildrenRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Eric J. Perez was sentenced today after having previously pleaded guilty in September, 2017, to Production of Child Pornography, Attempted Production of Child Pornography, Coercion and Enticement of a Minor to Engage in Criminal Sexual Activity, Child Sex Trafficking, Attempted Child Sex Trafficking, and Possession of Child Pornography. United States District Judge Salvador Mendoza, Jr. sentenced Perez to a twenty-five-year term of imprisonment, to be followed by a life term of supervised release upon release from federal prison.
According to court records, Perez contacted eight girls, all between 12 and 16 years old, by Facebook message and coerced them to engage in sex and, in some cases, to produce pornographic images of themselves. He fathered two children with the ninth victim, of whom he also produced child pornography. Perez caused one victim, a thirteen-year-old, to engage in commercial sex with his stepbrother, Albert Castro, Jr., of Quincy, Washington. Castro was sentenced on December 1, 2017 to a seven-year term of imprisonment that criminal conduct. See 16-CR-0063-SMJ-2 (EDWA).
The two brothers’ crimes were discovered after a sister of one of the child-victims informed a school counselor that she was concerned about her sister’s Facebook contacts with Perez. The counselor immediately informed the Quincy, Washington Police Department. The Quincy Police Department, together with the FBI, discovered that Perez’s Facebook account contained multiple conversations between Perez and several young girls.
Joseph H. Harrington said, “This egregious case is another example of the superb work that can be accomplished when state and federal law enforcement officers work together. The impact of Perez’s crimes on his victims cannot be overstated. I commend the officers and agents for a job very well done.” Harrington went on to add, “The United States Attorney’s Office will continue to prosecute aggressively child pornography and child sex trafficking crimes that occur in the Eastern District of Washington.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” The Quincy Washington Police Department and the FBI conducted the investigation of this matter. Scott T. Jones, an Assistant United States Attorney for the Eastern District of Washington, prosecuted the case.
Windham Man Sentenced to a Year and a Day for PerjuryRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Jason McGoldrick, 36, of Windham, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to a year and a day in prison and three years of supervised release for perjury. McGoldrick pleaded guilty on July 27, 2017.
Court records reveal that on November 10, 2016, McGoldrick was involved in an altercation in Portland’s Old Port District during which an individual fired three shots from a handgun at McGoldrick and a companion. During the ensuing investigation, agents sought to identify McGoldrick’s companion -- the other intended target. On December 1, 2016, McGoldrick lied to federal agents about the identity of his companion, giving the name of a deceased friend, instead. On December 13, 2016, McGoldrick repeated the lie when testifying before a federal grand jury investigating the shooting. On February 2, 2017, after being confronted by agents, McGoldrick admitted the true identity of his companion and said he lied in order to protect his friend.
U.S. Attorney Frank said: “Our judicial system depends on people testifying truthfully to a grand jury. It is a fundamental duty of citizenship. As this case demonstrates, the failure to do so can lead to very serious consequences.”
On November 21, 2017, Noor Mohammed, 26, of Roxbury Massachusetts, pleaded guilty to federal firearm charges arising out of the November 10, 2016 shooting and awaits sentencing.
The investigation was conducted by the Federal Bureau of Investigation and the Portland Police Department.
Violent Drug Trafficking Organization Dismantled, Sentenced to Total of 119 Years of ImprisonmentRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina, announced that yesterday in federal court, Chief United States District Judge James C. Dever III sentenced the three remaining members of the Maurio Mitchell Drug Trafficking Organization (DTO), responsible for shipping and distributing large quantities of cocaine, heroin, and marijuana within the Eastern District of North Carolina. Several of the members of this DTO are also members of the United Blood Nation’s Omega Line, a violent street gang operating within the Triangle area.
The members of this violent drug trafficking organization received the following sentences:
Yesterday, Maurio Tajara Mitchell, 34, of Durham, was sentenced to 35 years (420 months) of imprisonment for Conspiracy to Distribute and Possess with the Intent to Distribute five (5) kilograms or more of cocaine, one (1) kilogram or more of heroin and a quantity of marijuana; Conspiracy to Commit Money Laundering; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Distribution and Possession with Intent to Distribute a Quantity of Marijuana.
Yesterday, Mark Anthony Daye, 47 of Durham, was sentenced to 30 years (362 months) of imprisonment for Conspiracy to Distribute and Possess with Intent to Distribute five (5) kilograms or more of cocaine, one (1) kilogram or more of heroin and a quantity of marijuana; and Conspiracy to Launder Monetary Instruments.
Yesterday, Sandy Darnell Ledbetter, Jr., 27, of Durham, was sentenced to 20 years (240 months) of imprisonment after being found guilty at trial of Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On October 12, 2017, Keith Lamont Tutt, 40, of Durham, was sentenced to sixteen (16) years (192 months) of imprisonment for Conspiracy to Possess with the Intent to Distribute Five(5) Kilograms or More of Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On April 5, 2017, Brian Jarrell Scott, 31, of Durham, was sentenced to ten (10) years (120 months) of imprisonment for Conspiracy to Possess with the Intent to Distribute 28 Grams or More of Cocaine Base, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On November 3, 2017, Demarcus Allen Medley, 26, of Durham, was sentenced to five years (60 months) of imprisonment for Conspiracy to Distribute and Possess with Intent to Distribute Cocaine; and Conspiracy to Launder Monetary Instruments.
On September 12, 2017, NIRILLA ALLEN-KEARNEY, 49, was sentenced to two years (24 months) of imprisonment for Conspiracy to Launder Monetary Instruments in relation to this drug trafficking organization.
On December 15, 2016, Keijuane Mantese Mack, 22, of Durham, was sentenced to five (5) months’ imprisonment for Conspiracy to distribute Marijuana.
On December 8, 2016, Rashad Jackson, 25, of Durham, was sentenced to nine (9) months’ imprisonment for Conspiracy to Possess with the Intent to Distribute Marijuana.
Beginning in January of 2016, the Raleigh-Durham Safe Streets Task Force of the FBI conducted a Title III Wiretap investigation into the Maurio Mitchell Drug Trafficking Organization (“Mitchell DTO”). The investigation revealed that the Mitchell DTO is responsible for shipping and receiving large quantities of powder cocaine in the Triangle area, provided by cartel members in Los Angeles, California. This powder cocaine was further broken down and distributed to mid-level and street-level dealers in the Durham, North Carolina, and surrounding areas. This organization was supported and protected by the members of the Omega Line of the United Blood Nation, active on the south side of Durham. This violent street gang is responsible for a large portion of the gang violence that Durham has seen over the past several years. The members of the DTO were primarily supplied by MITCHELL, who, along with DAYE, had the connection to the Los Angeles cartel members.
The case was investigated by the FBI’s Raleigh/Durham Safe Streets Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service, Criminal Investigations; the Durham Police Department; and the Durham County Sheriff’s Office. Assistant United States Attorney Leslie Cooley prosecuted the case on behalf of the government. This case is part of an Organized Crime and Drug Enforcement Task Force Investigation within the Eastern District of North Carolina.
Vigo County School Corporation official found guilty in federal courtRead the Press Release
Stole more than $110,000 from Vigo County taxpayers
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that a former Vigo County School Corporation official, Franklin V. Fennell, 49, Terre Haute, was found guilty in federal court on fraud, bribery and false statement charges following a three-day jury trial before U.S. District Judge Jane Magnus-Stinson.
“Public officials are supposed to serve the public, not the other way around,” said Minkler. “When greed becomes more important than serving the public, there are consequences and my office will hold offenders accountable.”
Fennell was the facilities director at the Vigo County School Corporation (VCSC). His duties included the maintenance and service at all VCSC locations and facilities, including schools. Fennell routinely submitted requisitions to the VCSC business office which in turn created purchase orders that were sent to vendors authorizing work. The vendor would then be paid after the work was completed.
From April 2014 through October 2016, Fennell and co-defendant, Frank Shahadey instructed a Terre Haute area businessman to submit false and fraudulent invoices for work performed for the VCSC by either inflating the cost of the work or seeking payment for work that was either not performed, or was done by another business. Once paid by the VCSC based on the false and fraudulent invoices, the businessman kicked back a portion of the ill-gotten gains to Fennell and Shahadey and retained a portion for his personal benefit.
As a result of this fraud scheme, Fennell and Shahadey received kickbacks of more than $110,000. When confronted by special agents of the Federal Bureau of Investigation regarding this fraudulent scheme, Fennell made various false statements in a futile effort to exculpate himself.
This case was investigated by the Federal Bureau of Investigation.
"This conviction affirms that the FBI has zero tolerance for public corruption and considers it a top criminal priority," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "We are dedicated to eradicating public corruption at all levels of government and our agents will continue to work diligently to pursue those public officials whose greed erodes the confidence and trust of taxpayers."
Fennell’s co-defendant, Frank Shahadey, was sentenced to 16 months’ imprisonment in October 2017, after pleading guilty to wire fraud and theft charges based on his involvement in this scheme.
According to Assistant United States Attorneys Tiffany Preston and Nicholas Linder who prosecuted this case for the government, Fennell could face up to 20 years’ imprisonment.
No sentencing date has been set.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to detect and prosecute matters involving public corruption, (See United States Attorney’s Office, Southern District of Indiana Strategic Plan, Section 5.3)
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