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14 December 2017
Clay Center Man Sentenced for Loan FraudRead the Press Release
WICHITA, KAN. – A Clay Center man was sentenced Thursday to two years on supervised release for selling assets he had pledged as collateral on a federal loan, U.S. Attorney Tom Beall said today. The defendant was ordered to pay approximately $84,594 in restitution.
Harold R. Mugler, 64, Clay Center, Kan., pleaded guilty to one count of criminal conversion. In his plea, he admitted that in 2009 in received a $100,000 loan through the U.S. Department of Agriculture’s Farm Service Agency. Over the following years, he sold off various pieces of farm machinery that he had pledged as collateral on the loan. He was behind on his loan payments in 2015 when the government learned of the sales.
Beall commended the USDA-OIG and Assistant U.S. Attorney Aaron Smith for their work on the case.
Charleston man sentenced to 13 years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 13 years in federal prison for a drug crime, announced United States Attorney Carol Casto. In September 2017, Brian D. Terry, 32, was found guilty by a federal jury sitting in Charleston following his trial for possession with intent to distribute 50 grams or more of methamphetamine.
Witnesses for the United States testified that on April 20, 2016, Terry was the passenger in a vehicle that was stopped for speeding by officers with the Metropolitan Drug Enforcement Network Team. The traffic stop took place in the St. Albans area, on MacCorkle Avenue close to Oliver Street. During the traffic stop, Terry consented to a search, and officers discovered approximately 195 grams of crystal methamphetamine in his groin area. A chemist with U.S. Customs and Border Protection testified at trial that the methamphetamine found on Terry was approximately 99% pure.
Officers arrested Terry and read him his Miranda rights. Subsequently, during the transport of Terry to South Central Regional Jail, he shared details of his drug trafficking activity with an officer, including the quantity of methamphetamine he sold and the price he charged. Both the traffic stop and the transport to the jail were recorded.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys Joshua Hanks and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin imposed the sentence and presided over the trial.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Canadian Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Lambert, 65, of Canada, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, was sentenced to 63 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that in 2013, co-defendant Harvey Peake recruited Lambert to assist in transporting illegal narcotics. On October 3, 2016, Peake and Lambert traveled to the Seneca Buffalo Creek Casino in downtown Buffalo to deliver 10 kilograms of cocaine. The two men met briefly with a third individual in the casino and then walked towards the parking garage where Peake’s vehicle was parked. Lambert got into the driver’s seat and tapped the brake lights to signal their location to the third individual. Peake then opened the trunk and removed a suitcase. The third individual pulled up next to the vehicle and Peake attempted to give the suitcase to the individual. Peake and Lambert were then arrested. Law enforcement officers seized the suitcase, which contained approximately 10 kilograms of cocaine.
Harvey Peake has been convicted and its awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
California Man Sentenced to Life in Prison for Large-Scale PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of PCP in the Kansas City area.
Ladronal S. Hamilton, also known as “Black,” 46, of Hawthorne, Calif., was sentenced by U.S. District Judge Gary A. Fenner to life in federal prison without parole.
On May 18, 2017, Hamilton was found guilty at trial of participating in a conspiracy to distribute PCP in Jackson County, Mo., and elsewhere from Jan. 1, 2011, to March 12, 2015. Evidence introduced during the trial indicated that Hamilton supplied numerous associates in Kansas City with kilogram quantities of PCP, which was transported from California through the mail.
Hamilton was the organizer and supplier to large-scale Kansas City PCP distributors, each of whom has been convicted and sentenced in federal court. He organized and arranged the cross-country shipment of numerous multi-kilogram containers of PCP from California.
According to trial testimony, investigators made three seizures of PCP from Hamilton in 2014 that totaled approximately 14 kilograms. In addition, the testimony of cooperating witnesses established that Hamilton distributed additional amounts in excess of 37 kilograms of PCP. Hamilton also possessed firearms in relation to drug trafficking during the timeframe of the conspiracy. One investigator testified that he recovered cocaine and three firearms from Hamilton’s California residence.
A cooperating witness testified at trial that Hamilton used various houses in Kansas City, including his father’s house, as a safe location to receive and re-package large amounts of PCP.
In seeking the life sentence for Hamilton, the government’s court filings refer to the serious nature of the crime and to Hamilton’s extensive prior criminal record, which includes felony convictions for armed bank robbery, second-degree murder, first-degree assault, armed criminal action and possession with intent to distribute a controlled substance. A career offender for violent crimes and narcotic offenses, Hamilton’s s interstate distribution of large quantities of PCP began within three years of his release from federal prison for armed bank robbery as a result of his second revocation from supervised release.
Today’s sentence includes an enhancement for obstruction of justice. Trial testimony from at least two cooperating witnesses support the claim that Hamilton attempted to dissuade or intimidate a witness from testifying against him. One cooperating witness specifically recalled Hamilton stating that he wanted a government witness dead.
Operation Dirty Glass
Operation Dirty Glass was an investigation of a large-scale PCP and crack cocaine drug trafficking organization. More than 20 defendants were indicted and convicted as a result of the investigation, including the primary target, Gerald W. Jones of Kansas City, Mo., who received PCP from Hamilton. In a separate but related, case, Jones was convicted and sentenced to 20 years in federal prison without parole.
Investigators seized a total of approximately 14 kilograms of PCP in a series of Express Mail shipments made by Hamilton to Kansas City, Mo. On Oct. 17, 2014, a postal inspector identified an Express Mail package that had been sent by Hamilton from the La Tiejera, Calif., post office to a Kansas City, Mo., address. The parcel contained three metal canisters, each of which contained approximately two kilograms of PCP. On Nov. 10, 2014, a postal inspector identified two more Express Mail packages that had been sent by Hamilton from California to Kansas City, Mo., addresses. Inside each package, investigators found a metal canister containing approximately two kilograms of PCP.
Hamilton made frequent trips to the Kansas City area. Prior to the discovery of the PCP shipments, the U.S. Postal Inspection Service interdicted two Express Mail envelopes on Oct. 16, 2013, that Hamilton, while visiting Kansas City, had sent back to California. One envelope contained $4,000 and the other contained $7,000, of drug proceeds.
Operation Water Park
Hamilton was also implicated in a separate investigation, Operation Water Park, which resulted in the indictment and convictions of 11 defendants. In early 2015, Hamilton began supplying PCP to Leelon Williams of Kansas City, Mo. Williams pleaded guilty to conspiracy to distribute PCP and was sentenced to 20 years in federal prison without parole.
Williams was arrested on March 12, 2015, when Kansas City, Mo., police officers were dispatched to the area of 26th Street and College to investigate a shooting. Williams was found hiding inside his van, which was parked in an alleyway near the scene of the shooting. (Williams was not involved in the shooting.) Investigators searched the van and found two glass orange juice bottles that contained a total of approximately 1.2 kilograms of PCP, which Hamilton had shipped to Williams from California.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Calaveras County Man Indicted for Trafficking Methamphetamine in Shasta CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Glenn Everett Waltman, 56, of Valley Springs, charging him with possessing methamphetamine and marijuana with intent to distribute, and possessing a firearm as a felon, United States Attorney Phillip A. Talbert announced.
According to court documents, on November 28, 2017, law enforcement officers stopped the vehicle Waltman was driving and found approximately 1.5 pounds of crystal methamphetamine, 13 pounds of marijuana, and a loaded .40 caliber pistol. As a previously convicted felon, Waltman is prohibited from possessing a firearm.
This case is the product of an investigation by the Shasta Interagency Narcotics Task Force, the Anderson Police Department, and the U.S. Drug Enforcement Administration.
If convicted of the methamphetamine charge, Waltman faces a mandatory minimum penalty of 20 years in prison, and a maximum penalty of life in prison and a $20 million fine. If convicted of the marijuana or firearms charges, Waltman faces a maximum penalty of 10 years in prison. 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 several variables. These charges are only allegations; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Jose Dejesus, 35, of Buffalo, NY, who was convicted of possession with intent to distribute heroin and being a felon-in-possession of ammunition, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Paul C. Parisi, who handled the case, stated that on November 10, 2016, Buffalo Police officers executed a search warrant at 224 Virginia Street. After entering the residence, officers found the defendant in the rear bedroom. Officers recovered 16 envelopes containing heroin, 17 pieces of paper containing cocaine, and a plastic bag of marijuana. Officers also found a digital scale and packaging materials in the rear bedroom as well as a 12-gauge shotgun and ammunition. Dejesus was convicted in state court of a felony in 2003 and is prohibited from legally possessing ammunition.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Buffalo Man Sentenced in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy announced today that Orlando Rios, 45, of Buffalo, NY, was sentenced to 188 months in prison for his role in a conspiracy to possess with intent to distribute, and distribution of 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carried a maximum penalty of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between March 2014 and June 2015, the defendant conspired with Daniel Molina-Rios, Jose Andujar, Luis Montanez, and others to distribute heroin on the West Side of Buffalo. Rios managed a wide-scale drug trafficking organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin or illegal use.
During the conspiracy, the defendant made at least six trips to the New York City area to purchase large quantities of heroin from a source of supply, purchasing at least 300 grams of heroin on each trip. In addition, during the time period of the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
Rios exercised decision making authority over participants in the drug trafficking conspiracy, including at least 10 drug “runners” who were responsible for coordinating sales for incoming customers who contacted the drug trafficking organization on a “runner” phone each day. The defendant also maintained a premise at 42 Potomac Avenue in Buffalo for distributing the heroin that was sold. A search of the residence on June 18, 2015, revealed a digital scale, glassine bags, rubber bands, two cellular telephones, $4510.00 in U.S. currency, and a Colt .380 pistol loaded with four live automatic rounds in the magazine.
A total of 14 defendants have been indicted in connection with this case, and Rios is the ninth to be sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brockton Man Charged with Multiple Counts of Fentanyl DistributionRead the Press Release
BOSTON – A Brockton man was charged today in a superseding indictment with additional counts of distributing fentanyl.
Dany Brandao, 30, was charged with three additional counts of possession with intent to distribute and distribution of fentanyl. Brandao was initially indicted in February 2017 with one count of possession with intent to distribute and distribution of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.
According to court documents, on Oct. 7, 2016; Oct. 11, 2016; Oct. 25, 2016; and Nov. 1, 2016, investigators made a series of undercover controlled purchases of fentanyl from Brandao, and on Nov. 8, 2016, law enforcement executed a search warrant of Brandao’s home. The controlled purchases and search resulted in the seizure of more than 180 grams of fentanyl from Brandao.
As a result of the superseding indictment and a prior narcotics conviction, Brandao faces a mandatory minimum sentence of 10 years and up to life in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts States Police; Brockton Police Chief John Crowley; East Bridgewater Police Chief Scott Allen; and Marshfield Police Chief Phil Tavares made the announcement today. Assistant U.S. Attorneys Ann Taylor and Leah Foley of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Dominique Dozier, 31, pleaded guilty to two counts of distribution of cocaine base within 1,000 feet of a school. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 14, 2018.
On July 13, 2016, Dozier sold cocaine base to a cooperating witness near a K-8 Pilot School in Roxbury. Dozier is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to a K-8 Pilot School and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city.
The charge of distribution of a controlled substance within 1,000 feet of a school provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement.
Birmingham Man Gets 20 Years in Prison for Selling Heroin that Killed Cullman Man, Injured AnotherRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 20 years in prison for selling heroin last year that caused the death of one person and seriously injured another, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
MICHAEL DEWAYNE “Big Boi” JOHNSON, 32, pled guilty in August to one count of distributing heroin in Jefferson County on July 28, 2016, and that a 31-year-old Cullman man died as a result of using that heroin. Johnson also pled guilty to distributing heroin the same day that caused serious bodily injury to a then 18-year-old Cullman man who overdosed from using the drug.
When Johnson distributed the heroin to the victims, he told them, “Be careful, this (expletive deleted) will kill you,” according to court records.
Johnson also pled guilty to one count of distributing heroin in Jefferson County on Aug. 3, 2016. U.S. District Court Judge Madeline Hughes Haikala sentenced Johnson to 20 years in prison on all the charges, in accordance with the binding plea agreement he reached with the government.
“This strong sentence cannot remove the victims’ suffering,” Town said. “But it sends a strong message to every drug dealer that they will be severely punished for the lethal harm their drugs do to others.”
“The abuse of heroin is a serious problem in our communities. All too often, this abuse leads to addiction, shattered lives, and even death,” Hamilton said. “The lengthy sentencing for this individual is a message to criminals that we take drug trafficking very seriously in the Northern District of Alabama. The DEA will continue working with our law enforcement partners and pursue those who threaten our communities with the distribution of heroin and other illegal and dangerous drugs.”
DEA investigated the case, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
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Another Firearms Smuggler Heads to PrisonRead the Press Release
LAREDO, Texas – A Laredoan has been ordered to prison following his convictions for his role in smuggling firearms into Mexico, announced Acting U.S. Attorney Abe Martinez. Ruben Arnoldo Madrid, 21, pleaded guilty June 2, 2017.
Today, U.S. District Judge Diana Saldaña sentenced Madrid to a term of 51 months in federal prison to be immediately followed by three years of supervised release.
Madrid participated in a scheme to purchase civilian variants of firearms currently issued to military forces from various local firearms dealers. Between March 2016 and November 2016, Ruben Madrid’s brother, Juan Diego Madrid, 27, of Laredo, directed several individuals including Rolando Armando Madrid, 21, (Ruben’s twin brother), Edward Alexander Duenas, 20, and Francisco Xavier Martinez, 25, all of Laredo, to purchase the firearms. The firearms were then transferred to Erik Villasana, 20, also of Laredo, who arranged for the firearms to be smuggled into Mexico. Ruben and Rolando Madrid initiated the scheme, after which their older brother, Juan, took over the operation. The court noted that Ruben Madrid personally purchased nine firearms out of 36 firearms identified by law enforcement as sold during the operation. Three of the 36 firearms have since been recovered in Mexico.
The straw purchasers bought AR-15 and AK-47-type semiautomatic rifles, Beretta 92FS and DPMS AR-type rifles from Academy and Kirkpatrick Guns & Ammo stores in Laredo and San Antonio. Juan Madrid would then purchase the firearms from the straw purchasers and then re-sell them at a profit to Villasana who would then arrange for the firearms to be smuggled into Mexico. Juan Madrid was already a convicted felon and thereby prohibited from purchasing, owning or possessing firearms.
On Nov. 16, 2017, U.S. District Judge Diana Saldaña sentenced Juan Madrid to a term of 65 months in federal prison, while Rolando Madrid, Villasana, Duenas and Martinez received respective sentences of 51, 63, 27 and 41 months in prison.
Ruben Madrid 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Homero Ramirez and Special AUSA Lisa Ezra prosecuted the case.
Albuquerque Man Pleads Guilty to Brandishing Short-Barreled Shotgun During Armed Robbery of Convenience StoreRead the Press Release
ALBUQUERQUE – William L. Thrash, 51, of Albuquerque, N.M., pled guilty in federal court yesterday to violating the federal firearms laws by brandishing a short-barreled shotgun during the armed robbery of an Albuquerque-area convenience store in March 2017. The guilty plea was entered under a plea agreement that recommends that Thrash be sentenced to 12 years of imprisonment followed by a term of supervised release to be determined by the court.
Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Thrash in Sept. 2017, on a criminal complaint. The criminal complaint charged Thrash with him with violating the Hobbs Act by robbing two businesses engaged in interstate commerce at gunpoint, brandishing a firearm during crimes of violence, and being a felon in possession of a firearm. According to the criminal complaint, Thrash committed one of the Hobbs Act robberies on March 14, 2017 by robbing an Albuquerque-area convenience store on March 14, 2017, and the second robbery on April 15, 2017, by robbing a medical marijuana dispensary located in Bernalillo County, N.M. According to the criminal complaint, Thrash during each of the two robberies.
On April 19, 2017, officers of the Albuquerque Police Department (APD) arrested Thrash on state charges, which have since been dismissed in favor of federal prosecution, while executing a state search warrant at a hotel room in which Thrash was residing. During the search, the officers seized a firearm and ammunition. At the time, Thrash was prohibited from possessing firearms or ammunition because he previously had been convicted on numerous felony offenses, including being a felon in possession of a firearm, auto burglary, escape, child abuse or abandonment, battery on a peace officer, and possession of a deadly weapon or an explosive by a prisoner.
During yesterday’s change of plea hearing, Thrash pled guilty to a felony information charging him with using and brandishing a firearm during a crime of violence. In entering the guilty plea, Thrash admitted brandishing a short-barreled shotgun at store employees when he robbed an Albuquerque-area convenience store on March 14, 2017.
Thrash has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Alaska Pilot Charged with Obstruction of the NTSBRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Forest M. Kirst, 60, of Fairbanks, Alaska, with two counts of obstruction before the National Transportation Safety Board (NTSB) and piloting an aircraft without a valid airman’s certificate.
According to Assistant U.S. Attorney Retta Randall, on Aug. 24, 2014, an aircraft piloted by Kirst was involved in an accident near Atigun Pass, Alaska. Three passengers aboard the aircraft sustained serious injuries, and 35 days later, one of the passengers died as a result of his injuries. The accident was investigated by the NTSB and by the Federal Aviation Administration (FAA). Kirst is charged with misleading the NTSB about the altitude of his plane prior to the crash and misleading the NTSB with varying explanations as to how the crash occurred.
Subsequently, Kirst’s Airman Pilot Certificate was revoked on an emergency basis by the FAA. Kirst was later observed to be flying his aircraft.
If convicted, Kirst faces a maximum sentence of five years in prison, and a $250,000 fine, or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Department of Transportation, Office of Inspector General, conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Akron man indicted for selling fentanylRead the Press Release
An Akron man was indicted for selling fentanyl, law enforcement officials said.
LeTroy Vaughn, 26, was indicted on one count of distribution of fentanyl. Vaughn sold the fentanyl on Sept. 27, 2015, according to the indictment.
The investigation is ongoing.
“This defendant will be held accountable for his sale of fentanyl, which has killed so many of our friends and neighbors here in Ohio,” Herdman said. “Law enforcement will continue to work together to investigate this case and hold drug dealers accountable for their actions.”
“This shows the great collaboration between the County Prosecutor’s Office and the U.S. Attorney’s Office,” said Summit County Prosecutor Sherri Bevan Walsh. “We are relieved for the victim’s family that this offender will not escape justice on a legal technicality. I would personally like to thank Justin Herdman, the U.S. Attorney for the Northern District of Ohio, for ensuring justice for Eric Ward’s family.”
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 matter is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Akron Police Department’s Narcotics Unit.
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.
2017 Southeast Regional Animal Cruelty Prosecutions Training Held at Valdosta State UniversityRead the Press Release
The United States Attorney’s Office for the Middle District of Georgia, the Environmental Crimes Section of the United States Department of Justice’s Environment and Natural Resources Division, and the United States Department of Agriculture – Office of Inspector General hosted training for the Southeast region on animal cruelty prosecutions, Dec. 13-14.
This training represents the collaboration and coordination of federal and local agencies and offices to combat crimes of animal cruelty, including organized dog fighting, cock fighting, and horse soring. The conference provided participants with an overview of the federal animal welfare and cruelty statutes, investigation techniques, and strategies to overcome prosecution challenges. The Humane Society of the United States, along with prosecutors and federal agents, shared their experience in handling dog fighting and animal cruelty cases strengthening the response to these serious crimes.
“Fighting contests involving dogs and other animals are morally wrong and illegal, said United States Attorney Charles E. Peeler.” They also create havens for additional illegal conduct such as gambling, drug trade and unlawful gun possession. Our office works with federal, state and local law enforcement agencies to identify and prosecute those involved in this reprehensible conduct.”
“Ending animal fighting ventures and other inhumane practices will require a close partnership among federal, state, and local law enforcement agencies,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “Our Division is proud to be a leader in this worthy cause and to participate in this important training event in the wonderful city of Valdosta, Georgia.”
“The USDA OIG is pleased to have worked closely with the Department of Justice to coordinate this important training initiative to combat animal fighting and the associated crimes which often occur in animal fighting ventures,” said Special Agent in Charge Karen Citizen-Wilcox for the USDA OIG Southeast Region Office of Investigations. “Special Agents from all of the OIG’s regional offices will share their knowledge of and experiences with animal fighting investigations with personnel attending from other law enforcement agencies and private organizations.”
During the training, animal fighting investigators from the Humane Society of the United States, along with prosecutors and USDA OIG agents who have successfully investigated and prosecuted animal fighting cases, shared their experiences with attendees. Instructors provided participants with an overview of the business of dog fighting, a description of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals and successful sentencing strategies.
State and national animal control associations estimate that upwards of 40,000 people participate in dog fighting in the United States at a professional level, meaning that dog fighting and its associated gambling are their primary or only source of income. An unknown but potentially larger number of people participate in dog fighting on an occasional basis. Cockfighting is thought to be similarly widespread. In addition, animal fighting activities attract other serious crimes, such as gambling, drug dealing, weapons offenses and money laundering. Children are commonly present at animal fighting events.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. In 2014, the Department of Justice designated the Environment and Natural Resources Division as the centralized body within the Department responsible for tracking, coordinating, and working with the U.S. Attorneys’ Offices on animal cruelty enforcement matters.
13 December 2017
Young Melph Mafia Gang Member Sentenced to Life in Prison Plus 35 Years Following Convictions on Rico, Gun and Murder ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LIONEL ALLEN, a/k/a “Lot,” age 23, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO” as well as firearms conspiracy, and murder charges. U.S. District Judge Kurt D. Engelhardt sentenced ALLEN to serve life in prison plus 420 months (35 years) with said sentences to run consecutive. Additionally, ALLEN was ordered to pay $2,000 in special assessment costs.
In June of 2017, LIONEL ALLEN, DEDRICK KEELEN, JAWAN FORTIA, BRYAN SCOTT and DELWIN MCLAREN were convicted following a 7-day trial. According to evidence presented at trial, ALLEN was a leader of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found ALLEN guilty of conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes, assault with a dangerous weapon, and three murders. Specifically, ALLEN was convicted of participating in the shooting death of Vennie Smith on April 22, 2012, the shooting and killing Deshawn Hartford on June 3, 2012, and for being an aider and abettor in the shooting death of Travis Thomas that occurred on the I-10 on May 6, 2013.
ALLEN was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a second superseding indictment. JEFFREY WILSON pled guilty to only drug charges and was sentenced to 180 months of incarceration. DEDRICK KEELEN was sentenced to life plus 10 years after being convicted of multiple murder counts at trial, JAWAN FORTIA was also sentenced to life in prison for participating in the RICO, gun and drug conspiracies, DELWIN McLAREN was sentenced to 16 years of incarceration for his participation in the same drug and gun conspiracies, and BRYAN SCOTT received 20 years in prison for his role in the gun and drug conspiracies.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.
Woman Sentenced and Denaturalized for Obtaining U.S. Citizenship by Lying to OfficialsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Munia Parvin, a/k/a Zarrin Hoque (46, Sarasota), to 6 months in federal prison for obtaining U.S. citizenship through false and misleading representations to U.S. immigration authorities. She pleaded guilty on September 26, 2017. The Court also entered an order denaturalizing Parvin and stripping her of her United States citizenship; she is now subject to deportation to Bangladesh.
According to her plea agreement and evidence presented in court, Parvin first applied for asylum protection to remain in the United States in 1993, claiming that she had entered the United States from Bangladesh and feared persecution and arrest if she returned there. In November 1996, the INS rejected her application and ordered her to appear before an immigration judge for possible deportation proceedings. In December 1997, the immigration court allowed Parvin to depart from the United States by a set date and when she failed to do so, entered a warrant for her arrest and removal from the country.
While her case was still pending before the immigration court, Parvin assumed the new identity of Zarrin Hoque and filed for legal protection and permanent resident status in the United States using this new name and a different set of biographical data. In 2012, she applied for U.S. citizenship and ultimately became a U.S. citizen on June 4, 2012. In her paperwork and application for citizenship, Hoque denied the use of prior names, denied having been subject to an order of deportation, and denied lying to immigration authorities. Photographic and fingerprint evidence later established that Hoque and Parvin were the same person and that Parvin had lied on several parts of her citizenship application.
“When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk,” said HSI Tampa Special Agent in Charge James C. Spero. “Working with our USCIS partners, HSI special agents will continue to protect our immigration systems.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with the assistance from U.S. Citizenship and Immigration Services. This investigation was a part of “Operation Second Look,” a nationwide initiative of the Department of Homeland Security to review the files of hundreds of persons who have been ordered deported from the United States but have not left the country as directed. The Parvin case is one of four similar investigations initiated in the Tampa Bay area. The cases are being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Wise County Woman Sentenced to Prison for Making False StatementsRead the Press Release
Abingdon, VIRGINIA – A Wise County woman, who was previously convicted of making false statements in a matter within the jurisdiction of the federal government, namely an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, was sentenced yesterday in the United States District Court for the Western District in Abingdon, United States Attorney Rick A. Mountcastle announced.
Tina Sartin, 38, was sentenced yesterday to 18 months in prison. She previously pleaded guilty to one count of making false statements in a matter within the jurisdiction of the federal government, namely an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to evidence presented at the sentencing and guilty plea hearings by Assistant United States Attorney Zachary T. Lee, Sartin provided false information to agents with the ATF in connection to an investigation involving Michael Todd Lintz, the City of Norton’s former Parks & Recreation Maintenance Supervisor, who was previously convicted of civil rights and perjury violations. Sartin provided the agents with fabricated text messages and falsely stated that she had been threatened in connection with her cooperation with the ATF.
The investigation of the case was conducted by the Southwest Virginia Drug Task Force, the Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
West Virginia business owner pleads guilty to failing to pay employment taxesRead the Press Release
WASHINGTON – A Fayette County, West Virginia, business owner pleaded guilty today to failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District of West Virginia.
According to documents and information provided to the court, from 2008 through 2012, Steve Lopez, 68, owned and operated Ready Transport Services (RTS), a transportation business that mainly provided taxi services. From 2009 through 2012 he also owned RTS Ice Cream, Coffee and Candy Shop. Both businesses were located in Montgomery, West Virginia. Lopez was responsible for collecting and paying over to the Internal Revenue Service (IRS) social security, Medicare, and income taxes withheld from his employees’ wages. He also was responsible for paying the employer’s share of his employees’ social security and Medicare taxes. Lopez admitted that he did not pay approximately $393,851 in employment taxes due to the IRS, including funds he withheld from his employees’ paychecks as well as money he owed as their employer.
Chief U.S. District Court Judge Thomas E. Johnston scheduled sentencing for March 14, 2018. Lopez faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Casto commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
West Virginia Business Owner Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
A Fayette County, West Virginia, business owner pleaded guilty today to failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District of West Virginia.
According to documents and information provided to the court, from 2008 through 2012, Steve Lopez, 68, owned and operated Ready Transport Services (RTS), a transportation business that mainly provided taxi services. From 2009 through 2012 he also owned RTS Ice Cream, Coffee and Candy Shop. Both businesses were located in Montgomery, West Virginia. Lopez was responsible for collecting and paying over to the Internal Revenue Service (IRS) social security, Medicare, and income taxes withheld from his employees’ wages. He also was responsible for paying the employer’s share of his employees’ social security and Medicare taxes. Lopez admitted that he did not pay approximately $393,851 in employment taxes due to the IRS, including funds he withheld from his employees’ paychecks as well as money he owed as their employer.
Chief U.S. District Court Judge Thomas E. Johnston scheduled sentencing for March 14, 2018. Lopez faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Casto commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
West Haven Man Pleads Guilty to Heroin Distribution Charge Related to Bridgeport Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOHN RODRIGUEZ, 37, of West Haven, waived his right to be indicted and pleaded guilty yesterday in Bridgeport federal court to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, shortly after midnight on November 7, 2015, Bridgeport Police and emergency medical personnel responded to a residence in Bridgeport after a 29-year-old male had been found unresponsive by his roommate. The victim was transported by ambulance to the hospital where, after several attempts to revive him, he was pronounced dead.
The investigation, which included witness interviews and analysis of text message communication, revealed that RODRIGUEZ supplied heroin to the victim the day before he died.
A post-mortem toxicology report found fentanyl, marijuana and several anti-depressant drugs in the victim’s system, and the Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim died from acute fentanyl intoxication.
RODRIGUEZ was arrested on a federal criminal complaint on September 22, 2016.
RODRIGUEZ is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on March 5, 2018, at which time he faces a maximum term of imprisonment of 20 years.
At the conclusion of yesterday’s guilty plea proceeding, U.S. Magistrate Judge William I. Garfinkel ordered RODRIGUEZ, who had been released on bond, to be remanded to the custody of the U.S. Marshals Service.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the West Haven and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
West Haven Man Guilty of Meriden CarjackingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found DON MEEKER, 30, of West Haven, guilty of carjacking. The trial before U.S. District Judge Vanessa L. Bryant began on December 8 and the jury returned its verdict late yesterday afternoon.
According to the evidence at trial, on January 1, 2016, two men from out of state who were driving a rented 2015 Volkswagen Passat were victims of an armed carjacking in the vicinity of Hobart Street and Myrtle Street in Meriden. The victims reported that they had asked an individual, later identified as Kyle Valentine, for directions at a gas station. Valentine told the victims to follow a car in which Valentine was a passenger. After traveling a few minutes, the car stopped. Valentine and Elbert Llorrens then exited the car and approached the Passat. Llorens pointed a handgun at one of the victims who was sitting in the passenger seat of the car, opened the door and stated “I want everything.” The victims exited the car and Llorens and Valentine stole their wallets and cell phones and then drove away in the Passat.
The investigation revealed that MEEKER drove the car that the carjacking victims followed, and that MEEKER provided the handgun to Llorens. After the robbery, MEEKER, Llorens and Valentine spilt the money stolen from the victims.
MEEKER was arrested on March 9, 2017.
MEEKER was convicted of one count of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years. Judge Bryant scheduled sentencing for March 14, 2018. Judge Bryant also ordered MEEKER, who has been released on a $200,000 bond since June 2016, to be remanded to the custody of the U.S. Marshals Service pending sentencing.
Elbert Llorens and Kyle Valentine, both of New Haven, previously pleaded guilty to charges related to their roles in this carjacking. On March 20, 2017, Llorens was sentenced to 60 months of imprisonment. Valentine awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford, New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Patrick F. Caruso.
Warren man sentenced to more than 27 years in prison for having heroin and firearmsRead the Press Release
A Warren man was sentenced to more than 27 years in prison for having a kilogram of heroin and firearms, said U.S. Attorney Justin E. Herdman and Warren Police Chief Eric Merkel.
Ricardo B. McKinney, 32, was sentenced to 327 months after being convicted following a jury trial earlier this year.
“Between the kilo of heroin he had, and the two firearms he possessed despite being a felon, this defendant was a clear danger to the people of Warren,” Herdman said. “Law enforcement worked collaboratively in this case to make Trumbull County a safer place.”
Merkel said: “I would like to thank the Warren Street Crimes Unit for all of the hard work that was put into this case and their dedication to removing from our streets a drug that has killed so many in our city. I would also like to thank the U.S. Attorney's Office for prosecuting this case. This partnership is an essential element in our mission to eliminate drug traffickers from our community.”
A jury convicted McKinney in March on two counts of distribution of heroin, one count of possession with the intent to distribute one kilogram or more of heroin and one count of being a felon in possession of firearms following a weeklong trial.
McKinney sold heroin on two occasions in early 2015. Warren police arrested McKinney on Feb. 25, 2015, with approximately 1657.2 grams of heroin and two handguns. McKinney was prohibited from having a firearm because of prior felony convictions, according to court documents and trial testimony.
Prosecutors are forfeited nearly $30,000 and the two firearms seized as part of the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Daniel J. Riedl. The investigation was conducted by the Drug Enforcement Administration and the Warren Police Department.
United States Citizens and Illegal Aliens Charged in Marriage Fraud RingRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the filing of an indictment charging William Matthew Tex Price (31, Cocoa), April Coleen Moore (24, Satellite Beach), Khagan Mushfig Oglu Nabili (24, Azerbaijan), Zafar Bakhramovich Yadigarov (26, Uzbekistan), Valriy Tsoy (33, Kazakhstan), Maria Rogacheva (28, Russia), and Svetlana Vladimirovna Shakhramanyan (28, Azerbaijan) for their involvement in a marriage fraud ring operating out of Brevard County from 2015 to 2016. Each faces up to five years in federal prison. Price has also been charged in a separate indictment with possessing a firearm as a convicted felon and faces up to 10 years in federal prison for that offense. Denis Yakovlev (40, Russia) and Meghan Toole (28, Cocoa) were previously charged and pleaded guilty for their involvement in this conspiracy.
According to court documents, in October 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations worked with the Brevard County Clerk of the Court to investigate a significant surge in the number of aliens from Uzbekistan, Kazakhstan, Kyrgyzstan, and other former Soviet countries marrying U.S. citizens in Brevard County. This led to the arrest of Yakovlev and Toole on July 13, 2016. After his arrest, Yakovlev admitted to introducing approximately 100 individuals to each other over an 18-month period for the purpose of them entering into sham marriages for immigration benefits. Yakovlev claimed that his payment typically ranged from $1,000 to $2,000 per sham marriage, and that the American citizens were paid between $10,000 and $20,000 each.
“These criminals conspired to circumvent and exploit our nation's immigration laws for personal financial gain,” said HSI Special Agent in Charge James C. Spero. “This undermines the very objectives of our immigration laws and services, which are based on the honesty of the people who apply for immigration benefits.”
Last month, Nabili and Rogacheva each pleaded guilty to one count of marriage fraud. Price pleaded guilty to two counts of marriage fraud and one count of being a felon in possession of a firearm. Yadigarov, Tsoy, and Shakhramanyan were arrested on December 7, 2017, in the Eastern District of New York. Moore was arrested on October 15, 2016, and her trial date has been set for January 2, 2018.
In November 2016, Yakovlev was sentenced to 15 months’ imprisonment for encouraging or inducing an alien to reside in the United States, and Toole was sentenced to 4 months’ imprisonment for marriage fraud.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services - Fraud Detection and National Security Directorate, the Brevard County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Brevard County Clerk of the Court. It is being prosecuted by Special Assistant U.S. Attorney Christina R. Downes on assignment from the Office of the Principal Legal Advisor, ICE.
Two Los Angeles-Area Managers of Foreclosure Rescue Companies Convicted for Roles in Mortgage Fraud SchemeRead the Press Release
A federal jury found two Los Angeles, California-area managers of foreclosure rescue companies guilty today for their roles in a foreclosure rescue scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Jamie Matsuba, 33, and her father, Thomas Matsuba, 67, both of Chatsworth, California, were convicted after a one-week trial of one count of conspiracy to commit wire fraud, making false statements to federally insured banks and committing identity theft. In addition, both defendants were convicted of one count of making false statements to federally insured banks. Sentencing has been scheduled for May 14, 2018 at 10 a.m., before U.S. District Judge R. Gary Klausner of the Central District of California, who presided over the trial.
According to evidence presented at trial, from January 2005 to August 2014, Jamie Matsuba, Thomas Matsuba and others engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. The evidence further established that the conspirators obtained mortgages in the names of stolen identities. In addition, the defendants used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties, the evidence showed.
Three other defendants have been charged in this matter. Defendant Dorothy Matsuba, 66, of Chatsworth, who is the mother of Jamie Matsuba and wife of Thomas Matsuba, and her daughter, Jane Matsuba-Garcia, 41, of Camarillo, California, previously pleaded guilty and are awaiting sentencing. Defendant Young Park of Los Angeles, California, is a fugitive. In addition, in related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 47, of Canoga Park, California, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the FBI, IRS-CI, FHFA-OIG and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Twenty Illegal Aliens Indicted on Federal Document Fraud ChargesRead the Press Release
Memphis, TN – D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced today that 20 individuals have been indicted for working under false identities.
On November 28, 2017, law enforcement arrested 20 illegal aliens working under false identities. A Memphis employment agency, Provide Staffing, assigned multiple employees to Expeditors International, a freight forwarder based in Memphis.
In the course of their regular duties, Transportation Security Administration inspectors in Memphis noticed anomalies in Security Threat Assessment paperwork submitted on behalf of Provide Staffing workers on contract to Expeditors International, and referred their findings to Immigration and Customs Enforcement and the Tennessee Department of Safety and Homeland Security.
Tennessee Highway Patrol’s (THP) Criminal Investigative Division investigated and arrested these 20 individuals on state charges. ICE Homeland Security Investigations conducted a parallel investigation in coordination with TSA and other law enforcement agencies.
As a result of that investigation, the defendants are alleged to have presented fraudulent documents, between March 2016 and January 2017, to certify their identity and eligibility to work in the United States.
The Immigration and Reform Act of 1986, amended, and the Immigration and Nationality Act together require employers to verify the identity and employment eligibility of their employees using a prescribed form, Form I-9, and require that employees present documents to verify their identity and eligibility to work in the United States. Each defendant is charged with knowingly using a false identification document as evidence of
his or her employment eligibility, in violation of Title 18, United States Code, Section 1546 (a) or Section 1546(b) (2).
United States Attorney D. Michael Dunavant said: "In April, the Attorney General announced a renewed commitment by the Department of Justice to consistently and vigorously pursue criminal immigration enforcement, in order to disrupt organizations and deter unlawful conduct. This priority includes the aggressive prosecution of aggravated identity theft, document fraud, and misuse of visas and permits in the immigration context. These indictments fulfill that priority, protect critical infrastructure sites, and promote lawfulness in our immigration system."
"Individuals that utilize fraudulent identification to obtain restricted access to our nation’s transportation network, whether air, sea, or rail, create a vulnerability to our national supply chain," said Assistant Special Agent in Charge Robert Hammer, who oversees HSI’s efforts in Tennessee. "HSI will continue to partner with our federal and state law enforcement partners to protect our critical infrastructure from exploitation."
The 20 defendants indicted on federal charges include:
Jamie Ramundo Martinez, a/k/a/ Angel Martinez, 36, Guatemala
Pedro Garcia-Guaneros, a/k/a/ Pedro Garcia, 34, Mexico
Oscar Tepole-Sanchez, a/k/a/ Oscar Tepole, 36, Mexico
Hilda Hernandez-Garduno, a/k/a/ Hilda Hernandez, 37, Mexico
Angel Calmo-Aguilar, a/k/a/ Angel Calmo, 24, Guatemala
Edgar Lopez-Marin, a/k/a/ Edgar Lopez, 37, Mexico
Fernando Ramos-Jacobo, a/k/a/ Fernando Ramos, 27, Mexico
Willivaldo Arenales-Soriano, a/k/a/ Wilibaldo Arenales, 35, Mexico
Fernando Alexi Duran-Reyes, a/k/a/ Eduardo Duran, 43, Honduras
Ramon Paz-Peredes, a/k/a/ Ramon Paz, 47, Honduras
Josue Vaca-Alvarodo, a/k/a/Pedro Cordero, 41, Honduras
Arturo Robles-Larios, 36, Mexico
Sixto Landaverde-Rodriguez, a/k/a/ Sixto Rodruguez, 42, Mexico
Rodolfo Hernandez-Sanchez, a/k/a/ Leonel Sanchez, 37, Mexico
Henry Calmo-Aguilar, a/k/a/ Henry Calmo, 22, Guatemala
Eligio Lopez-Acevedo, 34, Mexico
Artemio Moreno-Gordillo, a/k/a/ Artemio Moreno, 44, Mexico
Jose Moreno-Martinez, 25, Mexico
Marlon Martinez-Martinez, a/k/a/ Marlon Martinez, 36, Honduras
Raquel Delin-Ramos, a/k/a/ Raquel Delin, 32, MexicoIf convicted, the defendants face a maximum five years imprisonment; $250,000 fine and 3 years supervised release to begin after incarceration.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
These cases were investigated by the Homeland Security Investigations, Transportation Security Administration and Tennessee Highway Patrol. Assistant U.S. Attorney Lauren Delery is prosecuting this case on the government’s behalf.
Two Los Angeles-Area Managers of Foreclosure Rescue Companies Convicted for Roles in Mortgage Fraud SchemeRead the Press Release
WASHINGTON – A federal jury found two Los Angeles-area managers of foreclosure rescue companies guilty today for their roles in a foreclosure rescue scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Jamie Matsuba, 33, and her father, Thomas Matsuba, 67, both of Chatsworth, were convicted after a one-week trial of one count of conspiracy to commit wire fraud, making false statements to federally insured banks and committing identity theft. In addition, both defendants were convicted of one count of making false statements to federally insured banks. Sentencing has been scheduled for May 14, 2018 at 10 a.m., before U.S. District Judge R. Gary Klausner, who presided over the trial.
According to evidence presented at trial, from January 2005 to August 2014, Jamie Matsuba, Thomas Matsuba and others engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. The evidence further established that the conspirators obtained mortgages in the names of stolen identities. In addition, the defendants used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties, the evidence showed.
Three other defendants have been charged in this matter. Defendant Dorothy Matsuba, 66, of Chatsworth, who is the mother of Jamie Matsuba and wife of Thomas Matsuba, and her daughter, Jane Matsuba-Garcia, 41, of Camarillo, previously pleaded guilty and are awaiting sentencing. Defendant Young Park, of Los Angeles, is a fugitive. In addition, in related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 47, of Canoga Park, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the FBI, IRS-CI, FHFA-OIG and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Stuart Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Farris Dwayne Griffin, age 42, of Stuart, Oklahoma pled guilty to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from on or about September 3, 2017 to on or about September 5, 2017, within the Eastern District of Oklahoma, the defendant, Farris Dwayne Griffin, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Statement of the U.S. Attorney’s Office concerning Proposed Injection SitesRead the Press Release
In studying safe injection facilities (SIFs), the Chittenden County State’s Attorney (CCSA) and the Commission members were motivated by their desire to save lives and combat the scourge of opiate addiction in Vermont. Everyone in the law enforcement community shares these goals. The U.S. Attorney’s Office, however, disagrees with the recommendation of the Commission that SIFs be established in Vermont. SIFs are counterproductive and dangerous as a matter of policy, and they would violate federal law.
As to policy, the proposed government-sanctioned sites would encourage and normalize heroin use, thereby increasing demand for opiates and, by extension, risk of overdose and overdose deaths. Opiate users, moreover, all-to-often believe they are purchasing heroin when, in fact, they are purchasing its common substitute, fentanyl, ingestion of which gives rise to greatly enhanced dangers of overdose and fatality. Introduction of fentanyl to SIFs would create additional public health risks, not only for the users, but for SIF staff members who might come in contact with that highly potent substance. Further, heroin and other opiates are not Vermont products, but rather, introduced to Vermont from out-of-state. End users – no matter the location they use – fuel the national and international market. When users purchase heroin (or fentanyl) for injection at an SIF, those transactions will stimulate the heroin market and put money into the hands of out-of-state profit-driven dealers and drug trafficking organizations, while doing nothing to ensure that consumers stop purchasing and injecting heroin. SIFs would, thus, frustrate and undermine years of hard work by those in Vermont law enforcement and the treatment community to decrease opiate use and trafficking. Such facilities would also threaten to undercut existing and future prevention initiatives by sending exactly the wrong message to children in Vermont: the government will help you use heroin. Indeed, by encouraging and normalizing heroin injection, SIFs may even encourage individuals to use opiates for the first time, or to switch their method of ingestion from snorting to injection, the latter carrying greatly increased risk of fatality and overdose. In short, opiate addicts need treatment, not a place to continue using. Rather than encourage and normalize heroin injection, by affording a purportedly legal setting for use, the government must help addicts stop using. We can achieve that goal. Time and again in federal court, we have seen defendants recover from heroin addiction with the help of law enforcement intervention, Judges (including those who oversee our drug courts), the United States Probation Office, and our partners in the drug treatment community. We continue to believe in statewide collaborative approaches to the addiction crisis that involve enforcement, treatment, and prevention.
Of equal importance, the proposed SIFs would violate several federal criminal laws, including those prohibiting use of narcotics and maintaining a premises for the purpose of narcotics use. It is a crime, not only to use illicit narcotics, but to manage and maintain sites on which such drugs are used and distributed. Thus, exposure to criminal charges would arise for users and SIF workers and overseers. The properties that host SIFs would also be subject to federal forfeiture.
The United States Attorney emphasizes that this statement is not intended to cast aspersions on the motives of anyone involved in the Commission recommendation, but rather, to express the perspective of the U.S. Attorney’s Office, and outline the ramifications under federal law. The U.S. Attorney’s Office appreciates the work of the CCSA and the members of her office. They are public servants dedicated to helping Vermonters. We have a strong relationship with the CCSA, and we look forward to working closely with all of Vermont’s State’s Attorneys to combat threats to the safety and security of Vermonters.
St. Bernard Resident Charged with Preparing False Tax ReturnsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that EMELDA MATTHEWS, age 36, of Violet, was charged today in a Bill of Information with Aiding and Assisting in the Preparation of False Tax Returns.
According to documents filed in federal court, MATTHEWS operated a small tax preparer business from her home in Violet. From 2013 through 2015, MATTHEWS, aided and assisted numerous federal income tax filers in preparing and filing false tax returns with the Internal Revenue Service.
The maximum penalty for aiding and assisting in the preparation of false tax returns is three years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Six Individuals Indicted in December 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the December 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
KELLY RAY POTTER JR., age 41, of McAlester, Oklahoma
Possessing Contraband In Prison (2 Counts)
The Indictment alleges that on or about October 24, 2017, in the Eastern District of Oklahoma, the Defendant, KELLY RAY POTTER JR., an inmate of a prison as defined in Title 18, United States Code, Section 1791(d)(4), did knowingly possess a prohibited object, to-wit: a knife-like object approximately ten (10) inches in length made from plexiglass material wrapped with a blue cloth as a handle, designed and intended to be used as a weapon, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(3) and 1791(d)(1)(B), punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about September 28, 2017, in the Eastern District of Oklahoma, the Defendant, KELLY RAY POTTER JR., an inmate of a prison as defined in Title 18, United States Code, Section 1791(d)(4), did knowingly possess a prohibited object, to-wit: a cellular telephone, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(4) and 1791(d)(1)(F), punishable by not more than 1 year imprisonment, a fine up to $100,000.00 or both.
The charges arose from an investigation by the Muskogee County Sheriff’s Office, the Okmulgee County Sherriff’s Office, and the U.S. Marshals Service.
Assistant United States Attorney Timothy Hammer
MICHAEL AARON CAMPBELL, age 21, of Muldrow, Oklahoma
Enticement Of A Minor Using A Facility Of Interstate Commerce (2 Counts)
The Indictment alleges that from on or about June 6, 2017, until on or about July 26, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, MICHAEL AARON CAMPBELL, 21 years old, did use and attempt to use, a facility and means of interstate commerce, the Internet, to knowingly persuade, induce, and entice an individual, Child #1, whom he believed to be under 16 years of age, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Rape, Second Degree, Title 21, Oklahoma Statute, Sections 1111 and 1114(B), and Lewd or Indecent Proposals or Acts with a Child under 16, Title 21, Oklahoma Statute, Section 1123, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that from in or about June 2017, the exact date being unknown to the Grand Jury, until on or about July 26, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, MICHAEL AARON CAMPBELL, 21 years old, did use and attempt to use, a facility and means of interstate commerce, by means of cellular communication, to knowingly persuade, induce, and entice an individual, Child #2, whom he believed to be under 14 years of age, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Rape, First Degree, Title 21 Oklahoma Statute, Sections 1111, and 1114(A)(1), Rape by Instrumentation, First Degree, Title 21, Oklahoma Statute Sections 1111.1(A) and 1114(A)(1), and Lewd or Indecent Proposals or Acts with a Child under 16, Title 21, Oklahoma Statute, Section 1123, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Muldrow Police Department and Homeland Security Investigations.
Assistant United States Attorney John David Luton
HENRI MICHELLE PIETTE, age 63, of Wagoner, Oklahoma
Kidnapping
Travel With Intent To Engage In Sexual Act With A JuvenileThe Indictment alleges that in or about January 1997, the exact date being unknown to the Grand Jury, in the Eastern District of Oklahoma, and elsewhere, the defendant, HENRI MICHELLE PIETTE, a/k/a Henri Michel Piette, a/k/a Henri Billy, a/k/a Dan Reed, a/k/a Billy Ira Sloop Jr., a/k/a Michael Wayne Mansfield, a/k/a Christopher Allen McAnear, an adult over 18 years of age, did unlawfully and willfully seize, confine, inveigle, decoy, kidnap, abduct, carry away, and hold for some benefit a female who had not attained the age of 18 years, who is known to the Grand Jury and, in committing, and in furtherance of the commission of the offense, transported the female in Interstate and Foreign commerce from the State of Oklahoma to States outside of Oklahoma and Foreign countries, in violation of Title 18, United States Code, Sections 1201(a)(1) and 1201(g). punishable by up to life imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that from in or about January 1997, the exact date being unknown to the Grand Jury, to July 28, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, HENRI MICHELLE PIETTE, a/k/a Henri Michel Piette, a/k/a Henri Billy, a/k/a Dan Reed, a/k/a Billy Ira Sloop Jr., a/k/a Michael Wayne Mansfield, a/k/a Christopher Allen McAnear, did travel in interstate commerce for the purpose of engaging in any sexual act, as defined in Title 18, United States Code, Section 2246, with another person under 18 years of age, said sexual act being a violation of Chapter 109A of the United States Code, in violation of Title 18, United States Code, Section 2423(b), punishable by up to 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Edward Snow
BRANDON EVERETT BARKER, age 36, of Port Aransas, Texas
MICHELLE DENISE CARSON, age 39, of Indianapolis, IndianaPossession Of An Electronic Image Of An Obligation Of The United States
Possession Of Counterfeit Obligations Of The United States
Possession Of An Identification Document Making Implement
Felon In Possession Of Firearm And AmmunitionThe Indictment alleges that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, BRANDON EVERETT BARKER and MICHELLE DENISE CARSON, did unlawfully and with intent to defraud, have in their control, custody, and possession, a digital and electronic image of an obligation or other security of the United States, to wit: a one hundred dollar bill, in violation of Title 18 United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, BRANDON EVERETT BARKER and MICHELLE DENISE CARSON, did knowingly have in their possession and custody, with intent to sell or otherwise use, six (6) counterfeited one-hundred-dollar Federal Reserve Notes, Series of 2006, Serial No. HB87632694B, made after the similitude of obligations issued under the authority of the United States, in violation of Title 18, United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, BRANDON EVERETT BARKER and MICHELLE DENISE CARSON, did knowingly possess document making implements, to wit, applications and software used to create identification documents, located on two laptop computers, with the intent such document making implement would be used in the production of false identification documents, and the possession of the document making implement was in or affected interstate commerce, in violation of Title 18, United States Code, Sections 1028(a)(5), 1028(b)(1)(C) and 2, punishable by not more than 15 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that from on or about September 16, 2017, to on or about September 17, 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, BRANDON EVERETT BARKER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Atoka Police Department and the United States Secret Service.
Assistant United States Attorney Rob Wallace
AICHU SAESEE, age 29, of Visalia, California
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about July 14, 2017, within the Eastern District of Oklahoma, the Defendant, AICHU SAESEE, a/k/a Chava Seechan, a/k/a Aichu Johnnie Saesee, a/k/a Aicho Johnnie Saesee, a/k/a Aichu Chava Seechan, a/k/a Aichu Chava Saesee, a/k/a Johnny Aichu Saesee, a/k/a Johnny Alcho Saesee, and a/k/a Alchu Saesee, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The charge arose from an investigation by the Latimer County Sheriff’s Office and the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
Six Detroit Police Department Officers Charged with ExtortionRead the Press Release
Two current Detroit Police Department Officers and four retired Detroit Police Department Officers have been charged with extortion for accepting bribes from owners of automobile collision shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to their shops, acting United States Attorney aniel L. Lemisch announced today.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department.
Two current Detroit Police Department Officers were indicted yesterday by a federal grand jury and four retired Detroit Police Officers have pleaded guilty to committing extortion while they were Officers with the Detroit Police Department. All six officers were actively employed with the Detroit Police Department at the time of the alleged offenses.
The six officers charged are:
Deonne Dotson, age 45
Indicted today on 6 counts of Extortion
Currently Employed as a DPD Officer
Charles Wills, age 52
Indicted today on 4 counts of Extortion
Currently Employed as a DPD Officer
James Robertson, age 45
Pleaded guilty to an Information charging 2 counts of Extortion
Retired DPD Officer
Jamil Martin, 46
Pleaded Guilty to an Information charging 1 count of Extortion
Retired DPD Officer
Martin Tutt, age 29
Pleaded guilty to an Information charging 2 counts of Extortion
Retired DPD Officer
Anthony Careathers, age 52
Pleaded Guilty to an Information charging 1 count of Extortion
Retired DPD Officer
All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
“The vast majority of Detroit Police Officers are courageous, dedicated, superb public servants,” said Lemisch. “The charged defendants should have put the people of Detroit first, rather than lining their own pockets.”
“The actions of these six officers illustrate a pattern of misconduct and an abuse of authority, which is in contrast to the vast majority of law enforcement professionals at the Detroit Police Department who serve each day with distinction and integrity,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
“These defendants have allegedly engaged in criminal acts of public corruption that can erode the confidence that people have in government. The trust placed on these individuals required them to obey laws and conduct themselves in an ethical manner,” said Patricia Armstrong, U.S. Postal Inspector in Charge, Detroit Division.
"Certainly, we appreciate the relationship between the Detroit Police Department and the Federal Bureau of Investigation. While these allegations are troubling, we are relieved that this is bringing closure to a long standing issue that has plagued this department," said Chief Craig.
Officer Dotson will be arraigned in in federal court on December 19, 2017 at 1p.m. The arraignment date for Officer Wills is to be determined.
Each of the extortion charges carry a maximum sentence of 20 years imprisonment and a fine of $250,000.
Regarding Officers Dotson and Wills: an indictment is only a charging document and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Regarding retired Officers Robertson, Martin, Tutt, and Carethers, sentencing dates for these retired Officers, who have already pleaded guilty, will be in 2018, before the Honorable Robert H. Cleland.
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
Shreveport man pleads guilty to firearms chargesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Shreveport felon pleaded guilty to possessing a revolver.
Christopher Deshun Owens, 28, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of possession of a firearm by a convicted felon. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Shreveport 911 operators received a call on August 10, 2017 from Owens’ ex-girlfriend. They heard the ex-girlfriend and Owens arguing about a firearm. Owens had entered the ex-girlfriend’s home with a firearm. Police later arrived and detained Owens. A Charter 2000, Shelton, Conn., Model: Undercover, Caliber .38 SPL revolver was recovered from a child’s dresser drawer in the house. Owens initially denied carrying the gun but later admitted to it. Owens was previously convicted in Bossier Parish for possession of marijuana, second offense.
Owens faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of March 27, 2018.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Amilcar Menjivar Umana, 38, was sentenced by U.S. District Court Judge Allison D. Burroughs to six months in prison - to be served consecutive to an 18 month state sentence he is currently serving for violating the terms of his probation stemming from an OUI conviction - and one year of supervised release. Umana will also face deportation proceedings upon completion of his sentence. In October 2017, Umana pleaded guilty to one count of unlawful reentry of a deported alien.
Umana was previously deported on Oct. 25, 2013; Jan. 7, 2014; and March 20, 2014. On May 12, 2017, law enforcement encountered Umana and determined him to be illegally present in the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Salvadoran Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Juan David Monzon Tejada, age 29, and a citizen of El Salvador, pled guilty today to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Monzon Tejada was removed from the United States to El Salvador on September 22, 2015. On November 19, 2017, ICE Officers arrested him in Glenville, New York. Monzon Tejada admitted that he illegally returned to the United States following the 2015 removal.
Monzon Tejada faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on April 11, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Rockwall Man Indicted by Federal Grand Jury for Production of Child PornographyRead the Press Release
FORT WORTH, Texas — Jon Anthony Terry, 28, of Rockwall, Texas, was charged in a federal indictment, returned today by a grand jury in Fort Worth, Texas, with four counts of production of child pornography and one count of possession of prepubescent child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Terry is currently in custody on a related criminal complaint. A date has not yet been set for him to make his initial appearance.
The indictment alleges that, on one occasion in 2013 and three separate occasions in 2017, Terry induced three different prepubescent minors to engage in sexually explicit conduct while he recorded the conduct. The indictment also charges Terry with possessing images of child pornography in November 2017.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the possession count, not more than 10 years in prison. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Prisoner pleads guilty for role in federal drug conspiracyRead the Press Release
BLUEFIELD, W.Va. – A Charleston man pleaded guilty today for his role in a drug trafficking conspiracy, announced United States Attorney Carol Casto. Velarian S. Carter, 38, entered his guilty plea to conspiracy to distribute and to possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of crack, and more than 100 grams of heroin. Carter is one of 23 defendants indicted in June 2017 after a comprehensive investigation of drug trafficking in Southern West Virginia.
Carter admitted that between October 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants while he was incarcerated. The drug trafficking organization was responsible for distributing cocaine, crack, and heroin in and around Raleigh County. During the course of the conspiracy, Carter admitted to directing other participants outside of the jail to cook cocaine into crack and to distribute controlled substances in and around the Southern West Virginia. He also admitted that in some instances, he directed what prices should be charged for the drugs and how the money collected through the distribution of controlled substances should be distributed.
Carter faces at least 20 years and up to life in federal prison when he is sentenced on April 17, 2018. In a separate prosecution, Carter was sentenced in February 2017 to 20 years in federal prison for his role in a California-to-West Virginia drug conspiracy.
Other individuals implicated as a result of this drug investigation have entered guilty pleas and are awaiting sentencing. Cheyenne Fragale and Macon Fragale, two brothers from Boomer in Fayette County, previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, a quantity of oxycodone, and a quantity of heroin. They both face a mandatory minimum of 10 years and up to life in federal prison when they are sentenced on March 14, 2018. Dominic Copney, of Beckley, previously entered a guilty plea to conspiracy to distribute and possess with the intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018.
This prosecution was made possible through the cooperative efforts of several investigating agencies. The investigation was led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service provided assistance throughout the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The plea hearing was held before Senior United States District Judge David A. Faber.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Point Arena Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — Tion Makeise Foster, 22, of Point Arena, pleaded guilty today to sex trafficking of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Foster and co-defendant Monica Merlin Morales, 26, also of Point Arena, transported a 16‑year-old female victim to various places in the Eastern District of California and the San Francisco Bay Area in August 2016 so that she could engage in commercial sex acts for their financial benefit. They allegedly conspired to traffic her again in November and December that same year.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
Foster is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 18, 2018. Foster faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against Morales. The charges against her are only allegations; she 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.
Pitcairn Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on December 12, 2017, named Lamar Rice, age 40, as the sole defendant.
According to the indictment, on or about November 14, 2017, Rice maintained a drug-involved premises, where he was found to be in possession of 100 or more marijuana plants, with the intent to distribute them. Rice, a convicted felon, is also charged with possessing ammunition. As a convicted felon, Rice is prohibited by federal law from possessing a firearm and/or ammunition.
The law provides for a total maximum sentence of not less than five years in prison and up to 40 years in prison, and a fine of up to $5,000,000 for the drug charges. Rice also faces a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both, on the possession of ammunition charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Paralegal Who Claimed to be Partner Attorney, President of Law Firm on Credit Card Applications Sentenced for Bank FraudRead the Press Release
CINCINNATI – Grady Calhoun, 35, of Hamilton, Ohio, was sentenced in U.S. District Court to 15 months in prison and two years of supervised release for three counts of bank fraud related to making representations as part of his application to obtain credit cards.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason Hayden, Acting Special Agent in Charge, United States Secret Service, announced the sentence handed down by U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, on three separate occasions, Calhoun made false claims about his occupation and income. During one application process with Chase Bank, he claimed he was a partner and president of a law firm called Serdekor LLC. Serdekor LLC is an Ohio limited liability company that was created and registered by Calhoun; however, Serdekor LLC is not a law firm and the defendant is not a licensed attorney. Rather, Calhoun was employed as a paralegal at a law firm in the Southern District of Ohio.
Calhoun manipulated the payment process to Chase Bank to keep the credit card accounts open as long as possible, and owes nearly $408,000 as a result of this scheme.
He also fraudulently obtained credit card accounts at Barclay’s Bank and applied for other lines of credit with another individual’s social security number. Calhoun owes Barclay’s more than $28,000.
Calhoun pleaded guilty in June, and as part of the plea agreement, Calhoun has agreed to pay the loss amounts to both banks in restitution.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
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Owner of New York Wholesale Food Distributor Indicted for Obstructing the IRS, Filing False Tax Returns, and StructuringRead the Press Release
A federal grand jury sitting in the Eastern District of New York returned an indictment yesterday, which was unsealed today, charging the owner of a wholesale food distributor with obstructing the internal revenue laws, aiding and assisting in the filing of false tax returns, and structuring currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Jose Cerritos resided in Brentwood, New York, and owned La Centro American Corp. (La Centro), a wholesale food distributor in Bayshore that sold to retail customers in the New York metropolitan area. The indictment alleges that Cerritos caused the filing of false individual and corporate income tax returns for 2011 and 2012 that did not report all of his income or all of La Centro’s gross receipts. Cerritos allegedly did not deposit all of La Centro’s receipts into its business bank accounts and did not inform his tax return preparer of the cash receipts that were not deposited into the business bank accounts. The indictment further alleges that Cerritos attempted to structure La Centro’s cash receipts in amounts less than $10,000 on the same or consecutive days, to evade bank-reporting requirements, and that he did so in a pattern of illegal activity involving more than $100,000 within a 12-month period.
The indictment also charges that in 2012 the Internal Revenue Service (IRS) seized funds from La Centro’s bank accounts due to the alleged structuring activity. According to the indictment, the United States then filed a civil action to forfeit the funds. Cerritos appeared as a claimant in the lawsuit. During the discovery phase of the litigation, he and the other claimants allegedly provided documents to the United States purporting to be sales reports for La Centro for 2011 and 2012, but which allegedly omitted millions of dollars of La Centro’s gross receipts.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Cerritos faces a statutory maximum sentence of three years in prison for each count of obstructing the internal revenue laws and aiding and assisting in the filing of false tax returns and ten years in prison for structuring. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah Ranney and Mark Kotila of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Durable Medical Equipment Company Sentenced to Two Years in Prison for Health Care FraudRead the Press Release
WASHINGTON – Emeka H. Chijioke, 41, formerly of Atlanta, Ga., and Nigeria, was sentenced today to two years in prison on a federal charge stemming from a scheme in which he defrauded the District of Columbia’s Medicaid program out of more than $500,000.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Chijioke pled guilty in September 2017, in the U.S. District Court for the District of Columbia, to a charge of health care fraud. He was sentenced by the Honorable Senior Judge Paul L. Friedman. The judge ordered Chijioke to pay $552,343 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment. Following his prison term, Chijioke will be placed on three years of supervised release.
Chijioke was arrested in December 2016 in Germany and extradited to the United States in April 2017 to face charges in an indictment returned in the District of Columbia.
According to a statement of offense submitted at the time of the plea, Chijioke was the majority owner, registered agent, and chief executive officer of Mead Medical Group, LLC, a durable medical equipment company organized in Maryland. Mead Medical provided medical equipment supplies, including incontinence supplies and garments, to District of Columbia Medicaid recipients.
Beginning in or about 2007 and continuing through 2012, Chijioke engaged in a scheme to defraud D.C. Medicaid by billing for incontinence supplies that were not provided, as detailed in the statement of offense. Chijioke instructed his office staff to complete doctor prescriptions calling for beneficiaries to receive the maximum amount of incontinence supplies allowed by D.C. Medicaid. At the same time, he had his office staff contact the Medicaid recipients to determine from them the actual amount of incontinence supplies they needed, and to provide them with those supplies. Chijioke hired a billing company to submit claims to the Medicaid contractor as if the maximum amount of supplies were provided to the recipients rather than the actual amount supplied. By arranging for the maximum amount of incontinence supplies to be billed, rather than the amount actually provided, Chijioke obtained approximately $580,000 that he was not entitled to receive from Medicaid.
During the investigation, $28,600 in funds generated through the scheme was administratively forfeited.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Special Agent in Charge DiGiulio expressed appreciation for the work performed by Special Agents from the FBI and HHS OIG. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section; former Assistant U.S. Attorney Lionel André; Paralegal Specialist Jessica Mundi; former Paralegal Specialists Corinne Kleinman, Kaitlyn Kruger, and Christopher Toms, and Litigation Technology Specialist Claudia Gutierrez. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and Kondi Kleinman, of the Fraud and Public Corruption Section, who prosecuted the case.
Orlando Pair Sentenced for Copyright Infringement of Microsoft Products and Conspiracy to Commit Wire FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Robert F. Stout (51) and Kasey N. Riley, a/k/a Kasey Stout (33), to 18 months’ imprisonment and 12 months of home detention, respectively, for conspiracy to commit wire fraud and copyright infringement relating to the sale of illegal activation keys for Microsoft products. As a part of their sentences, the Court also ordered them to pay $1,480,227, the proceeds of the charged criminal conduct.
Stout and Riley pleaded guilty on August 8, 2017.
According to court documents, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. They purchased unauthorized activation keys from various websites and then provided them, in exchange for PayPal payments, to at least 13,000 customers throughout the United States. They received at least $1.4 million from customers in exchange for the unauthorized, and often invalid, activation keys. Even after receiving customer complaints that specific activation keys were not functioning properly, Stout and Riley continued to sell them. For example, between September 2013 and June 2014, they sold one specific activation key approximately 880 times.
“This investigation involved years of hard work by HSI special agents and our partners at the Federal Bureau of Investigation,” said HSI Tampa Special Agent in Charge James C. Spero. “We have stopped these criminals from using intellectual property for their own illegal profit.”
The Better Business Bureau received at least 140 complaints from customers who had purchased the unauthorized software from the sham businesses. Over the course of two years, Stout and Riley also received - and ignored - at least four warnings from Microsoft to cease in their practices.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Albany Field Office of the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor (ICE) in the Middle District of Florida, and Assistant United States Attorney Wayne A. Myers from the Northern District of New York.
Oklahoma Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
An Oklahoma man was arrested yesterday after being charged by indictment with receipt and possession of child pornography, announced U.S. Attorney R. Trent Shores.
Thaddus Caves, 40, of Tulsa, Oklahoma, was indicted by a federal grand jury on December 5th, with one count each of receipt of child pornography and possession of child pornography. According to the indictment, in 2016, Caves knowingly received and possessed visual depictions of minors engaging in sexually explicit conduct.
The charges are the result of an investigation by the FBI’s Internet Crimes Against Children Task Force. The matter is being prosecuted by Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeffrey A. Gallant of the Northern District of Oklahoma.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 of exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Norcross business owners sentenced for defrauding the CDCRead the Press Release
ATLANTA - Cesar Arbelaez Tabares and Juan Carlos Bazantes, who owned and operated IWES Contractors, Inc., a drywall labor supply company in Norcross, Georgia, have been sentenced to each serve eight years in prison and pay a $75,000 fine following their trial and convictions for submitting false certified payroll forms to the Centers for Disease Control and Prevention (CDC) in connection with a construction project at the federal facility.
“Federal contractors and subcontractors are not immune from rules and laws that apply to any company with employees,” said U.S. Attorney Byung J. “BJay” Pak. “The jury’s verdict and the court’s sentence in this case reinforce that if you want to compete and obtain a federal contract work, you must abide by the law and truthfully report your payroll and employment tax withholdings.”
“Cesar Arbelaez Tabares and Juan Carlos Bazantes, as owners and operators of IWES Contractors Inc., had a known legal duty to withhold employment taxes from their employee wages” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “Tabares and Bazantes’ willful failure to withhold employment taxes was a deliberate attempt to undermine the tax system. IRS Criminal Investigation will remain committed to investigating and prosecuting employment tax fraud.”
“Cesar Arbelaez-Tabares and Juan Carlos Bazantes, principals of IWES Contractors, Inc., a drywall contracting company, submitted fraudulent certified payrolls in violation of the Davis-Bacon and Related Acts. We will continue to investigate those who undermine the U.S. Department of Labor’s ability to ensure that American workers are paid proper wages and that employers make the required payroll deductions and benefit contributions,” stated Rafiq Ahmad, Special Agent-in-Charge of the Atlanta Regional Office, Office of Inspector General, U.S. Department of Labor.
“By not withholding employment taxes from their wages, Cesar Arbelaez-Tabares and Juan Carlos of IWES Contractors willfully attempted to defraud the federal government,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This verdict and sentence demonstrates OIG’s commitment to hold accountable those who commit fraud against HHS agencies and departmental programs.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Cesar Arbelaez Tabares was the Chief Executive Officer and Juan Carlos Bazantes was the Chief Financial Officer of IWES, a Norcross-based business that supplied drywall laborers to contractors and subcontractors for construction projects. Beginning in 2012, IWES supplied drywall laborers for a construction project with the CDC.
Under the direction of Tabares and Bazantes, IWES maintained a double payroll system for its workers on the CDC project, which internally classified those workers as either “W2.REAL” or “W2.F.2CHK”. Those workers who were classified as “W2.REAL” received one paycheck each pay period with employment taxes withheld, received an IRS Form W-2 at the end of the calendar year, and were reported on quarterly employment taxes filed by IWES with the IRS.
Those workers who were classified as “W2.F.2CHK” received two paychecks simultaneously each pay period. The first paycheck totaled the worker’s net pay (gross wages minus employment taxes withheld), while the second paycheck received by the worker totaled the employment taxes withheld from the first paycheck so that the worker, in reality, was receiving his or her gross wages with no tax withholdings. Workers classified as “W2.F.2CHK” performed many of the same job duties as those who were classified as “W2.REAL,” but they did not receive an IRS Form W-2 at the end of the calendar year and were not reported on quarterly employment taxes filed by IWES with the IRS.
In connection with its subcontracting work on the CDC project, Tabares and Bazantes caused IWES to submit fraudulent certified payroll forms to the CDC, signed under penalty of perjury, which falsely represented that employment taxes had been withheld for all of the IWES workers on the CDC project, including those whom IWES had internally classified as “W2.F.2CHK” and whose employment tax withholdings were being returned to the employee in the form of a simultaneous second paycheck.
Cesar Arbelaez Tabares, 37, of Pembroke Pines, Florida, and Juan Carlos Bazantes, 45, of Miami, Florida, were sentenced by U.S. District Court Judge Steve C. Jones to eight years in federal prison. Tabares and Bazantes were each ordered to pay a $75,000 fine, and also serve three years of supervised release following completion of their prison sentence.
Tabares and Bazantes were found guilty by a jury following a one-week trial in August and September 2017, on one count of conspiracy and six counts of submitting false certified payroll forms to the CDC. They were acquitted of related tax charges.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U.S. Department of Labor-Office of Inspector General and the U.S. Department of Health and Human Services-Office of Inspector General.
Assistant U.S. Attorneys Steven D. Grimberg and Ryan J. Huschka prosecuted the case. The U.S. Department of Justice Tax Division provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Non-Indian Man from Albuquerque Pleads Guilty to Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Daniel A. Mendoza, 20, a non-Indian man from Albuquerque, N.M., pled guilty today in federal court to assaulting a federal officer.
Mendoza was arrested on Nov. 22, 2016, and was charged by criminal complaint with assaulting an officer of the Pueblo of Isleta Tribal Police Department, who is commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Mendoza assaulted the officer by running his vehicle into the officer’s vehicle while attempting to evade arrest. Mendoza committed the offense on Sept. 22, 2016, on the Isleta Pueblo in Bernalillo County, N.M.
Mendoza was subsequently indicted on Dec. 20, 2016, and charged with assault on a federal officer with a deadly and dangerous weapon, a vehicle, on Sept. 22, 2016, in Bernalillo County.
During today’s proceedings, Mendoza pled guilty to the indictment and admitted that on Sept. 22, 2016, in order to avoid arrest, he backed his truck into an Isleta Pueblo Police patrol vehicle that was being operated by an Isleta Pueblo Police Sergeant who was commissioned as a Special Law Enforcement Officer by the BIA. Mendoza further admitted that he then intentionally drove his truck forward and reversed a second time at a high rate of speed into the Isleta Pueblo Police Sergeant’s patrol vehicle.
At sentencing, Mendoza faces a maximum penalty of 20 years in federal prison. Mendoza remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Pueblo of Isleta Tribal Police Department and the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Nicaraguan Sentenced for 18-year-old RICO IndictmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ERWIN J. MIERISCH, JR., age 49, of Nicaragua, was sentenced today after previously pleading guilty to a one-count Indictment charging him with violating the Racketeer Influenced and Corrupt Organizations Act.
U.S. District Judge Sarah S. Vance sentenced MIERISCH to 4 years imprisonment to be followed by 3 years supervised release.
According to court documents, MIERISCH, along with co-defendants ROBERTO GAMBINI and JOSE ESTEBAN MCEWAN, conspired to launder drug proceeds and to assault the plaintiff in a Texas civil case to prevent her from testifying. The Indictment was handed down on July 9, 1999. GAMBINI pleaded guilty in 2000 and was eventually deported to his native Italy. The third defendant, MCEWAN, died in Nicaragua several years ago.
MIERISCH was a fugitive since the Indictment was returned. He was detained in Mexico City in December of 2016, and brought to this country to face the charge.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
New Orleans Man Pleads Guilty to Conspiracy to Alter U.S. Postal Money OrdersRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JARVIS WHEELER, age 29, of New Orleans, pleaded guilty today to conspiracy to alter U.S. Postal money orders.
According to the court records, WHEELER conspired with others in the New Orleans area to buy U.S. Postal money orders in small amounts (typically $1.00) and then the money orders were sent out of state where they were altered to much higher amounts. WHEELER, working with other conspirators, then enlisted individuals to deposit the altered U.S. Postal money orders into local bank accounts. Once the money orders cleared, the funds were withdrawn and split by WHEELER and the conspirators.
WHEELER faces up to five years imprisonment, a fine of up to $250,000, up to three year of supervised release following any term of imprisonment, and $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for April 18, 2018.
Acting U. S. Attorney Evans praised the investigative work of the United States Postal Inspector Office for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
New London Man Sentenced to 62 Months in Prison for Distributing Heroin Involved in 2 OverdosesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NESTOR SANTANA, also known as “Beans,” 30, of New London, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 62 months of imprisonment, followed by four years of supervised release, for distributing heroin that contributed to two overdose deaths in May 2016.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, Gomez sold a quantity of heroin to Adele Bouthillier, who then distributed the heroin to the victim. SANTANA supplied Gomez with the heroin that caused the death of the victim.
On May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old female lying face down on the bathroom floor.
The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the 34-year-old female’s death to be “Acute Ethanol and Fentanyl Intoxication.”
The investigation revealed that the victim was supplied with heroin/fentanyl by James Butler. Butler had been supplied with the drugs by Gomez, who in turn was supplied by SANTANA.
In August and September 2016, investigators made controlled purchases of heroin from SANTANA.
SANTANA was arrested on state charges on September 29, 2016. A search of his residence at the time of his arrest revealed an additional quantity of heroin and items used to process and package narcotics. He was arrested on a federal criminal complaint on January 31, 2017.
On September 20, SANTANA pleaded guilty in federal court to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
Gomez and Bouthillier each pleaded guilty to sex trafficking of a minor and heroin distribution offenses. On October 17, Bouthillier was sentenced to 43 months of imprisonment and, on December 12, Gomez was sentenced to 96 months of imprisonment.
Butler has pleaded guilty to a heroin distribution offense and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This matter stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
New Haven Man Sentenced to 40 Months in Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTRUM COSTON, 35, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on January 11, 2016, New Haven Police stopped a vehicle COSTON was driving. A search of the vehicle revealed a loaded Jimenez Arms 9 millimeter pistol, and a search of COSTON’s person revealed 13 baggies of cocaine and a quantity of crack cocaine. The firearm had been previously reported stolen.
Prior to January 2016, COSTON had sustained multiple felony convictions, including a federal conviction in 2004 for possession of a firearm by a felon. COSTON was sentenced to 37 months of imprisonment on that prior federal conviction and, in June 2007, an additional 18 months of imprisonment for violating the conditions of his supervised release.
On May 18, 2017, COSTON pleaded guilty to one count of possession of a firearm by a felon and one count of possession with intent to distribute cocaine and cocaine base (“crack”).
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael E. Runowicz.