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Friday 20 October 2017
Massachusetts Resident Sentenced for Traveling Interstate to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – David H. Bentz, 46, of Norwell, MA, was sentenced today to 24 months in federal prison, having admitted to traveling to Rhode Island in July 2016 with the intent of engaging in illicit sexual conduct with a person he believed to be a minor female.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Bentz to serve 10 years supervised release upon completion of his term of incarceration. Bentz pleaded guilty on June 2, 2017, to traveling interstate for the purpose of engaging in illicit sexual conduct with a minor.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 46-57 months. The government recommended the Court impose a sentence of 46 months in prison.
At the time of his guilty plea, Bentz admitted to the Court that on July 2, 2016, Bentz responded to an online posting and began a series of communications with a person he believed to be a 15-year-old female. The conversation then became sexually explicit. On July 6, 2016, Bentz arranged to meet with and engage in sexual activity with the 15-year-old.
When Bentz arrived at a pre-arranged location in Rhode Island, he was arrested by members of the Rhode State Police Internet Crimes Against Children Task Force.
Bentz’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
The case was prosecuted by Assistant U.S. Attorney Richard B. Myrus.
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Man Sentenced to Prison for International Parental KidnappingRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 21 months in prison for international parental kidnapping.
According to court documents, federal agents with the FBI and U.S. Customs and Border Protection (CBP) arrested Faical Chebbi, 45, of Accokeek, on June 14 after he landed at Dulles International Airport. In November 2011, Chebbi removed his two children, then ages 2 and 5, from the United States and took them to Tunisia in violation of the parental rights of the mother.
According to the FBI, as a result of Chebbi’s return to the United States, both children have been reunited with their mother as ordered by the court. In addition to his prison sentence, Chebbi was also ordered to pay $119,807 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Casey Owen Durst, Director of CBP’s Baltimore Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Patricia Haynes prosecuted the case.
The U.S. Department of State and the United States embassy in Tunisia provided assistance with this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:11-cr-140.
Man Accused of Sending Threats to South Burlington High School Students and Faculty Pleads Guilty to Pending IndictmentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Josiah Leach, 19, of South Burlington, Vermont, appeared today before the Honorable Geoffrey W. Crawford and entered a plea of guilty to a one-count indictment charging him with transmitting threats in interstate commerce.
Leach was arrested after law enforcement identified him as the source of multiple threats against students and faculty at South Burlington High School between April 18, 2017 and April 21, 2017, which resulted in repeated lockdowns at South Burlington school facilities and the closure of all South Burlington schools one day before the students’ spring break. He was released on pretrial conditions on April 27, 2017.
On May 26, 2017, Leach was arrested for violating his release conditions, including by using social media to create a fake confession implicating another student in the crime with which he was charged. Leach remained detained until May 30, 2017. He was released with new conditions prohibiting him from using any device with internet access. In total, Leach served ten days in prison.
Leach’s felony guilty plea came pursuant to a previously filed agreement with the government. In the agreement, Leach acknowledged his responsibility for all of the April 2017 threats to South Burlington High School, and agreed with the government to recommend a five-year probationary sentence at the time of sentencing. Under the terms of the deal, however, the Court retains discretion over the ultimate sentence in the case. Sentencing is scheduled for Tuesday, February 20, 2018, in Rutland, Vermont.
Leach was released on continuing pre-trial supervision following the change of plea hearing. His release conditions include obtaining treatment for mental health and substance abuse issues as directed by the U.S. Probation Office, avoiding contact with members of the South Burlington High School community, and not trespassing within 500 feet of the South Burlington Middle and High School complex on Dorset Street.
Acting U.S. Attorney Eugenia A. P. Cowles commended the Federal Bureau of Investigation, the South Burlington Police, and the Vermont State Police for their rapid response to, and thorough investigation of, this matter. Ms. Cowles noted that the proposed five-year term of probation recognized both Leach’s relative youth and the callous, repeated nature of his threats to his fellow students. “While we hope the case marks a turning point for Mr. Leach, his behavior deserves the serious sanctions of a federal felony conviction and an extended period of rigorous supervision. No student, no school, and no community should have to face the fear Mr. Leach inflicted on South Burlington.”
“Making anonymous threats online is not a harmless prank,” said FBI Special Agent in Charge Vadim D. Thomas. “Mr. Leach’s conduct violated the community’s sense of safety and diverted valuable law enforcement resources. The FBI and our law enforcement partners hope that today’s plea will serve as a warning to others who contemplate similar criminal conduct.”
The U.S. Attorney’s Office encourages members of the South Burlington High School community who were impacted by Leach’s conduct to contact the U.S. Attorney’s Office’s Victim Specialist Aimee Stearns ([email protected]) regarding available victim support services and opportunities to submit impact statements before the February 20, 2018 sentencing.
Leach is represented by Assistant Federal Public Defender Elizabeth Quinn. AUSA Michael Drescher represents the United States.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving Murder & Attempted MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy involving murder, attempted murder and conspiracy to commit murder.
Bryan Galicia Barillas, a/k/a “Chucky,” 20, a Guatemalan national who resided in Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 12, 2018.
On Oct. 18, 2014, Galicia Barillas, a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique in Chelsea, and another alleged MS-13 co-conspirator encountered a group of individuals suspected of belonging to a rival gang. The co-conspirator, who was allegedly armed with a weapon that Galicia Barillas provided to him, shot at one of the gang rivals and missed, killing an innocent bystander who was looking out a nearby window of a room she shared with her three children.
Galicia Barillas, a juvenile at the time of the murder, acknowledged that he provided the gun to the co-conspirator before the shooting and was present during the shooting. The co-conspirator previously pleaded not guilty and is scheduled to go to trial on Nov. 6, 2017.
Galicia Barillas also accepted responsibility for his role in the following: an April 2015 conspiracy to kill a MS-13 member that the gang believed was cooperating with law enforcement authorities; a May 26, 2015 stabbing and attempted murder of a rival gang member in Chelsea in which the victim survived the attack; and a September 8, 2014 stabbing and attempted murder of an individual in Chelsea.
After a three-year investigation, Galicia Barillas was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
Galicia Barillas is the 20th defendant to plead guilty in this case.
If the Court accepts the terms of the plea agreement at the time of sentencing, Galicia Barillas will be sentenced to 22 years in prison. Galicia Barillas will also be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lockport Woman Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Colette Arne, 66, of Lockport, NY, pleaded guilty to possession with intent to distribute, and distribution of oxymorphone, a Schedule II controlled substance before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between January, 2012 and January 6, 2014, the defendant sold oxymorphone to a confidential source working with law enforcement officers on two separate occasions at the defendant’s Applewood Drive residence. Following the second sale, Arne’s residence was searched with her consent. Officers recovered $20,200 in cash and empty prescription pill bottles. The prescriptions were issued to the defendant and her now-deceased husband.
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
Sentencing is scheduled for January 25, 2018, at 9:00 a.m. before Judge Skretny.
Little Rock Owner of Chicot Game Room Pleads Guilty to Tax Evasion and Operating an Illegal Gambling BusinessRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service—Criminal Investigation (IRS-CI), announced today that Allan Siebert, 75, of Little Rock, agreed to waive indictment and pleaded guilty to a two-count federal information charging him with tax evasion and operating an illegal gambling business.
Today’s plea hearing took place before United States District Judge J. Leon Holmes, who will sentence Siebert at a later date. As part of a plea agreement with the United States, Seibert will pay $331,821 in restitution to the IRS. In addition, Seibert will forfeit two pieces of real property and more than $1 million representing the proceeds of the illegal gambling operation.
"For nearly a decade this defendant broke the law, but today his illegal conduct caught up with him," Hiland said. "Mr. Seibert not only defrauded the United States, he also exploited the hundreds of people he took money from over the years with his illegal gaming machines. This case should send a message to the Eastern District of Arkansas that our office will not tolerate this type of behavior."
From at least August 2007 to May 2017, Siebert owned and operated the Chicot Game Room, an illegal gambling business. This business used various gaming devices that were illegal under the laws of Arkansas.
Between January 2012 and October 2016, Siebert evaded paying $331,821 in federal income tax that he owed by withholding cash from his business deposits, funneling business receipts into his personal properties, and causing his accountant to prepare false U.S. Individual Income Tax Returns for tax years 2012, 2013, 2014 and 2015.
"No matter the source of income, all income is taxable, including illegal gambling proceeds," Montaño said. "Everyone has a responsibility to file correct and accurate tax returns. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS Criminal Investigation’s enforcement strategy. We will vigorously investigate those individuals who knowingly and willfully evade their tax obligation."
"The Little Rock Police Department has had a long-standing relationship with our federal partners," Little Rock Assistant Chief Wayne Bewley said. "We entered into a partnership with the IRS recently. We look forward to continuing this relationship and continued success as we fight a variety of crimes within Little Rock."
The maximum penalties for tax evasion are not more than five years’ imprisonment, a $100,000 fine, and three years’ of supervised release. The penalty for conducting an illegal gambling business is not more than five years’ imprisonment, a $250,000 fine, and three years’ of supervised release.
This case was investigated by the IRS—CI and the Little Rock Police Department. Assistant United States Attorney Cameron McCree prosecuted the case for the United States.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on October 20, 2017, Kenneth Mooren, 35, of Lincoln, was sentenced to 10 years (120 months) in prison for conspiracy to distribute methamphetamine. Following the prison term, Mooren will serve five years on supervised release.
Information provided to law enforcement indicated that Mooren was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine in the Lincoln area between January 1, 2015, and April 1, 2016. On February 29, 2016, a search warrant was executed at Mooren’s Lincoln residence. During the search, officers found 160 grams (approximately 5 ¾ ounces) of pure methamphetamine, over $1000 in cash, and records of drug transactions.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lebanon Man Pleads Guilty to Multiple Counts of Production of Child PornographyRead the Press Release
David Hamilton Soderbom, 49, of Lebanon, Tennessee, pleaded guilty in U.S. District Court today to five violations of federal child pornography laws; specifically three counts of production of child pornography, one count of receipt of child pornography and one count of possession of child pornography, announced Donald Q. Cochran, United States Attorney for the Middle District of Tennessee.
According to the indictment and statements made during the plea hearing, the FBI executed a search warrant on Soderbom’s residence in September 2015 in response to Soderbom’s on-line activities on a child pornography website. The FBI located thousands of images and videos of child pornography on Soderbom’s computers and electronic storage devices.
Upon further analysis of the child pornography located in Soderbom’s home, the FBI determined that Soderbom had created multiple pornographic images of a minor. The victim was under the age of 12 at the time Soderbom created the images.
Soderbom faces up to 120 years in prison and over a $1 million fine. United States District Judge Aleta Trauger ordered that Soderbom be immediately taken into custody and held until sentencing on March 9, 2018. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Henry C. Leventis is prosecuting the case.
Justice Department Invests $3.42 Million in Fight Against Elder Abuse and Financial ExploitationRead the Press Release
WASHINGTON – The U.S. Department of Justice today announced more than $3.42 million in funding to respond to elder abuse and victims of financial crimes throughout the United States. The awards will better protect older Americans by improving identification of elder abuse and strengthening the response to victims through innovative technology, closer interagency collaboration and enhanced legal services, among other approaches.
“Every American has the right to be safe,” said Attorney General Jeff Sessions. “Criminals who target and exploit our seniors are cowards, and their crimes are especially shameful because they prey upon the vulnerable. This Department of Justice will not accept these crimes in our society, and we are taking action to help investigate, punish, and deter crimes against our seniors with this $3.42 million investment.”
Nationally representative studies find that nearly 10 percent of older Americans have experienced some form of elder abuse. Elder abuse not only leads to a diminished quality of life, but has been shown to hasten mortality.
“Far too often, older Americans suffer from elder abuse, including crimes of financial exploitation,” said Office for Victims of Crime Director Darlene Hutchinson. “OVC is committed to supporting innovative solutions and responses to these terrible crimes perpetrated against this vulnerable and treasured population. This critical initiative should enhance the provision of services and support to victims of elder abuse and ensure that they receive the rights, services and responses they deserve.”
Funding was made by OVC in close collaboration with the Justice Department’s Elder Justice Initiative. Grants under OVC’s Field Generated Innovations in Addressing Elder Abuse and Financial Exploitation program were awarded to eight organizations around the country:
- Futures Without Violence - STAGES: Strategies and Training to Advance Greater Elder Safety (CA); approximately $500,000 to educate teams of justice and community professionals about financial exploitation and elder abuse and create a shared, grassroots justice system-community vision for elder justice.
- American Bar Association Fund for Justice - Enhancing and Evaluating Capacity of Elder Abuse Fatality Review Teams to Improve Victim Services (DC); approximately $235,000 to build on the foundational Elder Abuse Fatality Review Teams model with the goal of enhancing and evaluating the capacity of these teams to improve the delivery of victim and ancillary services.
- Northwestern University - Combating Elder Abuse and Financial Exploitation Through Technology/DASHBOARD (IL); approximately $500,000 to develop an interoperable and integrated dashboard to share data, risk factors and resources for elder abuse victims.
- Elder Law of Michigan Inc. - Innovation Framework for National Referral System Effective Referrals at the Community Level with Person-Enhanced Technology (MI); approximately $500,000 to develop a framework for a national referral system based on a community-level referral model used in Michigan for victimized and vulnerable older adults, along with research and evaluation.
- Lifespan of Greater Rochester Inc. - Elder Justice Advocates: Improving Outcomes for Elder Abuse Victims in New York State’s Criminal Justice System (NY); approximately $352,000 to recruit at least 50 elder justice advocates from victim advocates and victim assistance staff in district attorney offices, law enforcement units and domestic violence programs in at least 10 regions or counties across New York State.
- Pro Bono Net, Inc. - Pro Bono Net’s LawHelp Interactive/Risk Detector Elder Justice Initiative (NY); approximately $496,000 to create online tools that enable innovative partnership and outreach models to comprehensively identify, respond to and remedy elder abuse and financial exploitation.
- Utah Legal Services, Inc. - Innovative Remedies to Reduce Elder Abuse and Financial Exploitation (UT); approximately $346,000 to educate the public on barriers to reporting by sharing victims’ experiences and challenges in culturally appropriate video and podcast programs in Navajo, Spanish and English; develop and implement tailored legal intervention for high risk individuals; and develop a training protocol in order to improve referrals.
- End Domestic Abuse Wisconsin - National Clearinghouse on Abuse in Later Life (NCALL)/ Lifting Up the Voices of Older Survivors Video Project (WI); approximately $485,000 to create a collection of video clips of older survivors describing their experiences and insights regarding effective interventions, such as support groups and transitional housing.
“OVC is committed to building the capacity of professionals to respond vigorously and skillfully to crimes against older Americans,” said Hutchinson. “The Department of Justice, through its Elder Justice Initiative, which includes the work of many Department components, is working on multiple fronts to protect older Americans from elder abuse, financial exploitation and fraud. Together, we are increasing the physical and financial safety of America’s older adults.”
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.Jury Convicts Man of Retaliation Against Federal OfficerRead the Press Release
RICHMOND, Va. – A federal jury convicted a Chester man late yesterday of retaliating against a federal agent by false claim, and bankruptcy fraud.
According to court records and evidence presented at trial, Shapat Nabaya, aka Norman Abbott, 60, filed numerous civil lawsuits and a false mechanic’s lien against an IRS revenue officer in retaliation for the officer filing a lien on Nabaya’s pension after Nabaya had failed to pay his federal taxes for several years. Nabaya also filed a false involuntary bankruptcy petition against the same revenue officer in the U.S. Bankruptcy Court for the Eastern District of Virginia.
Nabaya faces a maximum penalty of 15 years in prison when sentenced on Jan. 19, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge M. Hannah Lauck accepted the verdict. Assistant U.S. Attorneys Gabrielle Michalak and Jessica D. Aber are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-03.
Jamaican National Sentenced to over 5 Years in Prison for Transporting and Possessing Child PornographyRead the Press Release
Orlando, Florida –United States District Court Judge Carlos E. Mendoza yesterday sentenced Anthony Carl Spence (45, Jamaica) to five years and eight months in federal prison for transporting and possessing child pornography. He was found guilty by a federal jury on July 26, 2017. Spence was indicted on March 8, 2017.
According to testimony and evidence presented at trial, Spence arrived at the Orlando International Airport from Jamaica on February 6, 2017, with a smartphone. After a routine border search of the smartphone, law enforcement located a video that depicted an adult male sexually abusing a toddler. Later, officers located a second video depicting a young child engaged in sexually explicit conduct. During an interview with law enforcement, Spence admitted that he had shared the videos with multiple people in Jamaica, but claimed that he thought he had deleted the videos before coming to the United States.
"This predator was discovered as he entered our country," said HSI Tampa Special Agent in Charge James C. Spero. "HSI special agents and our U.S. Customs and Border Protection partners will continue to use our border search authorities to keep our citizens safe."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Toxicology Laboratory Agrees to Fine, Plus Permanent Exclusion from Participating in Federal Healthcare ProgramsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces today that Total Lab Care, LLC, a toxicology laboratory based in Jacksonville, Florida, has agreed to pay the government $212,500 to resolve allegations that it violated the False Claims Act. In addition, the company agreed not to participate in any federal healthcare programs in the future.
According to the settlement agreement, Total Lab Care, LLC sought reimbursements for urine toxicology samples that were referred from Dr. Nikhil Nihalani. The United States contends these toxicology samples were the product of improper financial remuneration and, as such, the claims were tainted under the Anti-Kickback Statute. The United States contends that Total Lab Care improperly paid a physician for the referral of toxicology samples – samples that are usually tested for drug diversion potential.
This settlement reflects the government’s commitment to investigating toxicology laboratories for improper and unnecessary services. Earlier last year, the United States Attorney’s Office reached a $7.4 million False Claims Act settlement with another local toxicology laboratory. Toxicology laboratory tests are one of the fastest growing healthcare expenditures.
“Illegal arrangements in order to boost profits at the expense of the taxpayers will not be tolerated,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “This settlement reflects the resolve of the OIG and our partners to ensure accountability in every corner of the health care industry.”
This matter was investigated by the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Medicaid Fraud Control Unit. It was handled by Assistant United States Attorneys Shea Gibbons and Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Iowa City Man Sentenced to 135 Months in Prison for Felon in Possession of a Firearm and Possession of Cocaine Base with Intent to DistributeRead the Press Release
DAVENPORT, Iowa – On October 19, 2017, Chief United States District Court Judge John A. Jarvey sentenced Lorenzo Jones, age 32, of Iowa City, Iowa, to 135 months in prison for felon in possession of a firearm and possession of cocaine base with the intent to distribute, announced United States Attorney Marc Krickbaum. Jones was also ordered to serve three years of supervised release following his imprisonment and pay $200 to the Crime Victims’ Fund. The firearm involved in the offense was forfeited.
On January 7, 2017, a traffic stop was conducted in Iowa City. As a result of the stop, Jones was found in possession a stolen, loaded Diamondback .380 semi-automatic handgun and 10 baggies of cocaine base that he intended to distribute.
Jones has at least two prior felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Investiture Ceremony for D. Michael Dunavant as United States Attorney for the Western District of TennesseeRead the Press Release
MEDIA ADVISORY
WHAT: Investiture Ceremony for D. Michael Dunavant as United States Attorney for the Western District of Tennessee
DATE: Friday, October 20, 2017
TIME: 11:00 a.m.
WHERE: City Hall Council Chambers
125 North Main Street
Memphis, TN 38103
NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected].
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on October 18, 2017 and entering pleas of Not Guilty were:
- RODNEY TOMMIE STEWART, a 31-year-old resident of Crow Agency, appeared on charges of domestic assault by a habitual offender. If convicted of the charge contained in the indictment, VANCE faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 14-20
Appearing before U.S. Magistrate Cavan in Billings on October 16, 2017 and entering pleas of Not Guilty were:
- VERONICA RAYE VANCE, a 24-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, VANCE faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-83
Appearing before U.S. Magistrate Cavan in Billings on October 10, 2017 and entering pleas of Not Guilty were:
- TERRI RAYE BIXBY, a 46-year-old resident of Colstrip, appeared on charges of conspiracy to distribute methamphetamine, and distribution of methamphetamine. If convicted of the charge contained in the indictment, BIXBY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 17-70
Appearing before U.S. Magistrate Johnston in Great Falls on October 10, 2017 and entering pleas of Not Guilty were:
- BRIAN RUSSELL BLACKWELL, a 43-year-old resident of Helena, appeared on charges of failure to register. If convicted of the charge contained in the indictment, BLACKWELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-13
- BRADLEY THORPE THOMPSON, a 32-year-old resident of Great Falls, appeared on charges of escape. If convicted of the charge contained in the indictment, THOMPSON faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-70
Appearing before U.S. Magistrate Cavan in Billings on October 5, 2017 and entering pleas of Not Guilty were:
- SHANE MICHAEL COURTNEY, a 49-year-old resident of Anaconda, appeared on charges of receipt/distribution of child pornography, and possession of child pornography. If convicted of the most serious charges contained in the indictment, COURTNEY faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the Internet Crimes Against Children Task Force. PACER Case Reference. 17-18
Appearing before U.S. Magistrate Cavan in Billings on October 4, 2017 and entering pleas of Not Guilty were:
- MATTHEW THOMAS JORDAN, a 40-year-old resident of Harlowton, appeared on charges of possession of an unregistered firearm. If convicted of the charge contained in the indictment, JORDAN faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-103
Appearing before U.S. Magistrate Cavan in Billings on October 3, 2017 and entering pleas of Not Guilty were:
- JEREMY JAMES McCUNE, a 42-year-old resident of Shepherd, appeared on charges of wire fraud. If convicted of the most serious charges contained in the indictment, McCUNE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-105
Appearing before U.S. Magistrate Cavan in Billings on October 2, 2017 and entering pleas of Not Guilty were:
- TIFFANEY ANN BOLAND, a 51-year-old resident of Sidney, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, BOLAND faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the State of Montana Division of Criminal Investigations. PACER Case Reference. 17-100
- ANTHONY CORDELL COUTURE, a 48-year-old resident of Sidney, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, COUTURE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the State of Montana Division of Criminal Investigations. PACER Case Reference. 17-100
- TODD MICHAEL HARRIS, SR., a 52-year-old resident of Billings, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, HARRIS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-102
- JULIUS ANDREW KOCH, a 35-year-old resident of Billings, appeared on charges of felon in possession of firearm and ammunition, and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, KOCH faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-104
- YOLANDA MARIE MEZA, a 30-year-old, residency unknown, appeared on charges of distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, MEZA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Eastern Montana HIDTA. PACER Case Reference. 17-106
- BOBBY PAYNE, a 45-year-old resident of Sidney, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, PAYNE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the State of Montana Division of Criminal Investigations. PACER Case Reference. 17-100
Appearing before U.S. Magistrate Cavan in Billings on September 27, 2017 and entering pleas of Not Guilty were:
- ERIC WAYDE MITCHELL, a 22-year-old resident of Baker, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record, and prohibited person in possession of a firearm. If convicted of the most serious charge contained in the indictment, MITCHELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-107
Appearing before U.S. Magistrate Johnston in Great Falls on September 27, 2017 and entering pleas of Not Guilty were:
- BEN COLE BUCKLES, SR., a 49-year-old resident of Wolf Point, appeared on charges of sexual abuse of a minor. If convicted of the charge contained in the indictment, BUCKLES faces 15 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-66
Appearing before U.S. Magistrate Lynch in Missoula on September 26, 2017 and entering pleas of Not Guilty were:
- ALICIA ROSE ROONEY, a 42-year-old resident of Boise, Idaho, appeared on charges of embezzlement and theft of labor union assets, and embezzlement and theft from employee benefit plan. If convicted of the most serious charge contained in the indictment, ROONEY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Labor Office of Inspector General. PACER Case Reference. 17-26
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hudson County Man Convicted of Production and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was convicted at trial today on charges of producing and possessing images and videos of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Gregory John Schaffer, 38, was found guilty on all three counts of an indictment charging him with two counts of production of child pornography and one count of possession of child pornography. He was convicted following a three-day trial before U.S. District Judge Jose L. Linares in Newark federal court. The jury deliberated one and a half hours before returning its verdict.
According to documents filed in the case and the evidence at trial:
In 2010, Schaffer sexually abused a 12-year-old girl in a tow-truck office in Union City, New Jersey, and video recorded the abuse without her knowledge. He later stored the video recording on a laptop computer found by law enforcement in his office in Jersey City, New Jersey. Schaffer also backed-up the video recording to another electronic storage device found in his office.
Around the same time, Schaffer also sexually abused a 14-year-old girl in a hotel room and video recorded the abuse without her knowledge. Schaffer again stored the video recording on the same laptop computer and electronic storage device that law enforcement found in his office.
Law enforcement also found additional sexually explicit videos and images of minors on Schaffer’s laptop computer and electronic storage device.
The production of child pornography charge carries a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The possession of child pornography charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New York Field Office under the direction of Special Agent in Charge Angel M. Melendez; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David E. Beach, New York Field Office; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Thomas Ambrosio Esq., of Lyndhurst, New Jersey
Honolulu Husband and Wife Sentenced to 24 Months in Prison for Filing False Tax ReturnsRead the Press Release
HONOLULU – United States District Court Judge Leslie E. Kobayashi sentenced Lorraine Yamauchi, age 70, and Jiitsu Yamauchi, age 63, of Honolulu, each to 24 months in prison yesterday for filing a false tax return in violation of Title 26, United States Code, Section 7206(1). The Yamauchis pled guilty to the offense on June 23, 2017.
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that according to documents filed in this case and information made public during the sentencing hearing, the Yamauchis operated an Oahu-based church. Jiitsu Yamauchi served as the church’s bishop and Lorraine Yamauchi served as the church’s bookkeeper. The Yamauchis accepted millions of dollars in donations from church members and used a large portion of those donations for their own personal benefit. When filing their tax returns for tax years 2008 through 2014, the Yamauchis failed to include approximately $2.3 million of church-related income. Pursuant to the terms of their plea agreement, the Yamauchis have already paid restitution to the Internal Revenue Service (IRS) in the amount of $621,986.
At sentencing, Judge Kobayashi commented that the Yamauchis abused a position of trust to steal from the members of their church. Judge Kobayashi also noted that the Yamauchis used church donations to support their own personal lifestyle, which included buying 25 luxury vehicles and a 4.2 carat diamond ring. In addition to sentencing both Lorraine and Jiitsu Yamauchi to 24 months in prison, Judge Kobayashi also sentenced each of them to a 12-month term of supervised release.
Acting United States Attorney Enoki stated, "This office will vigorously prosecute fraud and tax crimes where defendants exploit the public’s well-intended desire to be charitable." IRS-Criminal Investigation Special Agent in Charge Darrell J. Waldon said that "IRS – Criminal Investigation is committed to investigating individuals who use charities as their own personal piggy banks. We are pleased that the Yamauchis will be held accountable for using donations for their own personal gain."
The case was the result of a lengthy investigation conducted by IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Michael Nammar.
Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
Acting United States Attorney Duane A. Evans announced that ALLAN ROSALES-BENITEZ, age 32, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal entry of a removed alien.
According to court documents, ROSALES, was previously removed from the United States on July 11, 2012. He was later found in the Eastern District of Louisiana on May 27, 2017 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
ROSALES faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Lance M. Africk set sentencing for November 30, 2017.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Heavily Armed South Sound Drug Dealer Sentenced to 11 Years in PrisonRead the Press Release
A south sound resident with four drug stash houses in Tacoma, Auburn and Federal Way, Washington was sentenced today in U.S. District Court in Tacoma to eleven years in prison and five years of supervised release, announced U.S. Attorney Annette L. Hayes. GEORGE EDWARD HERNANDEZ, JR, 33, was charged federally in November 2015, following court authorized searches of HERNANDEZ’ residences and vehicles. U.S. District Judge Robert J. Bryan imposed the sentence.
“We have seen time and again the destruction that drugs and guns bring to our communities, said U.S. Attorney Annette L. Hayes. “As dealers use lethal force to protect their illegal businesses, they destroy the sense of safety in our neighborhoods. We will continue to work with our law enforcement partners to investigate and prosecute these types of cases to ensure violent criminals like this one are taken off our streets for as long as possible.”
On January 10, 2017, HERNANDEZ pleaded guilty to possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
HERNANDEZ came to the attention of law enforcement in 2015, shortly before a person working with law enforcement set up a deal with one of HERNANDEZ’ drug couriers. Law enforcement was able to trace the various houses where HERNANDEZ kept his drugs, and in August 2015, executed search warrants. At his Tacoma residence they found more than a kilo of methamphetamine, a kilo of heroin and some cocaine, as well as a Glock.40 caliber semi-automatic pistol. At one Auburn house, they found four kilos of heroin, three kilos of cocaine, three kilos of methamphetamine and an AK-47. At the other Auburn home, they found two rifles and in HERNANDEZ’s car parked outside they found a loaded semi-automatic pistol. Finally, at a Federal Way residence, they found two semi-automatic pistols. In his plea agreement, HERNANDEZ admits he had the weapons to protect his drug dealing. The searches also turned up $53,332 in cash from the drug dealing.
HERNANDEZ has 18 prior convictions and is prohibited from possessing firearms.
The case was investigated by the Drug Enforcement Administration and the Tacoma Police Department. The case was prosecuted by Assistant United States Attorneys Michael Dion and Siddharth Velamoor.
Georgia Man Pleads Guilty to Defrauding Staples Inc.Read the Press Release
BOSTON – A Georgia man pleaded guilty today in federal court in Boston in connection with a scheme to defraud Framingham-based Staples Inc. of more than $1.4 million.
Layne Michael Gosnell, 46, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2018.
Gosnell previously pleaded guilty on Sept. 26, 2017, but the Court conducted a second plea hearing today, due to the fact that immediately after the first plea hearing it was determined that Gosnell tested positive for alcohol above the legal limit in Massachusetts.
Gosnell and co-conspirator John Douglas, among others, engaged in a complex scheme to defraud Staples of more than $1.4 million worth of customer loyalty rewards and product rebates by creating more than 1,100 Staples rewards accounts, often using fictitious names, addresses and contact information. Douglas created a computer script to query a Staples website and seek unclaimed customer loyalty rewards for purchases that neither he nor Gosnell made. The computer script made thousands of queries a day, amassing more than $889,000 worth of rewards in small increments, often less than one dollar at a time. Gosnell and Douglas then used the rewards like cash to buy merchandise at Staples retail locations throughout the southern United States and along the eastern seaboard, as far north as Massachusetts. Gosnell sold his share of the fraudulently obtained Staples merchandise on eBay.
Gosnell and Douglas used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.
Staples discovered the fraud and referred the matter to federal authorities.
Douglas was sentenced on Sept. 6, 2017 to 30 months in prison and ordered to pay $691,327 in restitution and $553,061 in forfeiture.
The charge of conspiracy to commit wire and mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney David J. D’Addio of Weinreb’s Cybercrime Unit is prosecuting the case.
Fourth Defendant Pleads Guilty in Mortgage Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Tina Brown, 42, of Bronx, NY, pleaded guilty to conspiracy to commit wire and mail fraud affecting a financial institution, before U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Elizabeth Moellering and Kathleen A. Lynch, who are handling the case, stated that between about June 2008 and February 2009, the defendant conspired with others to devise a scheme to commit mortgage fraud and obtain eight loans for unqualified borrowers for homes in the Bronx.
As part of the scheme, Brown used a relative to purchase a property located at 4087 Edson Avenue in the Bronx. The defendant falsely verified that the purchaser worked for her own company in order to fraudulently inflate the purchaser’s income so that she would qualify for a mortgage for that property. Brown knew that these false loan documents were submitted to The Funding Source, a mortgage bank, in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved. The Funding Source sold the loan on the secondary market to M &T Bank, which wired funds from New York through the State of Ohio to purchase the loan.
The defendant and her co-conspirators arranged for additional fraudulent loans to be approved. These fraudulent transactions caused losses of approximately $1,752,994 affecting M&T Bank and other financial institutions including SunTrust Bank and Citibank.
Co-defendants Gregory Gibbons, a mortgage broker, Alagi Samba, a realtor, and Daniel Badu, have also been convicted on similar charges.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Division, the Department of Housing and Urban Development, under the direction of Special Agent in Charge Brad Geary, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.Sentencing is scheduled for January 16, 2018, at 1:30 p.m. before Judge Frank P. Geraci.
Former Principals of Vehicle Financing Company Sentenced for Fraud ChargesRead the Press Release
BOSTON – The founders and principals of Inofin Inc., a shuttered motor vehicle finance company based in Rockland, Mass., were sentenced today on fraud charges in connection with soliciting investments that resulted in losses of over $11 million to investors.
Michael J. Cuomo, 55, of Plymouth, and Kevin J. Mann Sr, 67, of Marshfield, were sentenced by U.S. District Court Judge Indira Talwani to 48 months in prison and 42 months in prison, respectively, and three years of supervised release. In May 2017, they pleaded guilty to one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud.
From 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to used car buyers who could not qualify for traditional financing. In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals. They falsely represented that the investors could rollover money held in retirement plans to Inofin, and that Inofin, as an authorized custodian of retirement money, would invest and then return the principle with interest. In fact, at no point was Inofin an authorized custodian, or trustee, of retirement funds. As a result of these misrepresentations by Cuomo and Mann, Inofin investors suffered a loss of more than $10 million in retirement savings transferred to Inofin. Inofin ultimately entered into involuntary bankruptcy proceedings.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities and Exchange Commission also provided assistance with the investigation. Assistant U.S. Attorneys Vassili Thomadakis and Victor A. Wild of Weinreb’s Criminal Division prosecuted the case.
Former Owner of Inca’s Secret Restaurant Pleads Guilty to Federal ChargesRead the Press Release
Harrisonburg, VIRGINIA – A pair of Harrisonburg residents, who formerly owned and managed a Peruvian-themed restaurant in the city, pleaded guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to federal harboring charges, Acting United States Attorney Rick A. Mountcastle announced.
Maria Rosalba McTague Alvarado, 49, and her son, Felix Adriano Chujoy, 29, each pleaded guilty yesterday in federal court to charges related to the harboring and employment of undocumented immigrants.
Alvarado pleaded guilty yesterday to two counts of harboring undocumented immigrants and two counts of employing undocumented immigrants. Chujoy pleaded guilty to two counts of aiding and abetting the employment of undocumented immigrants. Both defendants will be sentenced on January 31, 2017.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Heather L. Carlton, Alvarado and Chujoy, who are originally from Peru but have become naturalized United States citizens, owned and managed Inca’s Secret, a restaurant in Harrisonburg, Virginia. Alvarado admitted yesterday that during the time she owned Inca’s Secret, she allowed individuals whom she knew to be in the country illegally to work in the restaurant and live in her home.
Chujoy admitted yesterday that he aided and abetted Alvarado in hiring and employing individuals at Inca’s Secret who he knew to be undocumented immigrant.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Jeb Terrien and Heather L. Carlton prosecuted the case for the United States.
Former MS-13 Gang Member Sentenced for AssaultRead the Press Release
A former MS-13 gang member was sentenced today to 18 months in prison for assaulting and impeding a transportation officer for U.S. Immigration and Customs Enforcement (ICE).
According to court documents, on July 3, Marlon Danilo Rivas-Mendez, 28, an El Salvadoran national, was being transported from the Loudoun County Adult Detention Center to an ICE facility for deportation. Rivas-Mendez had previously been deported to El Salvador five times and had recently been found in Loudoun County after having again re-entered the United States illegally. During the transportation, Rivas-Mendez complained repeatedly that his handcuffs were too tight. When the officer tried to help him, Rivas-Mendez struck the officer in the chest and neck, before fleeing the vehicle.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Special Assistant U.S. Attorneys Stephen Ravas and Lilian Timmermann and Assistant U.S. Attorney Dennis Fitzpatrick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-189.
Former Financial Manager Sentenced to Prison for Embezzling over $1.4 Million from EmployerRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson, announced today that U.S. District Court Judge John W. deGravelles sentenced WADE BARBAY, age 55, of Baton Rouge, Louisiana, to serve twenty-nine (29) months in federal prison as a result of his scheme to defraud his employer. BARBAY was ordered to pay restitution of $1,483,503.50 to the victim and to serve a two (2) year term of supervised release after his release from imprisonment. BARBAY was also ordered to forfeit all property traceable to the gross proceeds of the scheme.
On March 22, 2017, BARBAY pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343. BARBAY was the Director of Shared Services, which oversaw Axiall’s corporate credit card program. Between January of 2011 and May of 2016, BARBAY engaged in a scheme to defraud his employer, using material false pretenses and wire communications to execute his scheme. The scheme involved BARBAY submitting fraudulently inflated business expenses of other employees for payment to Axiall’s headquarters. After the company paid American Express, the defendant directed American Express to credit his account with the funds. Through this scheme, the defendant embezzled over $1,125,000. In addition, the defendant’s scheme included negotiating and depositing corporate refund checks into his personal bank account, totaling approximately $280,430. In total, over the course of a five-and-a-half-year period, the defendant fraudulently obtained over $1.4 million from his former employer.
Axiall, a subsidiary of Westlake Chemical, is an international manufacturer and supplier of products derived from petrochemicals. The company is headquartered in Houston, Texas, and employs approximately 9,000 people in more than 42 facilities worldwide. One of Axiall’s facilities is located in Plaquemine, Louisiana. The defendant worked at this facility in a financial capacity for over 24 years.
U.S. Attorney Amundson stated, “My office will continue to make fraud and embezzlement prosecutions a high priority, as we work to hold corrupt insiders accountable. The defendant’s actions in this case were particularly egregious in that he betrayed the trust placed in him by his employer and used his fellow employees to line his own pockets. We hope that the lengthy federal prison sentence imposed in this case will send a strong message of deterrence.”
New Orleans FBI Special Agent in Charge Jeff Sallet said, "This sentencing should serve as a reminder that the FBI will investigate and prosecute individuals who abuse their positions to defraud their employers and co-workers who trust them. I commend the exceptional effort of the FBI, U.S. Attorney's Office, and our private partners in working together quickly to expose this massive fraud and to bring Mr. Barbay to justice."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the United States Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Former Deputy Jailer at Kentucky River Regional Jail Sentenced to 108 Months in Prison for Assault of Inmate and Obstruction of JusticeRead the Press Release
A former supervisory deputy jailer at the Kentucky River Regional Jail has been sentenced to 108 months in federal prison and three years of supervised release related to his role in an unprovoked violent assault of a detainee who was being held at the jail, and for subsequently covering up the beating.
Yesterday, United States District Judge Karen K. Caldwell formally sentenced Kevin Eugene Asher, 32, on his conviction. Under federal law, Asher must serve 85 percent of his prison sentence. Following the completion of his prison term, he will be under the supervision of the United States Probation Office for the London, KY office of the Eastern District of Kentucky.
On April 12, 2017, a jury convicted 32-year-old Kevin Asher of deprivation of civil rights under color of law, and obstruction of justice.
According to evidence and testimony presented during the jury trial, in November 2012, Asher and another deputy jailer, Damon Wayne Hickman, physically assaulted Gary Hill, a 55-year-old inmate who was being held following an arrest for a misdemeanor charge of disorderly conduct.
According to testimony, Deputies Asher and Hickman approached Hill after Hill had run the faucet in his jail cell to the point where water had spilled out onto the floor. Hickman testified at trial that he punched Hill in the face, causing Hill to fall onto the floor. Hickman further testified that while Hill was curled up in a fetal position, he and Asher began kicking Hill. Asher and Hickman then immobilized Hill in a restraint chair and Hickman continued to beat him. Evidence established that following the brutal assault, the deputies failed to obtain any medical treatment for Hill who had received numerous injuries.
The jury also found that Asher obstructed justice by filling out an incident report at the jail in which he falsely claimed that Hill had slipped and fallen onto the floor and that no physical force had been used against him.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Asher was responsible for the custody, care, safety and control of the inmates at the jail.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made today’s announcement.
“Nothing justifies or excuses the defendant’s outrageous conduct in this case,” said Acting Assistant Attorney General John Gore. “When deputy jailers make the corrupt choice to violate our Constitution and laws, the Justice Department will prosecute such misconduct, just as it did here.”
“This type of criminal conduct not only causes real injuries to victims, but tarnishes the work of truly dedicated law enforcement personnel,” said Acting U.S. Attorney Carlton Shier. “Prosecuting this type of disgraceful conduct is critical to making our communities safer. We simply must hold officials accountable for violations of the public trust that was placed in them.”
“Law enforcement officers are given tremendous power to enforce the law and ensure justice. Preventing abuse of this authority is necessary to protect the rights of our citizens and maintain confidence in law enforcement,” said Amy Hess, Special Agent in Charge of the FBI’s Louisville Office. “Mr. Asher’s sentence shows that the FBI will aggressively investigate color of law and civil rights violations, to hold those with the responsibility for upholding the law accountable to it.”
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Former California Deputy Sheriff Sentenced to 10 Years’ Imprisonment for Drug Trafficking and Firearms OffenseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on October 19, 2017, U.S. District Court Judge Yvette Kane sentenced Christopher Mark Heath, age 38, a former deputy sheriff of the Yuba County Sheriff’s Office, California, to 120 months’ imprisonment for possession of a firearm in furtherance of drug trafficking, conspiracy to manufacture and distribute 100 kilograms of marijuana, conspiracy to launder drug proceeds and an additional drug trafficking count. After a two-day trial, the jury convicted Heath of these offenses in Harrisburg before Judge Kane on May 11, 2017.
According to United States Attorney Bruce D. Brandler, Heath engaged in a conspiracy that trafficked hundreds of pounds of marijuana between Northern California, Florida and York County, Pennsylvania. Heath and his co-defendants, who previously pleaded guilty, participated in a conspiracy that began in approximately September 2014 and continued to January 7, 2016. During this time, Heath was a deputy sheriff in Yuba County, California, assigned as a narcotics investigator but has since resigned. Heath and his co-defendants grew marijuana on property in Oroville, CA, and shipped it through the United States Postal Service to several locations, including post office boxes in York and Lancaster, Pennsylvania, as well as to the Hanover area.
In December 2015, Heath and his co-conspirators traveled from California to York County in two vehicles, transporting 89.5 kilograms of marijuana worth just under half a million dollars. Heath’s truck contained the entire quantity of marijuana as well as a loaded Glock firearm and his deputy sheriff’s badge. When Heath and his co-conspirators arrived to deliver the marijuana in York County, they were arrested by the York County Drug Task Force and Penn Township Police Department.
Heath has been in the custody of the U.S. Marshals since the entry of the jury verdict. Heath recently pleaded guilty to additional firearms charges in Butte County, California.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, the York County Drug Task Force, Penn Township Police Department, the Butte County Sheriff’s Department (California), the United States Postal Inspection Service and the United States Postal Service Office of Inspector General. Assistant U.S. Attorney Meredith A. Taylor and Assistant U.S. Attorney Joseph J. Terz prosecuted the case.
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Former Bergen County, New Jersey, Coin Dealer Sentenced to 15 Months in Prison for Income Tax EvasionRead the Press Release
TRENTON, N.J. – A former resident of Old Tappan, New Jersey, was sentenced today to 15 months in prison for evading personal income taxes on more than $400,000 in income in 2013, Acting U.S. Attorney William E. Fitzpatrick announced.
William Dominick, 69, of Collier County, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of tax evasion and one count of identity theft. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Dominick owned and operated Westwood Rare Coin out of his home in Old Tappan. He was required to include income earned by Westwood Rare Coin on his individual IRS 1040 form. During calendar year 2013, Dominick failed to report $400,000 in income earned by Westwood Rare Coin. He did this by using other people’s identities to open credit cards to purchase bulk quantities coins from the U.S. Mint in order to corner the market. Dominick then sold those coins through his business, retained the proceeds for his personal use, and failed to include the proceeds on the tax return that he signed and filed with the IRS.
In addition to the prison term, Judge Thompson sentenced Dominick to three years of supervised release and fined him $10,000.
Under terms of his plea agreement, Dominick will file amended returns and make full restitution for years 2010 through 2014.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of special agent in charge Timothy Gallagher; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shana Chen of the Economic Crimes Unit in Newark.
Florida Man Convicted in Fraud Scheme Designed to Illegally Obtain Immigration Visas for Chinese NationalsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama, announces that a jury has convicted David Jesus Jimenez of Davie, Florida for his role in an international fraud scheme designed to illegally obtain EB-1C visas for Chinese nationals. Jimenez was convicted of conspiracy to commit visa fraud, conspiracy to commit money laundering, as well as substantive money laundering.
The trial, which began on October 2, 2017, centered around the EB-1C visa program. This legitimate immigration program allows for United States business owners who are in a qualified business relationship with a foreign company to petition the United States Citizenship and Immigration Services for a foreign multinational manager or executive to immigrate to the United States to manage the business. This employment-based visa program is designed to help United States businesses attract top foreign talent to help run a joint business partnership together from the United States. Upon obtaining an EB-1C visa, the foreign national is on the fastest tract to Legal Permanent Resident status, and ultimately, United States citizenship.
During trial, the jury heard testimony that certain Chinese nationals paid approximately $300,000.00 to the Chinese co-conspirators to participate in the fraud scheme. Thereafter, Jimenez and others in the United States recruited business owners in Alabama, Florida, Mississippi, and elsewhere by explaining that they could earn $30,000.00 by “sponsoring” an immigration petition for a Chinese national. The business owners then provided documentation about their companies to Jimenez and the other co-conspirators. Thereafter, false, fraudulent, forged, and materially misleading documentation was created by the co-conspirators, all of which was designed to give the appearance that the United States business had a qualifying relationship with a Chinese company through a joint venture between the two businesses. These documents were provided by Jimenez and his co-conspirators to attorneys who submitted the fraudulent material to USCIS. However, neither the United States business owners nor the attorneys were aware that Jimenez was using them as part of an elaborate fraud scheme.
To promote this international visa fraud scheme, Jimenez and his co-conspirators also engaged in an international money laundering scheme. Evidence was presented showing how co-conspirators in China wired large sums of money from their Hong Kong bank accounts to domestic accounts controlled by Jimenez. Thereafter, Jimenez used these foreign funds to further the visa fraud scheme by (1) paying the other United States-based co-conspirators, (2) paying the petitioning United States business owners, and (3) paying the attorneys who filed the fraudulent documents with USCIS.
Following a two-week trial, the jury deliberated for approximately four hours before finding Jimenez guilty of conspiracy to commit visa fraud, conspiracy to commit money laundering, and substantive money laundering. Jimenez will be sentenced by Chief Judge Kristi DuBose on January 26, 2018.
Prior to Jimenez’s trial, Fairhope resident Christopher Allen Dean pled guilty to a charge of conspiring to commit visa fraud in connection with this same scheme. Dean was one of approximately 40 witnesses called by the United States during its case-in-chief.
Following Jimenez’s convictions at trial, Richard W. Moore, the United States Attorney for the Southern District of Alabama, explained, “Schemes of this nature are an assault on our immigration system that divert our federal investigative resources when we are forced to spend time and money unravelling these complicated criminal acts. Our federal partners, Homeland Security Investigations and the IRS-Criminal Division worked tirelessly to ferret out the Defendant’s pattern of activity that could have gone undetected but for their excellent work. Also, our prosecutors, First Assistant Donna Dobbins and Assistant U.S. Attorney Chris Bodnar, presented a compelling case to the jury and I am particularly pleased with how they represented the interests of the United States in this matter.”
This sentiment was echoed by Raymond R. Parmer, Jr., Special Agent in Charge of ICE Homeland Security Investigations New Orleans. SAC Parmer noted: “Immigration fraud presents a serious threat to the national security of our nation. Illegal schemes like this not only undermine the integrity of our nation’s legal immigration system, but they create potential security vulnerabilities while also cheating deserving immigrants of benefits they rightfully deserve.” SAC Parmer oversees a five-state Area of Operation to include Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
In addition, James E. Dorsey, the Acting Special Agent in Charge of IRS–Criminal Investigations Division, explained: “This particular employment-based visa fraud scheme was a blatant attempt to undermine and defraud the United States Government. IRS Criminal Investigations will continue to work with our law enforcement partners to conduct international financial investigations that exploit our government.”
This matter was jointly investigated by special agents assigned to the Mobile offices of the Department of Homeland Security–Homeland Security Investigations and the Internal Revenue Service–Criminal Investigation Division, as well as fraud investigators in the Dallas Field Office of USCIS. The case was prosecuted by First Assistant United States Attorney Donna Dobbins and Assistant United States Attorney Christopher Bodnar.
Federal Jury Convicts Jacksonville Man on Multiple Counts of Aggravated Identity Theft, Bank and Social Security FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Anthony Johnson (52, Jacksonville) guilty of nine counts of aggravated identity theft, nine counts of bank fraud, seven counts of false representation of a Social Security number, and three counts of mail fraud. He faces up to 30 years in prison for each bank fraud offense; up to 20 years’ imprisonment for each mail fraud offense; up to 5 years in prison for each charge of falsely representing a Social Security number; up to 3 consecutive years in prison for violation of supervised release; and a mandatory minimum penalty of 2 years’ imprisonment for each aggravated identity theft count. No date has been set for sentencing or the violation hearing.
Johnson was indicted on August 10, 2016.
According to evidence presented at trial, starting in 2014, Johnson falsely claimed to be a former member of the U.S. Army and used the Social Security number of two victims, including a lawyer from Seattle, Washington, to open a bank account and obtain a loan and multiple credit cards from United Services Automobile Association (USAA). After obtaining multiple convenience checks on the credit cards, Johnson withdrew thousands of dollars from the USAA bank account for his own use. After obtaining a genuine Florida driver’s license under the identity of a Texas doctor, Johnson then obtained two fraudulent loans totaling over $148,000 from Bankers Healthcare Group, LLC (BHG) and had the money from BHG wired into a TD Bank business account in the name of a false medical data company that he had incorporated in Florida. Using the same identity, Johnson obtained additional loans from Springleaf Financial Services and had the proceeds wired to the same bank account. Johnson then set up a personal bank account at TD Bank in the victim’s name and began funneling money from the business account into the personal account. Thereafter, Johnson began making large cash withdrawals to fund his purchase of luxury items, including a $70,000 Mercedes Benz.
During this time, Johnson used the identity of a fourth victim to obtain an apartment under that victim’s name and then obtained another Florida driver’s license under the identity of a fifth victim. Using proceeds from his criminal activity, Johnson left the United States and traveled to Dubai in June and July of 2016. While there, he spent more than $4,000 at a club/restaurant, stayed at a high-end hotel, and purchased expensive personal items.
On July 11, 2016, U.S. Immigration and Customs Enforcement, in coordination with the U.S. Marshals Service, arrested Johnson for violation of supervised release as he reentered the United States at Orlando International Airport. He was detained and has remained in federal custody since that time.
This case was investigated by the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, the U.S. Marshal Service, U.S. Immigration and Customs Enforcement, and the U.S. Secret Service (Jacksonville Field Office). It is being prosecuted by Assistant United States Attorneys Kevin C. Frein and Beatriz Gonzalez.
Federal Jury Convicts Fayetteville Man for Trafficking Narcotics and Possessing A Firearm in Furtherance of Drug TraffickingRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that on October 18, 2017 in federal court, GENESIS LEE WHITTED, JR., a 28-year-old male resident of Fayetteville, was convicted following a three-day trial before Senior United States District Judge Malcolm J. Howard. The jury found WHITTED guilty of conspiracy to distribute and possess with the intent to distribute cocaine base, six substantive distribution charges, and possession of a firearm in furtherance of a drug trafficking crime.
A Grand Jury in the Eastern District of North Carolina indicted WHITTED on December 21, 2016 for conduct that occurred in 2015.
The evidence at trial showed that the WHITTED was the leader of a drug trafficking organization that regularly trafficked cocaine base (crack) throughout Fayetteville. The group used multiple locations, including a car wash on Pamalee Drive, for their drug distribution activities.
Witnesses testified that WHITTED regularly cooked powder cocaine into cocaine base, and that the Defendant was regularly armed with a handgun during his drug trafficking activities. On his chest, the Defendant even had a tattoo of a Pyrex measuring cup and a box of baking soda--both of which are used to “cook” powder cocaine into cocaine base.
During the fall of 2015, the Fayetteville Police Department and Federal Bureau of Investigation conducted a complex investigation of WHITTED’s drug operation, including electronic surveillance, physical surveillance, and controlled purchases of cocaine base from the WHITTED and others.
On November 18, 2015, WHITTED distributed cocaine base and possessed a firearm in furtherance of his drug distribution. WHITTED was recorded bragging that he had a “pocket rocket,” and that even though the gun was small, it was effective enough to kill someone if you shot the person twice in the chest. He also bragged that if he was stopped by the police, he would be able to throw the gun quickly before the police found it. Mr. Higdon said: “The Whitted drug trafficking organization was responsible for trafficking significant quantities of cocaine and crack in Fayetteville, and they protected their illegal business with guns. Mr. Whitted boldly challenged the community and law enforcement with threats of violence. I want to commend the FBI and the Fayetteville Police Department for their important work in this case. Prosecutions like this across the Eastern District will be key to reducing our crime rate and making our communities safer.”
“The outcome of this investigation furthers law enforcement's commitment to reducing crime and keeping the community safe. The hard work of local, state and federal law enforcement agencies is a testament to what persistence will do with a career criminal who had been plaguing the City of Fayetteville” said Fayetteville Chief of Police Gina V. Hawkins.
WHITTED was the last of his co-conspirators to be found guilty. Co-defendants Wayne Whitted and Joel McLaurin previously entered pleas of guilty and have been sentenced. WHITTED faces a mandatory minimum term of imprisonment of ten years, with a maximum term of imprisonment of life.
The case was investigated by the Fayetteville Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Scott Lemmon and Special Assistant United States Attorney Boz Zellinger represented the government in this case.
Former Deputy Jailer at Kentucky River Regional Jail Sentenced to 108 Months in Prison for Assault of Inmate and Obstruction of JusticeRead the Press Release
WASHINGTON – A former supervisory deputy jailer at the Kentucky River Regional Jail has been sentenced to 108 months in federal prison and three years of supervised release related to his role in an unprovoked violent assault of a detainee who was being held at the jail, and for subsequently covering up the beating.
Yesterday, United States District Judge Karen K. Caldwell formally sentenced Kevin Eugene Asher, 32, on his conviction. Under federal law, Asher must serve 85 percent of his prison sentence. Following the completion of his prison term, he will be under the supervision of the United States Probation Office for the London, KY office of the Eastern District of Kentucky.
On April 12, 2017, a jury convicted 32-year-old Kevin Asher of deprivation of civil rights under color of law, and obstruction of justice.
According to evidence and testimony presented during the jury trial, in November 2012, Asher and another deputy jailer, Damon Wayne Hickman, physically assaulted Gary Hill, a 55-year-old inmate who was being held following an arrest for a misdemeanor charge of disorderly conduct.
According to testimony, Deputies Asher and Hickman approached Hill after Hill had run the faucet in his jail cell to the point where water had spilled out onto the floor. Hickman testified at trial that he punched Hill in the face, causing Hill to fall onto the floor. Hickman further testified that while Hill was curled up in a fetal position, he and Asher began kicking Hill. Asher and Hickman then immobilized Hill in a restraint chair and Hickman continued to beat him. Evidence established that following the brutal assault, the deputies failed to obtain any medical treatment for Hill who had received numerous injuries.
The jury also found that Asher obstructed justice by filling out an incident report at the jail in which he falsely claimed that Hill had slipped and fallen onto the floor and that no physical force had been used against him.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Asher was responsible for the custody, care, safety and control of the inmates at the jail.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made today’s announcement.
“Nothing justifies or excuses the defendant’s outrageous conduct in this case,” said Acting Assistant Attorney General John Gore. “When deputy jailers make the corrupt choice to violate our Constitution and laws, the Justice Department will prosecute such misconduct, just as it did here.”
“This type of criminal conduct not only causes real injuries to victims, but tarnishes the work of truly dedicated law enforcement personnel,” said Acting U.S. Attorney Carlton Shier. “Prosecuting this type of disgraceful conduct is critical to making our communities safer. We simply must hold officials accountable for violations of the public trust that was placed in them.”
“Law enforcement officers are given tremendous power to enforce the law and ensure justice. Preventing abuse of this authority is necessary to protect the rights of our citizens and maintain confidence in law enforcement,” said Amy Hess, Special Agent in Charge of the FBI’s Louisville Office. “Mr. Asher’s sentence shows that the FBI will aggressively investigate color of law and civil rights violations, to hold those with the responsibility for upholding the law accountable to it.”
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government
Eight Defendants Sentenced to Federal Prison in Drug Trafficking ConspiracyRead the Press Release
Eight Iowa residents have been sentenced to federal prison after pleading guilty to drug trafficking charges.
At sentencing hearings in August, September, and October of 2017, Chief United States District Court Judge Leonard T. Strand sentenced Kyle Chyma, age 29, Edgar Hernandez, age 31, Kelbie Struve, age 25, Kailyn Struve, age 26, and Marlene Hernandez, age 25, all of Toledo, Iowa, Scott Steuhm, age 26, and Tyler Walz, age 23, both of Tama, Iowa, and Alejandra Castillo-Hernandez, age 46, of Marshalltown, Iowa, to prison time. The defendants received the following prison terms:
Edgar Hernandez was sentenced to 252 months’ imprisonment;Kyle Chyma was sentenced to 180 months’ imprisonment;
Scott Steuhm was sentenced to 160 months’ imprisonment;
Kelbie Struve was sentenced to 94 months’ imprisonment;
Alejandra Castillo-Hernandez was sentenced to 60 months’ imprisonment;
Kailyn Struve was sentenced to 48 months’ imprisonment;
Marlene Hernandez was sentenced to 15 months’ imprisonment; and
Tyler Walz was sentenced to 15 months’ imprisonment.
Each defendant must also serve a term of supervised release after the prison term. There is no parole in the federal system.
In September 2016, a federal grand jury charged all eight defendants with conspiracy to distribute controlled substances. At plea hearings in February and March of 2017, Chyma, Edgar Hernandez, Steuhm, Kelbie Struve, Kailyn Struve, Marlene Hernandez, and Alejandra Castillo-Hernandez admitted to trafficking in methamphetamine. Chyma, Kailyn Struve, and Walz admitted to trafficking in cocaine. Chyma also admitted to money laundering. The indictment contained a forfeiture allegation, and as part of their guilty pleas, the eight defendants agreed to forfeit $360,027.19 in drug proceeds.
At the sentencing hearings, Chief Judge Strand found that Edgar Hernandez and Scott Steuhm were responsible for distributing approximately 339 pounds of ice methamphetamine during the conspiracy. Edgar Hernandez and Kyle Chyma received sentencing enhancements for serving as leaders of the drug trafficking organization. Edgar Hernandez, Chyma, and Steuhm received sentencing enhancements for importing methamphetamine from Mexico.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by the Drug Enforcement Administration, with support from the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Cedar Rapids Police Department, Marion Police Department, Linn County Sheriff’s Office, Iowa City Police Department, Johnson County Drug Task Force, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-76.
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Dual Israeli/Russian Citizen Extradited to United States to Face Money Laudering ChargesRead the Press Release
WASHINGTON - Stanislav Nazarov, 46, a dual citizen of Israel and Russia, has been extradited from Israel to face charges in an indictment accusing him of taking part in an international money laundering scheme.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, John L. Phillips, Assistant Inspector General for Investigations for the U.S. Department of Treasury, and Special Agent in Charge Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Washington, D.C.
Nazarov was among 19 people charged earlier this year in federal indictments outlining various international fraud and money laundering conspiracies. He was arrested in March 2017 in Israel following an undercover investigation and later waived extradition to the United States. Nazarov was brought to the United States on Oct. 19, 2017, and is to make his first appearance this afternoon in the U.S. District Court for the District of Columbia.
The indictment charges Nazarov with one count of conspiracy to commit money laundering and two counts of money laundering. It includes a forfeiture allegation seeking a money judgment representing the proceeds of the alleged scheme.
According to the indictment, Nazarov conspired with others in June 2016 to defraud a large reinsurance company in India. That company fell victim to a cyber-phishing scheme whereby Nazarov’s co-conspirators allegedly tricked a director of that company into wiring $1.4 million to a bank account in the United States. In December 2016, the indictment alleges, Nazarov obtained what he believed to be a portion of that $1.4 million by receiving $50,000 at his location in Israel. According to the indictment, Nazarov received that money by orchestrating a sophisticated money laundering scheme whereby the $50,000 was first transferred to Russia, and then to Nazarov in Israel.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office, the U.S. Department of Treasury, Office of the Inspector General, and ICE-HSI Washington, D.C. Assistance has been provided by the Department of Justice’s Office of International Affairs and the Israeli National Police. The FBI Legal Attache in Tel Aviv, Israel, also provided assistance. The case is being prosecuted by Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Michael J. Marando and David Kent of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Brittany Phillips, Christopher Toms, and C. Rosalind Pressley.
District Woman Sentenced to 10 Years in Prison for Fatally Beating Man at Her ApartmentRead the Press Release
WASHINGTON – Thomasine Bennett, 68, of Washington, D.C., was sentenced today to 10 years in prison on a charge of voluntary manslaughter for killing her 63-year-old boyfriend at her apartment in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Bennett pled guilty in July 2017 in the Superior Court of the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 10 years in prison. The Honorable José M. Lopez accepted the plea today and sentenced Bennett accordingly. Following her prison term, Bennett will be placed on five years of supervised release.
According to a proffer of facts submitted at the plea hearing, on Feb. 17, 2017, at approximately 12:55 p.m., officers with the Metropolitan Police Department (MPD) received a call to investigate trouble at an apartment in the 700 block of 21st Street NE. Upon arrival, officers found the victim, Walter M. Clark, unconscious and unresponsive inside a hallway closet with multiple bruises to the body. The District of Columbia Department of Fire and Emergency Medical Services transported Mr. Clark to a hospital, where he was pronounced dead. An autopsy later determined that Mr. Clark, 63, died from multiple blunt force trauma.
Bennett met police officers when they arrived on the scene. According to the proffer, she stated that her boyfriend was in the back and that he made her smoke “Love Boat” the previous night. She directed officers to the hallway closet. Investigators quoted Bennett as saying that she beat Mr. Clark with a baseball bat over the last day and a half. She was arrested and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker, and Assistant U.S. Attorney Katherine Earnest, who investigated and prosecuted the matter.
Costa Rican Pleads Guilty to Selling Drugs Imported from India in the United StatesRead the Press Release
PITTSBURGH – A resident of Costa Rica, pleaded guilty in federal court to charges of mail fraud and money laundering, Acting United States Attorney Soo C. Song announced on October 16, 2017.
Ramiro Navarro Quesada, 41, a resident of Costa Rica pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose. Quesada was arrested in Madrid, Spain, pursuant to an INTERPOL Red Notice, in February 2017. He was extradited to the United States in late August.
In connection with the guilty plea, the court was advised that Quesada used a Costa Rican website to advertise the Internet sale of Schedule II and IV controlled substances and erectile dysfunction drugs, which were exported from India and received in the United States.
Judge Ambrose scheduled sentencing for March 19, 2018 at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“This case is a prime example of how the U.S. will use all available tools at our disposal to identify and apprehend drug traffickers,” said Wayne Salzgaber, INTERPOL Washington Acting Director.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Quesada.
Cape Cod Man Sentenced for a Distributing Heroin and Unlawfully Possessing FirearmsRead the Press Release
BOSTON – An associate of the Cape Cod Nauti-Block gang was sentenced today in federal court in Boston for unlawfully possessing two firearms and distributing heroin.
Shaun Miller, 32, of Hyannis, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 90 months in prison and five years of supervised release. In September 2016, Miller pleaded guilty to one count of possession with the intent to distribute heroin and one count of possession of firearms by a convicted felon.
Miller was charged as part of the federal investigation into the “Nauti-Block” gang, led by Denzel Chisholm, Christian Chapman and Christopher Wilkins, that resulted in the indictment of 19 individuals. These gang leaders obtained heroin from New Bedford, and other areas, and distributed the heroin to numerous drug dealers on Cape Cod, including Miller. Miller then re-sold this heroin to his own customers. At the time of his arrest, Miller was found with two .357 caliber firearms and over $40,000 in cash.
In September 2017, Chisholm and Wilkins were sentenced to 28.5 years in prison and nine years in prison, respectively. In July 2017, Chapman was sentenced to eight years in prison.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Cape Cod Man Sentenced for Distributing Suboxone in PrisonRead the Press Release
BOSTON – An associate of the Cape Cod Nauti-Block gang was sentenced yesterday in federal court in Boston for distributing suboxone within MCI-Norfolk prison, where he was an inmate.
Browning Mejia, 26, of Hyannis, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 10 months in prison – five months to be served consecutive to and five months to be served concurrent with a state prison sentence he is currently serving related to the murder of Christine Ferreira - and one year of supervised release, during which time Mejia is banned from visiting Hyannis other than to attend classes at Cape Cod Community College. In May 2017, Mejia pleaded guilty to use of a communications facility in furtherance of a felony drug offense.
Mejia was charged as part of the federal investigation into the “Nauti-Block” gang, led by Denzel Chisholm, Christian Chapman and Christopher Wilkins, that resulted in the indictment of 19 individuals. These gang leaders obtained heroin from New Bedford, and other areas, and distributed the heroin to numerous drug dealers on Cape Cod. In exchange for heroin, Chisholm obtained suboxone from his customers and then supplied that suboxone to Mejia, who distributed it at MCI-Norfolk prison, where he was an inmate.
In September 2017, Chisholm and Wilkins were sentenced to 28.5 years in prison and nine years in prison, respectively. In July 2017, Chapman was sentenced to eight years in prison.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Canadian Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Harvey Peake, 61, of Canada, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that in 2013, Peake recruited co-defendant John Lambert to assist in the transporting of illegal narcotics for distribution. On October 3, 2016, Peake and Lambert traveled to the Seneca Buffalo Creek Casino in downtown Buffalo to hand off 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 of 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.
Lambert has been convicted and is 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.
Sentencing is scheduled for February 8, 2018 before Judge Geraci.
Canadian Citizen Pleads Guilty to Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Acting Attorney James P. Kennedy, Jr. announced today that Panagiota Loukisas, 57, of North York, Ontario, Canada, pleaded guilty to bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that in November 2014, the defendant opened accounts at five banks in Niagara Falls, NY. Loukisas deposited checks drawn on a Canadian bank account held by her company, PM Global Consulting Services, into these five accounts. The defendant then withdrew significant sums of money from the Niagara Falls bank accounts before the checks were returned to the banks for insufficient funds. Loukisas is accused of fraudulently depositing non-sufficient fund checks valued at more than $83,000 and withdrawing more than $52,000 from the accounts before the scheme was discovered.
The plea is the culmination of an investigation by Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for January 16, 2018 at 11:30 a.m. before Judge Geraci
Business Owner Sentenced to 20 Months in Prison for Fraudulent Billing Scheme Against Federal GovernmentRead the Press Release
WASHINGTON – Nikita Davis, 48, a business owner with a firm in Washington, D.C., was sentenced today to 20 months in prison for a scheme in which she improperly qualified for government contracts and then fraudulently billed the United States more than $1.1 million.
U.S. Attorney Jessie K. Liu, Peggy E. Gustafson, Inspector General of the U.S. Department of Commerce, and Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration, made the announcement.
Davis pled guilty in June 2017, in the U.S. District Court for the District of Columbia, to major fraud against the United States. She was sentenced by the Honorable Emmet G. Sullivan. The plea agreement calls for her to pay $1,189,697 in restitution to the United States. Upon completion of her prison term, Davis will be placed on three years of supervised release.
Davis was the president and chief executive officer of Federal Acquisition Consultants Inc. (FACI), a company based in Washington, D.C., that specialized in acquisition and program management support. The company was formed in 2007 as an economically disadvantaged, woman-owned, small business.
According to a statement of offense submitted at the plea hearing, Davis made fraudulent representations when she applied in March 2013 for a contract under a GSA program created to streamline the federal procurement process through pre-negotiated prices and terms. GSA provided centralized procurement for the federal government through this program, known as the GSA Multiple Awards Schedule Program (GSA MAS).
The GSA awarded Davis’s company a GSA MAS contract designation in May 2013. Later in 2013, the Department of Commerce solicited requests for quotes from GSA MAS contractors for work related to the mission of the Afghanistan Investment and Reconstruction Task Force. The Task Force, part of the Commerce Department, aimed to facilitate and coordinate activities designed to help Afghanistan develop a sustainable economy, stabilize the market, and create strong Afghan-American partnerships.
Davis’s company submitted quotes and in September of 2013 was awarded seven contracts, worth a total of more than $3.1 million. In April 2014, the Commerce Department’s Office of Inspector General initiated an investigation into Davis and the company, based on an allegation that she submitted false invoices and made false statements to government agencies. The investigation revealed that, in obtaining the GSA MAS contract designation, Davis made false representations about her company’s past work experience. It also determined that Davis’s company improperly billed and collected from the government a total of $1,189,697 under the contracts by billing improperly for travel, danger pay, insurance, security and labor.
In announcing the sentence, U.S. Attorney Liu, Inspector General Ochoa, and Inspector General Gustafson commended the work of those who investigated the case from the Offices of the Inspector General for the General Services Administration and Department of Commerce. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney Teresa A. Howie and Paralegal Specialist Aisha Keys. Finally, they commended the efforts of Assistant U.S. Attorney Emily A. Miller, who prosecuted the case.
Burlington Man Sentenced for Sex TraffickingRead the Press Release
BOSTON – A Burlington man was sentenced today in federal court in Boston for trafficking three women for sex and threatening them with violence.
Barry Davis, 38, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 18 years in prison and three years of supervised release. In March 2017, Davis pleaded guilty to three counts of sex trafficking by force, fraud, and coercion and three counts of interstate transportation with intent to engage in prostitution.
In April 2015, Davis met a young woman at a driving instruction class and enticed her to leave with him by promising to take care of her and provide her with a steady supply of heroin. Davis drove her to New Jersey, rented a hotel room, posted an advertisement online for sex with her, and took the money she made having sex with men who responded to the ad. Davis used heroin to coerce the woman, and punched her in the head and threatened her with further harm if she did not follow his rules and prostitute for him.
In August 2015, Davis perpetrated a similar scheme after he picked up two young women from a heroin detox center and drove them to Connecticut. There, he rented a hotel room, posted online advertisements for sex with the women, and took the money they made having sex with men who responded to the ads. Davis used heroin to coerce the women to prostitute for him. Davis also hit one of the women for breaking one of his prostitution rules and threatened to beat the other woman if she did not make enough money prostituting for him.
Acting U.S. Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Assistance was provided by the Boston Police Department’s Human Trafficking Unit and the Lawrence, Salem, Burlington, Milford (Conn.), and Franklin Township (NJ) Police Departments. Assistant U.S. Attorneys Leah Foley and Kelly Lawrence of Weinreb’s Civil Rights Enforcement Team prosecuted the case.
Buffalo Man Sentenced for Damaging Government PropertyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Justin Vazquez, 30, of Buffalo, NY, who was convicted by a federal jury of damaging government property, was sentenced to 10 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on October 20, 2016, during a status conference prior to trial on a firearm’s charge, Vazquez carved a vulgar obscenity into a wooden table in the courtroom of Chief Judge Geraci.
In May of 2017, the defendant was convicted of the firearm charge and sentenced to 72 months in prison. Today’s 10 months sentence will be served consecutive to that sentence.
Today’s sentencing is the result of an investigation by the U.S. Marshal’s Service, under the direction of Marshal Charles Salina.
Bridgeville Suboxone Clinic Operators Charged with Unlawful Distribution of Controlled Substances and Health Care FraudRead the Press Release
PITTSBURGH - Two Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of unlawfully distributing controlled substances and health care fraud, Acting United States Attorney Soo C. Song announced today.
The 39-count indictment, returned on October 18 and unsealed today, named Mark R. Foster, 70, of Wexford, Pennsylvania and Terri C. Brown, 53, of Pittsburgh, Pennsylvania. Foster and Brown were arrested this morning at their respective residences.
According to indictment, Brown owned and operated Cherry Way, a Suboxone clinic, located in Bridgeville, Pennsylvania, and Foster was a medical director at Cherry Way. The indictment alleges that Brown and Foster conspired together to create and submit unlawful prescriptions for Suboxone, Adderall and Percocet, and then unlawfully dispensed those controlled substances to Brown and to other persons not specifically named in the Indictment. Brown is also charged with health care fraud for allegedly submitting fraudulent claims to Highmark and Medicaid, through Cherry Way, for payments to cover the costs of the unlawfully prescribed Suboxone, Adderall and Percocet.
The law provides for a maximum total sentence of 60 years in prison, a fine of $3,250,000, or both, for the controlled substances offenses. Brown faces an additional maximum term of imprisonment of 20 years and fines of $500,000 for the health care fraud charges. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Chelsea Rice to be honored with Attorney General's Award for labor trafficking prosecutionRead the Press Release
Assistant U.S. Attorney Chelsea S. Rice has been selected to receive the Attorney General’s Distinguished Service Award, one of the highest honors the Justice Department bestows upon its employees.
Rice and Trial Attorney Dana Mulhauser are being honored for their work in United States v. Castillo-Serrano et. al., a case in which the defendants engaged in a human trafficking conspiracy, forcing undocumented minors to work at an Ohio chicken farm for little or no pay.
The award will be presented by Attorney General Jeff Sessions on Oct. 25 in Washington, D.C.
“The work of Chelsea, and everyone involved in this case, was nothing short of heroic,” U.S. Attorney Justin E. Herdman said. “The leaders of the smuggling ring were sent to prison and the victims are on the road to recovery. This case demonstrates the horrors of human trafficking but also provides a blueprint for how law enforcement can combat the crime.”
Federal agents were alerted in late 2014 that adults and some children as young as 14 years old were being smuggled into the country and forced to work in deplorable conditions on an Ohio farm.
With the promise that their children would receive an education, parents in Guatemala surrendered custody and control of their children to Aroldo Roberto Castillo-Serrano, who then assumed the deed to the parents’ Guatemalan property as collateral for their smuggling fee.
These children, along with the adults with whom they were smuggled, were then routed through the United States to Ohio, where they were forced to live in trailers, some of which lacked water, electricity, heat and even windows, and work up to 12 hours a day on the egg farm. The work included cleaning chicken coops, loading and unloading crates of chickens, debeaking chickens and vaccinating chickens.
With the coordination and cooperation of the Federal Bureau of Investigation, Department of Homeland Security and the Department of Labor, the victims of this forced labor scheme were recovered, received necessary medication attention and were granted continued presence status so that they could cooperate in the prosecution of Castillo-Serrano and his accomplices, Angelica Pedro-Juan, Pablo Duran, Jr., Conrado Selgado Soto, Conrado Selgado Borbon and Bartolo Dominguez.
Prosecutors and federal agents traveled to Guatemala. They worked with social service providers and non-government organizations to ensure the victims received the support and services they needed. They also, over time, gained the trust of the victims, some of whom eventually confronted the defendants in court.
All six defendants pleaded guilty. Ringleader Castillo-Serrano recruited the victims, smuggled them into the United States, oversaw money transfers and issued threats to ensure compliance. He received a prison sentenced of more than 15 years. Pedro-Juan falsely represented herself to government officials as a family friend of the minor victims in order to have them released to her custody. She also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere. She was sentenced to 10 years in prison.
Rice joined the U.S. Attorney’s Office in 2010. She is a graduate of Santa Clara University and the Ohio State University Moritz College of Law.
Armed Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christian Delgado, 27, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute cocaine and possession of a firearm and ammunition by a convicted felon. The charges carry a maximum penalty of 20 years in prison and a fine of $1,000,000 or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Delgado was arrested following the execution of a search warrant on September 13, 2016, at 734 Jay Street in Rochester. Upon entry, investigators detained the defendant, who was located on a bed in an open living area. Officers found three other people throughout the house.
During the search, officers found a loaded Charter Arms .38 special caliber revolver inside a laundry basket in the front bedroom. Officers also found $365 cash on the nightstand in the front bedroom, along with heroin on a shelf in the bedroom and near the doorway. Inside a backpack found in the front bedroom, officers found cocaine and approximately two ounces of marijuana. Additional cocaine was discovered in the open living area near the bed on which the defendant was laying. Drug trafficking paraphernalia in the house as well.
The plea is the result of an investigation by the Greater Rochester Area Narcotics Enforcement Team (“GRANET”), under the direction of Rochester Police Department Lieutenant David Gebhardt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing is scheduled for January 22, 2018, at 10:00 a.m. before Judge Wolford.
Anthony Waits Sent to Prison for More Than 14 Years for Role in Stealing USDA Funds Intended for ChildrenRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced Thursday that United States District Court Judge James M. Moody Jr., sentenced Anthony Waits, 38, of England, to prison for his role in a multi-million dollar scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Waits on Wednesday following a hearing that went into the evening to 175 months’ imprisonment followed by three years of supervised release. He was also ordered to pay $3,316,280.85 in restitution. A jury convicted Waits of conspiracy to commit wire fraud following an eight-day trial in April.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Waits, not a sponsor himself, recruited sponsors to participate in the feeding program. The sponsors he recruited then paid a percentage of the money they received from the program back to Waits. Five sponsors who Waits recruited have pleaded guilty to their involvement and admitted to making payments to Waits. The sponsors who Waits recruited received over $3.3 million in federal funds meant to feed children, and many testified at trial that they paid Waits approximately 40 percent of what they received.
Anthony Waits’ estranged wife, Gladys Waits, worked for DHS. She was responsible for processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding sites. Gladys Waits also helped these sponsors avoid DHS’s detection of the fraud.
Gladys Waits received bribe payments from some sponsors, both directly through checks made payable to her and indirectly through checks made payable to relatives, including Anthony Waits. Anthony Waits recruited sponsors Reuben Nims, James Franklin, Christopher Nichols, Waymon Weeams, and Dortha Harper to participate.
Anthony Waits is the 12th defendant to be sentenced for his involvement in a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants sentenced include: Kattie Jordan (63 months’ imprisonment on March 15, 2016); Nims (21 months’ imprisonment on November 2, 2016); Tonique Hatton (108 months’ imprisonment on January 4, 2017); Franklin (24 months’ imprisonment on January 10, 2017); Maria Nelson (30 months’ imprisonment on January 31, 2017); Michael Lee (30 months’ imprisonment on May 1, 2017); Nichols (three years’ probation on May 16, 2017); Gladys Waits (108 months’ imprisonment on July 17, 2017); Alexis Young (18 months’ imprisonment on August 18, 2017); Erica Warren (18 months’ imprisonment on August 18, 2017); and, Francine Leon (34 months’ imprisonment on September 21, 2017).
Weeams and Harper have pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills was convicted along with Anthony Waits on April 6, 2017, following the jury trial and will be sentenced on December 6, 2017.
In this investigation law enforcement has uncovered more than $11 million in fraud related to these USDA Arkansas feeding programs.
Although everyone initially indicted in this scheme has now been convicted, the investigation is still ongoing, and continues to be conducted by the USDA–Office of Inspector General, Internal Revenue Service–Criminal Investigations, Federal Bureau of Investigation, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Ambridge Drug Dealer Sentenced to 7 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Ambridge, Pennsylvania, has been sentenced in federal court to 84 months imprisonment followed by 4 years supervised release on his convictions of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Dwayne Corrigan, 33, of Ambridge, Pennsylvania.
According to information presented to the court, from in and around January 2016 and continuing thereafter to in and around July 2016, Corrigan conspired with others to distribute and possess with intent to distribute heroin, a Schedule I controlled substance. Corrigan also distributed fentanyl on July 27, 2016, and, pursuant to his plea agreement with the United States, Corrigan accepted responsibility for the fact that the fentanyl he distributed on July 27, 2016, resulted in the serious bodily injury of two individuals.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with assistance from the Borough of McKees Rocks Police Department, the Borough of Ambridge Police Department, the Borough of Sewickley Police Department, the Crescent Township Police Department, the City of Aliquippa Police Department, the Borough of New Brighton Police Department, and the Pennsylvania Attorney General’s Office, for the investigation leading to the successful prosecution of Corrigan. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
********* Media Advisory *********Read the Press Release
The United States Postal Inspection Service, will hold a media event at the U.S. Attorney’s Office, 6th Floor, Sirena Building, Hagatna, on WEDNESDAY, OCTOBER 25, 2017, from 1:00 PM -2:00 PM, to discuss enforcement and prevention efforts regarding drug trafficking and drug abuse on Guam and the Northern Mariana Islands (NMI).
WHO: U.S. Postal Inspection Service
Assistant Inspector Kevin Rho, San Francisco DivisionUnited States Attorney’s Office
Drug Enforcement Administration
Guam Customs and Quarantine Agency
WHEN: Wednesday, October 25, 2017, at 1:00 PM - 2:00 PM
WHERE: U.S. Attorney’s Office Conference Room, 6th Floor, Sirena Building, Hagatna
NOTE: All media must present photo I.D. as well as valid media credentials.
Thursday 19 October 2017
“Rival Impact” Gang Member Charged in Brooklyn Federal Court with Double HomicideRead the Press Release
Nabiu Mansaray, a member of a Coney Island-based gang known variously as “Mermaid Boys,” “Mermaids,” “Rival Impact,” “R.I.,” and “33rd Street Crew,” will be arraigned this afternoon in federal court in Brooklyn, New York, on a superseding indictment charging him with crimes including racketeering, murder in aid of racketeering, narcotics trafficking and unlawful use of firearms. Mansaray’s co-defendant, Frank Smith, was previously arraigned on similar charges in the Eastern District of New York after his arrest on the underlying indictment on July 7, 2016, and is charged with additional racketeering acts in the superseding indictment. Mansaray will be arraigned before United States Magistrate Judge Steven L. Tiscione, following his removal from Maryland, where he was arrested by agents from the Federal Bureau of Investigation on September 15, 2017, pursuant to the superseding indictment.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
As detailed in the superseding indictment, between January 2000 and January 2014, to maintain Rival Impact’s power and hold in the Coney Island section of Brooklyn, the defendants and their gang engaged in widespread narcotics distribution and violence, including the October 4, 2010 murders of Terrance Serrano and Rashawn Washington, in addition to various attempted murders, robberies, assaults and acts of intimidation. Serrano and Washington, who were members of a rival gang known as “Thirty-O,” were shot and killed while sitting in their car after leaving a nightclub in Manhattan, just north of Union Square.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Maria Cruz Melendez, Jennifer M. Sasso and Josh Hafetz are in charge of the prosecution.
The Defendants:
FRANK SMITH (“Fresh,” “Freez,” and “Freezee”)
Age: 32
Staten Island, New York
NABIU MANSARAY (“Monchichi” and “Chich”)
Age: 33
Germantown, Maryland
EDNY Docket No. 16-CR-346 (FB)