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Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 17 October 2017
Firearms Crime ReportRead the Press Release
Ron Banks, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joshua Burton, 32, Arnold, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darkel Martin, 31, East St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jake Richardson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Guy S. Long, 45, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
John Torregrossa, 29, St. Louis, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute heroin.
Cryland Robinson, 28, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
William Bowen, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm, one felony count of possession with intent to distribute methamphetamine and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Donald Dyson, 28, St. Louis, was sentenced to 60 months in prison to one felony count of possession of a firearm during commission of a crime of violence.
Devon Michael Branch, 24, St. Louis, was sentenced to 12months in prison for one felony count of felon in possession of a firearm.
Rodney Morgan, Jr., 37, St. Louis, was sentenced to 33 months in prison for one felony count of felon in possession of a firearm.
Ronald Houston, 39, was sentenced to 46 months in prison for one felony count of felon in possession of a firearm.
Leneko Waller, 23, St. Louis, was sentenced to 30 months in prison for one felony count of felon in possession of a firearm.
Antjuan D. Cannon, 35, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Nicholas W. Davis, 28, Hillsboro, was sentenced to 36 months in prison for one felony count of felon in possession of a firearm and distribution of a controlled substance.
Anthony Braziel, 38, St. Louis, was sentenced to 32 months in prison for one felony count of felon in possession of a firearm.
Trayondres Clark, 27, St. Louis, was sentenced to 27 months in prison for one felony count of felon in possession of a firearm.
Daren Hill, 33, St. Louis, was sentenced to 200 months in prison for one felony count of felon in possession of a firearm.
Jermain Morgan, 31, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Terry J. Williams, 20, St. Louis, was sentenced to 168 months in prison for one felony count of brandishing a firearm during commission of a federal crime of violence.
Larence Perry, 47, St. Louis, was sentenced to 33 months in prison for one felony count of felon in possession of a firearm.
Philip Roberts, 38, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Sylvester Clay, 44, St. Louis, was sentenced to 72 months in prison for one felony count of felon in possession of a firearm.
Fifth Member of “Manche Boy Mafia” Gang Sentenced to More Than Five Years in Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Maurice Lewis (22, Tampa) to 5 years and 1 month in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty to the charges on July 10, 2017.
According to court documents and statements made in open court, from at least January 2015, through November 2016, Lewis and other individuals affiliated in some way with the “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. The conspirators purchased or stole reloadable gift cards and used a machine to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby generating counterfeit credit cards. The conspirators then used these counterfeit cards at various retailers around the Tampa Bay area to purchase gift cards and electronics, which they either kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards, and had possessed and used thousands of stolen account numbers from individuals across the United States. In total, Lewis was held responsible for more than $350,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.
Lewis’ co-defendant, Demeko Wells, pleaded guilty to conspiracy and aggravated identity theft. He is scheduled to be sentenced on October 31, 2017.
In a related case, fellow MBM members (Brandon Lewis and Terrance Cobb) were each sentenced to 5 years and 1 month in federal prison; Dontae Williams was sentenced to 5 years and 10 months’ imprisonment; and Davon Smith was sentenced to 5 years and 5 months in federal prison - all for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Federal Grand Jury IndictmentsRead the Press Release
Columbia, South Carolina----United States Attorney Beth Drake stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
Newberry Man Indicted on Federal Firearm Charge. Maleik Houseal, age 22, of Newberry, was charged in a 1-count indictment with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). The charge carries a maximum of ten (1) years’ imprisonment, a fine of $250,000, and a term of supervised release of not more than three (3) years. The case was investigated by the Federal Bureau of Investigation and the Columbia Police Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
West Columbia Man Indicted on Federal Drug and Weapon Charges. Bryshun Genard Furlow, age 34, of West Columbia, was charged in a 6-count superseding indictment with possession with intent to distribute and distribution of crack cocaine (3 counts), possession with intent to distribute cocaine and methamphetamine, using/possessing firearms during a drug trafficking crime, and being a felon in possession of firearms and ammunition, all in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Sections 922(g)(1) and 924(c). Each drug charges carries a maximum of thirty (30) years’ imprisonment with a fine of $2,000,000 and a term of supervised release of at least six (6) years. The felon in possession charge carries a maximum of ten (10) years’ imprisonment, a fine of $250,000 and a term of supervised release of not more than three (3) years. The use/possession of firearms during a drug trafficking crime carries a statutory mandatory minimum five (5) year imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of not more than three (3) years. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lexington County Sheriff’s Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
Georgia Man Indicted for Bringing Bankruptcy Scheme to South Carolina. Nathaniel Florin Noble, a/k/a “Florin David Olaru,” age 50, was charged today in a three-count indictment with bankruptcy fraud, false bankruptcy declarations, and contempt of court, all in violation of Title 18, United States Code, Sections 152, 157, and 401. According to the indictment, Noble filed a 2017 bankruptcy petition, in which he made false representations. Noble’s bankruptcy petition also failed to comply with a previous order issued by the Northern District of Georgia Bankruptcy Court, in which the court ordered Noble not to file for bankruptcy for a five-year period.
If convicted of bankruptcy fraud, Noble faces a maximum sentence of five years and a fine of $250,000. The case was investigated by the Office of the United States Trustee and the Internal Revenue Service, and is assigned to Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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FCI-Loretto Inmate Sentenced to Nine Additional Months in Prison for Possessing DrugsRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of possession of a prohibited object in prison, and was sentenced to nine months in prison, consecutive to the current sentence he is presently serving in federal prison, and three years’ supervised release, concurrent with his present sentence, Acting United States Attorney Soo C. Song announced today.
Edwin Manuel Guzman, 35, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on December 22, 2016, Guzman possessed a quantity of Buprenorphine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Guzman.
Eight Men Arrested on Federal Child Sex Trafficking ChargesRead the Press Release
FORT WORTH, Texas — Eight men are in federal custody on sex trafficking of children charges outlined in a federal criminal complaint filed last week, announced U.S. Attorney John Parker of the Northern District of Texas.
The following individuals were charged and have made their initial appearances before U.S. Magistrate Judge Jeffrey L. Cureton. They have been remanded to custody pending additional court hearings.
Pierre Lagrone, aka “P” or “Pedro,” 33
Robert Roseberry, aka “King Rose,” 29
Herman Sanders, aka “Pooh,” 29
Reginald Smith, aka “Green Light,” 28
Demarcus Davis, aka “Zigg,” 25
Kentrell Davis, aka “Zeal,” 24
Cederrick Clarkson, aka “Ced” or “Spazz,” 25
Terroderick Watts, aka “Silk,” 27
According to the affidavit filed with the criminal complaint, in March of 2017, the Fort Worth Police Department’s VICE Unit conducted a recovery operation in response to a lead sent from the National Center for Missing and Exploited Children (NCMEC) in reference to a suspected victim of Child Sex Trafficking. Fort Worth VICE Unit located and utilized a Backpage.com ad containing photographs of a minor female, Jane Doe 1, that advertised commercial sex acts. As a result of the operation, Jane Doe 1 was recovered. Additionally, two other minor females, Jane Doe 2 and Jane Doe 3, were also located in a closet located in Jane Doe 1’s hotel room at the time she was recovered.
The three females, and others, were victims of a child sex trafficking organization. Lagrone, Roseberry, Sanders, Smith, D. Davis, K. Davis, Clarkson and Watts were members of that organization and recruited, advertised and sold several women, both adults and underage for the purpose of commercial sex. They frequently worked together as an organization by utilizing some of the same underage and adult female victims to engage in commercial sex acts, operating out of the same hotels while engaging in a commercial sex enterprise, transporting female victims for the purpose of commercial sex acts, utilizing and sharing cellphones that were used to post ads for commercial sex on Backpage.com, taking photographs of female victims either nude or in their underwear that were used in Backpage.com ads for commercial sex and obtaining hotel rooms that were used to engage in commercial sex activities. The defendants were also frequently violent if the females angered them or did not follow their directions.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is life in federal prison and a $250,000 fine.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments are investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Doctor Admits Billing Medicare, Other Insurers $3 Million for Therapy Services Performed by Unqualified PersonnelRead the Press Release
NEWARK, N.J. – A doctor with offices in Paterson, New Jersey, Passaic, New Jersey, and Elizabeth, New Jersey, today admitted defrauding Medicare and private insurance companies out of $3 million by billing for more than 150,000 physical therapy sessions that were performed by unlicensed and unqualified personnel, Acting U.S. Attorney William Fitzpatrick announced.
Anthony J. Enrico, 60, of North Haledon, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of health care fraud.
According to the documents filed in the case and statements made in court:
From January 2007 through May 2016, Enrico billed Medicare and other health insurance providers for physical therapy services that he supposedly provided to his patients. In order for them to be reimbursable, Medicare and private insurers required that physical therapy services be performed only by individuals like Enrico who met certain criteria based on training and certifications.
Enrico admitted that on more than 150,000 occasions, those services were performed at his direction by individuals who lacked the necessary training and certifications, resulting in him fraudulently obtaining approximately $3 million from Medicare and private insurers.
Enrico faces a maximum potential penalty of 10 years in prison and a fine of up to twice the loss caused by the offense. As part of his plea agreement, Enrico must also pay restitution of $3 million. Sentencing is scheduled for Jan. 25, 2018.Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott Lampert, and the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Senior Litigation Counsel Joseph N. Minish of the U.S. Attorney’s Health Care and Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office Criminal Division.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Defense counsel: Christopher D. Adams Esq., Holmdel, New JerseyDepartment of Justice Reminds the Public Disaster Fraud Is A Federal Crime and to Report ItRead the Press Release
LAS VEGAS, Nev. – The U.S. Attorney’s Office for the District of Nevada and the FBI’s Las Vegas Office remind the public to be aware of and report suspected fraudulent activity related to disaster assistance relief in the aftermath of a series of natural disasters in the United States and the recent tragedy in Las Vegas. Unfortunately, criminals may use tragic events to exploit individuals and communities for their own gain. Solicitations can originate from social media, e-mails, websites, door-to-door collections, mailings, telephone calls, and other similar methods.
The Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
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Davenport Man Sentenced to 175 Months in Prison for Distributing Heroin and Possessing a FirearmRead the Press Release
DAVENPORT, Iowa – On October 16, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Anthony McKinley Harris, 27, of Davenport, Iowa, to 175 months in prison for conspiracy to distribute heroin and 120 months in prison for felon in possession of a firearm, announced United States Attorney Marc Krickbaum. McKinley was also ordered to serve three years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund for both counts.
On March 27, 2017, McKinley pled guilty to the charges, which arose from an investigation of McKinley selling heroin. Beginning in February of 2016 and continuing until April 6, 2016, McKinley sold heroin to numerous individuals in the Davenport area, including a confidential informant working for law enforcement. In total, over 100 grams of heroin were attributed to McKinley. During that time period, law enforcement executed search warrants at McKinley’s residence and a hotel room where he was staying. Law enforcement seized numerous items, including over six grams of heroin, a loaded .380 semi-automatic Lorcin, and approximately $1,900. McKinley has a prior felony conviction for manufacturing/delivery of cocaine and six prior felony convictions for residential burglary.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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).
Dallas Man Admits to Committing $50 Million TRICARE FraudRead the Press Release
DALLAS — Andrew Joseph Baumiller, 38, of Dallas, Texas, pleaded guilty today before U.S. Magistrate Judge David L. Horan to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE, the health insurance program for members of the military and their families. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Baumiller faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and will be ordered to pay restitution. Baumiller will remain in custody pending sentencing, which is scheduled before Chief U.S. District Judge Barbara M.G. Lynn in February, 2018.
According to documents filed in the case, Baumiller admitted to conspiring with Richard Robert Cesario, John Paul Cooper, Dr. Walter Neil Simmons, Dr. William F. Elder-Quintana, Joe Larry Straw, Luis Rafael Rios, Michael John Kiselak, and others to defraud TRICARE out of more than $50 million from May 2014 through February 18, 2016, through a scheme involving compounded pain creams, scar creams, and vitamin supplements. Baumiller is the first defendant to plead guilty in this case. Cesario, Cooper, Simmons, Quintana, Straw, Rios, Kiselak, and four other defendants are scheduled for trial next year.
According to the superseding indictment filed October 4, 2016, Cesario and Cooper orchestrated a scheme through their marketing company, CCMGRX, LLC, to generate prescriptions by paying illegal kickbacks to TRICARE beneficiaries and prescribing doctors, and to receive illegal kickbacks in exchange for those prescriptions from four Texas-based compounding pharmacies: Trilogy Pharmacy (Trilogy) in Dallas, 360 Pharmacy Services in Webster, Dandy Drug in Burleson, and Alpha Pharmacy in Irving.
The superseding indictment alleges that the scheme caused TRICARE to suffer an actual loss of more than $100 million. In connection with his guilty plea, Baumiller, who served as the President of Trilogy and oversaw its day-to-day operations, admitted that TRICARE paid Trilogy more than $50 million that was tainted by the payment of illegal kickbacks.
The superseding indictment alleges that Cesario, Cooper, Straw, Rios, Kiselak and others disguised the illegal kickbacks they paid to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” designed to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, had no control group, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. In connection with his guilty plea, Baumiller admitted that he knew about the sham study but “pretended not to know the truth because CCMGRX was generating so much business and they were all making a lot of money.”
Baumiller further admitted that Trilogy paid Cesario, Cooper, Straw, Rios, Kiselak, and other CCMGRX marketing reps as W-2 employees of Trilogy “in order to give a false appearance of compliance with the statutory and regulatory bona fide employee safe harbor provisions of the Anti-Kickback Statute in order to defraud TRICARE and other federal health care programs.”
At times, according to the factual resume, Trilogy received prescriptions for patients who lived in states where Trilogy was not licensed to do business. Rather than refuse to fill these prescriptions, Baumiller and others shipped the prescriptions to a local courier, marketing rep, or relative, who in turn shipped the prescriptions to the patient. This enabled Trilogy to increase the number of claims it could submit to TRICARE and other federal health care programs.
The Federal Bureau of Investigation and Defense Criminal Investigative Service investigated the case. Assistant U.S. Attorneys Douglas Brasher and Paul Yanowitch are prosecuting.
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Cumberland County Man Sentenced to over 17 Years’ Imprisonment for Receiving Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge William W. Caldwell sentenced John Alexander Driscoll, age 61, of Mechanicsburg, Pennsylvania, to 210 months’ imprisonment, followed by a 15-year term of supervised release for receiving and distributing images depicting the sexual exploitation of children.
According to United States Attorney Bruce D. Brandler, Driscoll received and distributed thousands of images depicting the sexual exploitation of children as young as eight-years-old. These images included the sadistic and masochistic abuse of children.
In 1988, Driscoll was convicted of receiving child pornography through the mail. As such, Driscoll was subject to enhanced penalties.
Judge Caldwell also ordered Driscoll to pay $25,314 in restitution, and to register as a sex offender.
This case was investigated by the United States Postal Inspection Service, and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Daryl Bloom prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Convicted Fugitive Gets Significant Sentence After Re-captureRead the Press Release
LAREDO, Texas – A Laredo man has been sentenced to federal prison after being a fugitive from justice for more than 10 years, announced Acting U.S. Attorney Abe Martinez.
Luis Enrique Flores, 44, pleaded guilty May 6, 2005, admitting he possessed with intent to distribute more than four kilograms of methamphetamine.
In August 2005, Flores was released on bond but then failed to appear for his hearings or report to pretrial services. Flores remained a fugitive until his arrest on June 5, 2017. He pleaded guilty to a charge of failure to appear on July 31, 2017.
Today, U.S. District Judge Diana Saldana ordered he serve a total of 108 months in federal prison - 100 months for the drug conviction followed by a consecutive sentence of eight months imprisonment for the failure to appear. Flores will also serve a five-year-term of supervised release following completion of his sentence.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the original drug investigation. The U.S. Marshals Service and its Fugitive Task Force investigated the charges of failure to appear. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Civilian Charged with Aggravated Sexual Abuse on Fort BraggRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, before United States Magistrate Judge James E. Gates, DAMIN CHASE MARSHALL, of Fayetteville, North Carolina, was charged in a federal Criminal Complaint with one count of Aggravated Sexual Abuse by Force or Threat.
MARSHALL, a civilian, is alleged to have committed forcible rape against a female U.S. service member on the Fort Bragg Army Installation. The United States Attorney’s Office pursued this crime as part of its responsibility to prosecute crime within United States military premises.
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the United States Army Criminal Investigation Command.
Chinle Man Sentenced to Lengthy Prison Term for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX – Yesterday, Marcurio Carlisle Tsosie, 34, of Chinle, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 18.5 years’ imprisonment, to be followed by lifetime supervised release with sex offender conditions. Tsosie had previously pleaded guilty to abusive sexual contact of a child.
In November of 2016, the nine year-old victim, a member of the Navajo Nation, reported Tsosie’s sexual abuse to the victim’s mother. Agents of the Federal Bureau of Investigation promptly began an investigation, which led to Tsosie’s arrest and prosecution. Tsosie is also a member of the Navajo Nation, and the abuse occurred within the Navajo Nation Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8045-JJT
RELEASE NUMBER: 2017-098_ Tsosie
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Chinese National and Eight Others Indicted in North Dakota in "Operation Denial"Read the Press Release
FARGO - US Attorney Christopher C. Myers, along with US Attorney Billy J. Williams, District of Oregon, announced on October 17, 2017, that Jian Zhang, 38, of China, was charged by an Indictment returned on September, 21, 2017, of the following offenses: (1) Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death; (2) Conspiracy to Import Controlled Substances and Controlled Substance Analogues into the United States Resulting in Serious Bodily Injury and Death; (3) Money Laundering Conspiracy to Conceal the Nature, Location, and Ownership of Proceeds of Specified Unlawful Activity; and (4) International Money Laundering Conspiracy; and (5) Continuing Criminal Enterprise.
The charges come as part of "Operation Denial," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of "Operation Deadly Merchant." The investigation started in North Dakota on January 3, 2015, with the overdose death in Grand Forks of 18-year-old Bailey Henke. Additional defendants charged in this Indictment with drug trafficking conspiracy include:
1. Jason Joey Berry, 34, Quebec, Canada;
2. Anthony Santos Gomes, 33, Davie, Florida;
3. Elizabeth Ton, 26, Davie, Florida;
4. Xuan Cahn Nguyen, 38, Quebec Canada;
5. Marie Um, 37, Quebec Canada;
6. Vannek Um, 39, Quebec, Canada;
7. Linda Van, 25, Quebec, Canada; and
8. Darius Ghahary, 48, Ramsey, New Jersey.
Additional defendants charged in Federal court as a result of this investigation include:
District of North Dakota
1. Daniel Vivas Ceron, 36, Columbia – awaiting trial currently set for February 8, 2018.
2. Jameson Robert Sele, 20, Grand Forks, ND – Pled guilty to Conspiracy to Distribute Controlled Substances and was sentenced on 7/27/15 to 36 months’ in federal prison.
3. Ryan Jon Jensen, 20, Grand Forks, ND – Pled guilty on 2/27/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; Distribution of a Controlled Substance Resulting in Serious Bodily Injury; and Money Laundering Conspiracy, and was sentenced on 2/2/2016 to 20 years in federal prison.
4. David Todd Noye Jr., 18, Grand Forks, ND – Pled guilty on 5/4/15 to Conspiracy to Distribute Controlled Substances and was sentenced on 1/25/2016 to serve 3 years and 3 months in federal prison.
5. Joshua Tyler Fulp, 20, Grand Forks, ND – Pled guilty on 6/23/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and was sentenced to 12 years in federal prison.
6. Kain Daniel Schwandt, 19, Grand Forks, ND - Pled guilty on 7/24/15 to Conspiracy to Distribute Controlled Substances and was sentenced on 1/25/2016 to serve 3 years and 6 months in federal prison.
7. Brandon Corde Hubbard, 40, Portland, OR - Indicted on charges of Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy and was sentenced on 07/13/2016 to serve life in federal prison.
8. Ronnie Lee Helms, 30, Acworth, GA - Indicted on charges of Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death. Jury trial is set for 3/7/2017.
9. Braden James Foley, 28, Olympia, WA - Pled guilty on 8/11/2016 to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on 11/21/2016 to serve 30 months in federal prison.
District of Oregon
1. Channing Lacey, 30, Portland, Oregon - Plead guilty on 3/28/17 to one Count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury to three individuals and one Count of Distribution of a Controlled Substance Resulting in Death and was sentenced to 135 months imprisonment.
2. Carissa Marie Laprall, 25, Portland, Oregon - Plead guilty on 3/28/17 to three Counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and is awaiting sentencing.
3. Steven Fairbanks Locke, 41, Portland, Oregon - Plead guilty on 6/14/17 to Use of a Communication Facility to Facilitate a Drug Offense and is awaiting sentencing.
These cases are being investigated by the Department of Homeland Security - Homeland Security Investigations; Drug Enforcement Administration; United States Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland, Oregon, Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; and the Grand Forks Police Department. The principle mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply.
United States Attorney Christopher C. Myers (North Dakota), Assistant U.S. Attorney Scott Kerin (Oregon), and Adrienne Rose of the Department of Justice - Narcotics and Dangerous Drugs Section, are prosecuting the cases.
## The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial. ##
Chinese National Indicted for his Role in Distributing Fentanyl that resulted in four drug overdoses in OregonRead the Press Release
PORTLAND – Today in Washington D.C., Deputy Attorney General Rod Rosenstein, along with United States Attorney for the District of Oregon Billy J. Williams and United States Attorney for the District of North Dakota Christopher C. Myers, announced that Jian Zhang, 38, of China, has been indicted for a series of crimes related to his exportation of fentanyl from China into the United States. The indictment alleges that the fentanyl Zhang shipped from China resulted in multiple drug overdoses across the country, including four overdoses that occurred within the District of Oregon in 2015.
This prosecution is the result of a unique and joint investigation between two United States Attorney Offices and has led to multiple indictments in both districts. In the most recent North Dakota Indictment dated September 20, 2017, Zhang, along with five Canadian citizens, two residents of Florida, and a resident of New Jersey were charged, with among other things, of being involved in a criminal Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death.
"The illegal distribution of fentanyl and related opioids is a true national crisis that has left a trail of death and destruction across the country," stated U.S. Attorney Billy J. Williams. "This case highlights both the international scope of the problem and the willingness and ability of our two districts to work together to reach out across borders to shut down and prosecute these merchants of death – I am proud of the work our team has done."
The investigation started in North Dakota on January 3, 2015, with the fentanyl overdose death of an 18-year old individual in Grand Forks. Investigators subsequently identified the source of the fentanyl as a Darknet distributor operating out of Portland, Oregon. On January 22, 2015, in a coordinated law enforcement mission, a federal search warrant was executed on the fentanyl dealer’s residence in Southeast Portland and he was arrested. After making an initial appearance in Oregon, the dealer, Brandon Corde Hubbard, age 40, was indicted in North Dakota, where he was prosecuted and sentenced to serve life in federal prison.
As a result of this joint effort and prior to the most recent Indictment against Zhang and others, eight additional individuals were indicted in North Dakota and three defendants were indicted in Oregon. So far, 21 individuals from China, Canada, and the United States have been indicted on federal drug charges in both North Dakota and Oregon. The Oregon defendants are:
1. Channing Lacey, 30, Portland, Oregon - Pled guilty on 3/28/17 to one count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury to three individuals and one count of Distribution of a Controlled Substance Resulting in Death. On 8/28/17 she was sentenced to 135 months imprisonment.
2. Carissa Marie Laprall, 25, Portland, Oregon - Pled guilty on 3/28/17 to three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and is awaiting sentencing.
3. Steven Fairbanks Locke, 41, Portland, Oregon - Pled guilty on 6/14/17 to Use of a Communication Facility to Facilitate a Drug Offense and is awaiting sentencing.
All charges are part of "Operation Denial," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal
drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of
"Operation Deadly Merchant." The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. Prior to his indictment, Zhang was designated as an OCDETF Consolidated Priority Organization Target (CPOT), and is considered by the United States as one of the most significant drug trafficking threats in the world.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations; Drug Enforcement Administration; United States Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; Multnomah County Sheriff’s Office; and, the Grand Forks Police Department.
United States Attorney for the District of North Dakota Christopher C. Myers, Assistant U.S. Attorney for the District of Oregon Scott Kerin (who is also acting as a Special Assistant United States Attorney in North Dakota), and Adrienne Rose of the Department of Justice, Narcotics and Dangerous Drugs section, are jointly prosecuting the Zhang case in North Dakota.
## The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
Charlotte Man Sentenced to More Than Five Years on Bank Conspiracy and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. – Kendell Rashad Bowden, 26, of Charlotte, was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to 66 months in prison and three years of supervised release for bank fraud conspiracy and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), Matthew Quinn, Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, between December 2015 and July 2016, Bowden defrauded individuals and financial institutions by using stolen personal identification information (PII) to obtain fraudulent credit card accounts at retails stores in Mecklenburg and Iredell counties. Bowden accessed and used, or attempted to access and use, the stolen identities of at least 10 individuals. Court records show that Bowden also used PII of one victim and a corresponding fake driver’s license, to obtain auto bank loans and to purchase two vehicles. In total, Bowden’s fraudulent conduct resulted in losses of more than $96,000.
According to court records, in February 2017, while he was on bond on the federal charges, Bowden used the PII of another victim to obtain a credit card in the victim’s name. Court records indicate that Bowden accidentally sent to his probation officer a text message, which contained the victim’s PII. Court records show that Bowden then called his probation officer and asked him to delete the text message, telling the probation officer that text was intended for Bowden’s sister.
Bowden is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose thanked USPIS, USSS and CMPD for their investigation, which are members of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently consists of over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud.
Assistant U.S. Attorney Kimlani M. Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Centre Hall Man Charged with Scheme to Defraud His Former Employer of $218,000Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Henry Stewart, age 53, of Centre Hall, Pennsylvania, was charged on October 16, 2017, in a criminal information with making interstate wire transfers to defraud his former employer, Nittany Valley Paper Mills in Lewistown, Pennsylvania, of approximately $218,098.
According to United States Attorney Bruce D. Brandler, the information charges that, between June 2014 and March 2016, while employed as the vice president for operations, Stewart fraudulently charged personal goods and services on Nittany Paper Mills credit card accounts and transferred company funds to pay his personal credit card bills. The information alleges that Stewart also fraudulently transferred funds from the Nittany Paper Mills checking account to 529 education accounts for his children, and he arranged off-the books sales of inventory resulting in the direct deposit of funds into his personal accounts. The information also alleges that Stewart made fraudulent adjusting entries in the Nittany Paper Mills internal accounting system to conceal the wire fraud scheme.
Under the terms of a plea agreement filed with the information, Stewart has agreed to plead guilty to the wire fraud offense and pay restitution in an amount to be determined by the sentencing judge.
The matter was investigated by the Federal Bureau of Investigation. Prosecution of this matter has been assigned to Assistant U.S. Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Call to Action to Join National Day of Non-ViolenceRead the Press Release
I remember prosecuting a gun case not long after becoming a federal prosecutor in 2005 and thinking about how, at some point, the individual across the courtroom had decided that violence was the best way to settle a dispute. He illegally used a gun to address a personal problem, just like he had seen so many others around him do throughout his life.
It’s my job, as the chief federal law enforcement official for my district, to help decrease violent crime. We do that, in part, by vigorously prosecuting illegal, habitual gun possession and use to the fullest extent of the law. Removing people who cause violence from our streets makes everyone safer. I believe in that work, and I, along with my Assistant United States Attorneys, will continue to pursue that work wholeheartedly.
Facing an offender across a courtroom, however, means that we’ve already lost in so many ways.
It means the defendant’s community has already been terrorized by violence. It means the defendant has given up opportunities to thrive and to meet his potential in a productive way. It means families will be split apart as a loved one serves years—possibly the rest of his life—in federal prison.
Making our communities safe requires more than robust enforcement after crimes have already been committed. We must—as law enforcement officials and especially as members of the community—care about preventing and deterring violent crime as much as we care about reacting to it.
That is why I’m asking educators, parents, and, most importantly, students all over Southern Ohio to take a stand with me on October 18 against gun violence.
October 18 marks the 21st annual Day of National Concern about Young People and Gun Violence. Since 1996, more than 10 million students have signed a pledge committing to non-violence.
The pledge is pretty straightforward. Never use a gun to settle a dispute. Influence your friends to do the same.
Individual choices and actions, when multiplied by those of young people throughout our state and the nation, will make a difference. Together, by honoring this pledge, more young people can grow up in safety.
I don’t want to face any more young people in the courtroom who, at some point, decided that violence was the best way to handle a dispute and picked up a gun.
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California Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to drug trafficking charges related to his role in a conspiracy to distribute large quantities of crystal meth.
According to court documents, Shawn Yaeger, 45, of West Hollywood, led a conspiracy to distribute crystal methamphetamine in several states, including Virginia, New Jersey, California, and Florida. Yaeger admitted to receiving large-scale quantities of crystal methamphetamine through various parcel services and providing it to co-conspirators for re-distribution. Yaeger also admitted to obtaining stolen personal identifying information and credit card information, which he used to commit access device fraud and bank fraud. Specifically, Yaeger produced numerous counterfeit and unauthorized credit and debit cards, and used stolen or otherwise fraudulent identities to open bank accounts and acquire access to credit.
Yaeger pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine and faces a mandatory minimum of 10 years and maximum penalty of life in prison when sentenced on Jan. 26, 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, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and M. Jay Farr, Arlington County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Special Assistant U.S. Attorney David A. Peters and Assistant U.S. Attorney Colleen E. Garcia are prosecuting the case.
The case is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Four Horsemen. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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-241.
C & G Savings Bank Employee Admits Stealing Funds from Customers’ AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., pleaded guilty in federal court to a charge of misapplication of funds by a bank employee, Acting United States Attorney Soo C. Song announced today.
Tonya Wade, 43, of Ebensburg, Pa. pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Sept. 17, 2012, to Aug. 29, 2013, Wade, while employed as a teller at C & G Savings Bank in Gallitzin, Pa, removed $20,950 from customers’ accounts and thereafter converted those funds to her personal use.
Judge Gibson scheduled sentencing for February 14, 2018, at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Wade.
Bridgeville Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on October 10 and unsealed today, named John Edward Desalome, age 29, of Bridgeville, Pennsylvania, as the sole defendant.
According to the Indictment, on November 23, 2016, Desalome possessed videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum sentence of 10 years imprisonment, a maximum term of supervised release of life, and a fine of $250,000.00. 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 Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bakersfield Man Sentenced to More Than Eleven Years in Prison for Child Pornography OffenseRead the Press Release
FRESNO, Calif. — Eliot Brown, 29, of Bakersfield, California, was sentenced yesterday to more than eleven years in prison for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
Chief U.S. District Judge Lawrence J. O’Neill also imposed a term of supervised release of 15 years, during which Brown will be required to register as a sex offender and his access to the internet, computers, and children will be restricted.
According to court documents, between February 1, 2014, and October 7, 2015, he knowingly received more than 600 images of minors engaged in sexually explicit conduct, some of which depicted violence. On at least two occasions, Brown encouraged a minor to engage in sexually explicit conduct and transmit the images to him.
This case was the result of an investigation by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Bakersfield, California and Fayetteville, Arkansas. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Attorney General Sessions Announces Director of Asset Forfeiture AccountabilityRead the Press Release
Attorney General Sessions issued a memorandum to Deputy Attorney General Rod Rosenstein this week, directing him to hire a Director of Asset Forfeiture Accountability (“Director”). The Director will review and coordinate all aspects of the Department’s Asset Forfeiture Program, and work with appropriate Department of Justice components to ensure compliance, review complaints, and advance the integrity, efficiency, and effectiveness of the program.
About the memorandum, Attorney General Sessions made the following statement:
“As our law enforcement partners will tell you and as President Trump knows well, asset forfeiture is a key tool that helps law enforcement defund organized crime, take back ill-gotten gains, and prevent new crimes from being committed, and it weakens the criminals and the cartels. Even more importantly, it helps return property to the victims of crime.“For this to be effective, however, we must start with strong leadership at the top, in conjunction with close coordination of forfeiture activities at all levels of the Department of Justice. That’s why, today, I have directed the hiring of a Director of Asset Forfeiture Accountability within the Office of the Deputy Attorney General.
“The Director will begin work immediately on priority initiatives and recommendations, including: modernization of the National Asset Forfeiture Strategic Plan, updating the Asset Forfeiture Program's policy guidance, and improving controls over use of program funds. I make this decision today because I believe it is important to have senior-level accountability in the Department of the day-to-day workings of the asset forfeiture program, as well as authority to coordinate with relevant components to make the necessary changes to the program to ensure it continues to operate in an accountable and responsible way."
Note: View the memorandum here.
Monday 16 October 2017
Youth Organizer Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A teen mentor and founder of a nonprofit youth organization has been convicted of sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Kevin Ray McMillan, 37, of Corpus Christi, was a former teen mentor with the Boys and Girls Club of Corpus Christi and founder of Texas Youth Entrepreneurs - a nonprofit youth organization that mentors aspiring young future business owners. In May 2017, authorities learned McMillan had been sending sexually-explicit text messages via cellular telephone to a juvenile female. The investigation led to the discovery that McMillan had engaged in sexual activity with the young girl, which was photographed via cellular telephone. He was taken into custody as he was traveling to engage in sexual activity with a minor.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Jan. 22, 2018. At that time, McMillan faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, McMillan also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
McMillan was arrested on federal charges in May 2017 and has been in custody since that time where he will remain pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Williams County man indicted on heroin and firearms chargesRead the Press Release
A Williams County man was indicted on fireams and heroin charges, said U.S. Attorney Justin E. Herdman.
Zachary Thomas McCauley, 27, of Edgerton, was indicted on one count each of being felon in possession of a firearm, possession with intent to distribute heroin and possessing a firearm in furtherance of a drug trafficking offense.
McCauley possessed 61 grams of heroin and a Beretta 40-caliber pistol and a Walther 22-caliber pistol between March 29-31, 2017. McCauley has previous convictions for felonious assault and aggravated assault which preclude him from possessing a firearm, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms and Explosives in Toledo. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wife of Former Mexican Official Convicted in Bank Fraud ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - The wife of the former Tabasco, Mexico, Secretary of Finance has been found guilty of conspiracy to commit bank fraud, announced Acting U.S. Attorney Abe Martinez. A federal jury in Corpus Christi returned its verdict late Friday against Silvia Beatriz Perez-Ceballos, 49, of Sugar Land, following 10 days of trial and approximately five hours of deliberation.
At trial, the government presented evidence that included several extremely complex money laundering transactions involving multiple fictitious U.S. and Mexican companies and more than $40 million in laundered funds. The jury heard that Perez-Ceballos made false statements and submitted falsified documents to J.P. Morgan Chase Bank official in an effort to move $2 million to an offshore account in Bermuda. Perez-Ceballos also attempted to hide several assets, including a high-end Sugar Land residence under the company name Phantom Investments International. The case involved real property purchases in all cash transactions in Los Angeles, California, New York, New York, Miami, Florida and Houston.
Perez-Ceballos faces up 30 years in federal prison and a possible $1 million maximum fine.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and has set sentencing for Dec. 15, 2017. Perez-Ceballos will remain in custody pending that hearing.
Also charged in relation to the conspiracy is her husband - Jose Manuel Saiz-Pineda, 49 - and his business associate Martin Alberto Medina-Sonda, 44. Saiz-Pineda was the Secretary of Finance of the Mexican State of Tabasco from 2007 to 2012, appointed to serve under former Governor Andres Granier Melo. Saiz-Pineda is currently in custody in Tabasco on related charges of illegal enrichment. Medina-Sonda is currently serving a prison term in Mexico. The charges against them in the United States are formal accusations of criminal conduct, not evidence. They are presumed innocent unless convicted through due process of law.
The Drug Enforcement Administration, IRS - Criminal Investigation, sheriff’s offices in Fort Bend and Harris Counties and the U.S. Marshals Service conducted the Organized Crime Drug Enforcement Task Force investigation.
Assistant U.S. Attorney Assistant United States Attorneys Julie K. Hampton and Jon Muschenheim are prosecuting the case.
Westwego Couple Charged with Drug Trafficking and Money Laundering OffensesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL KWAN, age 33, and TRAM HOANG NGUYEN, age 31, both of Westwego, were charged last week in a four-count Indictment with violations of the Federal Controlled Substances Act and conspiracy to commit money laundering.
According to the Indictment, KWAN conspired to distribute more than 1000 kilograms of marijuana and possessed with intent to distribute a quantity of cocaine and steroids. KWAN and NGUYEN also are charged with having conspired to launder the drug trafficking proceeds.
If convicted on the marijuana conspiracy charge, KWAN faces a term of imprisonment of at least 10 years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment. If convicted of possessing with intent to distribute a quantity of cocaine, KWAN faces a term of imprisonment of up to 20 years, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. Additionally, if convicted of possessing with intent to distribute steroids, KWAN faces a term of imprisonment of up to 10 years, a fine of up to $500,000, and at least two years of supervised release following any term of imprisonment.
If convicted of conspiracy to commit money laundering, KWAN and NGUYEN both face terms of imprisonment of up to 20 years, fines of the greater of $500,000 or twice the value of the property involved in the illicit transactions, and up to five years of supervised release following any term of imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of each defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Nicholas D. Moses and Jeffrey Sandman are in charge of the prosecution.
Washington D.C. Man Sentenced to 14 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On October 13, 2017, United States District Judge Roger W. Titus sentenced Charleston Harris a/k/a “Giovanni,” a/k/a “Leon Baye,” age 38, of Maryland to 14 years in prison followed by a lifetime of supervised release for conspiracy to engage in sex trafficking of a minor.
In addition, as part of the terms of his plea agreement, Harris has agreed to a judicial order of removal to Liberia at the time of his release.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation – Washington office, Chief Henry P. Stawinksi III of the Prince George’s County Police Department, and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to court documents, beginning in or about April 2012, and continuing through in or about June 2015, in the District of Maryland and elsewhere, Harris managed and directed a large-scale prostitution business. Harris, with the assistance of co-conspirator, Phoebe Omwega and others, managed as many as eighteen prostitutes at a time and directed prostitution activities in Maryland, Virginia, Georgia, and Florida.
In 2012, Harris recruited a 17-year-old female to engage in prostitution under his direction. Between at least October and December 2012, the underage victim engaged in commercial sex acts in Maryland, Florida, and elsewhere. As part of their prostitution business, Harris, Omwega, and others utilized the social networking website "backpage.com" to advertise prostitution services for each of the women Harris employed. Harris also used several email accounts to communicate and direct the women who worked for him.
At the direction of Harris, women working for Harris, including the underage victim, typically charged between $100 and $200 for sexual services. Harris collected the prostitution proceeds, managed day-to-day activities by informing the women of when and where to meet "clients," instructed the women which city to travel to in order to engage in prostitution, and made hotel arrangements for the women. Harris did not allow the women to retain any of the proceeds. The women were allowed to purchase food, clothing, and make other similar expenditures using their proceeds, and occasionally were required to track their spending and report it to Omwega.
Harris often recruited women to work for his organization by falsely stating that he and Omwega managed a modeling business in Atlanta, Georgia. Harris would confiscate the women’s clothes, cellphones, devices, keys to their vehicles, and identification documents, and would arrange for the women who worked for him to obtain false identification documents.
Harris indoctrinated new recruits into the organization by advising them of his rules. Principal among the rules was that the women were not allowed to speak with family members or law enforcement, often referred to as being "out of pocket." Harris also required the women to make a minimum of $1,000 per day and forced the women to continue to work if they failed to meet this quota. Harris enforced violations of the rules by threatening physical violence and, on occasion, physically assaulting the women who worked for him.
Acting United States Attorney Stephen M. Schenning commended the FBI, Prince George’s County Police Department, and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Erin B. Pulice, Ray D. McKenzie, and Daniel Gardner, who prosecuted the case.
Two Women Charged with Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – Two women appeared in federal court today to face allegations that they robbed a Spencer Savings Bank in Garfield, New Jersey, at gunpoint, Acting U.S. Attorney William E. Fitzpatrick announced.
Swahilys Pedraza-Rodriguez, 19, of New Haven, Connecticut, and Melisa Aquino Arias, 23, of Passaic, New Jersey, are charged by complaint with one count of bank robbery. Both defendants made their initial appearances this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and were detained.
According to the complaint:
On Sept. 27, 2017, Pedraza-Rodriguez and Arias allegedly entered a Spencer Savings Bank in Garfield and asked a bank teller for information about opening a bank account. Soon after, Arias, who was wearing a blue hijab, took out a black handgun and demanded money, while Pedraza-Rodriguez stood guard by the bank manager. After a bank teller handed them some cash, the defendants left the bank, and employees immediately alerted the police. Law enforcement officers responded to the scene, but did not immediately locate the robbers.
On Oct 15, 2017, Pedraza-Rodriguez and Arias allegedly entered an NVE Bank in Teaneck, New Jersey. Arias wore an orange hijab and Pedraza-Rodriguez wore a black head covering. They approached a bank employee and requested information about opening a bank account. The employee recognized the women as the alleged perpetrators of the Garfield bank robbery. As the employee went to alert the police, the women left the bank. Pedraza-Rodriguez and Arias were apprehended soon after by law enforcement officers.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Garfield Police Department, under the direction of Chief Raymond Kovach; the Teaneck Police Department, under the direction of Chief Glenn M. O'Reilly; and the Leonia police department, under the direction of Chief Thomas P. Rowe, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Pedraza-Rodriguez: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Arias: Julian Wilsey Esq., Livingston, New Jersey
Troy Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Joshua Lozo, 36, of Troy, New York, pled guilty to one count of receiving child pornography and one count of possessing child pornography, announced Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany, New York Field Office of the Federal Bureau of Investigation.
As part of his guilty pleas, Lozo admitted that between approximately December 1, 2015 and December 14, 2016, he used the Internet and file sharing software to download child pornography videos and still images. A forensic examination of electronic items seized from Lozo’s residence identified approximately 25 child pornography videos and approximately 350 still images of child pornography.
As a result of his convictions, Lozo now faces a mandatory minimum sentence of five years imprisonment, a maximum term of twenty years imprisonment, a fine of up to $250,000.00, a term of supervised release of at least five years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for February 6, 2019, 2018 before U.S. District Judge Mae A. D’Agostino.
This case is being investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Trafficker of Fentanyl, Heroin, and Methamphetamine on Dark Web Marketplace Alphabay Pleads Guilty to Drug Distribution ChargeRead the Press Release
FRESNO, Calif. — Emil Vladimirov Babadjov, 32, a Bulgarian and U.S. dual-national formerly residing in San Francisco, California, pleaded guilty today to distributing controlled substances, United States Attorney Phillip A. Talbert announced.
According to court documents, Babadjov, using the vendor names “Blime-Sub” and “BTH-Overdose,” was a large-scale heroin, fentanyl, and methamphetamine distributor on the dark web marketplace AlphaBay. The reverse order of the word “Blime” is “Emil B.” Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol addresses of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin.
Babadjov accepted orders for heroin, fentanyl, and methamphetamines on AlphaBay, and then mailed the narcotics from a post office in San Francisco to customers throughout the United States. Babadjov received payment for the narcotics in Bitcoin. On October 20, 2016, law enforcement officers made an undercover purchase of heroin from “Blime-Sub,” which was delivered to a post office box in the Eastern District of California. The parcel contained a mixture of fentanyl and heroin. Law enforcement agents were able to identify Babadjov’s fingerprints on the parcel. U.S. Post Office records also revealed that Babadjov purchased the postage for the parcel mailed to law enforcement. In the plea agreement, Babadjov admitted to distributing approximately 1,141 grams of heroin, 66 grams of fentanyl, and 510 grams of methamphetamine on AlphaBay.
This case was a product of an investigation by the Drug Enforcement Administration (DEA), with assistance provided by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation (IRS-CI), and the U.S. Postal Inspection Service (USPIS). Assistant United States Attorney Grant B. Rabenn is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Babadjov is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O'Neill on January 16, 2018. Babadjov faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three New York Doctors Sentenced to Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Three doctors were each sentenced today to over two years in prison for taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
George Roussis, 45, and Nicholas Roussis, 49, both of Staten Island, New York, were sentenced to 37 and 24 months in prison, respectively. Ricky J. Sayegh, 45, of Scarsdale, New York, was sentenced to 30 months in prison. All three defendants previously pleaded guilty before U.S. District Judge Stanley R. Chesler to separate informations charging them with accepting bribes in violation of the Federal Travel Act. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in these cases and statements made in court:
George Roussis, a pediatrician, and his brother, Nicholas Roussis, an obstetrician-gynecologist, both with practices in Staten Island, accepted cash payments totaling approximately $175,000 from BLS employees and associates between October 2010 and April 2013. In addition, at the request of the Roussis brothers, BLS paid for strip club trips, including paying women to perform lap dances and engage in sex acts with George and Nicholas Roussis. In exchange, George and Nicholas Roussis referred their patients’ blood specimens to BLS, generating more than $1,450,000 and $250,000 of lab business for BLS, respectively.
Sayegh, an internal medicine doctor practicing in Yonkers, New York, accepted cash bribes in return for referring blood specimens to BLS. From February 2010 through April 2013, Sayegh received bribes totaling approximately $400,000 from BLS employees and associates. Sayegh’s referrals generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 50 convictions – 36 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison terms, Judge Chesler sentenced each defendant to a year of supervised release. He also ordered that George Roussis, Nicholas Roussis, and Sayegh pay fines of $7,500, $5,000, and $10,000, respectively.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Senior Litigation Counsel Joseph N. Minish and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.34 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
George Roussis: Peter Bennett Esq., Red Bank, New Jersey
Nicholas Roussis: Joseph R. Corozzo Esq., New York, New York
Sayegh: Michael Bachner Esq., New York
Three Men Plead Guilty to Gun and Drug ChargesRead the Press Release
POCATELLO AND BOISE – The U.S. Attorney’s Office continued its district-wide focus on reducing violent crime last week with three separate defendants pleading guilty to drug or firearm offenses, U.S. Attorney Bart Davis announced.
In Pocatello, Marcus Tharpe, 36, of Pocatello, pleaded guilty to possession of a firearm by a prohibited person. Tharpe was indicted by a federal grand jury in Pocatello on June 27, 2017.
According to court records, on February 17, 2017, police received reports that Tharpe had threatened another man with a gun at his residence. Police responded and found Tharpe in his truck a short distance from the residence. On the floorboard of Tharpe’s truck, in plain view, police found an SKS semi-automatic rifle. The SKS rifle was within reach of Tharpe from the driver’s seat, and was loaded with 18 rounds. Tharpe is prohibited from possessing a firearm under federal law because of a felony conviction.
The charge for possession of a firearm by a prohibited person is punishable by up to ten years in prison, a maximum fine of $250,000, and three years of supervised release. Sentencing is set for January 2, 2018, before U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
In separate cases in Boise, Garrett Holmes, 46, of Payette, Idaho, and Jose A. Mouw, 45, of San Diego, California, pleaded guilty to distributing methamphetamine.
According to court records, Holmes distributed methamphetamine in Idaho and Oregon on several occasions between March 6, 2017, and May 18, 2017. Holmes arranged for and delivered methamphetamine in Payette County, Idaho, and Malheur County, Oregon. Investigating officers discovered Holmes’s activities and were able to intervene and arrest him on May 18, 2017. Holmes was indicted by a federal grand jury in Boise on June 15, 2017.
Holmes’s sentencing is set for January 3, 2018, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. He faces imprisonment of not less than five years or more than forty, a term of supervised release of at least four years, and a maximum fine of $5,000,000.
According to court records, on two separate occasions in 2016, Jose Mouw transported methamphetamine from southern California to Idaho for distribution. On Mouw’s second trip to Idaho, officers in Twin Falls, Idaho, pulled him over and discovered 670 grams of pure methamphetamine in the trunk of his car. Mouw was indicted by a federal grand jury in Boise on November 8, 2016.
Based on the amount of methamphetamine involved and Mouw’s prior convictions for drug-related offenses, including felony possession of methamphetamine and drug trafficking, Mouw faces a mandatory minimum sentence of not less than 20 years up to life in prison, a term of supervised release of at least ten years, and a maximum fine of $20,000,000. Mouw’s sentencing is set for November 14, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Tharpe’s case was investigated by the Bannock County Prosecutor’s Office and the Pocatello Police. It is being prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 13 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Holmes’s and Mouw’s cases were investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, the Twin Falls Police Department, and the High Desert Task Force. The High Desert Task Force is a collaboration of law enforcement agencies from Payette County Sheriff’s Office, Payette City Police Department, Fruitland Police Department, Weiser Police Department, Malheur County Sheriff’s Office, and the Ontario Police Department.
Their cases were prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Three Men Arrested on Extortion Charges for the Kidnapping of Two MenRead the Press Release
FORT WORTH, Texas — Fernando Cabrera, 21, Nygul Anderson, 19, and Albert Gonzalez, 18, all of Monterrey, Mexico, were arrested yesterday on a federal criminal complaint stemming from the kidnapping and extortion of two men, announced U.S. Attorney John Parker of the Northern District of Texas.
Cabrera, Anderson and Gonzalez were each charged with one count each of conspiracy to possess extortion proceeds. They are scheduled to make their initial appearance today before U.S. Magistrate Judge Jeffrey L. Cureton.
According to the affidavit filed with the complaint, on September 22, 2017, an individual began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he kidnapped the individual’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed. The next day the ransom demand was lowered to $40,000 and then again to $20,000. Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
On September 29, 2017, the same individual received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them. The deadline for the second ransom drop was Friday, October 13, 2017. On October 13, 2017, the caller agreed to a location at a Home Depot in Fort Worth for the money drop. At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location. A Hispanic male, exited a red Chevrolet Camaro and attempted to retrieve the package after it was dropped. Three individuals in the red Chevrolet Camaro were then arrested by FBI SWAT Team members.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is up to 5 years in federal prison and a $250,000 fine.
The Federal Bureau of Investigation is investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Texas man indicted for having nine pounds of heroinRead the Press Release
A Texas man was indicted after federal court after being arrested with nearly four kilograms of heroin, law enforcement officials said.
Adan Gilberto Munoz, 33, of El Paso, was indicted on one count of possession with intent to distribute 3,996 grams of heroin and one count of using a telephone to facilitate commission of a felony.
Munoz was arrested on Aug. 8 after being pulled over by an Ohio State Highway Patrol trooper in Medina County. Munoz told the trooper he did not have his driver’s license on him and was shaking and trembling, according to court documents.
OSHP used a canine to sniff around Munoz’s car and then searched the automobile. Troopers found four bricks of drugs that later tested to be heroin. Each brick of heroin weighed between 998 and 999 grams, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
“Law enforcement did a tremendous job of keeping thousands of doses of heroin off the streets,” U.S. Attorney Justin E. Herdman said.
“With unified efforts between federal, state and local law enforcement agencies, we will continue to combat drug trafficking and remove criminals from our communities making it safer for the citizens of Ohio,” said Colonel Paul A. Pride, Ohio State Highway Patrol superintendent.
DEA Special Agent in Charge Timothy Plancon said: “The seizure of four kilograms of heroin is significant. In this era of daily heroin related overdoses, nothing is more important than bringing the people that are distributing this poison within our communities to justice.”
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the Ohio State Highway Patrol and Drug Enforcement Administration.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texas Attorney Sentenced to 25 Years in Prison for International Money Laundering ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced attorney Perry Don Cortese (54, Little River, Texas) to 25 years in federal prison for conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud. As part of his sentence, the Court entered a money judgment in the amount of $9,288,241.36. Cortese was also ordered to pay restitution to the victims in the amount of $3,767,196.
A federal jury found Cortese guilty on October 21, 2016.
According to the evidence presented at trial, Cortese and his business partner, Priscilla Ann Ellis, as well as Ellis’s daughter, Kenietta Rayshawn Johnson, were members of an international criminal organization that defrauded dozens of victims across the United States and then laundered the funds. Much of the money was sent overseas. Many victims were law firms that had been solicited online to perform legal work, provided counterfeit cashier’s checks for deposit into the firms’ trust accounts, and then directed to wire money to third-party shell businesses controlled by the conspirators. Others victims included title companies defrauded in phony real estate transactions or individuals targeted by fake suitors on dating websites. The conspiracy also employed hackers who compromised both individual and corporate email accounts, ordering wire transfers from brokerage and business accounts to shell accounts controlled by conspirators.
As part of the scheme, victims were instructed to wire money into funnel accounts held by conspirators, known as “money mules.” The funds were then then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records indicated that, from 2012 to 2015, several million dollars’ worth of wire transfers were received into the accounts to be laundered. Conspirators in Canada, Nigeria, South Korea, Senegal, and elsewhere helped coordinate the fraud from abroad.
Cortese, a licensed attorney in Texas, worked for the conspirators by laundering victims’ money through his interest on lawyers trust accounts (“IOLTAs”). He also met with individuals in person to retrieve cash withdrawn from receiver accounts and recruited his paralegal and others to open such accounts to launder funds. Ellis laundered several million dollars’ worth of fraud proceeds through several bank accounts under her control. She also arranged for the creation of high-quality forgeries of checks and other documents. Johnson, then a bank employee at Capital One, helped create the counterfeit checks and monitor money flows between the conspirators’ accounts.
For her role in the conspiracy, Ellis was sentenced to 40 years in prison. As part of her sentence, the Court entered a money judgment against her in the amount of $9,288,241.36 and the forfeiture of various assets. In addition, she was ordered to pay $3,767,196 in restitution to her victims.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the U.S. Postal Inspection Service, and the Toronto Police Service in Ontario, Canada. The case was prosecuted by Assistant United States Attorneys Patrick Scruggs and Eric Gerard.
Suburban Man Arrested on Child Pornography Charges for Allegedly Enticing Underage Girls to Produce Sexually Explicit ImagesRead the Press Release
CHICAGO — Federal authorities today arrested a west suburban man for allegedly enticing underage girls to produce sexually explicit images of themselves.
Using the screen name “davidbanks1014,” RICHARD BARNETT chatted with at least four underage girls on the social network musical.ly and enticed them to produce pornographic images of themselves and send them to him, according to a criminal complaint and affidavit filed in federal court in Chicago. Barnett threatened at least one of the victims with physical harm, including threatening to shoot her, if she did not comply with his demands to send the sexually explicit images, the complaint states.
Barnett, 39, of Aurora, was arrested this morning. During a court-authorized search of his residence, agents seized multiple electronic devices and several firearms.
The complaint charges Barnett with one count of producing child pornography and one count of transporting child pornography. A detention hearing is set for Oct. 18, 2017, at 3:00 p.m., before U.S. Magistrate Judge Maria Valdez in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and John P. Selleck, Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance in the investigation was provided by the New Orleans office of the FBI, the Buffalo office of the FBI, the Jacksonville (Fla.) Sheriff’s Office, and the Ouachita Parish (La.) Sheriff’s Office.
According to the complaint, some of the underage victims reported to police that earlier this year they received sexually explicit messages on musical.ly from an individual with the username davidbanks1014. Some of the victims reported that davidbanks1014 claimed to be 13 years old when he corresponded with them, the complaint states.
The investigation revealed that the musical.ly account for davidbanks1014 was created on April 22, 2017, using Barnett’s cellular telephone number, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If convicted on the count of producing child pornography, Barnett faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum potential sentence of 30 years’ imprisonment. If convicted on the count of transporting child pornography, Barnett faces a mandatory minimum sentence of 5 years’ imprisonment and a maximum potential sentence of 20 years’ imprisonment. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Timothy J. Chapman.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Statement of Acting U.S. Attorney Joon H. Kim on the Conviction of Ahmad Khan Rahimi on Terrorism ChargesRead the Press Release
“On September 17, 2016, Ahmad Khan Rahimi attacked our country and our way of life. Inspired by ISIS and al Qaeda, Rahimi planted and detonated bombs on the streets of Chelsea, in the heart of Manhattan, and in New Jersey, hoping to kill and maim as many innocent people as possible. Rahimi’s crimes of hate have been met with swift and resolute justice. Just over a year after his attacks, and following a fair and open trial, Rahimi now stands convicted of his crimes of terror by a unanimous jury of New Yorkers. As a result, he now faces a mandatory sentence of life in prison. Today’s verdict is a victory for New York City, a victory for America in its fight against terror, and a victory for all who believe in the cause of justice.”
St. Louis Man Sentenced to 37 Months in Prison for Gun ChargeRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Joseph K. Rander, 31, of St. Louis, Missouri, was sentenced today in the United States District Court for the Southern District of Illinois to 37 months in federal prison for possessing a firearm as a convicted felon to be followed by three years of supervised release.
Evidence presented showed that on December 5, 2016, agents from the St. Clair County Drug Tactical Unit stopped Rander in his vehicle and found him to be in possession of a .40 caliber semi-automatic pistol. He had previously been convicted of three different felony charges.
The investigation was conducted by the St. Clair County Drug Tactical Unit.
San Juan Capistrano Businesswoman Who Stole more than $1.5 Million from Clients Sentenced to over 5 Years in Federal PrisonRead the Press Release
SANTA ANA, California – The owner and operator of a financial services company that provided accounting, tax and bookkeeping services to small businesses was sentenced today to 63 months in federal prison for embezzling more than $1.5 million from her clients.
Elizabeth Jane Mulder, who also goes by “Lizzie,” a 34-year-old resident of San Juan Capistrano, was sentenced this morning by United States District Judge David O. Carter. Noting that Mulder used the money for “personal aggrandizement,” Judge Carter said the victims in this case represented “a vulnerable section of society because small business is the backbone of our country.”
Mulder, who was the owner of Mulder Financial Consulting, pleaded guilty in June to wire fraud and subscribing to a false income tax return for failing to report the misappropriated funds to the Internal Revenue Service.
According to documents filed in United States District Court, from July 2009 until this past spring, Mulder obtained money from small business clients by gaining the trust of their owners, some of whom allowed her to control their financial accounts.
Mulder convinced nearly all of her victims to make checks payable to “Income Tax Payments” with false promises that the money would be used to satisfy the clients’ past and future tax obligations. Mulder then deposited these checks into the bank account of a fictitious business she created called “Income Tax Payments” and converted the funds for her own personal use.
Mulder, who was personal friends with most of the victims, used a variety of means to defraud the victims, including creating false personas and fraudulent bank accounts. Using fictitious email accounts, Mulder posed as a potential buyer for one business, obtained a power-of-attorney over that business’ accounts and emptied the business’ accounts claiming the funds were being used for expenses associated with the sale of the company. In reality, Mulder had used the business’ money for her own personal expenses.
Mulder’s fraudulent scheme resulted in the theft of approximately $1,538,771 from several Orange County-based businesses, including JAC Wines in San Clemente, Kurtz-Ahlers & Associates in San Juan Capistrano and Andra Builders, Inc. in Costa Mesa.
Mulder used the money obtained from her fraudulent scheme for a variety of personal expenses, including a rental home in Laguna Beach, cosmetic surgery, vacations and an Arabian horse.
“By developing and continuing personal friendships with the victims, [Mulder] was able to assume responsibilities for their small business accounting needs and then proceeded to steal from them,” prosecutors wrote in a sentencing memorandum filed with the court. “[Mulder]’s conduct resulted in various levels of financial loss and emotional distress to the victims, many of whom were required to drain their personal bank accounts or retirement funds in an attempt to avoid bankruptcy.”
In addition to the prison term, Judge Carter ordered Mulder to pay $1,538,781 in restitution to seven victims, including the IRS.
This case was investigated by the Federal Bureau of Investigation; IRS Criminal Investigation; and the Laguna Beach Police Department, Investigations Division.
The case is being prosecuted by Assistant United States Attorney Scott Tenley and Paul C. LeBlanc of the Santa Ana Branch Office.
Ring Leader Sentenced in Marriage Fraud SchemeRead 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 Jamar Thomas, 30, of Rochester, NY, who was convicted of conspiracy to encourage or induce an alien for private or commercial gain to reside in the United States in violation of law, was sentenced to one year in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in October 2015, Homeland Security Investigations (HSI) received information from a confidential informant regarding an ongoing marriage fraud scheme involving Jamar Thomas and United States citizen (USC) females, based in Rochester.
Subsequent investigation determined that the defendant told a Confidential Informant, who was not a United States citizen, but a native and citizen of Nigeria, that he could arrange fraudulent marriages between non-citizen males and United States citizen females known to him. Thomas said non-citizen males could pay $5,000 to marry his female co¬conspirators in order to gain legal status in the United States.
Between November 2015, and September 2016, the defendant met with undercover federal agents and/or confidential informants in Rochester to discuss their sham marriage. Thomas introduced the undercover agents or confidential informants to his co-conspirators and they provided their name, address, date of birth, and telephone numbers so that the undercover agents or confidential informants could file the necessary immigration forms.
During these meetings, the defendant and the undercover agents or confidential informants discussed specific details of the sham marriage process and the ceremony. On at least two occasions, women working for Thomas got married at a Town Clerk's Office within the Western District of New York. On one occasion, the defendant was physically present and acted as a "witness" to one such wedding. However, unknown to Thomas, the Town Clerk who performed the ceremonies was actually an undercover law enforcement agent. Following the weddings, false immigration forms were prepared and mailed in support of applications to adjust the citizenship status of the new "spouses."
On at least one occasion, women working for the defendant accompanied the undercover agent to Buffalo and participated in an immigration interview with United States Citizenship and Immigration Services.
The undercover agents or confidential informants paid money directly to Thomas and his female co-conspirators for their roles in the sham marriages.
Also charged and convicted in this case:
• Khaaliqa Kegler-sentenced to three years probation to include six months home confinement;
• Chimere Brooks-sentenced to two years probation; and
• Nadia Thomas-awaiting sentencing.“Fittingly, defendant Thomas was sentenced on the same day and in the same federal courthouse in which over 50 individuals participated in a naturalization ceremony during which they became lawful U.S. citizens,” said Acting U.S. Attorney Kennedy. “The folks who participated in that Naturalization ceremony followed the rule of law and, in so doing, demonstrated a basic understanding of and respect for the fundamental idea that in America, with rights come responsibilities. By acting responsibly and following the rules, those individuals commendably walked out of the courthouse that day with all of the rights and privileges that come with citizenship to the United States. These fraudsters, on the other hand, who sought to circumvent the rule of law and essentially to sell the privilege of citizenship to our great Nation to the highest bidder, also left the courthouse with exactly what they deserved—federal criminal convictions and sentences which include terms of probation or imprisonment.”
“Marriage fraud undermines our nation’s legitimate immigration system and creates a potential vulnerability for law-abiding citizens,” said Kevin Kelly, Special Agent-in- Charge of HSI Buffalo. “Anyone who engages in marriage fraud is taking an illegal shortcut to U.S. citizenship. HSI will continue to aggressively investigate this type of criminal activity.”
The convictions in this case are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Child Exploitation Unit, under the direction of Special Agent-in-Charge Kevin Kelly.
Reserve Man Indicted for Violation of Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
Acting U.S. Attorney Duane Evans announced that DERRELL JOSEPH, 38, of Reserve, was charged last week in a four-count Indictment for violations of the Federal Controlled Substances Act. Specifically, JOSEPH was charged with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, and violations of the Federal Gun Control Act, including use of a firearm in furtherance of a drug trafficking crime.
If convicted, JOSEPH faces a mandatory minimum sentence of 5 years of imprisonment and a maximum sentence of 40 years of imprisonment, up to a $5,000,000 fine, at least 4 years of supervised release, and a $100 Mandatory Special Assessment Fee as to the drug charge. Additionally, if convicted of use of a firearm in furtherance of a drug trafficking crime, JOSEPH faces an additional 5 year consecutive term.
Acting U.S. Attorney Evans reiterates that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John Parish Sheriff’s Office for investigating this crime. Assistant United States Attorney James S. C. Baehr is in charge of the prosecution.
Portland Man Receives Federal Prison Sentence for Theft of Mail from a U.S Postal Service VehicleRead the Press Release
PORTLAND, Ore. – On Monday, October 16, 2017, United States District Judge Ann Aiken sentenced Wayne Eugene Price, 36, to 12 months and one day in prison following his plea of guilty to theft of mail. Judge Aiken ordered Price to serve his federal prison sentence consecutive to the sentence he is serving currently for an unrelated identity theft conviction in Multnomah County Circuit Court.
According to court documents, Price broke the windows of U.S. Postal Service vehicles to steal parcels and the personal belongings of postal carriers in Northeast Portland in December 2015. As part of his plea agreement, Price admitted that he stole packages from an U.S. Postal Service vehicle on December 7, 2015 and admitted that his offenses had more than ten victims. Price has an extensive criminal history in the Portland metro area.
Judge Aiken ordered Price to pay restitution of $5,055.07 to the victims of the offense and to the U.S. Postal Service to repair the vehicle damage.
United States Attorney Billy Williams praised the investigation done by the U.S. Postal Inspection Service, and stated: "This sentence serves notice that we will aggressively pursue anyone who breaks into Postal Service vehicles and of the serious consequences for stealing U.S. Mail."
This case was investigated by the U.S. Postal Inspection Service, and was prosecuted by Quinn Harrington, Assistant United States Attorney for the District of Oregon.
Pennsylvania man sentenced for oxycodone distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Bruce Mathis, 53, of Biglerville, Pennsylvania, was sentenced today to 24 months incarceration for distributing oxycodone, United States Attorney William J. Powell announced.
Mathis pled guilty to one count of “Possession with Intent to Distribute Oxycodone” in February 2017. The crime took place in Jefferson County in March 2016.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Owner of Former Tax Service Pleads Guilty to Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 13, 2017, Gabriel Nwanosike (45) of Milwaukee pleaded guilty to two-counts of aiding and assisting in the filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to documents filed in court, Nwanosike operated a Milwaukee tax return business under the name CBeyond Global Resources, LLC, doing business as CBeyond Tax Services. During the period from January 2013 through April 15, 2015, Nwanosike prepared and submitted numerous false income tax returns to IRS fraudulently seeking tax refunds of more than $550,000. To accomplish this, Nwanosike filed tax returns falsely claiming that the taxpayer had earned self-employment income, which fraudulently increased the taxpayer’s Earned Income Credit and the resulting fraudulent tax refunds.
More particularly, during this period, Nwanosike prepared and filed more than 700 tax returns with the IRS. Of the returns, more than 300 included a Schedule C reporting business income, but no expenses, from a sole proprietorship.
As part of the plea agreement, Nwanosike agreed to pay the IRS restitution of $197,777.76, which represents the amount he collected in fees in preparing the tax returns filed with the IRS. He faces up to six years imprisonment and a $500,000 fine. Nwanosike’s
sentencing has been scheduled for January 25, 2018, before the Honorable Pamela Pepper, U.S. District Judge.
This case was investigated by the IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For Additional Information Contact:
Public Information Officer Dean Puschnig
Omaha Man Sentenced to Six Years for Receiving Child PornographyRead the Press Release
Patrick Amen, 31, was sentenced in federal court Monday in Omaha, Nebraska, for receiving child pornography. Chief Judge Laurie Smith Camp sentenced Amen to 72 months’ imprisonment. There is no parole in the federal system. After his release from prison, amen will begin a five-year term of supervised release. He must also register as a sex offender.
On January 26, 2017, officers from the Douglas County Sheriff’s Office and agents of the FBI Cyber Crimes Task Force served a search warrant at Amen’s residence. Amen admitted to downloading child pornography from the Internet. A search of his computer and digital devices recovered 200 videos of children engaged in sexually explicit conduct. Most of the children depicted ranged from two to 12 years of age.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha FBI's Cyber Crime Task Force (CCTF).
Omaha Man Sentenced to 12 Years for Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced Monday that Joel Palmer, 39, of Omaha, Nebraska, was sentenced in federal court for possession of child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Palmer to 12 years of prison. There is no parole in the federal system. After his release from prison, Palmer will begin a 15-year term of supervised release and will continue to register as a sex offender.
Palmer was convicted of possessing child pornography in 2012 in Sarpy County. He received a two-year sentence. After his release from state prison, he immediately began to download child pornography. He shared some of those images with a woman in Florida. They chatted about Palmer engaging in sexual relations with the woman’s 11- and 13-year-old daughters.
On February 16, 2017, a member of the FBI Cyber Crimes Task Force searched Palmer’s Omaha residence. Nine videos and 59 images of child pornography were found on Palmer’s devices. The videos and images involved prepubescent children, some as young as a toddler, engaged in sexual acts.
When imposing sentence, Chief Judge Smith Camp observed that Palmer’s state conviction for possessing child pornography was not sufficient to deter him from again possessing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Ohio man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Edward L. Haynes, Jr., of South Euclid, was sentenced today to 100 months incarceration for cocaine distribution, United States Attorney William J. Powell announced.
Haynes, age 44, pled guilty to “Distribution of Cocaine Base” in August 2017. Haynes admitted to selling cocaine on April 1, 2017 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
New Kensington Man Sentenced to 18 Years’ Imprisonment for Conspiracy to Distribute HeroinRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Keith Robinson, 31, of New Kensington, Pennsylvania, was sentenced by United States District Court Chief Judge Christopher C. Conner on October 12, 2017, to serve 18 years’ imprisonment for conspiracy to distribute 224.11 grams of heroin, which is the equivalent of 8,964 individual doses of heroin, with a retail value of $89,644 at $10 per bag.
According to United States Attorney Bruce D. Brandler, on September 10, 2015, a federal grand jury in Williamsport previously returned a two-count indictment charging Robinson and two other residents of Westmoreland County, Cesare Biagio Palumbi, and Natawsha Durand with conspiracy to distribute 224.11 grams of heroin. During the traffic stop of a rental vehicle on State Route 487 near Interstate 80, Scott Township Police department officers recovered the heroin, along with a digital scale and empty bags used to package heroin for sale.
Palumbi, Durand, and another co-conspirator, Erica O’Neal, who was charged separately pleaded guilty to the drug conspiracy charge. Palumbi received a 60-month prison term imposed by Chief Judge Conner on November 2, 2016, and O’Neal is serving a 30-month prison term imposed by U.S. District Judge Malachy E. Mannion on March 20, 2017. Natawsha Durand’s sentencing proceedings are pending.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The investigation was conducted by the Federal Bureau of Investigation together with the Scott Township Police Department, South Centre Township Police, the Columbia County Drug Task Force, and the Columbia County District Attorney’s Office. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
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Mexican Citizen Sentenced to 27 Years in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Jose Apolinar Arreola Avalos, aka “J. Apolinar Arreola Avalos, 43, a citizen of Mexico and in the United States illegally, was sentenced today before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Avalos was sentenced to 324 months in federal prison following his guilty plea in June 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Avalos has been in custody since his arrest in March 2016.
Avalos was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, eighteen have pleaded guilty, five have been sentenced and three are awaiting trial.
According to documents filed in the case, between September 25, 2015 through March 18, 2016, Avalos and his coconspirators conspired to distribute methamphetamine and on several occasions discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine.
On March 18, 2016, law enforcement executed a search warrant at Avalos’ residence, which was used to store, prepare and distribute methamphetamine. The methamphetamine seized by law enforcement converted to approximately 63 kilograms of ice methamphetamine. Law enforcement also seized firearms, and several thousand dollars in United States Currency. As part of the plea agreement Avalos agreed to forfeit the items seized, including two firearms and approximately $295,000.00.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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