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Monday 16 October 2017
Member of Cherry Hill’s Hillside Drug Distribution Conspiracy Sentenced to 25 Years in Federal PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On October 13, 2017, United States District Judge George L. Russell, III sentenced Leonard Chase a/k/a “Nard”, age 23, of Baltimore, Maryland, to 25 years in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise including, but not limited to, the murder of Freddie King. Chase admitted that he was a member of Hillside, a drug trafficking organization that operated for 14 years in the Cherry Hill section of Baltimore.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone, and marijuana, primarily at the Cherry Hill Shopping Center and other locations throughout Cherry Hill. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Chase, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Chase and other Hillside members used colored topped vials or colored the drugs with food coloring.
Chase admitted that they distributed heroin, marijuana, cocaine, and other narcotics.
During Chase’s involvement in the Hillside drug conspiracy, it was reasonably foreseeable to him that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.
Members of Hillside, including Chase, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on September 8, 2012, Chase, and other members of Hillside shot and killed Freddie King.
Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman,” and “Coppin Court.”
Acting United States Attorney Stephen M. Schenning praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Schenning thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Medina man sentenced to nearly seven years in prison for stealing from construction companyRead the Press Release
A Medina man was sentenced to nearly seven years in prison for stealing $245,000 from his employer and using the money to pay for a country club membership, vehicles and purchases at Victoria’s Secret and GNC, law enforcement officials said.
Brian K. Stepp, 51, previously pleaded guilty to two counts of conspiracy to commit wire fraud, two counts of wire fraud and one count of making false statements on loan application.
“This defendant is a serial fraudster who caused a business to close and 80 employees to lose their jobs,” U.S. Attorney Justin E. Herdman said. “He used this company’s coffers as his own personal bank.”
“Mr. Stepp conspired in a variety of fraudulent financial schemes to steal money for car and country club membership purchases and exorbitant retail purchases,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to root out financial fraudsters and hold them accountable for their criminal actions.”
Stepp worked at Variety Contractors, Inc., a company based in Medina County that provided general contracting services for large public and commercial retail construction projects in Ohio and other states.
Stepp joined the company as vice president with the plan to eventually buy the company. He served as acting president but never purchased the company, according to court documents and statements
Stepp incorporated S&S Kelsey LN, a shell company that did not engage in any actual business. He submitted a variety of fake invoices from S&S and other vendors to Variety Contractors of goods and services that were not provided. Stepp caused Variety Contractors to make payments on those fraudulent invoices, according to court documents.
For example, in September 2014, a check request for $31,500 was made for payment to G.C.I. for “Deposit for Exterior Metal Panels”. Three days later, a check in the same amount made payable to Ganley, which Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to court documents.
Stepp also fraudulently used a company credit card to pay for personal expenses, such as membership and related fees at Weymouth Country Club, payments made to purchase vehicles to himself and his family, local hotel charges, legal fees, and charges at stores including Victoria’s Secret and GNC, according to court documents.
The loss to Variety Contractors was $245,120. The company went out of business in 2015 and approximately 80 employees lost their jobs, according to court documents and statements
Stepp also made numerous false statements in attempting to get several loans, according court documents.
Stepp, while on supervised release, also hired someone to break the jaws of two people who had been critical of him, according to court documents.
U.S. District Judge Chirstopher Boyko sentenced Stepp to six years in prison for fraud, to be followed by six months for violating the terms of his supervised release in hiring someone to assault others.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Ranya Elzein following an investigation by the Federal Bureau of Investigation.
Massachusetts Man Sentenced to over 15 Years for Heroin, Fentanyl and Cocaine DistributionRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Anibal Orsini, 35, of Lawrence, Massachusetts was sentenced today in U.S. District Court by Judge D. Brock Hornby to 188 months in prison and 5 years of supervised release for conspiring to distribute 100 grams or more of heroin, and quantities of fentanyl and cocaine hydrochloride. Orsini entered a guilty plea on March 28, 2017.
Court records reveal that between October 2014 and August 2016, Orsini distributed heroin and other drugs from Lawrence, Massachusetts. Between January and July 2015, three Maine heroin dealers were arrested as they returned from Massachusetts in possession of distributable quantities of heroin they acquired from Orsini. Law enforcement officers also purchased drugs from Orsini and his co-conspirators.
This case was investigated by the U.S. Drug Enforcement Administration – Portsmouth Tactical Diversion Squad; the Ogunquit Police Department; and the Maine Drug Enforcement Agency.
Manhattan U.S. Attorney Announces Charges Against Former U.S. Soldier for Conspiring to Kidnap and Murder as Part of A Murder-For-Hire Scheme OverseasRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Ray Donavan, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced that a grand jury had returned a Superseding Indictment, which charged JOSEPH MANUEL HUNTER, a U.S. citizen and former member of the U.S. Army, and two co-defendants with offenses relating to the February 2012 murder of a woman in the Philippines. HUNTER’s co-defendants, ADAM SAMIA and CARL DAVID STILLWELL, were previously arrested in North Carolina in July 2015 and are scheduled to start trial on the offenses charged in the Superseding Indictment on April 2, 2018. HUNTER is expected to arrive in the Southern District of New York on October 25, 2017. The case has been assigned to the Honorable Ronnie Abrams.
According to the allegations in the Superseding Indictment against HUNTER, SAMIA, and STILLWELL returned today[1]:
HUNTER served from 1983 to 2004 in the United States Army, where he attained the rank of sergeant first class. While in the Army, HUNTER led air-assault and airborne infantry squads; served as a sniper instructor; and trained soldiers in marksmanship and tactics as a senior drill sergeant. Since leaving the Army in 2004, HUNTER has arranged for the murders of multiple people in exchange for money, among other completed acts of violence undertaken for pay.
SAMIA is a self-described “Personal Protection/Security Industry” professional. According to SAMIA’s résumé, he has worked as an “Independent Contractor” for clients in the Philippines, China, Papua New Guinea, the Democratic Republic of the Congo, and the Republic of the Congo; and has training in tactics and weapons, including handguns, shotguns, rifles, sniper rifles, and machineguns. According to STILLWELL’s résumé, he has training and experience in the field of information technology and has worked at a firm in North Carolina that provides firearms training.
In 2011 and 2012, HUNTER, SAMIA, and STILLWELL agreed to commit murders-for-hire in overseas locations in exchange for monthly salaries and bonus payments for each victim. In early 2012, SAMIA and STILLWELL traveled from North Carolina to the Philippines, where HUNTER provided them with, among other things, information about their intended victims and firearms to use to commit the murders.
In January and February 2012, SAMIA and STILLWELL surveilled their intended victims in the Philippines as they formulated their plans for the murders. On February 12, 2012, SAMIA and STILLWELL killed one of their intended victims – a Filipino woman – in the Philippines by shooting her multiple times in the face (“Victim-1”). After killing Victim-1, SAMIA and STILLWELL disposed of her body on a pile of garbage. HUNTER paid SAMIA and STILLWELL $35,000 each for completing the murder, and SAMIA and STILLWELL sent thousands of dollars from the payments they received to the United States using, among other methods, structured wire transfers in amounts under $10,000.
In late February and early March 2012, SAMIA and STILLWELL returned from the Philippines to North Carolina, where they continued to reside until their arrests.
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HUNTER, 52, of Owensboro, Kentucky, SAMIA, 43, of Roxboro, North Carolina, and STILLWELL, 49, of Roxboro, North Carolina, have each been charged with one count of conspiring to commit murder-for-hire and one count of committing murder-for-hire, each of which carries a maximum sentence of life in prison and mandatory minimum sentence of life in prison; one count of conspiring to murder and kidnap in a foreign country and one count of using and carrying a firearm during and in relation to a crime of violence, each of which carries a maximum sentence of life in prison. SAMIA and STILLWELL are also each charged with conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison.
The charges against the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Atlanta Field Division, Raleigh Resident Office; the Durham Police Department; the Raleigh Police Department; the Harnett County Sherriff’s Office; the Wake County Sherriff’s Office; the Person County Sherriff’s Office; the Cary Police Department; the North Carolina State Bureau of Investigations; and the Customs and Border Protection’s National Targeting Center. Mr. Kim also thanked the United States Attorney’s Office for the Middle District of North Carolina for its support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Rebekah Donaleski, Patrick Egan, and Emil J. Bove III are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Luzerne County Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Cleveland Linder, Jr, 33, of Plymouth, Pennsylvania, pleaded guilty on October 13, 2017 before Senior U.S. District Court Judge James M. Munley, to conspiring to distribute heroin in Luzerne County during February through November 2014.
According to United States Attorney Bruce D. Brandler, Linder admitted to conspiring with Shaliek Stroman and others to distribute between 60 and 80 grams of heroin (which is approximately between 2400 and 3200 retail bags of heroin). Linder is one of 11 people charged in the investigation.
Desmond Mercer, the leader of the drug conspiracy, previously pleaded guilty and was sentenced to 14 years in prison. Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Linder’s sentencing for January 23, 2018.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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.
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 in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lawrence Man Involved in Federal Fentanyl Sweep Pleads GuiltyRead the Press Release
BOSTON - A Lawrence man pleaded guilty today in federal court in Boston to his role in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.
Luis F. Lugo, 21, pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 18, 2018.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Lugo was arrested and charged along with Patrone and approximately 30 co-conspirators.
Lugo was a courier for the Patrone drug trafficking organization, who worked a daily shift in exchange for payment from Patrone. Specifically, Lugo delivered fentanyl and cocaine at Patrone’s direction to customers in the Lawrence area. Based on intercepted phone calls, the government alleges that Lugo was responsible for delivering approximately two kilograms of fentanyl and approximately 1.2 kilograms of cocaine to customers in Lawrence.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
La Vista Man Sentenced to 4 Years for Possessing Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced Monday that Keith B. Noden, 45, of La Vista, Nebraska, was sentenced in federal court for possessing child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Noden to four years of imprisonment. There is no parole in the federal prison system. After his release from prison, Noden will begin a five-year term of supervised release and be required to register as a sex offender.
On July 27, 2016, officers of the Sarpy County Sheriff’s Office and the FBI Cyber Crimes Task Force served a search warrant on Noden’s residence. The IP address assigned to Noden had been observed on numerous occasions with images of child pornography available for sharing. The videos included prepubescent children, including a 6-year-old child, engaged in sexual acts with adults. Noden admitted to downloading child pornography. Although no videos were found on his computer, various search terms indicative of searching for and downloading child pornography were recovered.
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 Sarpy County Sheriff’s Office and the Omaha FBI's Cyber Crime Task Force (CCTF).
Juries Convict Two Schuele Boys Gang Members Following Back-To-Back Trials in Federal CourtRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kennedy, Jr. announced today that following back-to-back jury trials completed in federal court in Buffalo late last week, two members of the Schuele Boys Gang, Aaron Hicks and Roderick Arrington, both of Buffalo, NY, were convicted of crimes arising out of their involvement with that gang. On September 25, 2017, Schuele Boys Gang member Roderick Arrington was convicted on multiple counts including RICO conspiracy, murder in aid of racketeering, and attempted murder in aid of racketeering. Arrington shot and killed Quincy Balance on August 30, 2012. While Arrington was originally charged together with Hicks, Hicks’s case was severed from Arrington’s, and following Arrington’s trial, another jury heard Hicks’s case and convicted him of the charge of conspiracy to distribute marijuana. Marcel Worthy, a third Schuele Boys Gang member charged with Arrington and Hicks, was also recently convicted, upon his plea of guilty, for his role in the death of 16-year-old Kevin Gray in December 2006.
In both cases, the trials were conducted and the convictions obtained by Assistant U.S. Attorneys Paul Parisi and Wei Xiang. While the jury in Arrington’s trial acquitted him of several counts with which he was charged and the jury in Hicks’s trial acquitted Hicks of one and was unable to reach a verdict on another of the counts against him, Arrington, like Worthy, is facing a maximum possible sentence of life in prison, while Hicks is facing 10 years in prison.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. Hicks, Arrington and Worthy are three of 28 Schuele Boys Gang members and associates arrested in this case. To date, 27 of the 28 defendants arrested have been convicted.
Additionally, convicted by guilty plea was one of the gang’s major cocaine and marijuana suppliers, Julio Contreras of Mission, TX. Contreras sent millions of dollars’ worth of drugs to Buffalo, and firearms and ammunition to Mexico. On November 6, 2011, Drug Enforcement Administration agents arrested Schuele Boys member Letorrance Travis and two representatives/couriers of Contreras. Agents recovered approximately 24 kilograms of cocaine that had been delivered to or were destined for the Schuele Boys enterprise. Agents also seized approximately $170,000 in U.S. currency from 34 Crossman Avenue in Buffalo. These funds were proceeds of the Schuele Boys’ cocaine trafficking. Contreras and Travis were both convicted of racketeering conspiracy and face a maximum possible sentence of life in prison.
The verdicts are the culmination of an investigation on the part of the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, the Edinboro University Police Department in Pennsylvania, the West Tennessee Judicial Drug Task Force, the City of McAllen, Texas Police Department, HSI Harlingen, Texas, and the FBI offices in Houston, Texas and Jackson, Mississippi.
Judge Sentences Indiana Investment Advisor to Prison for Fraud and Filing False Tax ReturnsRead the Press Release
PITTSBURGH - Acting United States Attorney Soo C. Song announced today that an Indiana County investment advisor was sentenced to 87 months imprisonment, three years supervised release and ordered to pay $1,212,663.93, on his conviction at trial of one count of securities fraud, one count of mail fraud and four counts of filing false tax returns.
Receiving the sentence from United States District Judge Reggie B. Walton was Bernard Parker, age 56.
According to Assistant United States Attorneys Robert S. Cessar and Rachael L. Mamula, who prosecuted the case, the evidence presented at trial established that Parker, the principal of Parker Financial Services, solicited his clients, by signing of “Investors Contracts,” to invest in tax lien certificates, municipal bonds, computer software, real estate, and other undefined investments. Parker then used the vast majority of the monies taken from these investors for his personal expenses instead of the various investments agreed upon with his clients. Further, Parker filed false federal tax returns for tax years 2010, 2011, 2012 and 2013, each of which failed to report his income.
The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service conducted the investigation that led to the conviction of Bernard M. Parker.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Terry Edwards, of Charles Town, West Virginia, was sentenced today to 120 months incarceration for a firearms charge, United States Attorney William J. Powell announced.
Edwards, age 38, pled guilty to one count of “Unlawful Possession of a Firearm” in July 2017. Edwards, having been previously convicted of a felony in U.S. District Court for the Northern District of West Virginia, admitted to possessing two pistols and a rifle in March 2017 in Jefferson County.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charles Town Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
James Matthew Bradley, Jr., Pleads Guilty to Transporting Undocumented Aliens Resulting in DeathRead the Press Release
In San Antonio, 61-year-old James Matthew Bradley, Jr., pleaded guilty to federal charges in connection with an undocumented alien smuggling operation that resulted in ten deaths announced United States Attorney Richard L. Durbin, Jr., and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Appearing before United States Magistrate Judge Henry Bemporad this afternoon, Bradley pleaded guilty to one count of conspiracy to transport aliens resulting in death and one count of transporting aliens resulting in death. By pleading guilty, Bradley admitted that on July 23, 2017, he conspired to transport and did transport undocumented aliens in the United States for financial gain; to further their illegal entry into this country; with reckless disregard that they entered this country illegally; and, which resulted in the death of ten undocumented aliens.
Bradley, who faces up to life in federal prison, remains in custody pending sentencing scheduled for 9:00am on January 22, 2018, before Senior United States District Judge David A. Ezra. Bradley also agreed to forfeit to the Government his tractor-trailer rig, plus approximately $5,600 in U.S. currency and a .38 caliber pistol recovered from inside the cab.
According to court records, which Bradley admitted were factually correct, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23, 2017. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. Of the 39 aliens found at the scene ten (10) died, eight (8) died in the trailer and two (2) died later in area hospitals. There were four juveniles, aged 14-17 years old, within the group of aliens in Bradley’s trailer who were unaccompanied by an adult.
Court records further state that the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported.
“Today’s admission of guilt by Mr. Bradley helps to close the door on one of the conspirators responsible for causing the tragic loss of life and wreaking havoc on those who survived this horrific incident,” said Shane M. Folden, special agent in charge, HSI San Antonio. “This case is a glaring reminder that alien smugglers are driven by greed and have little regard for the health and well-being of their human cargo, which can prove to be a deadly combination. HSI is committed to aggressively targeting human smugglers and smuggling organizations, who continually victimize people for profit.”
Bradley’s co-defendant, 47–year-old Pedro Silva Segura, an undocumented alien residing in Laredo, TX, faces one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in death; one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in serious bodily injury and placing lives in jeopardy; and, two counts of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy. Those charges stem from a superseding federal grand jury indictment handed down on September 20, 2017.
Silva, who was arrested in Laredo on an alien smuggling charge, is in custody and awaiting transfer to San Antonio.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol. Assistant United States Attorneys Christina Playton and Matthew Lathrop are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Silva is considered innocent until proven guilty in a court of law.
Investment Advisor Sentenced to Federal Prison for Investment Fraud SchemeRead the Press Release
Francisco Reynier Arias, Jr., 49, of Winter Park, Florida and formerly of Nashville, was sentenced today to 70 months in prison for operating an investment fraud scheme, which defrauded investors of over $6.5 million dollars, announced U.S. Attorney Donald Cochran of the Middle District of Tennessee.
Arias was indicted in 2011 and pleaded guilty in October 2015 to money laundering and wire fraud. According to court documents and evidence presented at the sentencing hearing, Arias owned and operated Adieus, an investment company in Nashville, which purportedly specialized in foreign currency trading. Arias lied to investors about his abilities as a foreign currency trader by claiming that he had a special insight into the market when in fact he did not. He also lied to investors by claiming that he was a decorated war hero who helped capture Saddam Hussein.
Instead of investing client funds, Arias diverted funds for his own personal use, including paying down the mortgage on his home; paying a family member’s college tuition at Vanderbilt University; family trips, including a gambling trip to Las Vegas; landscaping for his house, including the construction of a swimming pool; and purchasing motorcycles to add to his motorcycle collection. Arias continued his investment scheme by paying off some of the investors with subsequent investments. This scheme caused some of the investors to lose their retirement accounts and life savings.
In addition to the term of prison imposed, U.S. District Court Judge Marvin E. Aspen, ordered Arias to serve three years of supervised release and to pay $6,749,563.50 in restitution to the victims of the offense.This case was investigated by the FBI and the IRS-Criminal Investigation. Assistant United States Attorneys Ryan R. Raybould and Cecil W. VanDevender prosecuted the case.
Inland Empire Man Pleads Guilty to Using Internet to Entice Boy to Make Sexually Explicit VideosRead the Press Release
RIVERSIDE, California – An Inland Empire man pleaded guilty late this afternoon to a federal child exploitation offense after coercing at least six boys around the nation to send him sexually explicit videos – some of which were posted on the internet when victims refused to send additional images and videos.
Francisco Javier Soledad, 25, of Eastvale, pleaded guilty today to one count of using the internet to induce a minor to engage in criminal sexual activity.
In a plea agreement filed in United States District court, Soledad admitted victimizing six boys between the ages of 12 and 15 over the course of several months in 2016. Soledad found the victims – who lived across the nation, from California to Georgia – on social media sites he accessed under the handle “linkinparkrocks.” Soledad pleaded guilty to one count related to a victim in Illinois, but he admitted engaging in similar conduct with at least five other boys he communicated with via Snapchat, text messages and email.
According to court documents, Soledad assumed different personas – sometimes a 13-year-old boy, and other times an adult woman – to convince the victims to send him explicit photographs and videos. When several of the victims refused demands to send additional images, Soledad threatened to publish the previously sent images on social media platforms. In at least one instance, Soledad published one of the victim’s nude images on Twitter along with the victim’s Twitter handle.
Soledad further admitted in his plea agreement that he possessed on his digital devices more than 5,000 images and videos of child pornography and child erotica. The majority of the child pornography images appear to have been produced by the children depicted. Law enforcement is reviewing the thousands of images and is continuing to try to identify all of the children Soledad appears to have victimized.
Soledad pleaded guilty before United States District Judge Jesus G. Bernal, who scheduled a sentencing hearing on January 22.
The charge of enticing a minor to engage in criminal sexual activity carries a mandatory minimum sentence of 10 years in prison and a maximum possible sentence of life. In the plea agreement, prosecutors have agreed not to seek a sentence of longer than 14 years.
Once he completes any prison sentence he receives, Soledad will be required to register as a sex offender, and he will be prohibited from having unsupervised contact with minors and going to places to where young people congregate.
This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham of the Riverside Branch Office.
Hyattsville, Maryland Woman Sentenced to 30 Months in Federal Prison for Mail and Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –On October 12, 2017, United States District Judge Roger W. Titus sentenced Ana Maritza Gomez, age 45, of Hyattsville, Maryland, to 30 months in prison followed by 3 years of supervised release for conspiracy to commit mail and wire fraud arising from a scheme to defraud victims through a foreclosure rescue scam. Judge Titus also ordered Gomez to pay $205,280.25 in restitution.
Two co-defendants, Rene De Jesus De Leon, age 49, and Pedrina Rodriguez Bonilla, age 39, both of Silver Spring, Maryland, have also pleaded guilty to conspiracy to commit mail and wire fraud for their involvement in the same scheme.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to evidence presented at the six-day trial, from at least late 2011 to August 2015, Gomez and her co-conspirators claimed that they could help homeowners who wanted to modify their mortgage loans and prevent foreclosure of their homes. The conspirators sold the victims on a “principal reduction” program that included an upfront fee, typically between $3,000 and monthly payments for 10 to 15 years. Gomez and her co-conspirators told the victims to make monthly payments to the conspirators and to companies they controlled, in lieu of to the homeowners’ lenders. The companies controlled by Gomez’s co-conspirators were named Marketing Multiservices LLC and Innovative Solutions Services LLC.
According to the indictment and court documents, the conspirators mailed monthly invoices to the homeowner victims that falsely indicated that the “principal balance” was being paid down. Some of the victims paid Gomez in person each month at her residence; or some of the victims deposited their payments directly into bank accounts controlled by Gomez’s co-conspirators. The conspirators told the victims not to open any mail from their lenders and instead provide it to the conspirators. The conspirators did not, however, negotiate with lenders of behalf of the homeowners. Many of the victims lost their homes.
Sentencing for Rene De Leon is scheduled for December 14, 2017 at 10 a.m. and Pedrina Bonilla is scheduled for sentencing on December 13, 2017 at 9:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG, HUD-OIG, U.S. Postal Inspection Service, Prince George’s County and Montgomery County Police Departments, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Kristi N. O’Malley and Special Assistant United States Attorney Jolie F. Zimmerman, who prosecuted the case.
Huntley Businessman Pleads Guilty to Causing Union Benefit Funds to File False Statements and Failing to Pay $600,000 in Federal FICA TaxesRead the Press Release
ROCKFORD — A Huntley businessman pleaded guilty today before U.S. District Judge Frederick J. Kapala to causing false statements to be made on forms required by the Employee Retirement Income Security Act (ERISA) to be filed, and failing to collect and pay Federal Insurance Contribution Act (FICA) taxes.
THOMAS MANNING, 60, president of T. Manning Concrete Inc. in Huntley, admitted in a written plea agreement that as president of T. Manning Concrete he hired union laborers and cement masons in northern Illinois. The unions provided benefits to their members through various employee benefit plans. Each benefit plan was required to file an annual report stating the total contributions received. T. Manning Concrete was required by collective bargaining agreements to submit monthly reports to the benefit plans that stated the number of hours each covered employee worked, and to pay the company’s contributions to those benefit plans.
According to the plea agreement, since at least 2007 Manning defrauded the benefit plans by understating the number of hours worked by T. Manning Concrete’s covered employees in the monthly reports, and under-paying the monthly contributions that were required on behalf of its covered employees. Manning admitted that in order to conceal the understatement of hours and defraud the benefit plans, he caused the covered employees to be paid for the additional hours “under the table,” using checks drawn upon non-payroll bank accounts under Manning’s control.
Manning admitted that between 2007 and 2010 he failed to report and pay almost $2 million due to the employee benefit funds. Manning further admitted that by falsely reporting the number of hours worked by covered employees he caused the benefit plans to make false statements in their annual reports they were required by ERISA to file.
Manning also admitted that between 2007 and 2010, as president of T. Manning Concrete, he failed to collect, account for, and pay $600,680 for its employees’ share of FICA taxes due to the IRS on the wages paid using “under the table” checks.
The charge of filing a false statement and concealment of facts in relation to documents required by ERISA, and the charge of willful failure to collect or pay FICA taxes, each carry a maximum penalty of five years’ imprisonment and a $250,000 fine. Each count also carries a maximum period of up to three years of supervised release following imprisonment. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Manning is set for Jan. 24, 2018, at 2:30 p.m.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-In-Charge of the Chicago Region of the U. S. Department of Labor, Office of Inspector General; Jeffrey A. Monhart, Regional Director for the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago; and Craig Goldberg, Postal Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Home Improvement Contractor Sentenced to 10 Years in Prison for Defrauding Customers of Hundreds of Thousands of Dollars and Hiding Assets from Creditors in Bankruptcy ProceedingsRead the Press Release
WASHINGTON - Michael L. Rosebar, 54, of Washington, D.C., was sentenced today to 10 years in prison for defrauding customers of his home improvement business and personal creditors of hundreds of thousands of dollars, making false statements in bankruptcy proceedings, and defrauding a government program for needy families.
The sentencing was announced by U.S. Attorney Jessie K. Liu and Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division.
A jury found Rosebar guilty on June 20, 2017, following a trial in the U.S. District Court for the District of Columbia, of six federal counts of concealment of bankruptcy assets, three federal counts of false oaths and statements in bankruptcy, and three counts of wire fraud. He also was found guilty of violating District of Columbia laws, including three counts of first-degree fraud related to his home contracting business and one count of first-degree fraud related to a scheme to defraud the District of Columbia’s public assistance (or welfare) program. The Honorable Senior Judge Thomas F. Hogan sentenced him today.
Judge Hogan stated that he will issue an order of restitution at a later date. Additionally, he ordered Rosebar to pay a $75,000 forfeiture money judgment. Following his prison term, Rosebar will be placed on three years of supervised release.
“Michael Rosebar coldly took advantage of people who trusted him with home improvement work, stealing hundreds of thousands of dollars from customers who paid him for projects that he half-started or didn’t start at all,” said U.S. Attorney Liu. “In some cases, he caused his victims, including senior citizens, to live in dangerous conditions for years. He also treated our court system as his personal weapon against victims, and repeated his fraud by lying to judges and creditors in fraudulent bankruptcy and other civil proceedings. Now he is being held accountable for these crimes.”
“After being solicited through the mail, many unfortunate victims in this case were harmed twice. Not only did they lose their original payments, they had to pay more money for additional repairs. Postal Inspectors will continue to protect consumers with our pursuit of criminals who misuse the mail to further their fraud schemes,” said Inspector in Charge Wemyss.
Rosebar’s wife, Erin M. Rosebar, 41, pled guilty on Oct. 10, 2017, to a charge of first-degree fraud. She is to be sentenced on Jan. 23, 2018.
According to the government’s evidence, Rosebar operated businesses under several names, including EMR Construction Contractors. From at least February 2008 through January 2015, according to the evidence, he misrepresented himself to clients as a licensed home-improvement, electrical and heating/ventilation/air conditioning (HVAC) contractor. However, at no time during that period did Rosebar have a business or professional license from the District of Columbia Department of Consumer and Regulatory Affairs.
Rosebar recruited customers at home improvement stores, through referrals, and by acting as a sub-contractor on projects. According to the government’s evidence, he negotiated contracts with customers for substantial home improvement or HVAC projects, which he could not, and did not intend to, complete. During the trial, the government presented evidence related to numerous home renovation projects and a project to install air conditioners at an apartment complex in Atlanta. According to the government’s evidence, Rosebar received more than $800,000 from 2008 through 2013 for these projects. Rosebar not only abandoned these projects before completion, his demolition and other improper and unskilled work destroyed many residents’ homes. One senior citizen victim paid Rosebar over $380,000, and her home was an uninhabitable disaster with no proper roof when Rosebar abandoned the job. This woman lost her life savings to Rosebar, and was forced to live in a small portion of the home for seven years.
According to the government’s evidence, Rosebar’s fraud extended beyond the victims who testified at trial. All told, the government has estimated that victims lost more than $1.3 million as a result of Rosebar’s conduct from 2001 through 2016.
While scamming numerous victims, Rosebar filed for bankruptcy protection three times in the period between 2008 and 2013. The jury found him guilty of charges related to false statements he made during these proceedings, in which he understated his income and overstated his expenses.
The jury also found Rosebar guilty of receiving benefits to which he was not entitled from the District of Columbia’s Department of Human Services. From 2010 until 2014, Rosebar earned hundreds of thousands of dollars from his contracting fraud victims, and yet received benefits through the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program after falsely reporting that he had no income, was unemployed, and had no assets other than his family home.
In announcing the sentence, U.S. Attorney Liu and Inspector in Charge Wemyss commended the work of those who investigated the case from the U.S. Postal Inspection Service, Washington Division. They also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Inspector General, the Metropolitan Police Department (MPD), and the District of Columbia Office of the Attorney General.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Nicole Hinson and Mark Fitzgerald; former Criminal Investigator Juan Juarez; Paralegal Specialists Aisha Keys and Jessica Mundi; Supervisory Litigation Technology Specialist Joshua Ellen; Assistant U.S. Attorney Arvind K. Lal, Chief of the Office’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Philip A. Selden, now with the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the work of Assistant U.S. Attorneys John Marston and Anthony Saler, who prosecuted the case.
Hartford Man Sentenced to 8 Years in Federal Prison for Distributing Crack, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BOBBY HEMINGWAY, 36, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in February 2016, the FBI’s Northern Connecticut Violent Crimes Task Force received information that HEMINGWAY was distributing crack cocaine in the Enfield Street and Westland Street area of Hartford. Between February and April 2016, investigators made four controlled purchases of crack from HEMINGWAY.
HEMINGWAY was arrested on April 21, 2016. On that date, a search of his Westland Street residence revealed a loaded .22 caliber handgun and approximately 26 grams of marijuana.
HEMINGWAY has been detained since his arrest. On January 23, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
HEMINGWAY’s criminal history includes five felony convictions, including a conviction for first-degree assault stemming from his role in a drive-by shooting in Hartford in 2008.
In November 23, 2009, HEMINGWAY was sentenced in U.S. District Court in Portsmouth, New Hampshire, to 44 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine. He was released from prison in January 2013 and was on federal supervised release when he engaged in the criminal activity that led to his most recent federal conviction.
Judge Thompson sentenced HEMINGWAY to 84 months of imprisonment on the drug distribution offense, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.
The FBI’s Northern Connecticut Violent Crimes Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Guilty Plea Entered for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Alfredo Cardenas-Suastegui (“Cardenas”), 56, a native and citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced. Cardenas also agreed to pay restitution to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.
According to court documents, co-defendants Sair Maldonado-Soto, 22, and Coral Herrera, 21, both of Perris, California, were linked to two separate grow sites in the Lucas Creek drainage and an area known as the "Box 6" site in the Sequoia National Forest after a four-month investigation. The investigation revealed that they were supplying material, equipment, and personnel to the grow sites, which consisted of a total of 10,396 marijuana plants. They were also responsible for transporting Cardenas and co-defendant Abel Toledo-Villa, 34, of Michoacán, Mexico, away from the Box 6 grow site after it was raided. Both Cardenas and Toledo-Villa tended to the marijuana plants at the Box 6 grow site. A rifle, ammunition, and processed marijuana were seized from the vehicle occupied by the four defendants as it drove away from the Box 6 grow site.
The marijuana cultivation operations at both sites caused extensive damage to the land and natural resources. Harmful pesticides and fertilizers, miles of plastic irrigation lines, and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Cardenas, who has been detained as a flight risk and danger to the community, is scheduled for sentencing on February 12, 2018. He faces a statutory mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison, along with a $5 million fine. Herrera and Maldonado previously entered guilty pleas and are scheduled for sentencing on December 4 and 18, respectively. Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Toledo-Villa previously entered a guilty plea and was sentenced to 5 years in prison.
Government Contractor Pays $2.6M to Settle False Claims Act SuitRead the Press Release
ALEXANDRIA, Va. – Triple Canopy, Inc. (Triple Canopy), located in Reston, has agreed to pay $2.6 million to settle civil False Claims Act allegations that the company submitted false claims for payment to the Department of Defense for unqualified security guards stationed in Iraq.
“Contractors must be held accountable for their actions, especially when the safety of government personnel is at stake” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This settlement should remind contractors of the high value we place on safeguarding our personnel abroad.”
The allegations stem from Triple Canopy’s one-year contract with the Joint Contracting Command in Iraq (JCC-I), an entity established to provide contracting support related to the government’s relief and reconstruction efforts in Iraq. Under the 2009 contract, Triple Canopy was required to perform a variety of security services at Al Asad Airbase, the second largest air base in Iraq.
The government’s complaint in intervention alleges that Triple Canopy knowingly billed the United States for security guards who could not pass contractually required firearms proficiency tests. The tests were designed by the Army to ensure that the guards hired to protect U.S. and allied personnel were capable of firing their assigned weapons safely and accurately. The government further alleges that Triple Canopy concealed the guards’ inability to satisfy the firearms testing requirements by creating false test scorecards that Triple Canopy was required to maintain for government review, in an effort to induce the government to pay for the unqualified guards.
The government’s claims are based on a whistleblower suit initially filed by a former employee of Triple Canopy in 2011. The suit was filed in the federal district court for the Eastern District of Virginia under the qui tam provision of the False Claims Act, which allows private persons to file suit on behalf of the United States. Under the False Claims Act, the government has a period of time to investigate the allegations and decide whether to intervene in the action or to decline intervention and allow the whistleblower, also called the relator, to go forward alone. The government intervened in the relator’s suit in June 2012. The False Claims Act also provides the whistleblower a share of the government’s recovery. As part of the resolution, the whistleblower will receive approximately $500,000.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Defense Criminal Investigative Service, and the Army Criminal Investigation Command. The matter was investigated by Assistant U.S. Attorneys Richard Sponseller and Christine Roushdy.
The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Fresno Resident Pleads Guilty to Conspiring to Sell Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Maria Victoria Perez-Vasquez, 32, of Fresno and a citizen of Mexico, pleaded guilty today to conspiring to transfer, possess, and sell false identification documents, United States Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and June 2016, Perez-Vasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the California Department of Motor Vehicles, Investigations Division. Assistant United States Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Perez-Vasquez and five co-defendants were arrested for the scheme. Four of the other co-defendants pleaded guilty and have been sentenced. Charges are pending against the remaining co-defendant, Fidel Vasquez-Velazquez, who failed to appear in court for a bond forfeiture hearing on August 22, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Perez-Vasquez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O'Neill on January 16, 2018. She faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Robins Air Force Base Employee Sentenced to Ten Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Arthur D. Clark, age 60 of Perry, Georgia, was sentenced on October 16, 2017, by United States District Court Judge Leslie J. Abrams in Macon, Georgia to 10 years in federal prison for attempted online enticement of a minor. Mr. Clark was formerly employed as a member of the Air Force Civil Service on Robins Air Force Base in Warner Robins, Georgia. There is no parole in the federal system. His term of imprisonment will be followed by 25 years of supervised release and registration as a sex offender.
Mr. Clark entered a plea of guilty to the charge on May 18, 2017. On June 15, 2016, Mr. Clark responded to an online advertisement posted during an undercover operation conducted by the Air Force Office of Special Investigations. From June 15, 2016, through July 7, 2016, Mr. Clark chatted online with whom he believed to be a 14-year-old female named “L.” In reality, “L.” was an undercover agent. During his conversations with “L.,” Mr. Clark indicated that “I wanna do it all with you. Sex and all….” Mr. Clark was eventually told that “L.” would be alone at her parents’ residence located on Robins Air Force Base on July 7, 2016. On this same date, he traveled to a park on Base and sent a text message to “L.” indicating that he was awaiting her arrival. Mr. Clark was subsequently arrested by law enforcement officers, who found unused condoms and personal lubricant in his vehicle after his arrest. Subsequent to his arrest, Mr. Clark agreed to speak with law enforcement and acknowledged that he came on the base to meet “L.” who he knew was a 14-year-old minor. He also confirmed that the condoms and personal lubricant were for their encounter and that he used both his cell phone and work computer to communicate with “L.”
“With ten years to serve in prison without parole and a quarter of a century of intense supervision by federal authorities after that, it is gratifying to know that at 60 years of age Mr. Clark is extremely unlikely to sexually abuse another child as he was so earnestly trying to do in this case,” said United States Attorney Peterman.
This case was investigated by the Air Force Office of Special Investigations at Robins Air Force Base. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Former Mon Valley Attorney Pleads Guilty to Defrauding Elderly ClientRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has pleaded guilty in federal court to charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
Keith A. Bassi, age 61, of Fayette City, PA, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Government represented in Court that since 2013, Keith A. Bassi, a licensed attorney, misappropriated for personal use approximately $505,000.00 in funds belonging to the estate of an elderly person diagnosed with dementia. Bassi held a power of attorney for the victim, and then engaged in a series of financial transactions in which he diverted the victim’s assets into bank accounts he created and controlled at Charleroi Federal Savings and PNC Banks. In one instance, Bassi made insurance premium payments using the victim’s funds on a whole life policy at Pacific Life purchased in the name of someone other than the victim, and then later cancelled the policy and kept the surrendered cash proceeds for himself. He also used the victim’s estate funds to operate Mid Mon Valley Publishing Co. in Charleroi, Pennsylvania.
Judge Schwab scheduled sentencing for March 14, 2018. The law provides for a total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Keith A. Bassi.
Former AFLAC Employee Who Stole over $4 Million from Insurance Company with Fake Disability Claims Sentenced to 10 Years in PrisonRead the Press Release
SANTA ANA, California – A one-time sales representative for AFLAC was sentenced today to 10 years in federal prison after being convicted of federal fraud charges related to a scheme that used bogus disability claims to bilk the insurance company out of more than $4 million.
Patricia Diane Smith Sledge, 61, of Redlands, was sentenced today by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered Sledge to pay $4,166,063 in restitution.
Following a two-week jury trial late last year, Sledge was found guilty of six counts of mail fraud, as well as two counts of witness tampering.
The fraud scheme involved fictitious employers and bogus employees who falsely claimed to have suffered injuries that prevented them from working.
The evidence presented at trial showed that Sledge – who was residing in Irvine while working for the company formally known as American Family Life Assurance Company – sold disability insurance policies to bogus companies and people who supposedly worked for those companies. Sledge then orchestrated the filing of fraudulent disability claims and directed the purported employees to doctors that would sign off on the fake injury claims.
Sledge made money both from the commissions related to the sale of the fraudulent insurance policies and from kickbacks she received from the supposedly injured “employees.”
Sledge exploited her knowledge of AFLAC’s internal policies and underwriting procedures to further the scheme. For example, Sledge and others involved in the scheme listed artificially inflated incomes on the applications for insurance because the amount AFLAC paid on disability claims was based on the policyholder’s income.
Sledge was also found guilty of witness tampering for encouraging potential witnesses to lie to federal investigators and discouraging them from cooperating in the investigation. One of these crimes was committed while she was on bond in this case.
Three others have been prosecuted for acting as fake employers and fake employees in this scheme.
The case against Sledge and the others involved in the scheme is the result of an investigation by United States Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, and California’s Department of Insurance.
This case is being prosecuted by Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office and Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section.
Five Valdosta Residents Plead Guilty to Mail Theft ConspiracyRead the Press Release
United States Attorney G.F. Peterman, III announces that on October 3, 2017 Kedrick Antwan Williams, age 31, and on October 12, 2017, Zerrick Devon Tompkins, age 31, Jerry Lewis Rawls, Jr., age 44, Willie James Smith, age 64, and Gregory Willie Harris, age 46, all of Valdosta, Georgia, entered pleas of guilty in front of the Senior United States District Judge Hugh Lawson for conspiring to steal and to possess stolen mail.
According to plea agreements, the defendants admitted to conspiring to steal and possess stolen mail and items, including checks, that were in the mail between July 24 and December 8, 2016. Members of the conspiracy admitted to stealing mail in the Valdosta area, removing checks, and then altering payees and/or amounts on checks that were in the mail. The defendants then presented the checks for cashing or deposit and retained the funds. The defendants admitted to the theft of between $40,000 and $95,000 worth of checks written on the accounts of various businesses and individuals. Members of the conspiracy agreed to payment of restitution of more than $14,000 to five banks and one business, based on checks that were actually negotiated.
Sentencing is scheduled for all defendants on January 10, 2018 in Valdosta, Georgia.
“This case involved a classic organized check cashing ring, with some members stealing checks, others altering the payees and the amounts, and others negotiating the altered instruments. The many victims in the South Georgia area included numerous businesses and individuals. It is a shame that with all the ingenuity and effort these criminals invested in this illegal scheme, they did not choose to earn an honest dollar instead, which they were clearly smart and resourceful enough to have done,” said United States Attorney Peterman.
The case was investigated by the Lowndes County Sheriff’s Office, the Valdosta Police Department, and the United States Postal Inspection service. Service. Assistant United States Attorney Robert D. McCullers is prosecuting the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Federal Jury Convicts Minneapolis Chiropractor on Fraud ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of PRESTON ELLARD FORTHUN, 39, on charges of conspiracy, mail fraud, and wire fraud. Co-defendants ABDISALAN ABDULAHAB HUSSEIN, 48, and CARLOS PATRICIO LUNA, 49, were also convicted for their roles in the scheme. FORTHUN, HUSSEIN and LUNA were initially indicted on December 20, 2016, and following a ten-day trial before U.S. District Judge Michael J. Davis, the jury returned guilty verdicts on all counts.
“Preston Forthun orchestrated a scheme to exploit Minnesota’s no-fault auto insurance laws by employing a corrupt approach to running his chiropractic practice. The result was millions of dollars in fraudulent claims to automobile insurance companies, which, unfortunately, is a burden ultimately shouldered by automobile insurance policyholders in Minnesota,” said Acting United States Attorney Greg Brooker. “I commend the Minnesota Commerce Fraud Bureau and the FBI for their collaborative investigative efforts, skills and resources that contributed to this successful outcome.”
“This verdict sends a very clear message to insurance scam artists in Minnesota that they will be caught and brought to justice,” said Minnesota Commerce Commissioner Mike Rothman. “By committing insurance fraud, these chiropractors chose to put personal greed above their professional oath, and all of us end up paying for it. The Commerce Fraud Bureau will continue to vigorously investigate allegations of insurance fraud and will do everything in its power to shut down these schemes and hold criminals accountable.”
“Not only did Mr. Forthun violate his professional oath, he violated the public’s trust”, added Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “His betrayal of the medical profession cost the public millions and robbed funds that may have helped cover the expenses of people with legitimate health care needs. The FBI and its law enforcement partners will continue to aggressively pursue insurance fraud schemes like this this one to protect the public from unscrupulous criminals and corrupt practices. I would like to thank our partners in the U.S. Attorney’s Office and the Commerce Fraud Bureau for their invaluable collaboration in this investigation.”
As proven at trial, beginning in at least 2010, FORTHUN, a licensed Doctor of Chiropractic, devised a scheme to defraud automobile insurance companies by hiring patient recruiters, known as “runners,” to solicit automobile accident victims to attend treatments at FORTHUN’S clinic, Comprehensive Rehabilitation Centers of MN (“Comprehensive Rehab”). FORTHUN, and his co-defendant DARRYL HUMENNY, who was also a Doctor of Chiropractic with Comprehensive Rehab and previously pled guilty, paid the runners, including HUSSEIN and LUNA, between $1,000 and $1,500 for each patient they brought to Comprehensive Rehab so that FORTHUN and HUMENNY could bill services to the insurance companies. To disguise the payments, FORTHUN typically paid the runners in cash or wrote checks made out to “cash,” along with a bogus description in the memo line indicating that the payment was for “marketing,” “petty cash,” “transportation,” “interpreting,” or “supplies.” From 2011 through 2015, FORTHUN and HUMENNY wrote more than 400 checks, totaling at least $500,000.
As proven at trial, FORTHUN structured the scheme in a way that would maximize Comprehensive Rehab’s billings to the insurance companies. FORTHUN and HUMENNY withheld kickback payments to the runners until after the patients had attended a certain number of treatment sessions, typically between six and twelve treatment sessions. Frequently, the runners gave a large portion of the kickback payments they had received to the patients they had referred in order to make sure that patients attended the minimum number of treatment sessions. Thus, the kickback payments were intended to ensure that patients came for treatments at Comprehensive Rehab because of the payments, as opposed to the necessity and reasonableness of the treatments. Through the execution of their fraud scheme, FORTHUN and HUMENNY billed millions of dollars to the automobile insurance companies.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI. Additional assistance was provided by the Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol, and Homeland Security Investigations.
Assistant U.S. Attorneys Amber M. Brennan and John E. Kokkinen are prosecuting this case.
Defendant Information:
PRESTON ELLARD FORTHUN, 39
Bloomington, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Mail fraud, 6 counts
- Wire fraud, 7 counts
ABDISALAN ABDULAHAB HUSSEIN, 48
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Mail fraud, 2 counts
- Wire fraud, 2 counts
CARLOS PATRICIO LUNA, 49
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Mail fraud, 1 count
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Child Sex TouristRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found David Paul Lynch (56, Venice) guilty of eight counts of producing and attempting to produce child pornography, two counts of traveling with the intent to engage in illicit sexual conduct, one count of receiving child pornography, and one count of possessing child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for each production count, up to 30 years’ imprisonment for each travel count, a mandatory minimum penalty of 5 years, up to 20 years, for receiving child pornography, and up to 10 years in prison for possessing child pornography. His sentencing hearing is scheduled for January 11, 2018. Lynch was indicted on January 26, 2017.
According to testimony and evidence presented at trial, Lynch traveled to the Philippines regularly between 2005 and 2016 to have sex with children and make recordings of the abuse. Prior to his trips, he communicated online with individuals in the Philippines in order to locate children to sexually exploit. Lynch produced child pornography of at least three Filipino children on these visits and also solicited child pornography via email of a fourth. He was arrested in San Francisco attempting to board a flight to the Philippines on December 30, 2016. During a simultaneous search of his home in Venice, Florida, FBI agents located dozens of self-produced images and videos of child pornography from his trips.
This case was investigated by the FBI, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Sarasota Police Department, the Cape Coral Police Department, the Bradenton Police Department, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Eric K. Gerard.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Federal Court Shuts Down Houston Area Tax Return PreparersRead the Press Release
A federal court in Houston, Texas, permanently enjoined Levett Navarro Camarena and her son Chase Edward Camarena from preparing federal tax returns for others, including under the name of the business Hispanic Services, the Justice Department announced today. Levett Camarena and Chase Camarena agreed to civil injunction orders that require them to cease preparing federal tax returns.
According to the government’s complaint, Levett Camarena and Chase Camarena, through a business called Hispanic Services located on Nyland Street in Houston, Texas, routinely prepared federal tax returns for customers that contained false, improper, or inflated individual deductions on Schedule A (Itemized Deductions) and business expenses on Schedule C (Profit and Loss from Business Sole Proprietorship). Furthermore, the returns reported Schedule C businesses that did not exist, according to the complaint.
The complaint alleged that in some cases the returns overstated business income. The allegations in the complaint explained that while overstating business income increased self-employment taxes, the increase was substantially less than increased earned income credits also claimed on the returns. The increased earned income credits would cause an understatement of the client’s tax liability, according to the complaint.
According to the complaint, the Internal Revenue Service (IRS) examined 409 returns for years 2012 through 2014 filed by Hispanic Services and prepared by Levett Camarena or Chase Camarena. The IRS adjusted 278 of the returns (68%) examined with average deficiencies between $1,848 to $2,352, according to the complaint. The IRS selected 20 tax returns prepared and filed by Hispanic Services for 2015 and was able to talk to 17 taxpayers, according to the complaint. Each taxpayer interviewed stated the charitable contributions or business expenses on the returns did not exist or were grossly exaggerated, according to the complaint. Each taxpayer allegedly denied giving the amount used on the return to the preparer. According to the complaint, the IRS selected and interviewed 17 taxpayers whose 2016 returns were prepared by Hispanic Services. According to the complaint, at least 9 of the 16 clients whose returns were prepared by Levett Camarena said the returns understated their respective tax liabilities by reporting false business information. In addition, one client whose return was prepared by Chase Camarena stated his charitable contributions were grossly overstated on his Schedule A, according to the complaint.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Dunbar felon pleads guilty to federal gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Dunbar woman pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Amanda Renee Taylor, 40, entered her guilty plea to being a felon in possession of a firearm.
Taylor admitted that on February 7, 2017, she possessed two firearms, a Lorcin .380 caliber pistol and a High Standard .22 caliber revolver. Taylor further admitted that she stole mail and possessed methamphetamine and counterfeit money found when she was arrested. Taylor was prohibited from possessing any firearms under federal law because of a 2009 felony drug conviction in Kanawha County Circuit Court.
Taylor faces up to 10 years in federal prison when she is sentenced on January 16, 2018.
The investigation was conducted by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Putnam County Sheriff’s Office. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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District Man Pleads Guilty to Shooting Man in Early Evening Attack in June 2017Read the Press Release
WASHINGTON – Deangelo Paris Belton, 23, of Washington, D.C., pled guilty today to a felony charge stemming from a shooting that occurred in June 2017 near a busy intersection in Northeast Washington, announced U.S. Attorney Jessie K. Liu.
Belton pled guilty in the Superior Court of the District of Columbia to one count of aggravated assault while armed. The plea, which is subject to the Court’s approval, calls for an agreed-upon sentencing range of five to six years in prison. The Honorable Judith Bartnoff scheduled sentencing for Dec. 15, 2017.
According to the government’s evidence, on June 12, 2017, at approximately 6:20 p.m., the victim was walking near the intersection of Nannie Helen Burroughs and Minnesota Avenues NE when he passed Belton and two other males. The victim and Belton knew one another, and the victim is the father of Belton’s cousin’s child. Belton and the victim briefly exchanged words about whether Belton was still mad at the victim for a fistfight they had several months earlier.
During this exchange, Belton pulled out a handgun and fired several shots at the victim, hitting him and causing him to fall in the street. Belton then fired several more shots at the victim before fleeing. The victim sustained multiple gunshot wounds to his abdomen and waist, that required surgery, hospitalization, and ongoing rehabilitation and treatment.
Following the shooting, Belton fled to Georgia. He was later apprehended by the U.S. Marshals Service and brought back to the District of Columbia in August 2017 to face charges.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the work of the U.S. Marshals Service. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle, Intelligence Analyst Zachary McMenamin, and Victim/Witness Advocate Jennifer Allen. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Detroit man pleads guilty to distributing pain pillsRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught selling oxycodone in March 2017 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Lurduea Appling, 37, entered his guilty plea to distribution of oxycodone.
On March 20, 2017, agents with the Drug Enforcement Administration and the West Virginia State Police Bureau of Criminal Investigation (BCI) in Ona used a confidential informant to make a controlled buy of oxycodone from Appling. The drug deal took place at 1342 15th Street in Huntington. Appling provided the informant with oxycodone in exchange for $3,750 in cash. As part of the plea agreement, Appling admitted to all the drug trafficking activity charged in the indictment.
Appling faces up to 20 years in federal prison when he is sentenced on January 16, 2018.
The Drug Enforcement Administration and the West Virginia State Police BCI in Ona conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Costa Rican Pleads Guilty to Selling Drugs Imported from India in the United StatesRead the Press Release
PITTSBURGH – A resident of Costa Rica, pleaded guilty in federal court to charges of mail fraud and money laundering, Acting United States Attorney Soo C. Song announced today.
Ramiro Navarro Quesada, 41, a resident of Costa Rica pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose. Quesada was arrested in Madrid, Spain, in early 2017. He was extradited to the United States in late August.
In connection with the guilty plea, the court was advised that Quesada used a Costa Rican website to advertise the Internet sale of Schedule II and IV controlled substances and erectile dysfunction drugs, which were exported from India and received in the United States.
Judge Ambrose scheduled sentencing for March 19, 2018 at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“This case is a prime example of how the U.S. will use all available tools at our disposal to identify and apprehend drug traffickers,” said Wayne Salzgaber, INTERPOL Washington Acting Director.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Quesada.
Colorado Man Arraigned on Federal Stalking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Peter Fitzpatrick, 42, of Wheat Ridge, Colo., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with three counts of stalking. During his arraignment hearing, Fitzpatrick entered a not guilty plea to the indictment, and was released pending trial under pretrial supervision and other conditions of release.
Fitzpatrick was arrested on Oct. 4, 2017, in Denver, Colo., and was transported to New Mexico by the U.S. Marshals Service to face the charges in the three-count indictment, which was filed by a federal grand jury on Sept. 21, 2017. According to the indictment, between Feb. 1, 2016 and Sept. 1, 2017, Fitzpatrick used interstate communication devises, including a telephone, to engage in a course of conduct against the three victims that placed the victims in reasonable fear of death and serious bodily injury.
If convicted of the crimes charged in the indictment, Fitzpatrick faces a maximum penalty of five years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service and the U.S. Postal Inspection Service. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Chelsea Bomber Ahmad Khan Rahimi Convicted for Executing September 2016 Bombing in New York CityRead the Press Release
A jury returned a guilty verdict today against Ahmad Khan Rahimi, aka, “Ahmad Rahami,” 29, of Elizabeth, New Jersey, in Manhattan federal court on all eight counts of the Indictment, which charged him with offenses related to his execution and attempted execution of bombings in New York City on Sept. 17, 2016. Rahimi, who faces mandatory sentence of life in prison, is scheduled to be sentenced on Jan. 18, 2018.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Office and Commissioner James P. O’Neill of the NYPD made the announcement. U.S. District Judge Richard M. Berman presided over the two-week trial.
“Ahmad Khan Rahimi constructed bombs with high explosives and shrapnel to inflict maximum damage to innocent victims in multiple locations,” said Acting Assistant Attorney General Boente. “The defendant's bombs caused injuries to numerous people. Thanks to outstanding investigative work, the defendant was identified and arrested before he could do any more harm. This verdict is an important step in holding him accountable for his crimes. Pursuing those who seek to conduct attacks on our homeland will remain the highest priority of the National Security Division. I would like to commend all of the agents, analysts and prosecutors who made this result possible.”
“On September 17, 2016, Ahmad Khan Rahimi attacked our country and our way of life,” said Acting U.S. Attorney Kim. “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.”
“It’s no secret New York City remains a desirable target for those who wish to disrupt our way of life,” said Assistant Director in Charge Sweeney Jr. “Last September, Rahimi set out to harm innocent people who were simply living their lives one Saturday evening. He underestimated the resilience of New Yorkers as well as the resolution of the FBI’s Joint Terrorism Task Force to see justice served. Today and always, along with our partners, we remain committed to putting terrorists and would-be terrorists behind bars. While the threat posed by Rahimi has been mitigated, I can’t overstate the critical role the public continues to play in combating the threats we face. As we welcome this victory today, I ask everyone to remain engaged, stay aware, and immediately report suspicious activity to the authorities.”
“Ahmed Rahimi deliberately placed two bombs on the streets of Chelsea in the dark of night with the intention of maiming and killing innocent New Yorkers enjoying a September Saturday night,” Commissioner O’Neill. “The fact that victims were not killed when one bomb exploded and another failed to detonate is miraculous. Mr. Rahimi was following to the hateful propaganda of al-Qaida and ISIS that calls for the killing of Americans. The combined efforts of the FBI, NYPD, the New York State Police and the Linden New Jersey Police Department led to the capture of Mr. Rahimi within 50 hours of the bombing. The investigation, as well as this conviction is an example of the work of the nation’s best counterterrorism team. I want to commend the detectives, agents and police officers, the prosecutors of the United States Attorney’s Office for the Southern District of New York, and the members of the jury for bringing Ahmed Rahimi to justice. Today’s verdict is the most forceful deterrent for anyone considering waging terror in our City. We will investigate; we will find those responsible; and justice will prevail.”
As set forth in the Complaint, Indictment and the evidence presented at trial:
On Sept. 17, 2016, Rahimi transported two improvised explosive devices from New Jersey to New York, New York. Rahimi placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York (the “23rd Street Bomb”) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York (the “27th Street Bomb”).
At approximately 8:30 p.m., the 23rd Street Bomb – containing a high explosive main charge – detonated, causing injuries to over 30 people and multimillion-dollar property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone; and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left near a dumpster. The explosion propelled a more-than-one-hundred-pound dumpster – which was introduced as an exhibit at trial – more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, the 27th Street Bomb was identified by a civilian who promptly called 911, which recorded call was introduced in evidence and played at trial. The 27th Street Bomb, which was rendered safe prior to detonation, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings and steel nuts.
Earlier that day, at approximately 9:35 a.m. on Sept. 17, 2016, another improvised explosive device, which had been planted by Rahimi in the early morning hours, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed. Had the race started on time, the bomb would have detonated as runners were passing by where Rahimi had planted it.
On Sept. 18, 2016, at approximately 8:40 p.m., six additional improvised explosive devices that Rahimi also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth. One of these devices detonated as law enforcement used a robot to defuse it.
On Sept. 19, 2016, at approximately 9:30 a.m., Rahimi was arrested by police in Linden, New Jersey. Rahimi fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued and placed under arrest. In the course of Rahimi’s arrest, a handwritten journal was recovered from Rahimi’s person. Written in the journal were, among other things, mentions of explosive devices (including “The sounds of bombs will be heard in the streets” and “Bombs set off in the streets they plan to run a mile”), and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, Mohammed al-Adnani, a former senior leader of the Islamic State in Iraq and al Sham and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
* * *
Rahimi was convicted of one count of using a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of attempting to use a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of bombing a place of public use, which carries a maximum sentence of life in prison; one count of destroying property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of attempting to destroy property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of interstate transportation and receipt of explosives, which carries a maximum sentence of 20 years in prison; and two counts of using of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, each of which individually carries a mandatory minimum consecutive sentence of 30 years in prison, a potential maximum sentence of life in prison, and, by virtue of his convictions on both counts, a mandatory sentence of life in prison.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In addition to the charges of which he was convicted in Manhattan federal court, Rahimi also has been charged in the District of New Jersey in a Complaint with offenses in connection with his alleged efforts to detonate explosives in Seaside Park and Elizabeth.
Mr. Boente and Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
Assistant U.S. Attorneys Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley of the Southern District of New York are prosecuting this case with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Chelsea Bomber Ahmad Khan Rahimi Convicted in Manhattan Federal Court for Executing September 2016 Bombing in New York CityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced that a jury returned a guilty verdict today against AHMAD KHAN RAHIMI, a/k/a “Ahmad Rahami,” in Manhattan federal court on all eight counts of the Indictment, which charged him with offenses related to his execution and attempted execution of bombings in New York City on September 17, 2016. RAHIMI, who faces a mandatory sentence of life in prison, is scheduled to be sentenced on January 18, 2018, by U.S. District Judge Richard M. Berman, who presided over the two-week trial.
Acting Manhattan U.S. Attorney Joon H. Kim said: “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.”
Acting Assistant Attorney General Dana J. Boente said: “Ahmad Khan Rahimi constructed bombs with high explosives and shrapnel to inflict maximum damage to innocent victims in multiple locations. The defendant’s bombs caused injuries to numerous people. Thanks to outstanding investigative work, the defendant was identified and arrested before he could do any more harm. This verdict is an important step in holding him accountable for his crimes. Pursuing those who seek to conduct attacks on our homeland will remain the highest priority of the National Security Division. I would like to commend all of the agents, detectives, analysts and prosecutors who made this result possible.”
FBI Assistant Director William F. Sweeney Jr. said: “It’s no secret New York City remains a desirable target for those who wish to disrupt our way of life. Last September, Rahimi set out to harm innocent people who were simply living their lives one Saturday evening. He underestimated the resilience of New Yorkers as well as the resolution of the FBI’s Joint Terrorism Task Force to see justice served. Today and always, along with our partners, we remain committed to putting terrorists and would-be terrorists behind bars. While the threat posed by Rahimi has been mitigated, I can’t overstate the critical role the public continues to play in combating the threats we face. As we welcome this victory today, I ask everyone to remain engaged, stay aware, and immediately report suspicious activity to the authorities.”
NYPD Commissioner James P. O’Neill said: “Ahmed Rahimi deliberately placed two bombs on the streets of Chelsea in the dark of night with the intention of maiming and killing innocent New Yorkers enjoying a September Saturday night. The fact that victims were not killed when one bomb exploded and another failed to detonate is miraculous. Mr. Rahimi was following to the hateful propaganda of al-Qaida and ISIS that calls for the killing of Americans. The combined efforts of the FBI, NYPD, the New York State Police and the Linden New Jersey Police Department led to the capture of Mr. Rahimi within 50 hours of the bombing. The investigation, as well as this conviction is an example of the work of the nation’s best counterterrorism team. I want to commend the detectives, agents and police officers, the prosecutors of the United States Attorney’s Office for the Southern District of New York, and the members of the jury for bringing Ahmed Rahimi to justice. Today’s verdict is the most forceful deterrent for anyone considering waging terror in our City. We will investigate; we will find those responsible; and justice will prevail.”
As set forth in the Complaint, Indictment, and the evidence presented at trial:
On September 17, 2016, RAHIMI transported two improvised explosive devices from New Jersey to New York, New York. RAHIMI placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York, New York (the “23rd Street Bomb”) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York, New York (the “27th Street Bomb”).
At approximately 8:30 p.m., the 23rd Street Bomb – containing a high explosive main charge – detonated, causing injuries to over 30 people and multimillion-dollar property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs, and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone; and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left near a dumpster. The explosion propelled a more-than-one-hundred-pound dumpster – which was introduced as an exhibit at trial – more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, the 27th Street Bomb was identified by a civilian who promptly called 911, which recorded call was introduced in evidence and played at trial. The 27th Street Bomb, which was rendered safe prior to detonation, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings, and steel nuts.
Earlier that day, at approximately 9:35 a.m. on September 17, 2016, another improvised explosive device, which had been planted by RAHIMI in the early morning hours, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed. Had the race started on time, the bomb would have detonated as runners were passing by where RAHIMI had planted it.
On September 18, 2016, at approximately 8:40 p.m., six additional improvised explosive devices that RAHIMI also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth, New Jersey. One of these devices detonated as law enforcement used a robot to defuse it.
On September 19, 2016, at approximately 9:30 a.m., RAHIMI was arrested by police in Linden, New Jersey. RAHIMI fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued, and placed under arrest. In the course of RAHIMI’s arrest, a handwritten journal was recovered from RAHIMI’s person. Written in the journal were, among other things, mentions of explosive devices (including “The sounds of bombs will be heard in the streets” and “Bombs set off in the streets they plan to run a mile”), and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, Mohammed al-Adnani, a former senior leader of the Islamic State in Iraq and al Sham, and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
* * *
RAHIMI, 29, of Elizabeth, New Jersey, was convicted of one count of using a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of attempting to use a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of bombing a place of public use, which carries a maximum sentence of life in prison; one count of destroying property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of attempting to destroy property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of interstate transportation and receipt of explosives, which carries a maximum sentence of 20 years in prison; and two counts of using of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, each of which individually carries a mandatory minimum consecutive sentence of 30 years in prison, a potential maximum sentence of life in prison, and, by virtue of his convictions on both counts, a mandatory sentence of life in prison.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In addition to the charges of which he was convicted in Manhattan federal court, RAHIMI also has been charged in the District of New Jersey in a Complaint with offenses in connection with his alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. Kim and Mr. Boente praised the outstanding efforts of the Federal Bureau of Investigation’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Carroll Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute was sentenced on October 16, 2017, to more than 11 years in federal prison.
Troy Dillavou, 41, from Carroll, Iowa, received the prison term after a guilty plea to one count of conspiracy to distribute methamphetamine.
Evidence at sentencing showed that, prior to entering the conspiracy to distribute methamphetamine, defendant was convicted of felony drug offenses in 2013 and 2014. This resulted in him being sent to state prison for approximately one and a half years. Upon being paroled in January 2016, defendant began distributing methamphetamine to a number of customers in quantities ranging from ounces to one-half pound. During the course of the conspiracy, defendant supplied methamphetamine to his 23-year-old daughter and tasked her with picking up multi-pound quantities of methamphetamine from his source.
Dillavou was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Dillavou was sentenced to 141 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Dillavou is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3023.
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Barre Resident Sentenced to Prison for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Robert Eldred, 57, of Barre, Vermont, was sentenced on October 16, 2017, in United States District Court in Rutland, Vermont, to serve six (6) months in federal prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Eldred to serve a five (5) year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in February 2015, the Federal Bureau of Investigation seized the computer server that hosted a website dedicated to the sharing and trading of, and communication among offenders about, child pornography (the Website). The FBI did not shut down the Website for approximately 13 days. During that time, when an individual accessed the Website, a Network Investigative Technique (NIT) was deployed to allow law enforcement to identify the Internet Protocol address of the user of the computer that accessed the Website. Through further investigation, the FBI determined that a computer used by Eldred accessed the Website for approximately two hours on March 4, 2015. The FBI executed a warrant to search Eldred’s residence for evidence of child pornography. During the search, Eldred’s computer was seized. During a forensic examination of the computer, the FBI found approximately 22 images of child pornography.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI in the investigation and prosecution of Eldred. The prosecution of Eldred was handled by Assistant U.S. Attorney Barbara A. Masterson. Eldred was represented by Assistant Federal Public Defender David L. McColgin.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bakersfield Man Pleads Guilty to Possession of Stolen U.S. Mail and Possession of 15 or More Credit CardsRead the Press Release
FRESNO, Calif. —Jason Leroy Geiser, 37, of Bakersfield, pleaded guilty today to conspiring to possess stolen U.S. mail and to unlawfully possessing 15 or more unauthorized access devices (credit or debit cards), United States Attorney Phillip A. Talbert announced.
According to court documents, from on or about October 1, 2016, and continuing to March 2, 2017, Geiser conspired with others to fraudulently and unjustly enrich himself from the unauthorized use of, and trafficking in, access devices stolen from the U.S. Mail.
This case was the product of an investigation by the United States Postal Service and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Geiser is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 16, 2018. Geiser faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General Jeff Sessions Issues Statement on FBI Statistics Showing Staggering Rise in Law Enforcement Officers Killed and Assaulted in the Line of Duty in 2016Read the Press Release
Attorney General Jeff Sessions today issued the following statement on the FBI's 2016 Law Enforcement Officers Killed and Assaulted report, which show an unacceptable rise in law enforcement officers assaulted and killed in the line of duty:
"Every law enforcement officer goes to work knowing that today might be his or her last. But last year, we saw a staggering 61 percent increase in the number of law enforcement officers killed in the line of duty because of a felony, and on average, more than 150 officers were assaulted in the line of duty every single day. These numbers are as shocking as they are unacceptable.
“Our law enforcement deserves the support of the people they serve. Fortunately we have a President who understands this. President Trump ran for office as a law-and-order candidate; now he is governing as a law-and-order President.
“In one of his first Executive Orders to this Department, President Trump directed us to prevent violence against law enforcement officers. He stands with our law enforcement 100 percent—and so does this Department of Justice. That's one more reason why we're focused on the President's goal of reducing violent crime and united with local, state, and federal law enforcement in our shared mission to protect law-abiding people in every community."
According to statistics collected by the FBI, 118 law enforcement officers were killed in line-of-duty incidents in 2016 – this is a 37 percent increase from 2015, when 86 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2016 there were 66 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a staggering 61 percent increase from 2015, when 41 law enforcement officer were killed in line-of-duty incidents.
Moreover, 57,180 officers were victims of line-of-duty assaults – this is a 14 percent rise from the 50,212 officer that were victims of line-of-duty assaults in 2015.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2016 edition of Law Enforcement Officers Killed and Assaulted report, released today.
Albuquerque Man Facing Federal Robbery and Prescription Drug Trafficking Charges Arising Out of Pharmacy RobberyRead the Press Release
ALBUQUERQUE – Abraham Martinez, 35, of Albuquerque, N.M., made his initial appearance this morning in federal court on a criminal complaint charging him with violating the Hobbs Act and prescription drug trafficking. The charges against Martinez arise out of the alleged armed robbery of an Albuquerque-area pharmacy on Oct. 13, 2017. Martinez remains in custody pending a preliminary hearing and a detention hearing both of which are scheduled for Oct. 17, 2017.
The criminal complaint charges Martinez with violating the Hobbs Act by robbing a business engaged in interstate commerce and possession of Xanax with intent to distribute. According to the criminal complaint, Martinez allegedly committed the offenses by robbing the Walgreens pharmacy located at 2625 San Pedro Dr. NE in Albuquerque, by threatening the pharmacist with a knife and demanding Xanax.
If convicted of the charges in the criminal complaint, Martinez faces a statutory maximum penalty of 20 years in federal prison for violating the Hobbs Act and a statutory maximum penalty of 10 years in federal prison for possession of prescription drug with intent to distribute. Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorney Joel R. Meyers is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Friday 13 October 2017
Worcester Business Owner Pleads Guilty to Fentanyl Distribution and Money LaunderingRead the Press Release
BOSTON – A Worcester business owner pleaded guilty today in federal court in Worcester to distributing fentanyl and using the proceeds of drug sales to purchase and renovate nine properties in Worcester County.
Kevin A. Perry, 44, of Worcester, pleaded guilty to nine counts of money laundering, three counts of aggravated cash structuring, one count of making a false statement on a loan application, and one count of distribution of fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 11, 2018.
Perry was previously convicted in federal court in Massachusetts of conspiracy to manufacture and distribute MDMA, commonly referred to as Ecstasy. Despite filing an affidavit claiming he possessed nothing of monetary value to satisfy the court’s forfeiture order, Perry boasted to an individual that he successfully concealed from the government “millions of dollars” in profits from drug sales. Following his release from prison in 2008, Perry returned to the manufacturing and distribution of controlled substances, including fentanyl, a powerful synthetic opioid that is 50 to 100 times more potent than morphine and heroin. On Feb. 23, 2017, Perry distributed 2,000 pills containing fentanyl to an individual cooperating with law enforcement.
Additionally, from April 2012 to October 2016, Perry used over $1 million in proceeds from drug sales to purchase and renovate nine properties in Worcester County. Those purchases included two restaurants in the city of Worcester: The Usual Restaurant located at 166 Shrewsbury Street and The Blackstone Tap located at 81 Water Street. Perry also used the proceeds from his drug sales to purchase more than 230 money orders totaling over $150,000 from the United States Postal Service and Western Union to make structured cash payments on real estate loans and to finance his wedding in August 2015. The only employment that Perry reported during that time was as a fitness trainer. He also collected unemployment benefits from June 2015 through January 2016.
The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The charge of aggravated cash structuring provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. The charge of making a false statement on a loan application provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1 million. The charge of distribution of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release, and a fine of up to $10 million.
According to the plea agreement, Perry will be sentenced to between 14 and 16 years in prison and five years of supervised release. He will also forfeit the nine properties, the business assets of the two restaurants, over $510,000 in cash and precious metals seized to date, an illegal pill press, and two vehicles. The sentence will also include a money judgment of $1,180,943 against Perry should additional assets be located. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office is prosecuting the case.
Williamsport Man Charged with Drug Trafficking and Unlawful Possession of AmmunitionRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hakim Handy, age 34, of Williamsport, Pennsylvania was indicted on October 12, 2017, by a federal grand jury for conspiring to distribute heroin and crack cocaine, the distribution of heroin, and the unlawful possession of ammunition.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Handy sold heroin on January 9 and 15, 2015, and possessed with the intent to distribute crack cocaine and heroin on January 16, 2017, in Lycoming County, Pennsylvania. The indictment also alleges that Handy unlawfully possessed 24 rounds of .44 caliber Remington ammunition.
The case was investigated by the Williamsport Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the case.
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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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William J. Powell sworn in as United States Attorney for the Northern District of West VirginiaRead the Press Release
WHEELING, WEST VIRGINIA – William J. Powell has taken the oath of office to become the United States Attorney for the Northern District of West Virginia. Powell was nominated by President Donald Trump on August 3, 2017 and confirmed by the U.S. Senate on October 3, 2017. Chief U.S. District Judge Gina M. Groh administered the oath of office to U.S. attorney Powell today.
“I am honored and humbled to be named as the U.S. Attorney for the Northern District of West Virginia. I’m excited to start working with the very fine staff and attorneys in the district on the very important work that needs to get done,” said Powell.
As U.S. Attorney, Powell is the top-ranking federal law enforcement official in the Northern District of West Virginia, which includes offices in Wheeling, Martinsburg, Clarksburg, and Elkins. He oversees a staff of 45 employees, including 21 attorneys and 24 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Powell, a Martinsburg native, was born in Manhasset, New York in 1960. He most recently served as the Chief Deputy Prosecuting Attorney in Jefferson County, West Virginia. He has also held positions as a member attorney at Jackson Kelly, PLLC, and an Assistant United States Attorney in the United States Attorney’s Office for the Southern District of West Virginia.
He received his J.D. in 1985 from the West Virginia University College of Law and his B.A. in 1982 from Salem College. He is a past president of the West Virginia Bar Association, past Member of the Board of Governors for the West Virginia State Bar, and has been active in numerous community and professional organizations.
He has been married to his wife, Sharon, for 31 years, and they have raised three boys.
West Texas Methamphetamine Distributors Given Lengthy Prison SentencesRead the Press Release
LUBBOCK, Texas — Arnoldo Mendoza Lepez, 45, of Littlefield, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 405 months in federal prison following his guilty plea to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas. A co-defendant, Joseph Raymond Jaramillo, Jr., 30, also of Littlefield, Texas, was sentenced last week to 365 months in federal prison following his guilty plea to his role in the same conspiracy.
Both Lepez and Jaramillo pleaded guilty in July 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Both have been in custody since the time of their arrest in May 2017.
Co-defendant Zahir Rivera-Pineda, 27, pleaded guilty in June 2017 to his role in the conspiracy and was sentenced to 60 months in prison in September of this year.
According to plea documents filed in the case, on May 5, 2017, New Mexico State Police stopped a vehicle being driven by Rivera-Pineda that was found to contain approximately 20 pounds of suspected methamphetamine near Albuquerque, New Mexico. Agents with Homeland Security Investigations (HSI) were able to determine that the methamphetamine was destined for a specific residence located in Littlefield, Texas. HSI agents coordinated with agents from the Lubbock County, Texas Sheriff’s Office (LCSO) and Drug Enforcement Administration (DEA) to complete the delivery of the methamphetamine to the residence in an attempt to identify the individuals receiving the narcotics.
Shortly after the methamphetamine was delivered to the residence in Littlefield, agents executed a search warrant. Inside the residence, agents located Jaramillo, Jr. and Lepez. Inside the room with Jaramillo and Lepez, agents located in plain-view several of the bundles containing the methamphetamine that had just been delivered to the house. The remainder of the bundles were located inside a hidden compartment located in the closet of the same room. Agents found two firearms in the room with the defendants as well as several other firearms throughout the residence.
The methamphetamine located in the residence weighed a total of 8,833 grams.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Lubbock County Sheriff’s Office, and New Mexico State Police conducted the investigation. Assistant U.S. Attorney Sean Long was in charge of the prosecution.
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US Attorney's Office and Michigan Department of Civil Rights Reach Agreement with Macomb County Prosecutor's Office to Ensure Effective Communication for Persons Who are Deaf or Hard of HearingRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan and the Michigan Department of Civil Rights have reached an agreement with the Macomb County Prosecutor’s Office under the Americans with Disabilities Act (“ADA”) and the Michigan Persons with Disabilities Civil Rights Act (“MPWDCRA”), Acting U.S. Attorney Daniel L. Lemisch and Agustin V. Arbulu, Director of the Michigan Department of Civil Rights, announced today. Under the terms of the agreement, the Prosecutor’s Office will provide sign language interpreters and other aids and services, free of charge, to members of the public who are deaf or hard of hearing.
The settlement resolves a complaint that the Prosecutor’s Office failed to provide a sign language interpreter to an individual who is deaf and communicates primarily in American Sign Language (ASL). The complainant alleged that the Prosecutor’s Office asked the complainant to provide information and sign a summons and complaint in a child support matter, but she was unable to communicate effectively with employees without an interpreter.
The ADA and MPWDCRA require that public entities provide effective communication to all individuals with disabilities who seek to participate in or benefit from their services, programs or activities. “Effective communication” means that communication with persons who are deaf or hard of hearing should be as effective as communication with others. Entities must provide auxiliary aids and services, including qualified and certified ASL interpreters, when necessary to give persons with disabilities equal access.
Under the settlement, the Macomb County Prosecutor’s Office agreed to modify its policies and train its staff to ensure that members of the public who are deaf are able to effectively communicate with the office, provide appropriate auxiliary aids and services at no cost, and post signs notifying the public of the availability of these services.
“Government offices have an obligation under the Americans with Disabilities Act to ensure that people with disabilities are able to access their programs and services,” said Acting United States Attorney Daniel L. Lemisch. “We are pleased that the Macomb County Prosecutor’s Office is updating its policies to ensure that individuals who are deaf or hard of hearing will have access to the tools they need to communicate with its employees. We hope this case will remind other government offices to ensure they have the tools in place to provide effective communication to the public that they serve.”
“Access for all to our justice system is a fundamental aspect of our democracy,” said Agustin V. Arbulu, Director of the Michigan Department of Civil Rights. “People who are Deaf, DeafBlind or Hard of Hearing must be able to communicate effectively within our justice systems, whether as a defendant, a witness, a victim of a crime or a party to a proceeding. The Macomb County Prosecutor’s Office deserves our thanks for providing a simple, cost-effective model for other Michigan Prosecutor offices to follow in ensuring access for Deaf, DeafBlind and Hard of Hearing citizens.”
“The right to effective communication is a core right for Michigan citizens who are Deaf, DeafBlind and Hard of Hearing, and the ability to fully access programs and services in our courts must be protected,” said Annie Urasky, Director of MDCR Division on Deaf, DeafBlind and Hard of Hearing. “I thank the Macomb County Prosecutor’s Office for recognizing the need to review and update their policies with regards to sign language interpreters.”
Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Those interested in learning more about the Michigan Department of Civil Rights, the Division on Deaf, DeafBlind and Hard of Hearing and the laws they enforce can visit www.michigan.gov/mdcr or call 800-482-3604; via Video Phone at 313-437-7035; or send email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
U.S. Attorney’s Office and FBI to Host 9th Annual Cyber Crime Prevention Symposium for Educators, Parents and StudentsRead the Press Release
LOS ANGELES – The United States Attorney’s Office, the FBI, and a coalition of other law enforcement agencies and community organizations are hosting the 9th Annual Cyber Crime Prevention Symposium on Monday, October 16. More than 450 educators, parents, and middle and high school students are expected to attend the daylong conference at the California Endowment Center for Healthy Communities in Los Angeles.
The Symposium will address a wide range of Internet-related security and safety issues. Speakers will address and lead discussions on topics that include child exploitation, cyberbullying, the implications of digital communication on teen health, digital reputation, navigating peer pressure, social media, sexting and sextortion. This year’s Symposium will feature a youth panel presentation on social media, a SnapChat geotag and a surprise appearance during the lunch break by celebrity guests from Disney.
“The internet and social media are a core component of our everyday lives. Because the internet is such an integral part of their relationships, young people must have tools to understand the online environment, the responsibilities they have to themselves and others, and the perils of reckless behavior,” said Acting United States Attorney Sandra R. Brown. “This Symposium will provide young people with important information that will help them avoid danger while engaging with others online.”
“I’m proud that the FBI has been part of this annual event for nine years, during which we’ve seen the rules associated with the internet and cyber security evolve dramatically,” said Danny Kennedy, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “In 2017, our children must deal with traditional challenges such as peer pressure and bullying, but we also expect them to navigate their way through the latest technology. A byproduct of this event has always been that the FBI learns a great deal from the students too, as we endeavor to teach them the latest tools that can make a difference in their lives.”
As part of this year’s event, theater students from California State University, Northridge will perform a cyber-related skit for students and interact with the audience in a “Write-Around” exercise addressing current issues such as sexting and cyberbullying.
Student teams from each of the schools attending this year’s Symposium will also be invited to participate in the annual Cyber Safety Challenge. Participating students will be asked to develop a cyber safety program for their respective schools to educate the entire student body on the various risks associated with cyber crime. The contest promotes good online etiquette by challenging students to create cyber safety programs. Students participating in this challenge will have their contest entries judged by a panel of experts, and the winning school will be awarded prizes in May 2018.
“The cyber world can be a wonderfully enlightening place, but it can also be a dangerous one, especially for children,” said Los Angeles City Attorney Mike Feuer. “My office is proud to work with our law enforcement partners to find ways to make the web safer.”
Organized under the aegis of the Inter-Agency Council on Child Abuse and Neglect (ICAN), law enforcement agencies participating in tomorrow’s conference include the United States Attorney’s Office, the Federal Bureau of Investigation, the Los Angeles City Attorney’s Office, the Los Angeles County Sheriff’s Department, and the Los Angeles Police Department’s Internet Crimes Against Children Task Force (ICAC). The Cyber Crime Prevention Symposium is hosted this year by the Archdiocese of Los Angeles, and the planning committee also includes participation by Santa Monica-UCLA Medical Center, the Anti-Defamation League, Fox Entertainment Group, the Walt Disney Company, and Warner Bros. Entertainment.
“Children who are growing up in this high-tech age are being targeted by online predators at an alarmingly high rate,” said Deanne Tilton Durfee, Executive Director for the ICAN. “Each year, this Symposium provides participants with resources and tools to help children learn how to protect themselves and be safe in the cyber world, while enjoying all of the benefits of the fast-growing technologies.”
Two men indicted for 11 armed robberies across Cleveland areaRead the Press Release
A 17-count indictment was filed in federal court charging two men for nearly a dozen armed robberies in Northeast Ohio, law enforcement officials said.
Richard Glenn, Jr., 40, of Maple Heights, and Brandon Williams, 35, of Euclid, are charged with using firearms to rob banks, drug stores and convenience stores in South Euclid, Euclid, Wickliffe, Lyndhurst, Cleveland, Bedford Heights and Maple Heights.
The locations and dates of the robberies detailed in the indictment are listed below:
Aug. 9: Walgreens, 2135 Warrensville Center Road, Warrensville Heights (Glenn and Williams).
Aug. 15: Euclid Mart, 26610 Lakeshore Blvd. Euclid (Williams).
Aug. 17: Walgreens, 20485 Euclid Ave., Euclid (Glenn).
Aug. 21: Ohio Savings Bank, 29169 Euclid Ave., Wickliffe (Williams).
Aug. 23: U.S. Bank, 5695 Turney Road, Garfield Heights (Glenn).
Aug. 25: Chase Bank, 5400 Mayfield Road, Lyndhurst (Williams).
Aug. 29: Dollar General, 9111 Miles Road, Cleveland (Glenn).
Aug. 31: A&M Food Mart, 25600 Aurora Road, Bedford Heights (Glenn and Williams).
Sept. 5: Dollar Bank, 240 E. 228 Street, Euclid (Williams).
Sept. 11: Chase Bank, 5435 Northfield Road, Bedford Heights (Williams).
Sept. 11: Dollar Bank, 5180 Warrensville Center Road, Maple Heights (Williams)
The charges include Hobbs Act robberies, bank robberies, brandishing a firearm during a crime of violence and being felons in possession of firearms.
Glenn has prior felony convictions in Cuyahoga County Common Pleas Court for aggravated robbery and drug possession that make it illegal for him to have a firearm. Williams has felony convictions in Cuyahoga County Common Pleas Court for robbery, burglary, grand theft and arson that make it illegal for him to have a firearm, according to the indictment.
“These defendants used firearms to rob 11 stores and banks all over the east side of Greater Cleveland,” U.S. Attorney Justin E. Herdman said. “Our law enforcement partners did a tremendous job bringing this violent crime spree to an end. Now this duo will be held accountable for terrorizing our neighbors.”
“Williams and Glenn put everyday citizens’ lives in peril with their gun-wielding robberies,” said FBI Special Agent in Charge Stephen D. Anthony. “For these dangerous crimes they are facing a significant amount of time in a federal penitentiary. The FBI will continue to work aggressively with our local law enforcement partners to ensure violent criminals like these are prosecuted to the fullest extent of the law.”
This case was investigated by the FBI and police departments from Cleveland, Bedford Heights, Euclid, South Euclid, Garfield Heights, Lyndhurst, Maple Heights, Wickliffe and Willoughby Hills, with assistance from the Cuyahoga County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Executives Sentenced for Promoting A Fraudulent Offshore Tax Shelter SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Duane Crithfield (70, Lecanto) to four years and six months in federal prison and Stephen P. Donaldson, Sr. (72, Tampa) to six years’ imprisonment for their roles in a conspiracy to defraud the United States using an offshore tax shelter scheme. A separate hearing will be held at a later date to determine the amount of restitution owed by the two defendants.
Crithfield and Donaldson were indicted on May 2, 2013, for conspiracy to defraud the United States. A superseding indictment was returned on July 25, 2013, that added two substantive charges.
As alleged in the superseding indictment, from 2001 to at least March 2008, Crithfield and Donaldson, and others, through Foster & Dunhill, Offshore Trust Service, Fidelity Insurance Company ("FIC"), and Citadel Insurance Company ("CIC") promoted, marketed, and implemented a fraudulent offshore tax strategy known as the Business Protection Plan ("BPP"). The fraudulent BPP strategy enabled the defendants' affluent clients to claim business expense deductions based on sham “BPP insurance premium” payments made to offshore entities FIC and CIC in amounts intended primarily to substantially reduce the clients' taxable income for a particular year.
According to court records and evidence admitted during the bench trial, Crithfield and Donaldson conspired together, and with others, to create and promote the offshore BPP tax shelter strategy. The strategy, however, was nothing more than self-insurance and was devoid of any economic substance and the so‑called “BPP insurance premiums” were not based on any business risks. After obtaining the benefit of a tax deduction on a client's corporate income tax return, the client would later receive approximately 83‑85% of the premium back. Thus, the premium amounts were not ordinary and necessary business expenses that were entitled to deductions under Section 162(a) of the Internal Revenue Code. Rather, they were merely sham expenditures and not properly deductible for U.S. income tax purposes on the respective businesses’ tax returns.
This case was investigated by the Internal Revenue Service. It was being prosecuted by Assistant United States Attorneys Jay G. Trezevant and Megan K. Kistler.
Trenton Man Admits Role in Conspiracy to Distribute and Possess with Intent to Distribute CocaineRead the Press Release
TRENTON, N.J. – A Trenton man today admitted his role in a conspiracy to distribute and possess with intent to distribute more than 1.5 kilograms of cocaine and more than 122 grams of cocaine base, Acting U.S. Attorney William E. Fitzpatrick announced.
Khalfini Richardson, 33, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.
According to the documents filed in this case and statements made in court:
From September of 2013 through Jan. 13, 2016, Richardson conspired with co-defendants Bobby Williams, William Enmond and Capitol T. Wellons to distribute cocaine, and to manufacture and distribute cocaine base, primarily from two adjacent residences in Trenton. On May 8, 2015, Richardson cooked powder cocaine into cocaine base inside one of the Trenton residences and sold approximately 40 grams of it to a confidential government source for $1,800. Richardson admitted to conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and to conspiring to manufacture as well as distribute, and possess with intent to distribute, 122.6 grams of cocaine base.
The count to which Richardson pleaded guilty is punishable by a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 17, 2018.
Enmond previously pleaded guilty before Judge Ship and was sentenced July 21, 2017, to five years in prison. The charges and allegations against Williams and Wellons are merely accusations, and they are considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber and Senior Litigation Counsel Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brynn Giannullo Esq., New Brunswick, New Jersey
Three South Shore Men Plead Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – Three South Shore men pleaded guilty today in federal court in Boston to their roles in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
David Tejeda, 35, of New Bedford; Jeffrey Freitas, 32, of Bridgewater; and John Paul Tanguay, 34, of Taunton, each pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Tejeda, Freitas, and Tanguay were arrested and charged along with 20 other co-defendants. U.S. District Court Judge Indira Talwani scheduled the sentencings for Tejeda and Freitas for Jan. 4, 2018, and Jan. 5, 2018, respectively. U.S. District Court Judge Leo T. Sorokin scheduled Tanguay’s sentencing for Oct. 16, 2018. As part of the District Court’s RISE program, Tanguay will participate in supervised drug treatment in advance of his sentencing hearing.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Jose Antonio Lugo-Guerrero, 32, a Dominican national operating in Boston, and Fernando Hernandez, 42, a Dominican national residing in Providence, R.I. Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton. The organization sold heroin and fentanyl to customers, including Tanguay, who re-distributed a portion of the drugs he obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston and sold to numerous customers, including Tejeda and Freitas. It is further alleged that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
Hernandez and Lugo-Guerrero each pleaded not guilty and are awaiting trial.
The conspiracy charge against Tanguay and Tejeda provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Freitas faces a sentence of at least five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime term of supervised release and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Florida Residents Charged for Receiving Bribes from Aliens in Exchange for Immigration BenefitsRead the Press Release
Elisa Pelaez, 54, Ginou Baptiste, 48, and Fritz Cyriaque (a/k/a “Joseph,” a/k/a “Ferguson”), 50, all of Miami, were indicted by a federal grand jury for conspiracy to solicit, demand and accept money or anything of value in excess of $5,000, from aliens, intending to be influenced and rewarded in connection with any business, transaction, and series of transactions, of Behavioral Intervention, Inc. a/k/a BI, Inc. (BI, Inc.), a Geo Group Company, an organization that received in any one year period, benefits in excess of $10,000, under a federal program involving a contract.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of Inspector General (DHS-OIG), and Michael T. Moreland, Special Agent in Charge, U. S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), made the announcement.
According to court documents, DHS and ICE conducted an undercover operation into an immigration fraud ring suspected of soliciting aliens participating in the Intensive Supervision Appearance Program. The Intensive Supervision Appearance Program was administered by BI, Inc., a private company contracted by the U.S. Department of Homeland Security. BI, Inc. relied on electronic GPS monitoring devices, telephonic reporting, office interviews, unannounced home visits, employment verification, case management services, and documenting aliens’ attendance at court hearings to perform its contractual obligations to monitor individuals in the Intensive Supervision Appearance Program.
Elisa Pelaez was an employee and agent of BI, Inc. She managed staff, conducted community outreach, and supervised aliens awaiting immigration proceedings. Ginou Baptiste was an employee and agent of BI, Inc. She supervised aliens awaiting immigration proceedings. Fritz Cyriaque was an associate of defendants Pelaez and Baptiste.
From on or about November 2010 through February 2014, defendants Pelaez and Baptiste used their positions of authority as employees and agents of BI, Inc. to unlawfully demand and receive monies from participants in the Intensive Supervision Appearance Program in exchange for removal of their electronic monitoring devices. Baptiste would identify participants who desired to have their electronic monitor removed prematurely and had the ability to pay for its removal. Pelaez and Baptiste referred participants seeking to have their electronic monitors removed to Cyriaque. Batiste told participants in the Intensive Supervision Appearance Program that Cyriaque was an ICE official who could assist them in resolving their immigration issues. Cyriaque posed as a United States ICE official and collected monies from participants in the Intensive Supervision Appearance Program in exchange for removal of their electronic monitoring device. After Cyriaque obtained payments from the participants, Pelaez and Baptiste would direct other BI, Inc. employees to remove the participants’ monitors. Additionally, Pelaez, Baptiste and Cyriaque used intimidation and other means to further the conspiracy and to dissuade participants from reporting their illegal conduct to law enforcement.
Mr. Greenberg commended the investigative efforts of DHS-OIG and ICE-OPR. This case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov