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28 November 2017
Florida Man Sentenced to 25 Years in Prison for Hate Crime for Conspiring to Attack Florida SynagogueRead the Press Release
James Gonzalo Medina was sentenced today to 25 years in prison for attempting to attack an Aventura, Florida synagogue, and attempting to use a weapon of mass destruction.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
During the plea proceedings, Medina admitted that in March and April 2016, he planned to conduct a firearms or explosives attack on the Aventura Turnberry Jewish Center. Medina took steps to prepare for this attack including conducting surveillance of the Jewish Center. On April 29, 2016, Medina took possession of what he believed to be an explosive device, obtained from a Southern Florida Joint Terrorism Task Force agent, and approached the Jewish Center on foot with the device in hand, intending to commit the attack.
“The defendant’s concrete steps to commit an act of domestic terror against a place of worship because of the congregants’ religious beliefs posed a grave threat to all residents of Miami-Dade County,” said Acting United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office and our law enforcement partners will investigate and prosecute terrorism and hate-inspired violent crimes motivated by a victim’s religion, race, ethnicity, sexual preference, or gender identity.”
“Medina wanted to kill innocent people by detonating an explosive device at the Aventura Turnberry Jewish Center, but was denied his terroristic goals by the dedicated professionals of the South Florida Joint Terrorism Task Force,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States.”
Mr. Greenberg commended the investigative efforts of the FBI and the Southern Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorneys Marc Anton and Michael Thakur, with the assistance of the Civil Rights Division’s Special Litigation Counsel Steve Curran and National Security Division’s Trial Attorney Taryn Meeks.
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.
Florida Man Sentenced for Conspiracy to Transport Illegal AliensRead the Press Release
Gulfport, Miss. – Robert Espinal, Jr., 52, of Cape Coral, Florida, was sentenced by U.S. District Judge Louis Guirola, Jr. today to 14 months in federal prison, followed by 2 years of supervised release, for conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst and Raymond R. Parmer, Jr., Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. Espinal was also ordered to pay a $4,000 fine and special assessments totaling $5,100. He entered a guilty plea to the charge on July 26, 2017, before Chief U.S. District Judge Louis Guirola, Jr., in Gulfport.
On February 16, 2017, a Kia Sorento vehicle owned and driven by Espinal, was stopped by a City of D’Iberville Police Officer on Interstate-10 in Harrison County, Mississippi, for careless driving. While the Kia Sorento was designed to seat seven people, the police officer observed that, in addition to the driver, there were eight unidentified passengers for a total of nine occupants in the vehicle. The eight passengers could not be identified by Espinal. The Blue Lightning Operations Center of the Department of Homeland Security was notified, and agents of Homeland Security Investigations and the U.S. Customs and Border Patrol responded.
The passengers did not have proper documents, were illegally present in the United States, and were being smuggled by Mr. Espinal. All occupants of the vehicle were arrested. Espinal confirmed that he knew his passengers were illegal aliens and that he had allowed some of them to stay overnight at an apartment he had in Texas. Some of the passengers later testified that their family agreed to pay Espinal to drive them to various states throughout the country.
U.S. Attorney Hurst praised the cooperation exhibited by the Immigration and Customs Enforcement's Homeland Security Investigations, U.S. Customs and Border Patrol, and the D’Iberville Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Five Men Indicted for Hobbs Act Robberies of Seven Businesses in West TennesseeRead the Press Release
Jackson, TN – On November 20, 2017, a federal grand jury returned a 14-count indictment charging five defendants with federal Hobbs Act Robbery in West Tennessee. D. Michael Dunavant,U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, from July 1, 2016 through October 31, 2016, Jenial Edwards, Scotty Edwards, Eddie Matthews, Zarius Norment and Johnny Cross were on a robbery crime spree. Separately and together, the defendants robbed seven different businesses in Bolivar, Whiteville, and Jackson, Tennessee. Some of the defendants possessed firearms in each of these robberies. The 14-count indictment charges each defendant with robbery affecting interstate commerce and carrying and/or brandishing firearms during the commission of the robberies. Jenial Edwards is also charged with being a felon in possession of a firearm.
The defendants are:
Jenial Edwards, 25, Bolivar, TN
Scotty Edwards, 25, Bolivar, TN
Eddie Matthews, 26, Bolivar, TN
Zarius Norment, 21, Whiteville, TN
Johnny Cross, 54, Bolivar, TNIf convicted, each defendant faces up to 20 years imprisonment for each of the robberies and a $250,000 fine. In addition, the defendants face a consecutive 7-year sentence for brandishing a firearm during the robberies. Jenial Edwards has an additional penalty of not more than 10 years for being a convicted felon in possession of a firearm. The United States also seeks criminal forfeiture of property involved in the crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Hardeman County Sheriff’s Office; and Bolivar, Whiteville and Jackson Police Departments.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.
Essex County, New Jersey, Man Sentenced to 79 Months in Prison for Fall 2016 Bank Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 79 months in prison for robbing five banks in October and November 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Jermaine Mason, a/k/a “Asim Harris,” 40, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with five counts of bank robbery. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, Mason robbed the following banks on the dates set forth below:
Bank
Location
Date
Kearny Bank
Harrison
Oct. 21, 2016
PNC Bank
Jersey City
Nov. 3, 2016
Popular Community Bank
Newark
Nov. 17, 2016
Provident Bank
Jersey City
Nov. 18, 2016
Provident Bank
Kearny
Nov. 29, 2016
Mason admitted that during each of the above robberies, he either presented a note demanding cash from bank tellers or verbally demanded money.
In addition to the prison term, Judge Martini sentenced Mason to three years of supervised release and ordered him to pay $16,429 in restitution.
Mason was originally arrested by state authorities on Nov. 30, 2016 and has been in custody since that time. Prior to his arrest, he was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Erie Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Jonathan Scott Boynton, 29, of Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Boynton received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Man and Woman Charged with Drug OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and woman have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Michael Heideman, age 43, and Sierra Bridwell, a/k/a Sierra Red Water, a/k/a Sierra High Elk, age 21, were indicted on November 14, 2017. Heideman appeared before U.S. Magistrate Judge Mark A. Moreno on November 16, 2017. Bridwell appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2017. They both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in custody and/or a $250,000 fine, at least 4 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 1, 2017, and November 14, 2017, Heideman and Bridwell knowingly and intentionally combined, conspired, confederated, and agreed to distribute and possess with intent to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.
The Indictment also alleges that on September 23, 2017, Heideman and Bridwell knowingly and intentionally possessed with intent to distribute 50 grams or more of methamphetamine.
The charges are merely accusations and Heideman and Bridwell are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Heideman was remanded to the custody of the U.S. Marshals Service. Bridwell was released on bond. A trial date has been set for January 23, 2018.
Eagle Butte Man Charged with ArsonRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Arson.
Stuart Turning Heart, age 44, was indicted on November 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 14, 2017, Turning Heart willfully and maliciously set fire and burned a building and structure in Eagle Butte.
The charge is merely an accusation and Turning Heart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Turning Heart was released on bond pending trial, which has been set for January 23, 2018.
Dunmore Man Sentenced to 36 Months’ Imprisonment for $1.6 Million Tax FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Diego Rojas, age 43, of Dunmore, Pennsylvania, was sentenced today to 36 months’ imprisonment before United States District Court Judge James M. Munley for conspiring to defraud the government with respect to income tax claims.
According to United States Attorney David J. Freed, Rojas deposited approximately 350 United States tax refund treasury checks, at least 250 which were identified as fraudulent (Stolen Identitiy Refund Fraud (SIRF)) checks, into the check cashing company he owned and operated, Dunmore Check Cashing. The approximate value of these SIRF checks was $1,669,000.
Rojas was also ordered to pay $1,669,864 in restitution.
The case was investigated by the Scranton Office of the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Doctor and Receptionist Charged with Running Center City Pill MillRead the Press Release
Martin D. Weaver, M.D, 63, of Sickerville, New Jersey, and Erica LaBoy, 31, of Philadelphia, were charged today by Indictment, unsealed today, with conspiracy to distribute controlled substances outside the scope of professional practice; and Weaver was also charged with 29 counts of distributing controlled substances outside the scope of professional practice, announced Acting United States Attorney Louis D. Lappen.
According to the Indictment,[1] from at least December 2016 through October 2017, Weaver, with the assistance of La Boy, operated medical offices in Center City Philadelphia as a front for drug-dealing. The defendants sold prescriptions for oxycodone, a dangerous and addictive Schedule II controlled substance, to so-called patients, for $300 cash for the first prescription and $200 cash thereafter. Weaver did not examine the patients and often handed out prescriptions for oxycodone from the receptionist desk without providing any medical care.
If convicted, the defendants face significant terms of incarceration, as well as up to a lifetime of supervised release, and substantial fines and special assessments.
The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and M. Beth Leahy.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was part of a group selling heroin in Huntington in 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Marquis Tamal Quinton Evans, 24, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
Between July and October of 2015, Evans and others distributed heroin that was transported from Michigan to the Huntington area. On October 5, 2015, the Huntington FBI Drug Task Force conducted a search at 1826 Old 16th Street Road in Huntington. Agents located Evans inside the residence, as well as two other individuals. During the search, agents seized approximately 284 grams of heroin and over $51,000 in cash. Evans admitted that he and the other individuals intended to sell the heroin. Evans additionally admitted to all the drug trafficking activity charged in the indictment.
Evans faces at least five and up to 40 years in federal prison when he is sentenced on February 26, 2018.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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 illegal 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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Convicted Felon, Living in Logan County, Kentucky, Sentenced to 87 Months in Prison for Possession and Attempted Distribution of Methamphetamine and CocaineRead the Press Release
Charges include being a felon in possession of seven firearms and ammunition
BOWLING GREEN, Ky. – A convicted felon, living in Logan County, Kentucky, was sentenced today by United States District Judge Greg N. Stivers, in United States District Court, to 87 months in prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, and being a felon in possession of firearms and ammunition, announced United States Russell M. Coleman.
Sherman Matthew Watkins, 41, who was residing in Russellville at the time of his arrest, pleaded guilty on August 29, 2017, to one count of possession with intent to distribute five grams or more of methamphetamine a Schedule II controlled substance and two counts of being a felon in possession of seven firearms and ammunition. Watkins remains in federal custody.
Watkins was arrested in Logan County on December 6, 2016, and at that time was in possession of $1,132 in U.S. currency, 41.86 grams of methamphetamine, a Norinco, model SKS, 7.62x39 semiautomatic rifle; a Smith and Wesson, model 37 Airweight, .38 caliber revolver; a Smith and Wesson, model 10-8, .38 caliber revolver; and assorted rounds of ammunition. Further, between November 1, 2016 and November 25, 2016, Watkins was in possession of a Glock, model 42, .380 caliber semiautomatic pistol; a Ruger, model 10/22, .22 caliber semiautomatic rifle; a Mossberg, model 590, 12 gauge semiautomatic shotgun; a Just Right Carbines, model JR Carbine, 9mm semiautomatic rifle; and assorted rounds of ammunition.
Watkins has two previous convictions Jefferson County Circuit Court including Possession of a Controlled Substance 1st Degree on May 8, 2014, and Criminal Possession of a Forged Instrument 2nd Degree, on May 26, 2011.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Colbert County Man Pleads Guilty to Producing Child PornographyRead the Press Release
BIRMINGHAM – A Colbert County man pleaded guilty today to producing child pornography between 1997 and 1998, announced U.S. Attorney Jay E. Town, Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Homeland Security Investigations Special Agent in Charge Ray Parmer.
CHARLES MARK MCCORMACK, 54, of Muscle Shoals, pleaded guilty to one count of production of child pornography before Chief U.S. District Court Judge Karon O. Bowdre. Sentencing is set for April 3 in Huntsville.
“It is incredibly disturbing that this kindergarten teacher was engaged in the production of child pornography,” Town said. “I thank the Georgia Bureau of Investigation and HSI agents who worked with federal prosecutors for their quick efforts which prevented more innocent victims from suffering at the hands of McCormack. The Bureau of Prisons has bed space reserved for people like him.”
According to admissions made in connection with his guilty plea, between Aug. 1, 1997, and Oct. 15, 1998, McCormack used a minor, born in 1992, to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct, by videotaping the minor urinating in a bathroom in his Colbert County home. During a May 2016 search of McCormack’s residence, law enforcement also discovered fewer than 25 images of nude and topless females believed to constitute child pornography and a suitcase containing young girls’ panties.
U.S. Immigration and Customs Enforcement’s HSI is investigating this case with the cooperation of the GBI. Assistant U.S. Attorney Daniel J. Fortune of the Northern District of Alabama and Department of Justice Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Clarksburg woman sentenced for firearm violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Hannah Marie Elwell, 26, of Clarksburg, West Virginia was sentenced today to 35 months incarceration for unlawfully purchasing a firearm, United States Attorney Bill Powell announced.
Elwell pled guilty to one count of “False Statement During the Purchase of a Firearm” in December 2016. She admitted to falsely representing that she was the actual buyer of a .40 caliber pistol when she was actually attempting to purchase the firearm on behalf of another person.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Chui Chu Man Sentenced to 108 Months in Prison for AssaultRead the Press Release
TUCSON, Ariz. – Yesterday, Donnie Ray Jose, 46, of Chui Chu, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Judge James A. Soto to 108 months in prison. Jose was convicted after a jury trial of assault with a dangerous weapon and assault resulting in serious bodily injury.
The evidence at trial demonstrated that Jose, during an act of domestic violence, stabbed the victim sixteen times in her shoulder area while she and her minor son were asleep in bed. The victim is also a member of the Tohono O’odham Nation, and the assault occurred on the Tohono O’odham Indian Reservation. The Court enhanced Jose’s sentence based on a finding that the victim was vulnerable, as she had been sleeping just prior to the stabbing and that there were minor children present during the assault.
Upon release from prison, Jose will be on supervised release for three years. The terms of his supervision include no contact with the victim, the victim’s family, or any of the witnesses who testified at trial.
The investigation in this case was conducted by both the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Serra M. Tsethlikai and Charisse Arce, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-15-01387-TUC-JAS-BGM
RELEASE NUMBER: 2017-115_Jose
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Champagne, Illinois, Resident Guilty of Producing and Selling over 80,000 Homemade Tramadol Capsules to Customers Without Verifying PrescriptionsRead the Press Release
OWENSBORO, Ky. – A Champaign, Illinois, resident pleaded guilty in United States District Court today, before Chief Judge Joseph H. McKinley, to four felony charges including distributing Tramadol, a Schedule IV controlled substance, introduction of misbranded drugs, and wire fraud, announced United States Attorney Russell M. Coleman.
According to the plea agreement, Skyler Dean Prahl, 32, imported Tramadol powder from overseas and used an encapsulating machine to create Tramadol capsules. Tramadol is a synthetic opioid drug. For several years Prahl operated an online business marketing and selling Tramadol capsules and other substances to customers throughout the United States. Prahl sold well over 80,000 units of Tramadol to customers without inquiring or verifying that his customers had a valid prescription.
Prahl admitted that on August 31, 2015, he knowingly and intentionally possessed with the intent to distribute, and distributed Tramadol to an undercover agent.
He further admitted that on August 31, 2015, with the intent to mislead and defraud, he introduced a misbranded drug, Tramadol, into interstate commerce by shipping Tramadol from Champaign, Illinois, to Owensboro, Kentucky. The Tramadol was misbranded because its label failed to state the name and place of business of the manufacturer, packer, and distributor., and because it failed to bear adequate directions for use.
Lastly, Prahl admitted that between January 28, 2016, and March 5, 2016, he devised a wire fraud scheme. Specifically, Prahl used email to promise to deliver at least 3,000 Tramadol capsules to “Michael Riley” in return for $950, but failed to deliver the Tramadol capsules even after receiving the funds.
If convicted at trial, Prahl could have been sentenced to no more than 31 years in prison, fined, and order to serve a period of supervised release. Prahl remains free on bond until sentencing on March 12, 2018, in Owensboro, by Chief Judge McKinley.
This case is being prosecuted by Assistant United States Attorney David R. Weiser and is being investigated by the U.S. Food & Drug Administration - Office of Criminal Investigation (Owensboro, Kentucky, domicile) with assistance from the United States Postal Inspection Service (Evansville, Indiana, domicile) and DEA Diversion (Springfield, Illinois, Resident Office), and the Kentucky State Police, DESI-East.
prahl_skyler_plea_agreement_11_28_17.pdfCanadian Hacker Who Conspired with and Aided Russian FSB Officers Pleads GuiltyRead the Press Release
Karim Baratov, aka Kay, aka Karim Taloverov, aka Karim Akehmet Tokbergenov, 22, a Canadian national and resident, pleaded guilty today, to charges returned by a grand jury in the Northern District of California in February 2017. Baratov and three other defendants, including two officers of the Russian Federal Security Service (FSB), Russia’s domestic law enforcement and intelligence service, were charged with computer hacking and other criminal offenses in connection with a conspiracy to access Yahoo’s network and the contents of webmail accounts that began in January 2014. Baratov’s co-defendants, all of whom remain at large in Russia, are Dmitry Aleksandrovich Dokuchaev, 33, a Russian national and resident; Igor Anatolyevich Sushchin, 43, a Russian national and resident; and Alexsey Alexseyevich Belan, aka Magg, 29, a Russian national and resident.
The guilty plea was announced by Acting Assistant Attorney General Dana J. Boente of the National Security Division, U.S. Attorney Brian J. Stretch for the Northern District of California and Executive Assistant Director Paul Abbate of the FBI’s Criminal, Cyber, Response and Services Branch.
“Where a foreign law enforcement or intelligence agency recruits, tasks, or protects criminals targeting the United States and its companies or citizens, instead of taking steps to disrupt them and hold them accountable, the United States will leverage all of its available tools to expose that agency’s conduct and arrest those responsible,” said Acting Assistant Attorney General Boente. “Today’s plea exemplifies the Department’s commitment to pursuing, arresting and bringing to justice even those hackers who work for a foreign law enforcement or intelligence organization. We wish to thank the Canadian authorities for their skillful assistance in the investigation and arrest of Baratov and to acknowledge the contributions of the other nations and law enforcement services that provided invaluable assistance.”
“The illegal hacking of private communications is a global problem that transcends political boundaries. Cybercrime is not only a grave threat to personal privacy and security, but causes great financial harm to individuals who are hacked and costs the world economy hundreds of billions of dollars every year. These threats are even more insidious when cyber criminals such as Baratov are employed by foreign government agencies acting outside the rule of law,” said U.S. Attorney Stretch. “With the assistance of our law enforcement partners in Canada, we were able to track down and apprehend a prolific criminal hacker who had sold his services to Russian government agents. This prosecution again illustrates that we will identify and pursue charges against hackers who compromise our country’s computer infrastructure.”
“This case is a prime example of the hybrid cyber threat we’re facing, in which nation states work with criminal hackers to carry out malicious activities,” said Executive Assistant Director Abbate. “Today’s guilty plea illustrates how the FBI continues to work relentlessly with our private sector, law enforcement and international partners to identify and hold accountable those who conduct cyber attacks against our nation, no matter who they’re working with or where they attempt to hide.”
Baratov’s role in the charged conspiracy was to hack webmail accounts of individuals of interest to the FSB and send those accounts’ passwords to Dokuchaev in exchange for money. As alleged in the Indictment, Dokuchaev, Sushchin and Belan compromised Yahoo’s network and gained the ability to access Yahoo accounts. When they desired access to individual webmail accounts at a number of other internet service providers, such as Google and Yandex (based in Russia), Dokuchaev tasked Baratov to compromise those accounts. The Indictment is available here, and its allegations are summarized in greater detail in the press release that attended the unsealing of the Indictment on March 15.
As part of his plea agreement, Baratov not only admitted to agreeing and attempting to hack at least 80 webmail accounts on behalf of one of his FSB co-conspirators, but also to hacking more than 11,000 webmail accounts in total from in or around 2010 until his March 2017 arrest by Canadian authorities. Baratov advertised his services through a network of primarily Russian-language hacker-for-hire web pages hosted on servers around the world. He admitted that he generally spearphished his victims, sending them emails from accounts he established to appear to belong to the webmail provider at which the victim’s account was hosted (such as Google or Yandex). Baratov’s spearphishing emails tricked victims into (i) visiting web pages he constructed to appear legitimate, as though they belonged to the victims’ webmail providers and (ii) entering their account credentials into those web pages. Once Baratov collected the victims’ account credentials, he sent his customers screen shots of the victims’ account contents to prove that he had obtained access and, upon receipt of payment, provided his customers the victims’ log-in credentials.
Baratov pleaded guilty to Count One and Counts Forty through Forty-Seven of the Indictment. Count One charged Baratov, Dokuchaev, Sushchin and Belan with conspiring to violate the Computer Fraud and Abuse Act by stealing information from protected computers in violation of 18 U.S.C. § 1030(a)(2) and causing damage to protected computers in violation of 18 U.S.C. § 1030(a)(5)(A). Counts Forty through Forty-Seven charged Baratov and Dokuchaev with aggravated identity theft in violation of 18 U.S.C. § 1028A. As part of the plea agreement, in addition to any prison sentence, Baratov agreed to pay restitution to his victims and to pay a fine up to $2,250,000 (at $250,000 per count) with any assets he has remaining after satisfying a restitution award.
Baratov waived extradition from Canada and is being detained in California without bail.
Baratov’s sentencing hearing is scheduled for Feb. 20, 2018, before the Honorable Vincent Chhabria, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for each count in violation of 18 U.S.C. §1030(b) is 10 years and a fine of $250,000, plus restitution, if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. §1028A is two years (mandatory consecutive) and a fine of $250,000, plus restitution, if appropriate. However, any sentence, including restitution and fine, if any, will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The FBI, led by the San Francisco Field Office, conducted the investigation that resulted in the charges announced today. The case is being prosecuted by the U.S. Department of Justice National Security Division’s Counterintelligence and Export Control Section and the U.S. Attorney’s Office for the Northern District of California, with support of the Justice Department’s Office of International Affairs.
Canadian Hacker Who Conspired with and Aided Russian FSB Officers Pleads GuiltyRead the Press Release
SAN FRANCISCO – Karim Baratov, a/k/a “Kay,” a/k/a/Karim Taloverov, a/k/a Karim Akehmet Tokbergenov, pleaded guilty today to charges returned by a grand jury in the Northern District of California in February 2017. The guilty plea was announced by U.S. Attorney Brian J. Stretch; Acting Assistant Attorney General Dana J. Boente of the U.S. Justice Department’s National Security Division; Executive Assistant Director Paul Abbate of the Federal Bureau of Investigation’s Criminal, Cyber, Response and Services Branch; and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
Baratov, 22, a Canadian national and resident, and three other defendants, including two officers of the Russian Federal Security Service (“FSB”), Russia’s domestic law enforcement and intelligence service, were charged with computer hacking and other criminal offenses in connection with a conspiracy to access Yahoo’s network and the contents of webmail accounts that began in January 2014. Baratov’s co-defendants, all of whom remain at large in Russia, all are Russian nationals and residents: Dmitry Aleksandrovich Dokuchaev, 33; Igor Anatolyevich Sushchin, 43; and Alexsey Alexseyevich Belan, a/k/a “Magg,” 29.
According to his plea agreement, Baratov’s role in the charged conspiracy was to hack webmail accounts of individuals of interest to the FSB and send those accounts’ passwords to Dokuchaev for money. As alleged in the indictment, Dokuchaev, Sushchin, and Belan compromised Yahoo’s network and gained the ability to access Yahoo accounts. When they desired access to individual webmail accounts at a number of other internet service providers, such as Google and Yandex (based in Russia), Dokuchaev tasked Baratov to compromise such accounts.
“The illegal hacking of private communications is a global problem that transcends political boundaries. Cybercrime is not only a grave threat to personal privacy and security, but causes great financial harm to individuals who are hacked and costs the world economy hundreds of billions of dollars every year. These threats are even more insidious when cyber criminals such as Baratov are employed by foreign government agencies acting outside the rule of law,” said U.S. Attorney Stretch. “With the assistance of our law enforcement partners in Canada, we were able to track down and apprehend a prolific criminal hacker who had sold his services to Russian government agents. This prosecution again illustrates that we will identify and pursue charges against hackers who compromise our country’s computer infrastructure.”
“Where a foreign law enforcement or intelligence agency recruits, tasks, or protects criminals targeting the United States and its companies or citizens, instead of taking steps to disrupt them and hold them accountable, the United States will leverage all of its available tools to expose that agency’s conduct and arrest those responsible,” said Acting Assistant Attorney General Boente. “Today’s plea exemplifies the Department’s commitment to pursuing, arresting, and bringing to justice even those hackers who work for a foreign law enforcement or intelligence organization. We wish to thank the Canadian authorities for their skillful assistance in the investigation and arrest of Baratov and to acknowledge the contributions of the other nations and law enforcement services that provided invaluable assistance.”
“This case is a prime example of the hybrid cyber threat we’re facing, in which nation states work with criminal hackers to carry out malicious activities,” said Executive Assistant Director Paul Abbate of the FBI’s Criminal, Cyber, Response and Services Branch. “Today’s guilty plea illustrates how the FBI continues to work relentlessly with our private sector, law enforcement, and international partners to identify and hold accountable those who conduct cyber attacks against our nation, no matter who they’re working with or where they attempt to hide.”
“Today's guilty plea is a testament to the FBI's tireless commitment to tracking down cyber-criminals who think they can anonymously attack our country's cyber infrastructure,” said FBI Special Agent In Charge Bennett. “The FBI is determined to find, unmask, and identify criminals who steal the information of our citizens. With the help of our law enforcement partners around the world, we were able to expose this type of criminal behavior and bring them to justice.”
As part of his plea agreement, Baratov not only admitted to agreeing and attempting to hack at least 80 webmail accounts on behalf of one of his FSB co-conspirators, but also to hacking more than 11,000 webmail accounts in total from in or around 2010 until his March 2017 arrest by Canadian authorities. Baratov advertised his services through a network of primarily Russian-language hacker-for-hire web pages hosted on servers around the world. He admitted that he generally spearphished his victims, sending them emails from accounts he established to appear to belong to the webmail provider at which the victim’s account was hosted (such as Google or Yandex). Baratov’s spearphishing emails tricked victims into (i) visiting web pages he constructed to appear legitimate, as though they belonged to the victims’ webmail providers, and (ii) entering their account credentials into those web pages. Once Baratov collected the victims’ account credentials, he sent his customers screen shots of the victims’ account contents to prove that he had obtained access and, upon receipt of payment, provided his customers the victims’ log-in credentials.
Baratov pleaded guilty to Count One and Counts Forty through Forty-Seven of the Indictment. Count One charged Baratov, Dokuchaev, Sushchin, and Belan with conspiring to violate the Computer Fraud and Abuse Act by stealing information from protected computers in violation of 18 U.S.C. § 1030(a)(2) and causing damage to protected computers in violation of 18 U.S.C. § 1030(a)(5)(A). Counts Forty through Forty-Seven charged Baratov and Dokuchaev with aggravated identity theft in violation of 18 U.S.C. § 1028A. As part of the plea agreement, in addition to any prison sentence, Baratov agreed to pay restitution to his victims, and to pay a fine up to $2,250,000 (at $250,000 per count) with any assets he has remaining after satisfying a restitution award.
Baratov waived extradition from Canada and is being detained in California without bail.
Baratov’s sentencing hearing is scheduled for February 20, 2018, at 3:00 p.m., before the Honorable Vincent Chhabria, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for each count in violation of 18 U.S.C. §1030(b) is 10 years and a fine of $250,000, plus restitution, if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. §1028A is two years (mandatory consecutive) and a fine of $250,000, plus restitution, if appropriate. However, any sentence, including restitution and fine, if any, will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The FBI’s San Francisco Field Office led the investigation that resulted in the charges announced today. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of California and the U.S. Department of Justice National Security Division’s Counterintelligence and Export Control Section with support of the Justice Department’s Office of International Affairs.
California Man Sentenced to Two Years for Identity TheftRead the Press Release
PHOENIX – Earlier this month, Kevin Matthew Bianchi, 47 of Petaluma, Calif., was sentenced by U.S. District Judge David L. Rayes to two years’ imprisonment for aggravated identity theft and credit card fraud. Bianchi had previously pleaded guilty to both charges.
Bianchi was involved with others, in perpetrating fraudulent schemes in California and Arizona. Bianchi possessed and used counterfeit credit cards and driver’s licenses to defraud the United States Postal Service in an amount exceeding $19,000 in Arizona.
The investigation in this case was conducted by by the United States Postal Inspection Service. The prosecution was handled by Charles F. Hyder, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00323-PHX-DLR
RELEASE NUMBER: 2017-114_Bianchi
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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CVC Heart Center to Pay $1.2 M to Settle Allegations of Billing Health Care Programs for Medically Unnecessary Nuclear Stress TestsRead the Press Release
FRESNO, Calif. — Cardiovascular Consultants Heart Center (CVC Heart Center), a cardiology clinic with offices in Fresno and Clovis, and its shareholder physicians — Dr. Kevin Boran, Dr. Michael Gen, Dr. Rohit Sundrani, Dr. Donald Gregory, and Dr. William Hanks — will pay $1.2 million to resolve federal and state False Claims Act allegations that they improperly performed and billed federal and state health care programs for medically unnecessary cardiovascular diagnostic procedures, U.S. Attorney Phillip A. Talbert announced.
The settlement resolves allegations that between January 1, 2010, and December 31, 2015, CVC Heart Center submitted claims for cardiovascular nuclear imaging (nuclear stress tests) that were not medically necessary or reasonable. It is alleged that the CVC physicians automatically scheduled patients for nuclear stress tests on an annual basis without seeing the patients beforehand to confirm that the procedure was necessary. A nuclear stress test is an expensive procedure that exposes patients to a significant amount of radiation through the injection of radioactive dyes, as well as to the risk of invasive procedures based on false positive results. This risk is only justified if the nuclear stress test is medically necessary. A Centers for Medicare & Medicaid Services (CMS) Local Coverage Determination prohibited the use of nuclear stress tests as a screening procedure.
This case was pursued by Assistant U.S. Attorney Edward Baker through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Federal Bureau of Investigation, and the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
CEO of Suburban Pharmaceutical Company Arrested on Federal Fraud Charge for Allegedly Misappropriating at Least $1.5 Million from InvestorsRead the Press Release
CHICAGO — The chief executive officer of a suburban pharmaceutical company was arrested today on a federal fraud charge for allegedly pocketing at least $1.5 million from investors and spending the cash on a luxury lake house in Michigan and golf and yacht club dues.
ROBERT TOMLINSON, the CEO of Neurendo Pharma LLC in Hoffman Estates, misappropriated at least $1.5 million from individual and corporate investors from March 2016 to earlier this month, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Tomlinson fraudulently advised investors that their funds would be used to operate Neurendo and to market an experimental drug, known as GNTI, to treat type II diabetes, the complaint states. Tomlinson allegedly claimed investors would receive a substantial payment once Neurendo’s drug rights were purchased by a major pharmaceutical company. In reality, Tomlinson used the majority of investor funds to support his family’s lavish lifestyle, which included a lake house in Bay Harbor, Mich., and annual dues at the Bay Harbor Golf Club and Bay Harbor Yacht Club, the complaint states.
Federal agents this morning arrested Tomlinson, conducted a court-authorized search of his residence in Hoffman Estates, and seized funds in one of his bank accounts. Tomlinson, 68, is scheduled to make an initial court appearance today at 3:00 p.m., before U.S. Magistrate Judge Susan E. Cox in Chicago. The complaint charges him with one count of wire fraud.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Sunil Harjani.
According to the complaint, Tomlinson attempted to raise money from existing investors as recently as this month. Earlier this year he made approximately 47 cash withdrawals of $9,500 each from Neurendo’s bank account. The structured withdrawals appear to have been made in an effort to avoid federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000, the complaint states.
The charges also accuse Tomlinson of misappropriating at least $100,000 in investor money to fund his own futures trading account, and $33,000 to make payments to the Washington National Cathedral. In addition to the Michigan lake house, Tomlinson used investor funds to make mortgage payments on properties in Petoskey, Mich., and the Georgetown neighborhood of Washington, D.C., the complaint states.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud carries a maximum penalty of 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Brooklyn Leader of Violent Gang Sentenced to Nine Years’ Imprisonment for RacketeeringRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Qian Zheng, also known as “Cash,” was sentenced by United States District Judge Carol Bagley Amon to nine years’ imprisonment for racketeering based on his role as the leader of the Zheng Organization, a violent criminal enterprise that operated in the Sunset Park section of Brooklyn and the Flushing section of Queens for nearly a decade and engaged in violent assaults, extortions and drug distribution. In January 2017, Zheng pleaded guilty to Count One of the indictment charging that between January 2007 and September 2015, the defendant, together with others, conducted and participated in the affairs of the Zheng Organization through a pattern of racketeering activity. The Court also ordered Zheng to pay $30,550 in restitution.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas Decker, Field Office Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Qian Zheng was the leader of a criminal enterprise responsible for a variety of rackets including the repeated use of violence to collect extortionate debts,” stated Acting U.S. Attorney Rohde. “His conviction, and the convictions of other members and associates of his criminal organization, reflects the strong commitment of this Office, along with our partners in law enforcement, to dismantling organized crime groups that spread fear throughout communities of this District.”
“The subjects in this case terrorized a community with their criminal enterprise and violent tactics,” stated FBI Assistant Director-in-Charge Sweeney. “No one should dread leaving their homes, and going about their daily lives in fear of being harassed or brutally beaten by criminals who believed stealing is easier than making an honest living. The FBI’s goal has been and always will be to stop these groups from developing and maintaining a stranglehold on local communities.”
“Zheng was ruthless in his lead role in this criminal organization, with multiple assaults and extortions over nearly a decade,” said ERO Field Office Director Decker. “ERO will continue to work with the FBI and NYPD on these cases in an effort to remove these criminals from New York City streets.”
According to court filings and evidence presented at trials of Zheng Organization members and associates, in 2007 Zheng began running a criminal enterprise that engaged in various criminal activity and numerous acts of violence, specifically as alleged:
In August 2013, Zheng tasked two of his underlings with assaulting both the ex-boyfriend of a woman who hired him to arrange that assault and the ex-boyfriend’s wife. Zheng provided his underlings with the victims’ home and work addresses, their daily schedule and a photograph of the male victim, and pointed out the victims’ home and car. Zheng was recorded instructing his underlings to “beat him every time he is seen” and to “break his leg” and “scar the woman’s face.” Zheng was paid at least $6,000 to carry out the vicious assault. The victims were ultimately alerted to Zheng’s plan and were not injured.
In December 2013, Zheng attempted to extort a man in New Rochelle, New York. A recording captured Zheng explaining that his underlings “will bring the guns, fire two gunshots” into the victim’s family’s restaurant and then leave. Zheng was also recorded explaining that the victim “needs to be punched first. Otherwise, he won’t pay any money.” Zheng and three associates went to the victim’s home, but the victim noticed the men and called the police.
In the fall of 2014, Zheng Organization member Guifu Gao, also known as “Chicken Feather,” had a financial dispute that he wanted resolved with violence. Zheng instructed one of his underlings to carry out an assault. Gao instructed the underling to cripple the victim and make him handicapped. Gao further explained that he wanted the victim beaten and his legs broken. Zheng echoed Gao’s demands and was recorded instructing his underling to “follow [the victim] home and beat him in front of his house at night. Beat him hard!” Gao paid the underling $5,000 to carry out the assault but the victim was alerted to Zheng and Gao’s plan and was not injured.
In May 2015, Zheng instructed a number of his underlings, including co-defendants Xin Lin, also known as “Blackie,” Kai Huan Huang, also known as “Shen Shen,” and Xue Jiang Gao, also known as “Xue Zhang,” to extort the owner of a gambling parlor. Lin, Huang, Jiang Gao and others went to the victim’s parlor, surrounded him and demanded money. When the victim explained that he did not owe any money, Lin, Huang and Gao beat him with their fists and wooden stools. The victim was left battered and bruised, with a fractured bone and a permanent deformity. Zheng’s underlings also destroyed the victim’s gambling parlor, causing thousands of dollars in damage. Zheng then sent more of his underlings to pressure the victim not to report the incident to law enforcement.
In addition to these acts of violence, Zheng and his underlings regularly distributed narcotics, including ketamine and MDMA, and in January 2014, Zheng operated an illegal high-stakes gambling parlor, run by Zheng Organization members, which grossed more than $60,000 in approximately 36 hours.
Other Zheng Organization members and associates who were charged in this case have previously been convicted and sentenced for various crimes that they committed with Zheng or at his behest. Guifu Gao was sentenced on January 24, 2017 to 70 months’ imprisonment for an extortionate collection of credit conspiracy. Kai Huan Huang, who was convicted after trial, was sentenced on April 6, 2017 to 70 months’ imprisonment for an attempted extortion and extortion conspiracy. Jiyao Jiang, who was convicted after trial, was sentenced on March 21, 2017 to 28 months’ imprisonment for an extortion conspiracy. Xue Jiang Gao was sentenced on November 9, 2017 to 60 months’ imprisonment for racketeering. Xin Lin was sentenced on March 9, 2017 to 78 months’ imprisonment for an extortion conspiracy.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore, Maria Cruz Melendez, Ameet Kabrawala and Mathew Miller are in charge of the prosecution.
The Defendants:
QIAN ZHENG, also known as “Cash”
Age: 46
Brooklyn, New YorkXIN LIN, also known as “Blackie”
Age: 35
Queens, New YorkGUIFU GAO, also known as “Chicken Feather”
Age: 37
Brooklyn, New YorkKAI HUAN HUANG, also known as “Shen Shen”
Age: 28
Brooklyn, New YorkXUE JIANG GAO, also known as “Xue Zhang”
Age: 32
Brooklyn, New YorkJIYAO JIANG, also known as “Yi Qiang”
Age: 45
Queens, New YorkALLEN HUI CHEN, also known as “Yi Hui”
Age: 45
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-628 (CBA)
Beaver County Man Pleads Guilty to Violating OSHA Regulation that Caused an Employee’s DeathRead the Press Release
PITTSBURGH - A resident in Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of Willful Violation of an OSHA Regulation Causing the Death of an Employee, Acting United States Attorney Soo C. Song announced today.
Wayne A. George, d/b/a A Rooter Man of Pittsburgh, LLC, pleaded guilty yesterday to one count before United States Magistrate Judge Cynthia R. Eddy.
In connection with the guilty plea, the court was told that Wayne A. George, d/b/a A Rooter Man of Pittsburgh, LLC, employed an individual who died as a result of willful violation of standards promulgated which requires employers to take protective measures against cave-ins before permitting their employees to work in trenches.
On September 28, 2015, a 21-year-old Rooter Man employee, Jacob Casher, was killed when the trench he was working in collapsed at a worksite in Penn Township, Butler County. Mr. Casher was helping to replace a sewer line 11 feet below the surface in unstable soil with no cave-in protection, at the direction of his supervisor, Wayne George.
Judge Eddy scheduled sentencing for February 21, 2018. The law provides for a maximum total sentence of six months in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Department of Labor, Office of the Regional Solicitor, conducted the investigation leading to the information in this case.
Army Reserves Lt. Col. Sentenced to Four Years in Prison for Fraudulently Supplying Chinese-made Army Promotional Gear as USA-MadeRead the Press Release
HUNTSVILLE – A federal judge today sentenced a lieutenant colonel in the U.S. Army Reserves to four years in prison and ordered him to forfeit $4.4 million to the government for fraudulently supplying hundreds of thousands of Chinese-produced baseball caps and backpacks to the Army Recruiting Command and passing them off as American-made products.
U.S. Attorney Jay E. Town, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and U.S. Army Criminal Investigation Command Special Agent in Charge James T. Wallis announced the sentence.
FREDERICK LAMAR BURNETT, 50, of Madison, received millions of dollars under contracts with the Army stating he must supply promotional items for the Recruiting Command that were “100 % U.S. MADE.” A federal jury convicted Burnett in April on three counts of wire fraud for using his Huntsville-based company, Lamar International Inc., in the scheme to defraud the Defense Department on three contracts, worth $6.2 million, between 2005 and 2009. U.S. District Judge Sharon L. Blackburn sentenced Burnett and ordered him to serve three years of supervised release following his prison term.
“Securing the defense procurement base from fraud is important to American taxpayers and our national security posture,” Town said. “Today’s sentence sends a strong message that defrauding the United States carries a stiff penalty. Anyone seeking to lie, cheat, or steal from the government will find bed space reserved for them behind bars.”
"In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs and contracts," Khin said.
Burnett had received two contracts for baseball caps and one for backpacks, all intended as promotional items to give Army recruits. Burnett certified for all three contracts that he would meet the requirements of the Buy American Act, the Berry Amendment, and federal regulations that require the government to buy domestic products and materials, according to court evidence at trial.
The Buy American Act requires the federal government to buy domestic articles, materials and supplies, primarily to protect American workers and manufacturing jobs. The Berry Amendment prohibits the Defense Department from buying clothing, fabrics, fibers and yarns that were not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of the American textile and clothing production base.
Under the first contract awarded to Lamar International in 2005, Burnett supplied 209,706 baseball caps over three years and the government paid him $1.4 million. Under the second contract, awarded in 2007, Lamar supplied 590,042 ball caps and the government paid him about $4 million. Under the third contract, also awarded in 2007, Lamar supplied 146,375 Army Combat Uniform backpacks and the government paid $1.1 million. A Defense Department accounting agency made the payments to Burnett by electronic funds transfer to his Huntsville bank.
Along with the required compliance to the Buy American Act and the Berry Amendment, according to evidence, both of the 2007 contracts included a statement, in all capital letters, that the “PRODUCT MUST BE 100% U.S. MADE.”
Instead of providing American-made products, however, Burnett negotiated and contracted with suppliers directly from China and with American companies who he knew were procuring their products from Chinese manufacturers. He filled orders with Chinese-made products under all three contracts and hid their foreign origins by hiring workers on a cash basis to remove the Chinese labels and repackage the items, which he then sent to the Army Recruiting Command.
DCIS and Army CID investigated the case, which Assistant U.S. Attorneys David H. Estes and Jonathan S. Keim prosecuted the case.
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Another Hit with Significant Sentence in Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – A 21-year-old Mission area man has been ordered to federal prison for his involvement in an illegal alien hostage taking scheme, announced Acting U.S. Attorney Abe Martinez.
Juan Perez-Alcoser pleaded guilty to a conspiracy to commit hostage taking, joining Luis Aguilar Jr., 19; brothers Alhan Sanchez, 20, and Aaron Sanchez, 21, and Ricardo Renteria, 26, all of Mission; and Renteria’s nephew Ricardo Renteria-Rivera, 23, a Mexican citizen illegally present in the United States, who had previously pleaded guilty to a conspiracy to commit hostage taking change in the same case.
Today, U.S. District Judge Micaela Alvarez sentenced Perez-Alcoser to 160 months in federal prison. At the hearing, Judge Alvarez noted that his behavior was slightly less culpable than the other defendants but that it was still a serious matter. “People were stolen like merchandise,” she noted. “You’re selling people to make money,” she added when comparing the criminal behavior to that of slavery.
On Sept. 5, 2017, the court ordered Aguilar to serve 350 months in federal prison, while brothers Alhan and Aaron Sanchez received 324 and 195 months, respectively. Renteria-Rivera was ordered to serve a 290-month-sentence, while his uncle will serve a sentence of 300 months imprisonment.
Aguilar Jr.’s father, Luis Aguilar, 64, and Jose Luis Rodriguez-Melchor, 30, both pleaded guilty to being an illegal alien unlawfully present in the United States after deportation and to harboring an illegal alien and were sentenced to 97 and 105 months, respectively. They and Renteria-Rivera are expected to face deportation proceedings following their release from prison, while the remaining defendants, including Perez-Alcoser, were further ordered to serve three years of supervised release following their release from prison.
The investigation revealed that a group of illegal aliens had been held at a stash house awaiting further transportation north. On the night of May 2, 2016, a home invasion crew that included an armed Aguilar Jr. came into the stash house and demanded the aliens leave with them. The caretaker of the stash house was on the ground with a gun to his head. The aliens were then taken to another location where their cell phones and most of their belongings were taken from them.
Some of the undocumented aliens were taken to Aguilar Jr.’s residence which he shared with his father. While there, Aguilar Jr. told them that their initial smuggling arrangements were no good anymore and they had to make new arrangements with him. Aguilar Jr. held them at gunpoint and demanded the aliens give him the names and phone numbers of family members whom he then called to demand $2,000 for their release.
After receiving the money, Aguilar Jr. turned the aliens over to Rodriguez-Melchor to arrange smuggling the aliens further north. Instead, however, Rodriguez-Melchor sold the aliens to Renteria-Rivera for $200 each. Again, family members were called and told they must send additional monies to secure their release. The Renterias carried weapons and threatened to shoot the aliens if anyone tried to escape. Perez-Alcoser was living at the Renteria residence during this time and watched over the aliens while the Renterias were not home, at times carrying a pistol or a rifle. Renteria helped pick up the money and then took the aliens to a parking lot in McAllen where they were supposed to sneak into the air dams of tractor-trailers.
Instead of doing so, three of the aliens turned themselves in to Border Patrol. On May 18, 2016, authorities executed three search warrants. At that time, they seized firearms from the Aguilar, Sanchez and Renteria residences. All of the defendants were eventually located and arrested.
Perez-Alcoser has been in federal custody since his June 22, 2017, arrest and will remain in custody pending transfer to the Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Ahmed Abu Khatallah Found Guilty of Terrorism Charges in September 2012 Attack in Benghazi, LibyaRead the Press Release
WASHINGTON – Ahmed Abu Khatallah, aka Ahmed Mukatallah, 46, a Libyan national, was found guilty by a jury today of federal terrorism charges and other offenses stemming from the Sept. 11, 2012 terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director Grant Mendenhall of the FBI's Counterterrorism Division, and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“Ahmed Abu Khatallah's arrest and prosecution were critical steps in our efforts to identify and hold accountable those who were responsible for the terrorist attacks on our facilities in Benghazi, Libya. Our work is not done. We will not rest in our pursuit of the others who attacked our facilities and killed the four courageous Americans who perished that day,” said Acting Assistant Attorney General Boente.
“The jury has now held Ahmed Abu Khatallah accountable for his role in the terrorist attack that destroyed the U.S. Mission in Benghazi,” said U.S. Attorney Liu. “During that attack and the one that followed, four American heroes lost their lives and others were seriously wounded. We will never rest in our efforts to bring to justice those who commit terrorism abroad.”
“Ahmed Abu Khatallah is being held responsible for executing a brazen terrorist attack against the United States. That attack resulted in the deaths of four Americans in Benghazi, Libya. This investigation demonstrates the FBI's ability to investigate terrorist attacks against Americans even in the most difficult conditions, determine who perpetrated the acts and bring those actors to justice,” said Assistant Director Mendenhall. “We remain dedicated to the pursuit of justice in this case and others around the world where Americans and our allies have been victimized.”
“Ahmed Abu Khatallah was convicted for his integral role in a calculated, cold-blooded attack on a U.S. diplomatic location in Benghazi,” said Assistant Director in Charge Sweeney. “Our hope is Khatallah’s conviction will provide some measure of justice for the honorable and heroic American victims and their families. Our work will continue, but today's verdict serves as a reminder to those who plot terror attacks against the United States – the New York FBI Joint Terrorism Task Force's reach is global. Working together with our partners in the intelligence community and law enforcement, our commitment to investigating acts of terrorism, capturing those responsible and ensuring justice is served will never waver. I would like to express our appreciation for the many investigators, analysts and operators from many agencies who played a role in ensuring justice was achieved today.”
Khatallah was captured in Libya on June 15, 2014, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. The jury found him guilty of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic weapon during a crime of violence. He was acquitted of the remaining counts against him.
The trial began Oct. 2, before a jury in the courtroom of the Honorable Judge Christopher R. Cooper of the U.S. District Court for the District of Columbia. Over the next six weeks, the government presented testimony from 30 witnesses, including four from Libya. The witnesses included those who were wounded in the attack, as well as relatives of the people who died. The government’s witnesses also included others who survived the attacks.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September of 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of Sept. 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the mission, in the early hours of Sept. 12, 2012, the violence continued at a nearby CIA annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
Khatallah faces statutory maximums of 15 years in prison on each of the two terrorism offenses, 20 years for maliciously damaging and destroying dwellings and property, and life imprisonment for the firearms offense. The firearms offense also carries a mandatory minimum consecutive term of 10 years. A sentencing date has not yet been set.
The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. The sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA and the Department of State.
The case was prosecuted by Assistant U.S. Attorneys John Crabb, Jr., Michael C. DiLorenzo, Julieanne Himelstein and Opher Shweiki, all of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Trial Attorney C. Alexandria Bogle of the Counterterrorism Section of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Kenneth Kohl and David Mudd of the U.S. Attorney’s Office for the District of Columbia.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant and Paralegal Specialists Rayneisha Booth, Jessica Moffatt and Legal Assistant Matthew Ruggiero, all of the U.S. Attorney’s Office for the District of Columbia.
Ahmed Abu Khatallah Found Guilty of Terrorism Charges in September 2012 Attack in Benghazi, LibyaRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatallah, 46, a Libyan national, was found guilty by a jury today of federal terrorism charges and other offenses stemming from the Sept. 11, 2012 terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director Grant Mendenhall of the FBI's Counterterrorism Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“Ahmed Abu Khatallah's arrest and prosecution were critical steps in our efforts to identify and hold accountable those who were responsible for the terrorist attacks on our facilities in Benghazi, Libya. Our work is not done. We will not rest in our pursuit of the others who attacked our facilities and killed the four courageous Americans who perished that day,” said Acting Assistant Attorney General Boente.
“The jury has now held Ahmed Abu Khatallah accountable for his role in the terrorist attack that destroyed the U.S. Mission in Benghazi,” said U.S. Attorney Liu. “During that attack and the one that followed, four American heroes lost their lives and others were seriously wounded. We will never rest in our efforts to bring to justice those who commit terrorism abroad.”
“Ahmed Abu Khatallah is being held responsible for executing a brazen terrorist attack against the United States. That attack resulted in the deaths of four Americans in Benghazi, Libya. This investigation demonstrates the FBI's ability to investigate terrorist attacks against Americans even in the most difficult conditions, determine who perpetrated the acts and bring those actors to justice,” said Assistant Director Mendenhall. “We remain dedicated to the pursuit of justice in this case and others around the world where Americans and our allies have been victimized.”
“Ahmed Abu Khatallah was convicted for his integral role in a calculated, cold-blooded attack on a U.S. diplomatic location in Benghazi,” said Assistant Director in Charge Sweeney. “Our hope is Khatallah's conviction will provide some measure of justice for the honorable and heroic American victims and their families. Our work will continue, but today's verdict serves as a reminder to those who plot terror attacks against the United States – the New York FBI Joint Terrorism Task Force's reach is global. Working together with our partners in the intelligence community and law enforcement, our commitment to investigating acts of terrorism, capturing those responsible and ensuring justice is served will never waver. I would like to express our appreciation for the many investigators, analysts and operators from many agencies who played a role in ensuring justice was achieved today.”
Khatallah was captured in Libya on June 15, 2014, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. The jury found him guilty of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic weapon during a crime of violence. He was acquitted of the remaining counts against him.
The trial began Oct. 2, before a jury in the courtroom of the Honorable Judge Christopher R. Cooper of the U.S. District Court for the District of Columbia. Over the next six weeks, the government presented testimony from 30 witnesses, including four from Libya. The witnesses included those who were wounded in the attack, as well as relatives of the people who died. The government’s witnesses also included others who survived the attacks.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September of 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of Sept. 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the mission, in the early hours of Sept. 12, 2012, the violence continued at a nearby CIA annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
Khatallah faces statutory maximums of 15 years in prison on each of the two terrorism offenses, 20 years for maliciously damaging and destroying dwellings and property, and life imprisonment for the firearms offense. The firearms offense also carries a mandatory minimum consecutive term of 10 years. A sentencing date has not yet been set.
The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. The sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA and the Department of State.
The case was prosecuted by Assistant U.S. Attorneys John Crabb, Jr., Michael C. DiLorenzo, Julieanne Himelstein and Opher Shweiki, all of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Trial Attorney C. Alexandria Bogle of the Counterterrorism Section of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Kenneth Kohl and David Mudd of the U.S. Attorney’s Office for the District of Columbia.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant and Paralegal Specialists Rayneisha Booth, Jessica Moffatt and Legal Assistant Matthew Ruggiero, all of the U.S. Attorney’s Office for the District of Columbia.
Acting Manhattan U.S. Attorney Announces Criminal and Civil Charges Against Prominent Researcher for Theft of Government Funds and Other OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services’ Office of Inspector General (“HHS-OIG”), announced today the filing of criminal and civil charges against ALEXANDER NEUMEISTER (“NEUMEISTER”), a prominent researcher into neurological disorders who, at all times relevant to the charges, was a professor of psychology at a New York City medical school (the “School”). NEUMEISTER was charged with using his position at the School to convert tens of thousands of dollars of federal grant funds, as well as funds belonging to the School, to his personal use by spending them on, among other things, trips for family members and trips and meals for himself and a social friend (the “Friend”). Among other expenses, NEUMEISTER used approximately $9,000 in government funds to pay for eight roundtrip flights from New York City to Salt Lake City to visit the Friend, as well as more than $4,300 in School funds to pay for the Friend to enjoy a nine-day, all-expense paid trip to a resort hotel in Miami Beach. In addition, NEUMEISTER falsely claimed that the Friend was a research study participant in studies that NEUMEISTER was overseeing for the School, and caused the School to pay over $10,000 of the School’s own funds directly to the Friend. To date, NEUMEISTER has not repaid any of the misappropriated funds.
NEUMEISTER was arrested on November 21, 2017, in Ogdensberg, New York, and appeared before a U.S. magistrate judge in the Northern District of New York on November 22, 2017. He will be presented before Chief U.S. Magistrate Judge Debra Freeman in Manhattan federal court today. In addition, a civil case was brought against NEUMEISTER in Manhattan federal court earlier today.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Alexander Neumeister, fraudulently charged tens of thousands of dollars in personal expenses as research or school-related expenses. For allegedly betraying the trust of the medical school that employed him and the government institute that funded his research, Neumeister now faces serious federal charges.”
Special Agent in Charge Scott J. Lampert said: “The defendant allegedly stole thousands of dollars from grants that were meant for important mental health research. We will continue to hold individuals accountable for blatant misuse of federal funds.”
According to the allegations in the Government’s criminal and civil complaints[1]:
From 2012 through 2014 (“Covered Period”), NEUMEISTER was employed by the School and served as the principal investigator for a variety of research studies, many of which were funded by grants issued by the National Institute of Mental Health (“NIMH”). As the principal investigator of these studies, NEUMEISTER was responsible for overseeing all aspects of the studies. NEUMEISTER was provided a credit card by the School, referred to as a procurement card (“P-Card”), and was authorized to charge study-related expenses to the P-Card, but in doing so he was required to identify to which specific funding source (i.e., which grant or other source) each such expense should be allocated. To the extent NEUMEISTER allocated expenses to NIMH grants or School expense accounts, the School would pay the expenses using funds it received from NIMH or its own funds, respectively.
During the Covered Period, NEUMEISTER used his P-Card to charge tens of thousands of dollars of expenses that were personal in nature and unrelated to his research studies or employment at the School. Nevertheless, NEUMEISTER falsely classified, or caused others to classify falsely, these expenses as related to his research or for business purposes related to his position at the School, which resulted in the expenses being paid for using NIMH funds or the School’s own funds. For example, during the Covered Period, NEUMEISTER used his P-Card to charge the following personal expenses, all of which were ultimately paid for with NIMH or School funds:
- airline tickets so that the Friend could travel from Charlotte, North Carolina, or Salt Lake City, Utah, depending on where the Friend was then living, to New York City, where NEUMEISTER was then living;
- airline tickets so that NEUMEISTER could travel from New York City to Charlotte and Salt Lake City to visit the Friend, as well as lodging, bar tabs, meals and other travel-related expenses associated with this travel;
- an all-expense paid trip to Miami Beach for the Friend, during which the Friend was given authorization by NEUMEISTER to use NEUMEISTER’s P-Card to pay for food, beverages, and beach facilities;
- an iPhone for the friend; and
- airline tickets so that NEUMEISTER’s spouse could travel from Newark, New Jersey, to Vienna, Austria, to attend a family event.
When one of NEUMEISTER’s supervisors at the School questioned him in connection with an audit of his P-Card charges, NEUMEISTER, among other things: (1) asked that the audit findings not be disclosed to others because it would jeopardize his job and his children’s ability to attend the School without having to pay tuition; and (2) offered to pay back certain of the expenses that he had charged to the P-Card. Yet, Neumeister never repaid any of the misappropriated funds and later denied much of the improper conduct.
* * *
NEUMEISTER, 51, of Hamden, Connecticut, is charged with one count of theft of government funds, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge. NEUMEISTER is also charged with civil claims under the False Claims Act, through which the Government may recover damages and civil penalties arising from his conduct.
Mr. Kim thanked HHS-OIG for their efforts and ongoing support and assistance with the case.
The criminal case is being handled by the Office’s Complex Frauds Unit, and Assistant U.S. Attorneys Dina McLeod and Christopher B. Harwood are in charge of the prosecution.
The civil case is being handled by the Office’s Civil Frauds Unit, and Assistant U.S. Attorneys Christopher B. Harwood and Anthony J. Sun are in charge of the matter.
The charges contained in the criminal complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the criminal and civil complaints, and the description of the complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
- airline tickets so that the Friend could travel from Charlotte, North Carolina, or Salt Lake City, Utah, depending on where the Friend was then living, to New York City, where NEUMEISTER was then living;
27 November 2017
West Virginia Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a West Virginia man pleaded guilty in federal court today to sexually exploiting a minor in the Joplin, Mo., area.
Shannon Calhoun, 32, of Philippi, W. Va., formerly of Neosho, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to the sexual exploitation of a child.
By pleading guilty today, Calhoun admitted that he induced a child to engage in sexually explicit conduct for the purpose of producing child pornography. Co-defendant Ronald Lee Fields, 56, of Joplin, pleaded guilty to the same charge involving the same child victim on Nov. 21, 2017.
According to court documents, law enforcement officers executed a search warrant at Fields’s residence in Joplin on Jan. 30, 2017, and seized a desktop computer, an iPhone 5, two tablet computers, a digital camera, an SD card and a compact disk containing photos. Investigators discovered some pornographic photos of Fields with an approximately 5-year-old child, including photos taken at a motel and at his residence. Data on the photos indicated they were created using Fields’s camera.
Calhoun was identified as the adult performing sexual acts on the child victim in numerous images of the child being sexually abused over a period of several years.
Investigators also interviewed Benjamin Goodwin, 28, of Springfield. Goodwin, a former Springfield YMCA employee who pleaded guilty in a separate case to receiving and distributing child pornography over the Internet, told investigators that he had traded images of child pornography with Fields.
Under federal statutes, Calhoun and Fields are each subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Union Officer to Plead Guilty to Embezzlement, Identity TheftRead the Press Release
PROVIDENCE, RI – According to documents filed in U.S. District Court in Providence, Richard D’Antuono, 42, of Cranston, a former business manager and financial secretary for a Rhode Island plasters and cement mason’s union local, will plead guilty to charges that he embezzled between $250,000 and $550,000 in union funds.
According to court documents, it is alleged that for two years beginning in 2015, D’Antuono, the sole full-time officer of the Operative Plasterers and Cement Masons International Association Local 40, embezzled funds from a union operational account and from an apprentice fund, a type of employee benefit plan, used to finance training programs for apprentice plasterers and masons and for the retraining or refresher training of journeymen union members.
It is alleged that as part of the scheme, D’Antuono made checks out to himself substantially in excess of his salary and a stipend to which he was entitled. In some instances, D’Antuono had the authorized signatories sign blank checks, which he later used to embezzle funds from the operational account. In other instances, D’Antuono forged the signature of the authorized signatories on checks. Additionally, it is alleged that D’Antuono embezzled funds from the Apprenticeship Fund by writing checks payable to the Local 40 operation account and then embezzling the funds in the same manner.
Acting United States Attorney Stephen G. Dambruch and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, Boston-Buffalo District Office announce the filing of a three-count information charging Richard D’Antuono with embezzlement from a labor organization, embezzlement from an employee benefit plan, and aggravated identity theft.
Embezzlement from a labor organization is punishable by statutory penalties of up to 5 years imprisonment, a fine of $10,000 and a term of supervised release of 3 years. Embezzlement from an employee benefit plan is punishable by statutory penalties of up to 5 years imprisonment, a fine of $250,000, and a term of supervised release of 3 years. Aggravated identity theft is punishable by statutory penalties of mandatory term of two years imprisonment in addition to the sentence imposed on counts on the embezzlement charges.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by John P. McAdams.
The matter was investigated by U.S. Department of Labor, Office of Labor-Management Standards with the assistance of the Office of Inspector General Office of Investigations - Labor Racketeering & Fraud, and the Employee Benefits Security Administration.
###
U.S. Charges Three Chinese Hackers Who Work at Internet Security Firm for Hacking Three Corporations for Commercial AdvantageRead the Press Release
An indictment was unsealed today against Wu Yingzhuo, Dong Hao and Xia Lei, all of whom are Chinese nationals and residents of China, for computer hacking, theft of trade secrets, conspiracy and identity theft directed at U.S. and foreign employees and computers of three corporate victims in the financial, engineering and technology industries between 2011 and May 2017. The three Chinese hackers work for the purported China-based Internet security firm Guangzhou Bo Yu Information Technology Company Limited (a/k/a “Boyusec”).
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Soo C. Song for the Western District of Pennsylvania and Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Division announced the charges.
The indictment alleges that the defendants conspired to hack into private corporate entities in order to maintain unauthorized access to, and steal sensitive internal documents and communications from, those entities’ computers. For one victim, information that the defendants targeted and stole between December 2015 and March 2016 contained trade secrets.
“Once again, the Justice Department and the FBI have demonstrated that hackers around the world who are seeking to steal our companies’ most sensitive and valuable information can and will be exposed and held accountable,” said Acting Assistant Attorney General Boente. “The Justice Department is committed to pursuing the arrest and prosecution of these hackers, no matter how long it takes, and we have a long memory.”
“Defendants Wu, Dong and Xia launched coordinated and targeted cyber intrusions against businesses operating in the United States, including here in the Western District of Pennsylvania, in order to steal confidential business information,” said Acting U.S. Attorney Song. “These conspirators masked their criminal conspiracy by exploiting unwitting computers, called ‘hop points,’ conducting ‘spearphish’ email campaigns to gain unauthorized access to corporate computers, and deploying malicious code to infiltrate the victim computer networks.”
“In order to effectively address the cyber threat, a threat that respects no boundaries and continues to grow in both its scope and complexity, law enforcement must come together and transcend borders to target criminal actors no matter where they are in the world,” said Special Agent in Charge Johnson.
Summary of the Allegations
According to the allegations of the Indictment:
Defendants Wu, Dong, Xia, and others known and unknown to the grand jury (collectively, “the co-conspirators”) coordinated computer intrusions against businesses and entities, operating in the United States and elsewhere. To accomplish their intrusions, the co-conspirators would, for example, send spearphishing e-mails to employees of the targeted entities, which included malicious attachments or links to malware. If a recipient opened the attachment or clicked on the link, such action would facilitate unauthorized, persistent access to the recipient’s computer. With such access, the co-conspirators would typically install other tools on victim computers, including malware the co-conspirators referred to as “ups” and “exeproxy.” In many instances, the co-conspirators sought to conceal their activities, location and Boyusec affiliation by using aliases in registering online accounts, intermediary computer servers known as “hop points” and valid credentials stolen from victim systems.
The primary goal of the co-conspirators’ unauthorized access to victim computers was to search for, identify, copy, package, and steal data from those computers, including confidential business and commercial information, work product, and sensitive victim employee information, such as usernames and passwords that could be used to extend unauthorized access within the victim systems. For the three victim entities listed in the Indictment, such information included hundreds of gigabytes of data regarding the housing finance, energy, technology, transportation, construction, land survey, and agricultural sectors.
Defendants: At all times relevant to the charges, the Indictment alleges as follows
- Wu Yingzhuo, aka “mxmtmw,” “Christ Wu” and “wyz,” was a Chinese national and resident of Guangzhou. Wu was a founding member and equity shareholder of Boyusec.
- Dong Hao, aka “Bu Yi,” “Dong Shi Ye” and “Tianyu,” was a Chinese national and resident of Guangzhou. Dong was a founding member and equity shareholder of Boyusec, who held the title of “Executive Director and Manager.”
- Xia Lei, aka “Sui Feng Yan Mie,” was a Chinese national and resident of Guangzhou. Xia was, at certain times relevant to the charges, an employee of Boyusec.
Victims: Moody’s Analytics, Siemens AG (“Siemens”) and Trimble, Inc. (“Trimble”).
Time period: As alleged in the Indictment, the conspiracy began at least as early as 2011 and continued to May 2017.
Crimes: Eight counts as follows (all defendants are charged in all counts).
Count(s)
Charge
Statute
Maximum Penalty
1
Conspiring to commit computer fraud and abuse
18 U.S.C. § 1030(b)
10 years
2
Conspiring to commit trade secret theft
18 U.S.C. §§ 1832(a)(5)
10 years
3
Wire fraud
18 U.S.C. § 1343
20 years
4-8
Aggravated identity theft
18 U.S.C. §§ 1028A(a)(1), (b), (c)(4), and 2
2 years (mandatory consecutive)
Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Summary of Defendants’ Conduct Alleged in the Indictment
Defendant
Victim
Criminal Conduct
Wu
Trimble
In 2015 and 2016, Trimble was developing a Global Navigation Satellite Systems technology designed to improve the accuracy of location data on mobile devices. In January 2016, while this project was in development, Wu accessed Trimble’s network and stole files containing commercial business documents and data pertaining to the technology, including Trimble trade secrets. In total, between December 2015 and March 2016, Wu and the other co-conspirators stole at least 275 megabytes of data, including compressed data, which included hundreds of files that would have assisted a Trimble competitor in developing, providing and marketing a similar product without incurring millions of dollars in research and development costs.
Dong
Siemens
In 2014, Dong accessed Siemens’s computer networks for the purpose of obtaining and using employees’ usernames and passwords in order to access Siemens’ network. In 2015, the co-conspirators stole approximately 407 gigabytes of proprietary commercial data pertaining to Siemens’s energy, technology and transportation businesses.
Xia
Moody’s Analytics
In or around 2011, the co-conspirators accessed the internal email server of Moody’s Analytics and placed a forwarding rule in the email account of a prominent employee. The rule directed all emails to and from the employee’s account to be forwarded to web-based email accounts controlled by the conspirators. In 2013 and 2014, defendant Xia regularly accessed those web-based email accounts to access the employee’s stolen emails, which contained proprietary and confidential economic analyses, findings and opinions.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
The FBI, Naval Criminal Investigative Service and Air Force Office of Special Investigations conducted the investigation that led to the charges in the indictment.
The government’s case is being prosecuted by Assistant U.S. Attorney James T. Kitchen of the Western District of Pennsylvania, and Cyber Counsel Jessica Romero and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section.
U.S. Charges Three Chinese Hackers Who Work at Internet Security Firm for Hacking Three Corporations for Commercial AdvantageRead the Press Release
WASHINGTON – An indictment was unsealed today against Wu Yingzhuo, Dong Hao and Xia Lei, all of whom are Chinese nationals and residents of China, for computer hacking, theft of trade secrets, conspiracy and identity theft directed at U.S. and foreign employees and computers of three corporate victims in the financial, engineering and technology industries between 2011 and May 2017. The three Chinese hackers work for the purported China-based Internet security firm Guangzhou Bo Yu Information Technology Company Limited (a/k/a “Boyusec”).
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Soo C. Song for the Western District of Pennsylvania and Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Division announced the charges.
The indictment alleges that the defendants conspired to hack into private corporate entities in order to maintain unauthorized access to, and steal sensitive internal documents and communications from, those entities’ computers. For one victim, information that the defendants targeted and stole between December 2015 and March 2016 contained trade secrets.
“Once again, the Justice Department and the FBI have demonstrated that hackers around the world who are seeking to steal our companies’ most sensitive and valuable information can and will be exposed and held accountable,” said Acting Assistant Attorney General Boente. “The Justice Department is committed to pursuing the arrest and prosecution of these hackers, no matter how long it takes, and we have a long memory.”
“Defendants Wu, Dong and Xia launched coordinated and targeted cyber intrusions against businesses operating in the United States, including here in the Western District of Pennsylvania, in order to steal confidential business information,” said Acting U.S. Attorney Song. “These conspirators masked their criminal conspiracy by exploiting unwitting computers, called ‘hop points,’ conducting ‘spearphish’ email campaigns to gain unauthorized access to corporate computers, and deploying malicious code to infiltrate the victim computer networks.”
“In order to effectively address the cyber threat, a threat that respects no boundaries and continues to grow in both its scope and complexity, law enforcement must come together and transcend borders to target criminal actors no matter where they are in the world,” said Special Agent in Charge Johnson.
Summary of the Allegations
According to the allegations of the Indictment:
Defendants Wu, Dong, Xia, and others known and unknown to the grand jury (collectively, “the co-conspirators”) coordinated computer intrusions against businesses and entities, operating in the United States and elsewhere. To accomplish their intrusions, the coconspirators would, for example, send spearphishing e-mails to employees of the targeted entities, which included malicious attachments or links to malware. If a recipient opened the attachment or clicked on the link, such action would facilitate unauthorized, persistent access to the recipient’s computer. With such access, the co-conspirators would typically install other tools on victim computers, including malware the co-conspirators referred to as “ups” and “exeproxy.” In many instances, the co-conspirators sought to conceal their activities, location and Boyusec affiliation by using aliases in registering online accounts, intermediary computer servers known as “hop points” and valid credentials stolen from victim systems.
The primary goal of the co-conspirators’ unauthorized access to victim computers was to search for, identify, copy, package, and steal data from those computers, including confidential business and commercial information, work product, and sensitive victim employee information, such as usernames and passwords that could be used to extend unauthorized access within the victim systems. For the three victim entities listed in the Indictment, such information included hundreds of gigabytes of data regarding the housing finance, energy, technology, transportation, construction, land survey, and agricultural sectors.
Defendants: At all times relevant to the charges, the Indictment alleges as follows
- Wu Yingzhuo, aka “mxmtmw,” “Christ Wu” and “wyz,” was a Chinese national and resident of Guangzhou. Wu was a founding member and equity shareholder of Boyusec.
- Dong Hao, aka “Bu Yi,” “Dong Shi Ye” and “Tianyu,” was a Chinese national and resident of Guangzhou. Dong was a founding member and equity shareholder of Boyusec, who held the title of “Executive Director and Manager.”
- Xia Lei, aka “Sui Feng Yan Mie,” was a Chinese national and resident of Guangzhou. Xia was, at certain times relevant to the charges, an employee of Boyusec.
Victims: Moody’s Analytics, Siemens AG (“Siemens”) and Trimble, Inc. (“Trimble”).
Time period: As alleged in the Indictment, the conspiracy began at least as early as 2011 and continued to May 2017.
Crimes: Eight counts as follows (all defendants are charged in all counts).
Count(s) Charge Statute Maximum Penalty 1 Conspiring to commit
computer fraud and abuse 18 U.S.C. § 1030(b) 10 years 2 Conspiring to commit
trade secret theft 18 U.S.C. §§ 1832(a)(5) 10 years 3 Wire fraud 18 U.S.C. § 1343 20 years 4-8 Aggravated identity theft 18 U.S.C. §§ 1028A(a)(1),
(b), (c)(4), and 2 2 years (mandatory
consecutive
Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.Summary of Defendants’ Conduct Alleged in the Indictment
Defendant Victim Criminal Conduct Wu Trimble In 2015 and 2016, Trimble was developing a Global Navigation Satellite Systems technology designed to improve the accuracy of location data on mobile devices. In January 2016, while this project was in development, Wu accessed Trimble’s network and stole files containing commercial business documents and data pertaining to the technology, including Trimble trade secrets. In total, between December 2015 and March 2016, Wu and the other coconspirators stole at least 275 megabytes of data, including compressed data, which included hundreds of files that would have assisted a Trimble competitor in developing, providing and marketing a similar product without incurring millions of dollars in research and development costs. Dong Siemens In 2014, Dong accessed Siemens’s computer networks for the purpose of obtaining and using employees’ usernames and passwords in order to access Siemens’ network. In 2015, the co-conspirators stole approximately 407 gigabytes of proprietary commercial data pertaining to Siemens’s energy, technology and transportation businesses. Xia Moody's Analytics In or around 2011, the co-conspirators accessed the internal email server of Moody’s Analytics and placed a forwarding rule in the email account of a prominent employee. The rule directed all emails to and from the employee’s account to be forwarded to web-based email accounts controlled by the conspirators. In 2013 and 2014, defendant Xia regularly accessed those webbased email accounts to access the employee’s stolen emails, which contained proprietary and confidential economic analyses, findings and opinions.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.The FBI, Naval Criminal Investigative Service and Air Force Office of Special Investigations conducted the investigation that led to the charges in the indictment.
The government’s case is being prosecuted by Cyber Counsel Jessica Romero and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorney James T. Kitchen of the Western District of Pennsylvania.
Two Men Found Guilty of Racketeering Conspiracy in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 76, of Villanova, PA, and Wheeler K. Neff, 69, of Wilmington, DE, were found guilty today by a federal jury of two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud announced United States Attorney Louis D. Lappen. Hallinan was also convicted of nine counts of international money laundering.
Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenue, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. Further, Hallinan and Neff also conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit with damages valued as highly as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also helped another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
“Pay day lending exploits those who can least afford it, the most financially vulnerable people in our society,” said United States Attorney Louis D. Lappen. “Hallinan’s companies charged customers exorbitant interest rates -- exceeding 700 percent annually. Today’s conviction shows that we will prosecute predatory payday lenders and pursue significant prison sentences for those who financially exploit the economically disadvantaged.”
“These defendants went to astonishing lengths to skirt state usury laws enacted to protect the public,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their single-minded purpose: to continue draining dry the financially strapped folks who, out of desperation, resort to payday loans. Their greed is galling, their actions are illegal, and their convictions are richly deserved.”
"The role of IRS Criminal Investigation becomes even more important in fraud cases due to the complex financial transactions that can take time to unravel," said Edward Wirth, Acting Special Agent in Charge, Philadelphia Field Office. "Today’s verdict should serve as a reminder that individuals who engage in this type of financial fraud will be held accountable."
Both Hallinan and Neff face a possible advisory sentencing guideline range of at least a decade in prison, forfeiture of illegally obtained assets, three years of supervised release, a possible fine, and a special assessment.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James Petkun.
Two Men Found Guilty of Racketeering Conspiracy in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 76, of Villanova, PA, and Wheeler K. Neff, 69, of Wilmington, DE, were found guilty today by a federal jury of two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud announced United States Attorney Louis D. Lappen. Hallinan was also convicted of nine counts of international money laundering.
Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenue, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. Further, Hallinan and Neff also conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit with damages valued as highly as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also helped another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
“Pay day lending exploits those who can least afford it, the most financially vulnerable people in our society,” said United States Attorney Louis D. Lappen. “Hallinan’s companies charged customers exorbitant interest rates -- exceeding 700 percent annually. Today’s conviction shows that we will prosecute predatory payday lenders and pursue significant prison sentences for those who financially exploit the economically disadvantaged.”
“These defendants went to astonishing lengths to skirt state usury laws enacted to protect the public,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their single-minded purpose: to continue draining dry the financially strapped folks who, out of desperation, resort to payday loans. Their greed is galling, their actions are illegal, and their convictions are richly deserved.”
"The role of IRS Criminal Investigation becomes even more important in fraud cases due to the complex financial transactions that can take time to unravel," said Edward Wirth, Acting Special Agent in Charge, Philadelphia Field Office. "Today’s verdict should serve as a reminder that individuals who engage in this type of financial fraud will be held accountable."
Both Hallinan and Neff face a possible advisory sentencing guideline range of at least a decade in prison, forfeiture of illegally obtained assets, three years of supervised release, a possible fine, and a special assessment.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James Petkun.
Sex Offender Pleads Guilty to Failure to Register as Required by LawRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shamar R. Chester, 41, of Rochester, NY, pleaded guilty to failing to register as a sex offender before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney John J. Field, who is handling the case, stated that Chester was convicted in 2007 in Washington, DC, for committing a sex crime involving a child. As a result, the defendant was required to register as a sex offender and keep that registration updated. In March 2015, Chester moved from Washington, DC, to Rochester, NY but failed to register as a sex offender in New York State. The defendant also failed to notify the authorities in Washington, DC, that he had moved to Rochester.
The plea is the result of an investigation by the U.S. Marshal Service, under the direction of Charles Salina.
Sentencing is scheduled for February 26, 2018 at 11:00 a.m. before Judge Wolford.
Saltwater Disposal Well Operators Sentenced on Multiple Felony Charges in Connection with Operation of WellRead the Press Release
Two saltwater disposal well operators were sentenced in federal court in Bismarck, North Dakota, on felony charges stemming from the operation of a saltwater disposal well near Dickinson, in Stark County, North Dakota, the Justice Department announced.
Jason A. Halek, 44, of Southlake, Texas, was sentenced to three years supervised release and ordered to pay a fine of $50,000. Halek will also be placed in a halfway house for up to one year as a result of today’s sentencing. Halek previously pleaded guilty, on April 12, 2017, to three counts of violating the Safe Drinking Water Act.
Nathan R. Garber, 48, of Kalispell, Montana, was sentenced to three years supervised release. Garber previously pleaded guilty, on September 26, 2014, to one count of conspiracy to violate the Safe Drinking Water Act and defraud the United States. He also pleaded guilty to five counts of violating the Safe Drinking Water Act, two counts of making false statements, two counts of falsification of records, and one count of concealment or cover up of a tangible object.
Restitution for both defendants will be addressed at a future hearing.
“By illegally discharging contaminated wastewater, the defendants threatened the safety of drinking water and public health in North Dakota,” said Acting Assistant Administrator Larry Starfield for EPA’s Office for Enforcement and Compliance Assurance. “EPA and its law enforcement partners are committed to holding accountable those who break laws that protect clean water and that ensure natural resources are developed in a safe and responsible manner.”
“This case is a great example of state and federal authorities working shoulder to shoulder to ensure that our precious natural resources in North Dakota and the Citizens of North Dakota are protected,” said U.S. Attorney Christopher C. Myers for the District of North Dakota. “Those individuals who seek to exploit and damage our natural resources to increase their own personal wealth will be held accountable.”
The saltwater disposal well, named the Halek 5-22, received brine and other wastes commonly referred to as “saltwater” from oil and gas operations. In the oil and gas context, “saltwater” covers a wide array of drilling waste fluids, including waste workover, completion, stimulation and pigging fluids, as well as enhanced recovery waters. Underground injection into a saltwater disposal well is prohibited without a permit, which imposes requirements on the well’s operations to help ensure that the saltwater does not impact underground sources of drinking water.
According to an agreed upon factual statement previously filed in court, Halek admitted to injecting saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity. Such tests protect groundwater by focusing on whether there are any significant leaks or fluid movement in the well. Although the well’s permit required that fluids be injected through the tubing, Halek also admitted to injecting fluids down the “annulus” or “backside” of the well thereby violating the permit. Finally, Halek also admitted to failing to provide written notice to the state of the date of first injection into the well.
According to an agreed upon factual statement previously filed in court, Garber admitted to conspiring with others in a number of coordinated and illegal acts. For instance, Garber injected saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity, causing a regulator to determine that there was no assurance as to the integrity of the well and that “the fluid could be going anywhere.” Garber also violated a February 2012 order from the state to stop injecting until a well integrity test was done. When questioned by the state about these injections, Garber made false statements by denying that these injections occurred. After the well failed a pressure test in February 2012 Garber continued to inject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of contaminating groundwater.
Further, Garber moved a device called a “packer” up the wellbore in violation of the well’s permit, without first getting approval from the state. A properly placed packer is an essential device to maintaining integrity of the well and ensuring wastewater does not escape into surrounding soil and groundwater. Garber then gave false information to a state inspector regarding the depth of the packer. Despite illegally moving the packer, Garber continued to inject saltwater into the well until about March 2012, when a state employee shut the well in.
The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division. Significant cooperation was provided by the State of North Dakota and the North Dakota Industrial Commission (NDIC). The case is being prosecuted by the United States Attorney’s Office for the District of North Dakota and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Rochester Man Sentenced for Illegal Firearm PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeuane Harvey, 30, of Rochester, NY, who was convicted of being a felon-in-possession of a firearm and ammunition, was sentenced to 37 months in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on September 9, 2016, Rochester Police Department officers were on patrol in the area of the David F. Gantt Community Center located on North Street in Rochester. Officers saw that the defendant, who was standing with two other people, was holding a rifle with a curved magazine, which appeared to be high capacity. Harvey ran as officers attempted to confront him. After briefly losing sight of the defendant, officers found him and took Harvey into custody. The defendant did not have the rifle in his possession; however, officers searched the surrounding area and found the rifle laying on the ground near the playground. An ammunition magazine with a 30 round capacity, loaded with 17 rounds, was attached to the rifle. In 2008, Harvey was convicted of Criminal Possession of a Weapon in the Second Degree and Criminal Possession of a Weapon in the Third Degree, both felony level offenses. As a result of those convictions, Harvey was legally prohibited from possessing a firearm or ammunition.
Today’s sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge Ashan Benedict, new York Field Division.
Rochester Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brendon Allan Young, 35, of Rochester, NY, pleaded guilty to production, distribution and possession of child pornography before Chief U.S. District Judge Frank P. Geraci. The combined charges carry a maximum penalty of 100 years in prison.Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that between 2012 and 2017, Young sexually abused a minor female, beginning when the child was only four or five years old. By the time the victim turned nine years old, the defendant produced child pornography depicting the victim, which he uploaded and traded via the internet. The victim’s images were ultimately found in the United Kingdom when British authorities arrested a perpetrator in that country during a child pornography sting. Using information found on the British suspect’s computer, British authorities contacted the National Center for Missing and Exploited Children in Washington, D.C., which was relayed the information to Homeland Security Investigations (HSI) in Buffalo, NY. Within days, using metadata associated with the images, HSI Agents located the victim in Rochester, NY.
At the same time, the Rochester Police Department and Monroe County Child Protective Services had begun an investigation after the victim made a disclosure of sexual abuse to a friend’s mother. HSI Agents, the Rochester Police Department, and Child Protectives engaged in a joint investigation that led to Young’s arrest by both state and federal authorities. The defendant has since been sentenced to 30 years in State Court. Federal sentencing is scheduled for February 28, 2018, before Judge Geraci.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; Monroe County Child Protective Services, the Bivona Child Advocacy Center, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
R. Andrew Murray Sworn in as United States Attorney for the Western District of North CarolinaRead the Press Release
CHARLOTTE, N.C. – R. Andrew Murray was sworn in today as United States Attorney for the Western District of North Carolina. Mr. Murray was nominated by President Donald Trump on September 11, 2017, and was unanimously confirmed by the United States Senate on November 9, 2017. Chief U.S. District Judge Frank D. Whitney administered the oath of office to U.S. Attorney Murray this morning.
“It is an honor to serve as the United States Attorney for the Western District of North Carolina,” said U.S. Attorney Murray. “The U.S. Attorney’s Office has an important mission: to enforce our nation’s federal laws and to protect the citizens of this district. It is a privilege to lead such a talented group of public servants dedicated to the pursuit of justice, and I look forward to working with our federal, state, local and tribal law enforcement partners on our shared commitment to serve and protect all communities throughout the Western District.”
As the top federal law enforcement officer in the district, U.S. Attorney Murray will now lead one of the busiest U.S. Attorney’s Offices in the country, currently employing approximately 80 federal prosecutors and staff, located in Charlotte and in Asheville. The office serves nearly three million residents throughout the 32 westernmost counties of the state of North Carolina, including residents of the Eastern Band of Cherokee Indian reservation.
As a senior attorney practicing law in Mecklenburg County since 1992, Mr. Murray has a wide breadth of knowledge and experience in leadership and criminal law. Prior to becoming the United States Attorney, Mr. Murray served as the elected District Attorney of North Carolina’s 26th Prosecutorial District, which covers all of Mecklenburg County. He is also a retired United States Coast Guardsman.
Mr. Murray began his law career in 1992 at the Mecklenburg County District Attorney’s Office, where he served for three years as an Assistant District Attorney, working on several special prosecution teams. Mr. Murray went on to practice law in the private sector, as criminal defense attorney and later as managing partner of a law firm focusing on criminal law. Mr. Murray’s passion for public service and his desire to give back to the community led him back to the District Attorney’s Office. He was elected as District Attorney in 2010 and was re-elected to the position in 2014. As District Attorney, Mr. Murray focused his efforts on incorporating innovative strategies and forging strong partnerships to ensure the efficient and effective prosecution of state cases in Mecklenburg County.
Mr. Murray also serves as a leader in the state and national prosecutorial communities. He served as a member of the North Carolina Conference of District Attorneys’ executive committee, and from 2015 to 2016 served as the Conference’s President. Mr. Murray was also selected to join the North Carolina Commission on the Administration of Law and Justice, a multidisciplinary group tasked with conducting a comprehensive evaluation of the State’s judicial system and making recommendations to strengthen the State’s courts. Mr. Murray is also a member of the Board for the Association of Prosecuting Attorneys’ Major County Prosecutors Council, comprised of district attorneys from across the nation working together to tackle challenges faced by prosecutors.
Mr. Murray joined the United States Coast Guard in 1980. Following his separation from active service, he continued to serve the United States through the U.S. Coast Guard Reserve. After 35 years of combined active and reserve military service, Mr. Murray retired from the U.S. Coast Guard as a Captain (O-6).
Following his active duty service, Mr. Murray attended the University of North Carolina at Charlotte, where he earned a degree in Political Science in 1989. Mr. Murray received his Juris Doctor in 1992, from the University of North Carolina School of Law. Mr. Murray is a member of the North Carolina State Bar and the Mecklenburg County Bar.
Queens Man Sentenced for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Anthony David Gentile, age 57, of Queens, New York, was sentenced today to 60 months in prison for receiving and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Gary L. Sharpe also imposed a 10-year term of post-imprisonment supervised release, and ordered Gentile to pay total restitution of $22,000 to 5 child pornography victims whose images of abuse Gentile possessed. Gentile must also register as a sex offender upon his release from prison.
As part of his guilty plea on June 28, 2017, Gentile admitted that in 2014, as a resident of Albany County, he used the Internet and a peer-to-peer file-sharing network to download child pornography. Gentile also admitted that he possessed and stored child pornography on a computer and several hard drives.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
Prominent San Antonio Photographer Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
In San Antonio, 47–year-old professional photographer Christopher Alexander Reilly, doing business as Chris Reilly Photography, faces between five and 40 years in federal prison after pleading guilty this afternoon to federal child pornography charges announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States Magistrate Judge Elizabeth S. Chestney, Reilly pleaded guilty to one count of transportation of child pornography and one count of receipt of child pornography. By pleading guilty, Reilly admittedly downloaded child pornography from the Internet onto a computer hard drive in December 2016. Furthermore, he knowingly transported child pornography on his laptop computer on a trip from Texas to California in January 2017. According to court records, on January 24, 2017, a data recovery firm reported to the FBI that they discovered videos depicting minors engaged in sexually explicit conduct on a computer hard drive submitted for recovery by the defendant.
The forensic examination of the information contained on the laptop computer as well as the external hard drive revealed numerous video and image files depicting prepubescent children engaged in sexually explicit conduct. Also contained on the external hard drive were video files of minor children, taken surreptitiously by the defendant, depicting the clothed genital areas of the children, as they stretched, walked and engaged in conversation with Reilly.
Reilly remains in federal custody. Sentencing is scheduled for 9:00am on February 26, 2018, before Senior United States District Judge David A. Ezra.
Assistant United States Attorney Tracy Thompson is prosecuting this case on behalf of the Government.
Peoria County Man Sentenced for Concealing Assets in BankruptcyRead the Press Release
PEORIA, Ill. -- A Brimfield, Ill., man, Thomas L. Bledsoe, 53, has been sentenced for concealing insurance policies valued at more than $100,000 from the U.S. Trustee and creditors in his bankruptcy petition. On Nov. 22, U.S. District Judge Joe Billy McDade ordered that Bledsoe serve the first 10 months of a two-year period of supervised release in home confinement. Bledsoe was also ordered to pay a fine of $3,000.
On July 25, 2017, Bledsoe pled guilty to concealing assets related to his bankruptcy petition filed in March 2009, under Chapter 13 of the U.S. Bankruptcy Code. In April 2009, Bledsoe, a life insurance agent, answered “none” on the Schedule B form which required that he disclose any interest he owned in any insurance policies, to name the insurance company for each policy and to itemize the surrender or refund value of each policy. At a meeting of creditors, Bledsoe testified under oath that the voluntary petition and schedules were correct.
After a creditor filed an objection, during a hearing in October 2009, Bledsoe testified that he owned a life insurance policy with a cash value of $5,000. Bledsoe subsequently amended the Schedule B form to indicate that he owned a single life insurance policy with a cash value of $3,000.
In fact, Bledsoe owned four life insurance policies, with a combined cash value of more than $50,0000, from Northwestern Mutual Insurance Company, and three life insurance policies, with a combined cash value of more than $57,000, from Canada Life Insurance Company. In addition, Bledsoe admitted he failed to disclose possession of three cashier’s checks totaling more than $65,000, and a 2005 Montesa motorcycle. Bledsoe also falsely stated that he had not received any money from the sale of his residence, when in fact, he had received money from the sale of the residence as part of his divorce, approximately two years prior to the bankruptcy proceeding.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
“Concealing assets in a bankruptcy proceeding is a crime,” stated Nancy J. Gargula, United States Trustee for Central and Southern Illinois and Indiana (Region 10). “We are grateful to all of our law enforcement partners in this case, and in particular to U.S. Attorney Childress for his commitment to pursuing those who commit bankruptcy fraud and abuse the bankruptcy process for their own personal gain.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Ill., and South Bend, Ind.”
Pensacola Man Sentenced to 41 Months in Prison for Mailing Threats to Escambia SheriffRead the Press Release
PENSACOLA, FLORIDA – Regis L. Walker, 31, of Pensacola, was sentenced to 41 months in federal prison today, after pleading guilty on January 17, 2017, to mailing threatening communications. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In June 2016, Walker mailed a threatening letter on notebook paper to the Escambia County Sheriff’s Office, addressed to the sheriff. In the letter, Walker claimed several people who had joined ISIS would simultaneously attack military bases, beaches, and schools at a nonspecific time and could not be stopped by law enforcement officers. Walker made specific reference to the attack in Orlando, Florida, that killed approximately 50 people. Walker wrote that the attackers planned on “not giving up,” and that they “plan on dying.” He appeared to sign the note as “ISIS ALLAH.”
This case resulted from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Law Enforcement. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Paul Donisthorpe Pleads Guilty to Federal Wire Fraud and Money Laundering Charges Arising Out of Scheme to Embezzle $4.8 Million from Client Trust AccountsRead the Press Release
ALBUQUERQUE – Paul Donisthorpe, 62, pleaded guilty this morning in federal court in Albuquerque, N.M., to wire fraud and money laundering charges arising out of a fraudulent scheme to embezzle more than $4.8 million from client trust accounts managed by Desert State Life Management (DSLM), a trust company he operated and controlled. Donisthorpe entered the guilty plea under a plea agreement that recommends that he be sentenced to eight-to-twelve years of imprisonment followed by a term of supervised release to be determined by the court. The plea agreement also requires that Donisthorpe pay $4,812,857 in restitution to the victims of his crimes and that he forfeit the proceeds of his criminal activities.
In announcing the guilty plea, Acting U.S. Attorney James D. Tierney said, “This case is about the victims. Victims who were clients of Paul Donisthorpe and his trust company and who relied on Donisthorpe to manage their finances. This morning, Paul Donisthorpe stood up in federal court and admitted violating his clients’ trust and looting their benefits for his personal benefit. The U.S. Attorney’s Office and its partners can now focus their efforts on ensuring that the victims receive the restitution to which they are entitled, and that Donisthorpe spends sufficient time behind bars to consider the impact of his criminal conduct on his clients.”
“This was a heartbreaking case of an individual stealing millions of dollars from elderly, disabled and other New Mexicans with special needs who depended on him to make sure their rent, medical bills and living expenses were paid,” said Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI. “The FBI worked with the U.S. Attorney’s Office and our federal and state partners to obtain justice for these victims, and we hope today’s guilty plea sends a message that these types of crimes will not go unpunished.”
“This investigation revealed that Paul Donisthorpe, the CEO of a non-profit trust agency, was motivated by greed and abused the trust he owed to his clients by stealing $4.8 million of their money. The investigative work of IRS Criminal Investigation revealed that Donisthorpe misused his clients’ money to support a lavish lifestyle and that he concealed his theft by having his employees report incorrect balances in client accounts,” said Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS Criminal Investigation. “IRS Criminal Investigation is proud to have partnered with the Department of Justice to investigate this case, and is committed to protecting New Mexicans from financial harm.”
“At the Financial Institutions Division of the New Mexico Regulation and Licensing Department, we are committed to doing everything in our power to assist the victims who were so cruelly taken advantage of by Paul Donisthorpe, in obtaining restitution. We are also committed to working to strengthen our laws and regulations concerning New Mexico trust companies in order to prevent this type of tragedy from happening to anyone else,” said Christopher Moya, Acting Director of the Financial Institutions Division of the New Mexico Regulation and Licensing Department.
Donisthorpe, a former resident of Albuquerque who currently resides in Bloomfield, N.M., pled guilty this morning to a two-count felony information charging him with wire fraud and money laundering before U.S. Magistrate Judge Laura Fashing. According to the felony information, Donisthorpe was the sole owner and operator of DSLM, a trust company that provided trustee and representative payee services for individuals requiring assistance with their financial affairs. As detailed in the felony information, Donisthorpe perpetuated a decade-long fraudulent scheme pursuant to which he transferred more than $4.8 million from client trust accounts managed by DSLM into accounts he controlled and then used the money for his own personal purposes.
In his plea agreement, Donisthorpe acknowledged that as the chief executive officer, sole owner and operator of DSLM, he was entrusted to provide trustee services and representative payee services to more than 75 clients. Donisthorpe admitted that from at least 2009 through 2016, he violated his duty of trust to his clients by fraudulently transferring client funds from individual client investment accounts to accounts he controlled, converting those client funds to his own use. Donisthorpe made these fraudulent transfers knowing that he was not entitled to the funds; knowing that the clients were not informed of the transfers; and knowing that the clients would not have approved of the transfers if they had been informed. Donisthorpe also admitted concealing his fraudulent scheme by causing his accounting staff to falsely record clients’ balances in DSLM records, and by presenting false and fraudulent documents to the Financial Institutions Division of the New Mexico Regulations and Licensing Department.
The plea agreement includes Donisthorpe’s admission that he regularly used wire communications to facilitate his fraudulent scheme, and includes as an example a reference to a May 10, 2016 email pursuant to which Donisthorpe directed an asset manager to liquidate $95,000 of client investments. Donisthorpe later transferred $50,000 of those funds into an account he controlled. The plea agreement also includes Donisthorpe’s admission that he conducted numerous monetary transactions using the proceeds of his embezzlement scheme and includes as an example his use of a $100,000 check to pay the mortgage for property related to his cattle business knowing that he had stolen the funds from DSLM client accounts.
In his plea agreement, Donisthorpe admitted spending the illegally obtained funds on personal items including business ventures, his home mortgage, the mortgage for a vacation home in Angel Fire, N.M., vehicles, credit card expenditures, and paying off IRS debts.
Under the terms of the plea agreement, Donisthorpe is required to pay restitution in the amount of $4,812,857. Donisthorpe also must forfeit any interest he has in assets derived from or used in the commission of the offenses to which he pleaded guilty. Donisthorpe also agreed to the imposition of a money judgment against him in the amount of $4,812,857, and to the immediate forfeiture of the real properties that are the subject of the pending civil forfeiture action in the case United States v. 130 Hidden Lake Cir., Angel Fire, NM 87710, et al., 17-cv-00644 LF-JHR, including a luxury lodge in Angel Fire, N.M., DSLM’s office building in Albuquerque, a residence in Albuquerque, and a 120-acre cattle ranch in Henderson County, Texas.
After entering the guilty plea, Donisthorpe was released under the supervision of the U.S. Probation Services and other conditions of release pending his sentencing hearing, which has yet to be scheduled.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the felony information and the filing of the civil forfeiture case, with assistance from the New Mexico Regulations and Licensing Department’s Financial Institutions Division. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
November 2017 Grand JuryRead the Press Release
Acting United States Attorney Robert C. Stuart announced the federal Grand Jury for the District of Nebraska has returned 32 indictments charging 41 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Darbry Alvarez-Valenzuela, age 35, is charged with illegal reentry after deportation following a felony conviction on or about November 3, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Lance Barber, age 31, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with possession with intent to deliver 5 grams or more of methamphetamine on or about September 12, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Barber with use of a firearm on or about September 12, 2017. The maximum possible penalty if convicted is 5 years-Life consecutive imprisonment, a $250,000 fine, a 5 year term of supervised release and $100 special assessment. Count III of the Indictment charges Lance with felon in possession of a firearm on or about September 12, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Francisco Becerra-Robles, age 48, is charged with illegal reentry after deportation following an aggravated felony conviction on or about October 26, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Derrick C. Bratton, age 51, of Omaha, is charged with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about October 25, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Leobardo Cabrera-Ramirez, age 43, is charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about October 14, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Margarito Duarte-Vazquez, age 28, is charged with illegal reentry after deportation on or about February 26, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Phillip Marlowe Donovan, age 31, of Omaha, is charged with conspiracy to and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine between on or about January 1, 2014 and on or about September 30, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Sixto Leonel Giron Avila, age 49, of Omaha, is charged with illegal reentry after deportation on or about October 31, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Kenneth Hechtman, age 49, of Omaha, Wendy Hechtman, age 42, of Omaha, Colter Keffer, age 23, of LaVista, Nebraska, and Abby Rowell, age 28, of Omaha, are charged in a three count Indictment. Kenneth and Wendy are charged in Count I with conspiracy to manufacture 10 grams or more of Fentanyl Analogue between on or about March 2017 and October 30, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 years term of supervised release, and a $100 special assessment. Kenneth, Wendy, Colter and Abby are charged in Count II with conspiracy to distribute Fentanyl Analogue between on or about March 2017 and October 30, 2017. The maximum possible penalty of convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Kenneth and Wendy are charged in Count III with possession with intent to distribute 400 grams or more of Fentanyl Analogue on or about October 30, 2017. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Christopher Hervey, age 32, of Omaha, is charged in a five-count Indictment with uttering counterfeit currency on or about September 18, 2017 and continuing through October 3, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Anthony Hollingsworth, age 29, is charged with felon in possession of a firearm on or about April 21, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Israel Elias Holmes, age 22, Kiana Michelle Stabler, age 21, Crystal Larae Stabler, age 21, of Lincoln, Nebraska, Kaylene Edna Mae Stabler, age 22, and Julian Michael Huffman, age 23, , are charged in a three count Indictment. All five defendants are charged in Count I with conspiracy to commit robbery, on or about March 16, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000, fine, a 3 year term of supervised release, and a $100 special assessment. Kiana Stabler, Kaylene Stabler and Julian Huffman are charged in Count II with Bank Robbery on or about May 26, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000, fine, a 3 year term of supervised release, and a $100 special assessment. Israel Holmes is charged in Count III with Bank Robbery on or about October 3, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000, fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaime Jaime-Gayton, age 39, is charged with falsely representing a Social Security number on or about December 11, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Daniel Kinnison, age 62, of Verdigre, Nebraska, is charged with Tax Evasion on or about February 8, 2009 through February 23, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Christopher G. Kober, age 44, is charged in a two count Indictment. Kober is charged in Count I with acquiring drugs by fraud/diversion between on or about January 2016 and March 17, 2017. The maximum possible penalty if convicted is 4 years imprisonment, a $250,000 fine, 1 year term of supervised release, and a $100 special assessment. Kober is charged in Count II with possession with intent to distribute Schedule II Controlled Substances on or about March 17, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaimie R. Laass, age 47, of South Sioux City, Nebraska is charged in a 15 Count Indictment with Wire Fraud on or about December 10, 2012 through May 13, 2015. The maximum possible penalty if convicted is 20 years imprisonment for each count, a $250,000 fine for each count, a 3 year term of supervised release for each count, and a $100 special assessment for each count.
* Joseph Lanckriet, age 26, of Omaha, and Thomas Woodard, age 35, of Union, are charged in a two-count Indictment. Counts I and II of the Indictment charge the defendants with bank robbery and aiding and abetting on or about December 7, 2012 and on or about March 28, 2013. The maximum possible penalty if convicted is 25 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Melchor Lemus-Rodriguez , age 35, of Columbus, is charged with illegal reentry after deportation following a felony conviction on or about November 8, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Merced Leon-Angulo, age 46, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about July 16, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Emilio Lopez Castulo, age 26, of Omaha, is charged with illegal reentry after deportation on or about October, 26, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jaime Lopez, age 42, is charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about November 2, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Jose Lovato, age 40, of Omaha, is charged with felon in possession of a firearm on or about October 2, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Luis Madero, age 28, Sandra Navarrete, age 24, and Gerardo Urena-Ruelas, age 27, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine beginning on or about February 1, 2012 and continuing to on or about October 19, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Madero, Navarrete and Urena-Ruelas with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about October 19, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment and any property used to commit the offense should be forfeited to the United States.
* Octavio Mejia-Perez, age 45, of Omaha, is charged with illegal reentry after deportation on or about October 24, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ruben Mendoza Mendoza, age 23, of Lincoln, is charged with illegal reentry after deportation on or about October 18, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Victor Ramirez Lopez, age 38, is charged with illegal reentry after deportation on or about November 1, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Marcus Kim Remus age 20, of Omaha, is charged in a six-count Indictment. Counts I and V of the Indictment charge the defendant with interference with commerce by robbery on or about December 26, 2016 and on or about December 30, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count II of the Indictment charges Remus with discharging a firearm in furtherance of a crime of violence on or about December 26, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with bank robbery on or about December 28, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts IV and VI of the Indictment charge Remus with discharging a firearm in furtherance of a crime of violence on or about December 28, 2016 and on or about December 30, 2016. The maximum possible penalty if convicted is 25 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Carlos Reyes-Alvarado, age 28, of Hastings, is charged with illegal reentry after deportation on or about October 27, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Epifanio Solorio-Chavez, age 40, of Arapahoe, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about October 10, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Carlos Valdez, age 58, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine and a mixture containing cocaine between on or about May 1, 2016 , and on or about April 24, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $250,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Valdez with felon in possession of a firearm and ammunition on or about April 24, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan Vargas Ramirez, age 36, is charged with illegal reentry after deportation on or about November 1, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Rodney Ward, of Nelson, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with concealment of assets in bankruptcy on or about October 31, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Ward with making a false statement under oath in a bankruptcy case on or about May 13, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Norwich Man Sentenced to Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC BOONE, 48, of Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for trafficking cocaine. Judge Meyer also ordered BOONE to perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, an investigation by the FBI Northern Connecticut Safe Streets Task Force, Norwich Police Department, Waterford Police Department and Groton Town Police revealed that in the summer of 2016, Paul Mott, of Groton, conspired with others to obtain and distribute cocaine. Mott regularly took orders for cocaine from individuals and then drove to his supplier in the Bronx, New York, to obtain the drug. When he returned to Connecticut, Mott provided the cocaine to others, including Marybeth Harvey, of Norwich, for further distribution. Some of Mott’s narcotics trafficking activity occurred at his restaurant, Caribbean American Kitchen to Go, located on Truman Street in New London.
The investigation revealed that Harvey supplied some of the cocaine she received from Mott to BOONE, who then distributed it to others. On July 25, 2016, law enforcement stopped BOONE’s car, after BOONE left Harvey’s house, and seized approximately 49 grams of cocaine and 15 grams of crack cocaine that BOONE had thrown from the car before he stopped.
BOONE has been detained since his federal arrest on August 26, 2016. On May 31, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
Mott and Harvey also pleaded guilty. On September 5, 2017, Mott was sentenced to 60 months of imprisonment and was ordered to forfeit a 2013 Toyota 4Runner and approximately $3,494 that was seized from him at the time of his arrest. On September 14, Harvey was sentenced to 12 months of imprisonment and was ordered to forfeit $4,800.
Two other individuals were charged and convicted as a result of this investigation.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
New York Man Sentenced to 110 Months in Prison for Illegal Firearms PossessionRead the Press Release
TRENTON, N.J. – A Bronx, New York, man was sentenced today to 110 months in prison for knowingly possessing two handguns despite being a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Jamal Williams, 41, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with being a felon in possession of a firearm. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 11, 2014, law enforcement officers arrested Williams in Trenton. After searching his residence and a storage unit he rented, they found two 9mm Ruger pistols and 16 rounds of ammunition. Williams had previously been convicted of narcotics trafficking and unlawful weapons possession felonies in New Jersey and New York state courts.
Acting U.S. Attorney Fitzpatrick credited special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, and the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.Defense counsel: David R. Oakley Esq., Princeton, New Jersey
New Haven Man Admits to Armed Robbery of Hamden StoreRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARIS SNOW, also known as “Eagle,” 25, of New Haven, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a federal robbery charge stemming from the armed robbery of a Hamden store in April 2016.
According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden. One of the men pulled out a gun and ordered the store’s three employees to get down on the ground. The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case. The employee complied and the four suspects took several items, including cellular telephones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830. The four ran out of the store to a waiting car.
Investigators subsequently identified SNOW as one of the four individuals who committed the armed robbery of the store, and learned that SNOW had made threatening statements to and about a woman who participated in the robbery with him. SNOW was arrested on a federal criminal complaint on June 2, 2017.
SNOW pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years. Judge Arterton scheduled sentencing for February 16, 2018.
SNOW has been detained since his arrest.
Four other individuals have been charged as a result of this investigation.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Navajo Man from Crownpoint Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Shayliss Ellsworth, 24, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to assault charges. Under the terms of his plea agreement, Ellsworth faces a prison sentence within the range of 70 to 87 months followed by a term of supervised release to be determined by the court.
Ellsworth was arrested on June 21, 2017, on a criminal complaint charging him with stabbing two Navajo women with a knife on June 17, 2017, on the Navajo Indian Reservation in McKinley County, N.M. As the result of the assault, the first victim suffered a cut across her face through her mouth, stab wounds on her left side and right breast, and a cut and stab wound to her left arm which cut her artery causing profuse bleeding. The second victim suffered cuts on her neck and finger and a stab wound on her right arm. According to the complaint, the first victim underwent multiple surgeries including a surgery to amputate her left arm as the result of the assault.
Ellsworth was subsequently charged in a four-count indictment on July 11, 2017, with two counts of assault with a dangerous weapon, a knife, and two counts of assault resulting in serious bodily injury. According to the indictment, the crimes took place on June 17, 2017, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Ellsworth pled guilty to two counts of assault resulting in serious bodily injury. In the plea agreement, Ellsworth admitted that on June 17, 2017, he assaulted two women with a knife causing serious bodily injury to both. Ellsworth further admitted that the first victim suffered stab wounds to her right chest, cuts to her left arm, a deep puncture wound that cut an artery and disfiguring cuts to her face. The first victim underwent multiple surgeries and eventually had her left arm amputated as the result of the injuries caused by Ellsworth. Ellsworth also admitted that the second victim suffered stab wounds to her right shoulder and neck, which required surgery to close.
Ellsworth remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Jennifer M. Rozzoni and Niki Tapia-Brito are prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nationwide Methamphetamine and Marijuana Traffickers SentencedRead the Press Release
PHOENIX – Earlier this month, the last of 17 defendants in a nationwide drug trafficking and money laundering cell, Ramon Llamas, 55, of Phoenix, Ariz., was sentenced by United States District Judge Diane J. Humetewa to 168 months’ imprisonment after he previously pleaded guilty to conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.
Llamas’s sentencing followed other recent hearings in which Judge Humetewa imposed sentences of 97 months’ imprisonment for Donald Hamilton, 50, of Philadelphia, Pa., who was convicted at trial of conspiracy to distribute marijuana, conspiracy to launder monetary instruments, and other offenses, and Orencio Ruelas, 55, of Phoenix, Ariz., who was sentenced to 235 months’ imprisonment after being convicted at trial of conspiracy to distribute methamphetamine and other offenses. Fourteen other defendants convicted in the case for various drug trafficking and money laundering crimes received sentences ranging from probation to 121 months’ imprisonment.
At trial, the United States proved that Llamas and his son, co-defendant Juan Llamas, obtained large quantities of marijuana and methamphetamine from Mexico and shipped it to customers throughout the United States. As part of t hese activities, Hamilton, a gate agent for a major domestic airline at the Philadelphia International Airport, met and introduced Juan Llamas to marijuana customers on the east coast in exchange for a portion of the proceeds from drug sales. Hamilton also used his position with the airlines to obtain “buddy passes” for Juan Llamas and others to fly to and from Phoenix and the east coast in aid of their drug trafficking activities. Hamilton himself used his position with the airlines to smuggle hundreds of thousands of dollars of drug money through airport security from Philadelphia to Phoenix.
Evidence at trial also showed that Ruelas, a family friend of Ramon Llamas, assisted customers in obtaining kilogram-quantities of methamphetamine from Mexico through the Llamas family on multiple occasions.
The investigation in this case was conducted by the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation, who were assisted by the Glendale Police Department, the Peoria Police Department, the Phoenix Police Department, and the La Paz County Sheriff’s Office. The prosecution was handled by D.J. Pashayan, Todd Allison, and Krissa Lanham, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0865-PHX-DJH
RELEASE NUMBER: 2017-112_Llamas etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Mexican Citizen Sentenced to 4 Months for Illegally Re-entering the United StatesRead the Press Release
SYRACUSE, NEW YORK – Rodrigo Villanueva-Yanez, age 40, and a citizen of Mexico, pled guilty today to illegally reentering the United States after being previously deported. Villanueva-Yanez was also sentenced today to serve 4 months in prison, to be followed by a 1-year term of supervised release.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent Brian S. Hastings, United States Border Patrol, Buffalo Sector.
Villanueva-Yanez was removed from the United States in 2011, at the Port of Entry in Hidalgo, Texas. He later re-entered the country without the permission of the Department of Homeland Security and was found in Watertown, New York at the time of his arrest.
Villanueva-Yanez will be transferred to the custody of the Department of Homeland Security, which will place him into removal proceedings.
This case was investigated by United States Border Patrol, Wellesley Island Station, and prosecuted by Assistant United States Attorney Robert S. Levine.