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15 November 2017
YMM Gang Member Sentenced to 16 Years for Drug and Gun ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DELWIN McLAREN, age 25, a resident of New Orleans, was sentenced today after having previously been found guilty of participating in a drug conspiracy and a firearms conspiracy. U.S. District Judge Kurt D. Engelhardt sentenced McLAREN to serve 192 months in prison, to be followed by 5 years of supervised release, and a $200 special assesment.
In June of 2017, DELWIN McLAREN, JAWAN FORTIA, DEDRICK KEELEN, LIONEL ALLEN, BRYAN SCOTT and were convicted following a 7-day trial. According to evidence presented at trial, McLAREN was a member of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found McLAREN guilty of conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine and a quantity of marijuana along with conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes.
McLAREN was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a Second Superseding Indictment. JEFFREY WILSON pled guilty to the drug charges and was sentenced to 180 months of incarceration. DEDRICK KEELEN was sentenced to life plus 10 years last week after being convicted of multiple counts at trial. JAWAN FORTIA was sentenced to life in prison as well. LIONEL ALLEN and BRYAN SCOTT, who went to trial with McLAREN, are awaiting sentencing.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.
Wildboys Gang Member Sentenced to Prison for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
A member of the Wildboys gang was sentenced today to 20 years in prison in federal court in Charleston, South Carolina, after being found guilty by a federal jury for his role in the attempted murder of a rival gang member.
The announcement was made by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown aka “Deno Badazz,” 23, of Green Pond, South Carolina, was sentenced to 240 months in prison, including a 10 year mandatory minimum consecutive sentence by U.S. District Court Judge Richard M. Gergel, for use of a firearm during a crime of violence. In addition, Brown was ordered to serve a term of five years of supervised release, and to pay the cost of the victim’s medical care.
According to evidence presented at trial, Brown was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, South Carolina. At trial, prosecutors presented evidence that showed that beginning as early as 2012, Brown and other Wildboys gang members engaged in racketeering activity, including the April 7, 2015, attempted murder of a rival gang member in a drive-by shooting involving assault-type firearms. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals have previously pleaded guilty to their involvement in the Wildboys gang. In June 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. In August 2017, Wildboys member Joshua Manigault, aka “J-Rizzle,” was sentenced for his role in gang-related activities.
This case was investigated by the ATF Charleston, South Carolina Office, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Wildboys Gang Member Sentenced to Prison for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
Washington – A member of the Wildboys gang was sentenced today to 20 years in prison in federal court in Charleston, South Carolina, after being found guilty by a federal jury for his role in the attempted murder of a rival gang member.
The announcement was made by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown aka “Deno Badazz,” 23, of Green Pond, South Carolina, was sentenced to 240 months in prison, including a 10 year mandatory minimum consecutive sentence by U.S. District Court Judge Richard M. Gergel, for use of a firearm during a crime of violence. In addition, Brown was ordered to serve a term of three years of supervised release, and to pay the cost of the victim’s medical care.
According to evidence presented at trial, Brown was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, South Carolina. At trial, prosecutors presented evidence that showed that beginning as early as 2012, Brown and other Wildboys gang members engaged in racketeering activity, including the April 7, 2015, attempted murder of a rival gang member in a drive-by shooting involving assault-type firearms. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals have previously pleaded guilty to their involvement in the Wildboys gang. In June 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. In August 2017, Wildboys member Joshua Manigault, aka “J-Rizzle,” was sentenced for his role in gang-related activities.
This case was investigated by the ATF Charleston, South Carolina Office, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
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Wichita Woman Sentenced for Three Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita woman was sentenced Wednesday to seven years in federal prison for robbing three local businesses, U.S. Attorney Tom Beall said.
Christina A. Messerschmidt, 26, Wichita, Kan., pleaded guilty to committing the following robberies:
- June 14, 2017: Kwik Shop at 2809 E. Douglas in Wichita. She threatened store employees with a knife and took money from the register.
- June 13, 2017: Patricia’s, 6143 W. Kellogg in Wichita. She threatened to strangle an employee and took money from the register.
- Dec. 16, 2016: Intrust Bank at 1544 S. Webb. She gave a teller a note saying, “Give me $1,000 or I will shoot you.” She was arrested after a standoff with police at an apartment near the bank.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Wayne Man Sentenced to 25 Years for the Sexual Abuse of a Minor and Child PornographyRead the Press Release
On November 14, 2017, the defendant, Joseph P. Totoro, II, 51 of Wayne, PA was sentenced to a term of 25 years of incarceration, 10 years of supervised release, and a $725 special assessment for the sexual abuse of a child over a two year time period. The defendant was convicted in August 2017 of attempted production of child pornography, enticement of a minor, receipt of child pornography, possession of child pornography, transfer of obscene matter to a minor, and blackmail.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Priya T. De Souza.
Vian Man Sentenced to 17 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kyle Reece Major, age 33, of Vian, Oklahoma, was sentenced to 17 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about December 29, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possession of firearms is one way that we are able to protect the public. I am thankful for the work of the Sequoyah County Sheriff’s Office, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office, for their work on this case and their commitment to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Edward Snow represented the United States.
U. S. Citizen Detained on Charges for Traveling to Foreign Country and Engaging in Illicit Sexual Conduct with A Minor While ThereRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Douglas Peacock for traveling to a foreign country and engaging in illicit sexual conduct with a minor, announced United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. Peacock was detained in the Southern District of Florida this morning by the Honorable Barry L. Garber after being arrested on the charge in Miami on November 10, 2017.
According to the indictment, Peacock, 43, of Foster City, traveled from the United States to Jamaica on or about June 19, 2017, and thereafter engaged in illicit sexual conduct with a minor who was, at the time, under 12 years of age. Specifically, Peacock, while in the pool of a family-friendly resort in Jamaica, molested a six-year-old US citizen minor victim. Peacock is charged with one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c).
An indictment merely alleges that crimes have been committed, and all defendants, including Peacock, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory sentence of 30 years. He is being returned to San Francisco and will appear before the Honorable Charles R. Breyer at that time.
The case is being prosecuted by Assistant U.S. Attorney Shiao Lee. The case was investigated by HSI.
Two Men Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TYLER CONNER, age 27, of Dallas, and AARON SHEEHAN, age 31, of New Orleans, were sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine.
U.S. District Judge Sarah S. Vance sentenced CONNER to 60 months of incarceration, to be followed by 4 years of supervised release. SHEEHAN was sentenced to 30 months of incarceration, to be followed by 3 years of supervised release.
Beginning at a time unknown but not later than 2013, and continuing through 2016, CONNER frequently traveled back and forth to Texas to obtain quantities of methamphetamine, which he then resold in New Orleans. SHEEHAN was involved in the same conspiracy to sell methamphetamine in the New Orleans area.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA), the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
Two McComb Women Sentenced to Prison on Drug ChargesRead the Press Release
Natchez, Miss – Shawanda Matthews, 31, and Veronica Thomas, 37, both of McComb, Mississippi, were sentenced on November 14, 2017, by Senior U.S. District Judge David Bramlette III, for their roles in a drug trafficking conspiracy, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Shawanda Matthews was sentenced to 18 months in federal prison followed by three years of supervised release, and Veronica Thomas was sentenced to 24 months in federal prison followed by three years of supervised release.
The defendants were charged as the result of a lengthy investigation into a drug trafficking organization operating in south Mississippi. The case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Hattiesburg, along with the Mississippi Bureau of Narcotics, Mississippi Bureau of Investigation, Office of the Mississippi State Auditor, Marion County Sheriff’s Office, Lincoln County Sheriff’s Office, and the Hattiesburg Police Department. It was prosecuted by Assistant U.S. Attorney Jerry L. Rushing.
Two Former Local Law Enforcement Officers Sentenced for Accepting Bribes in a Cigarette Trafficking Conspiracy, Co-Defendant Pleads GuiltyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced JUSTIN BROWN, age 30, and JOSHUA CARTHON, age 33, both of New Orleans, were sentenced last week to a one year and one day term of imprisonment to be followed by a one year term of supervised release (which includes four months of home confinement). The former New Orleans Police officers previously pled guilty to accepting bribes in furtherance of the conspiracy to traffic in contraband cigarettes. Additionally, a co-defendant, ATALLA ATALLA, a/k/a TOMMY, age 40, of Wilmington, North Carolina, pled guilty to conspiracy to traffic in contraband cigarettes and evading the federal excise tax imposed on tobacco.
According to previously filed court documents, BROWN and CARTHON, along with GARRETT PARTMAN, all local law enforcement officers at the time of the Indictment, accepted bribes in exchange for protecting and transporting the shipment of contraband cigarettes across state lines. Co-defendants, ANWAR ABDELMAJID-AHMAD, JADALLAH SAED, and ATALLA, would then distribute and sell the contraband cigarettes in North Carolina and other states where the cigarette taxes are higher than Louisiana, resulting in a total tax loss to the federal and state governments of $400,000-$900,000. ATALLA will be sentenced on January 31, 2018. ATALLA faces a maximum penalty of five years imprisonment, a fine of $250,000, three years of supervised release and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Division, Immigration and Customs Enforcement/Homeland Security Investigations, and the New Orleans Police Department/Public Integrity Bureau. Assistant United States Attorneys Tracey N. Knight and Irene Gonzalez are in charge of the prosecution.
Twin Falls CPA Pleads Guilty to Making a False StatementRead the Press Release
BOISE – Janet Roe, 56, of Twin Falls, Idaho, pleaded guilty yesterday to making a false statement to the Internal Revenue Service, U.S. Attorney Bart M. Davis announced.
Roe works as a certified public accountant in Twin Falls. According to the plea agreement, Roe devised a sham transaction that enabled WDC, an Idaho company with its principal place of business in Twin Falls, to evade over $500,000 in taxes in 2010. To facilitate the tax evasion, WDC claimed a $1.5 million deduction on its 2010 tax return for “management and consulting expense” that never occurred. In response to audits by the Idaho State Tax Commission in late 2013, Roe created and submitted a falsified and backdated option agreement as well as falsified corporate shareholder meeting minutes. In January 2016, Roe was interviewed by special agents of the Internal Revenue Service. Roe falsely stated that she did not prepare the falsified and backdated option agreement.
A charge of making a false statement is punishable by up to five years in prison, a maximum fine of $250,000, and a term of supervised release of three years.
Sentencing is set for January 30, 2018, before U.S. District Judge David C. Nye at the federal courthouse in Boise.
This case was investigated by the Internal Revenue Service—Criminal Investigations.
Three McComb Men Sentenced to Prison for their Roles in a Drug Trafficking ConspiracyRead the Press Release
Natchez, Miss – Samuel Cardell Reed, 30, Eugene Rodrigues Lewis, 35, and Gary Thompson, 34, all of McComb, Mississippi, were sentenced on November 14, 2017 by Senior U.S. District Judge David C. Bramlette III, for their roles in a drug trafficking conspiracy, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Samuel Cardell Reed was sentenced to 169 months in federal prison followed by three years of supervised release for conspiracy to possess with the intent to distribute cocaine hydrochloride.
Eugene Rodrigues Lewis was sentenced to 65 months in federal prison followed by three years of supervised release for possession with the intent to distribute cocaine hydrochloride.
Gary Thompson was sentenced to 21 months in federal prison followed by three years of supervised release for conspiracy to possess with the intent to distribute cocaine hydrochloride.
The indictment in this case was the result of a lengthy investigation into a drug trafficking organization operating in south Mississippi. The case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Hattiesburg, along with the Mississippi Bureau of Narcotics, Mississippi Bureau of Investigation, Office of the Mississippi State Auditor, Marion County Sheriff’s Office, Lincoln County Sheriff’s Office, and the Hattiesburg Police Department. It was prosecuted by Assistant U.S. Attorney Jerry L. Rushing.
Texas Man Charged in Fraud SchemeRead the Press Release
Michael Glenn Barnes, 36 years old, of Gun Barrel City, Texas, was charged by an indictment unsealed today with aggravated identity theft, wire fraud and mail fraud charges, announced United States Attorney Louis D. Lappen. The indictment alleges that, from May 2015 through September 2017, Barnes sought to defraud manufacturers of commercial goods by falsely representing that he was various prominent musicians and professional athletes, and requesting free merchandise, which he claimed would provide promotion and publicity for the manufacturers. The indictment further alleges that, as part of this scheme, Barnes targeted at least 36 companies, in 11 states, including Pennsylvania, and four foreign countries.
If convicted of the charges, the defendant faces a maximum sentence of 800 years imprisonment, including a mandatory sentence of two years imprisonment, 3 years supervised release, a $10,250 fine, and a $4,100 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, Philadelphia Division, and the Gun Barrel City Police Department (Texas), and is being prosecuted by Assistant United States Attorney John Gallagher.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Street Smarts Presentations Tops 30,000 StudentsRead the Press Release
PROVIDENCE, RI – Approximately 200 seventh grade students at the Hugh B. Bain Middle School in Cranston today spent the morning today engaged in an interactive discussion about gangs and street violence during a presentation of the United States Attorney’s Office’s Street Smarts program. Street Smarts, created and presented by Assistant United States Attorney (AUSA) Richard W. Rose, is an interactive, anti-violence program that delivers a powerful, impactful message to students to stay away from gangs, street violence and guns.
Today’s presentation marked a significant milestone. The Hugh B. Bain Middle School’s seventh grade class participation in the program pushed the total number of Rhode Island middle and high school students who have participated in the program since its inception in 2006 to over 30,000 students.
While specifically aimed at the state’s urban core, Street Smarts is a powerful message adaptable to students and teenagers regardless of their setting. AUSA Rose delivers a sometimes light and entertaining, yet often times pointed and serious reality check of the difficult and impactful decisions teenagers are faced with every day on the streets of their neighborhoods and within their circles of friends. The presentation is based, in part, upon his own personal experiences growing up on the streets of South Providence.
“The Street Smarts program and Assistant United States Attorney Richard Rose effectively communicate to teenagers the negative impact gang activity, street violence and guns could have on them for the rest of their lives,” said Acting United States Attorney Stephen G. Dambruch. “The centerpiece of the Department of Justice’s crime reduction strategy is the reinvigoration of Project Safe Neighborhoods, including preventative measures to keep youth on track. Street Smarts is designed to reach our youth with an impactful and lasting message of the adverse consequences of gangs, street violence and guns.”
School administrators or community-based youth organizations seeking additional information about the Street Smarts program can contact AUSA Richard Rose at [email protected] .
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Stilwell Man Sentenced to 35 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joshua Wade Carter, age 42, of Stilwell, Oklahoma, was sentenced to 35 months imprisonment and 5 years of supervised release for Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The Indictment alleged that from in or about November 2016, the exact date being unknown to the Grand Jury, until on or about April 19, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Texas in Tarrant County on or about February 21, 2002, for the offense of Sexual Assault of a Child under 17, resided in Indian Country, and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the Adair County Sherriff’s Office and the United States Marshals Service.
United States Attorney Brian J. Kuester said, “When law enforcement officers from different agencies work together they serve our communities well. The United States Marshals Service and the Adair County Sheriff’s Office worked together on this investigation and as a result, the community is safer. I commend them for their joint efforts to ensure that sex offender registration laws are being enforced.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Edward Snow represented the United States.
Springfield Man Sentenced to 12 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who collected hundreds of thousands of images of child pornography over the past decade was sentenced in federal court today.
David William Ray, 40, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.On April 5, 2017, Ray pleaded guilty to receiving and distributing child pornography between Oct. 17, 2016, and Jan. 26, 2017.
According to court documents, Ray came to the attention of law enforcement because he was uploading child pornography to Skype. Ray told investigators that he would pose as a single father who was sending sexually explicit images of his daughters in order to trade images of child pornography with other users on KIK and Skype.
Ray, who was actively engaged in trading, downloading, and viewing child pornography for the past decade, amassed well over 500,000 images and videos of child pornography. Ray told investigators that he was addicted to child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime 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."
South L.A. Man Arrested on Federal Charges Alleging He Made Online Threats to Kill Sheriff’s Dept. Personnel at the Inglewood CourthouseRead the Press Release
LOS ANGELES – Federal authorities this morning arrested a South Los Angeles man who allegedly made a series of online threats to kill law enforcement personnel and others at the Los Angeles Superior Court’s Inglewood Courthouse, a nearby school and a private business.
John Patrice Hale, 42, who used the online moniker “Frost K Blizzard,” allegedly made the threats using techniques designed to make his internet communications anonymous, which included using Tor and proxy servers.
Hale is expected to be arraigned on a 10-count indictment this afternoon in United States District Court in downtown Los Angeles.
The indictment alleges that Hale sent the online threats over several days in May 2017 to the Los Angeles Sheriff’s Department’s Court Services Division website. Some of the threats invoked ISIS, but authorities have not uncovered any evidence linking Hale to international terrorism. The threats specifically alleged in the indictment are:
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“Our brotherhood will celebrate today when allah sets the explosives planted in Inglewood sheriff vehicles at Inglewood court,” which was sent on May 12. This threat prompted the evacuation of the Inglewood Courthouse, and the LASD’s Arson and Explosives Unit and the Threat Interdiction Unit responded.
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Two similar threats sent on May 15, one of which read, in part: “Allah willing we will be able to take out as many officers that pull out your parking structure. It will be a plus to take part of your american school across the street. ISIS will have revenge today.” Law enforcement again responded to the Inglewood Courthouse, which was not evacuated after a threat assessment.
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Two threats made on May 16, one of which read: “Item under deputy car. Impact for half city block. 6 hours to locate it. At Inglewood sheriff station. If you have units out better call them back in.” These communications again prompted a significant response by law enforcement and evacuation of the Inglewood Courthouse.
In addition to these threats, Hale allegedly sent a threat to a private business through its website on May 23 that read: “All praises to Allah. Today, we will detonate an explosive at your La Brea and Arbor Vitae location if our needs aren’t met by your company. ISIS.”
The indictment further alleges that on May 25 Hale submitted bogus information to the FBI’s “Tips and Public Leads” webpage, despite a warning posted on that webpage that submitting a false tip could result in a fine and/or imprisonment. In the submission, Hale allegedly made the false claim that he knew a man who “would supply ISIS with explosives even planting them for them” and who had received instructions from ISIS “to send inglewood sheriff department bomb threats via email.”
The indictment returned by a federal grand jury on November 7 charges Hale with five counts of making false and misleading statements concerning terrorism, four counts of making threats to injure in interstate commerce and one count of making false statements to federal law enforcement.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If Hale were to be convicted of the charges in the indictment, he would face a statutory maximum sentence of five years in federal prison for each of the 10 counts.
The investigation into Hale is being conducted by the FBI’s Joint Terrorism Task Force and was led by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney George E. Pence of the Terrorism and Export Crimes Section.
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Shreveport mental health facility administrator sentenced to 26 months in prison for kickback schemeRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport mental health facility administrator was sentenced Tuesday to 26 months in prison for taking part in a kickback scheme.
Tom McCardell, 64, of Lafayette, La., was sentenced by U.S. District Judge Elizabeth E. Foote on 14 counts of paying illegal kickbacks. He was also sentenced to three years of supervised release and ordered to pay a $20,000 fine. McCardell was found guilty after a four-day trial that ended February 9, 2017.
According to the evidence presented at trial, McCardell operated a kickback scheme from July 2011 to November 2012 while he was administrator of Physicians Behavior Hospital (PBH) in Shreveport. He paid kickbacks to an Alabama resident, who had no medical training or background, to recruit and refer patients to PBH for psychiatric and substance abuse treatment. The hospital would then purchase bus tickets for the patients to travel to PBH in Shreveport. Many of the patients traveled unattended without escort. To avoid detection and suspicion, the defendant arranged for the kickbacks to be issued in the name of the patient recruiter’s son. The defendant also ordered PBH personnel to create an employee file in the name of the recruiter’s son in order to provide cover for the illegal kickback arrangement. During the scheme, McCardell caused the hospital to pay the recruiter’s son checks totaling $41,000 to which he was not entitled. As a result of the illegal kickback scheme, the hospital billed more than $6.7 million dollars to Medicare and was paid more than $1.2 million dollars.
The Health and Human Services-Office of Inspector General and the FBI investigated the case. Assistant U.S. Attorneys Earl M. Campbell and Tennille M. Gilreath prosecuted the case.
San Diego Man Sentenced to 20 Years in Prison for Trafficking MethamphetamineRead the Press Release
BOISE – Jose A. Mouw, 45, of San Diego California, was sentenced Monday in United States District Court to 240 months in prison for possession with the intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced. Senior U.S. District Judge Edward J. Lodge also ordered that Mouw serve ten years of supervised release and forfeit $4,000 in drug proceeds.
According to court records, on two occasions, Mouw transported methamphetamine from southern California to Idaho for distribution. On September 26, 2016, Mouw traveled from California to distribute two ounces of methamphetamine to an undercover officer in Boise. On October 7, 2016, Mouw was returning to Idaho from California with more methamphetamine when officers in Twin Falls pulled him over and discovered 670 grams of pure methamphetamine in the trunk of his car.
The case was investigated by the Drug Enforcement Administration, the Ada County Sheriff’s Office, and the Twin Falls Police Department.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Salvadoran National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Salvadoran national charged with an immigration crime pleaded guilty and was sentenced yesterday in federal court for illegally reentering the United States after deportation.
Raul Canas-Palacios, 30, pleaded guilty to one count of unlawful reentry of a deported alien and was sentenced by U.S. District Court Judge George A. O’Toole Jr. to two months in prison and one year of supervised release. Canas-Palacios will be subject to deportation upon completion of his sentence.
Canas-Palacios was previously deported in June 2013. In November 2016, Canas-Palacios was convicted in Lynn District Court of two counts of assault and battery with a dangerous weapon. In September 2017, law enforcement in Lynn encountered Canas-Palacios and determined him to be illegally present in the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Rochester Man Sentenced for Robbing Rochester BanksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ernest Young, 50, of Rochester, NY, who was convicted of bank robbery, was sentenced to 151 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Katelyn Hartford, who is handling the case, stated that Young robbed four banks over the course of one week, just days after being released from the New York State Department of Corrections on similar charges. During each of the robberies, the defendant demanded money from the teller and said he had a gun.
o On January 5, 2017, Young robbed the Bank of America branch located at 671 Park Avenue in Rochester; o On January 6, 2017, the defendant robbed the Chase Bank branch located at 3917 Lake Avenue in Rochester; o On December 31, 2016, Young robbed the M&T Bank branch located at 314 Waring Road in Rochester; and o On January 4, 2017, Young robbed the M&T Bank branch located at 1385 Lyell Avenue in Rochester.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Michael Ciminelli.
Rochester Man Pleads Guilty to Conspiracy to Sell OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Lockwood, 44, of Rochester, NY, pleaded guilty to conspiring to distribute a controlled substance before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a $1,000,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Lockwood was prescribed large quantities of oxycodone by his heath care provider. Beginning in February 2015 and continuing until his arrest in February 2017, Lockwood conspired to sell his oxycodone pills to Daniel Volonino, Jr. and Michael Ingham, who, in turn, sold pills to others in the Rochester area.
Charges are pending against Daniel Volonino, Jr. and Michael Ingham. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and investigators with the Medicaid Fraud Control Unit of the New York State Attorney General, under the direction of Eric Schneiderman.
Sentencing is scheduled for January 11, 2018, at 10:00 a.m. before Judge Larimer.
River Oaks Man Admits to Felony Child Pornography ChargesRead the Press Release
FORT WORTH, Texas — Timothy Paul Malone, 39, of River Oaks, Texas, appeared this morning before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to three child pornography counts, announced John Parker, United States Attorney for the Northern District of Texas.
Malone pleaded guilty to two counts of sexual exploitation of children and one count of attempted sexual exploitation of children. Malone faces a maximum term of imprisonment of not less than 15 years and not more than 90 years, a total of $750,000 in fines and up to a lifetime of supervised release. Malone has been in custody since the time of indictment in September 2017. He is scheduled to be sentenced on March 5, 2018.
According to documents filed in the case, Malone persuaded and enticed two minor children in Watauga and Haslet, Texas to engage in sexually explicit conduct for the purpose of producing a video. Malone also attempted to use another minor child to create a video of the minor engaged in sexually explicit conduct.
In January 2017, law enforcement conducted a search warrant, according to plea documents, at Malone’s residence and seized a number of electronic devices. An examination of the devices revealed a number of child pornography videos and images including those of the minors previously mentioned.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
River Oaks Police Department, Tarrant County District Attorney’s Digital Forensics Unit, and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
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Penn Hills Felon Charged with Illegally Possessing Firearms and AmmunitionRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of federal firearms violations, Acting United States Attorney Soo C. Song announced today.
The two-count second superseding indictment, returned on November 14, named Richard Graves, 35, of Pittsburgh, PA, as the sole defendant.
According to the second superseding indictment, on December 12, 2015, and April 15, 2016, Richard Graves, a convicted felon, was in possession of firearms and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, an unlimited fine, 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 of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Penn Hills Police Department, and the Pittsburgh Bureau of Police conducted the investigation leading to the Second Superseding Indictment in this case.
A second superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner and Manager of New York Medical Equipment Provider Charged in $3.5 Million Scheme to Defraud Government-Funded Health PlansRead the Press Release
Earlier today, an indictment was unsealed in federal court in Brooklyn charging Ikechukwu Udeokoro and Ayodeji Fasonu for their roles in an alleged scheme to submit over $3.5 million in fraudulent claims to private insurers, which included government-sponsored managed care organizations. Udeokoro and Fasonu were the owner and manager, respectively, of Meik Medical Equipment and Supply LLC, a purported durable medical equipment (DME) company in Bronx, New York. The defendants were arrested this morning and their initial appearance is scheduled for this afternoon before United States Magistrate Judge James Orenstein.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Kenneth A. Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS OIG), announced the charges.
According to the indictment, beginning in approximately December 2010 and continuing through at least February 2014, Udeokoro and Fasonu executed a scheme in which they submitted fraudulent claims to private insurers, including those that participated in Medicare Part C, for reimbursement for DME that was purportedly provided to the insurers’ members, many of whom were elderly or disabled and had insurance through Medicare Advantage plans or New York Medicaid Managed Care plans. As part of the scheme, the defendants allegedly submitted claims to the private insurers for reimbursement for DME such as multi-positional patient support systems and combination sit-to-stand systems, when the defendants in fact provided the insurers’ members either nothing or a far less expensive product, such as a lift chair/recliner. As alleged in the indictment, Meik Medical Equipment & Supply submitted more than $3.5 million in fraudulent claims.
The charges in the indictment are merely allegations, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.
The Defendants:
IKECHUKWU UDEOKORO
Age: 41
Residence: West New York, New Jersey
AYODEJI FASONU
Age: 51
Residence: Stamford, Connecticut
E.D.N.Y. Docket No. 17-CR-629 (AMD)
Owner and Manager of New York Medical Equipment Provider Charged for Their Roles in Alleged $3.5 Million Scheme to Defraud Government-Funded Health PlansRead the Press Release
The owner and the manager of a purported durable medical equipment (DME) company in the Bronx, New York, were charged in an indictment unsealed today for their roles in an allegedly fraudulent scheme that involved submitting over $3.5 million in claims to private insurers, which included government-sponsored managed care organizations.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Ikechukwu Udeokoro, 41, of West New York, New Jersey, and Ayodeji Fasonu, 51, of Stamford, Connecticut, the owner and manager, respectively, of Meik Medical Equipment and Supply LLC of the Bronx, were charged with one count of health care fraud in an indictment filed in the Eastern District of New York on Nov. 13. The indictment was unsealed upon the arrest of the defendants this morning, and the defendants are expected to be arraigned this afternoon before U.S. Magistrate Judge James Orenstein of the Eastern District of New York at the federal courthouse in Brooklyn. The case has been assigned to U.S. District Judge Ann M. Donnelly.
According to the indictment, beginning in approximately December 2010 and continuing through at least February 2014, Udeokoro and Fasonu executed a scheme in which they submitted fraudulent claims to private insurers, including those that participated in Medicare Part C, for reimbursement for DME that was purportedly provided to the insurers’ members, many of whom were elderly or disabled and had insurance through Medicare Advantage plans or New York Medicaid Managed Care plans. As part of the scheme, the defendants allegedly submitted claims to the private insurers for reimbursement for DME such as multi-positional patient support systems and combination sit-to-stand systems, when the defendants in fact provided the insurers’ members either nothing or a far less expensive product, such as a lift chair/recliner.
As alleged in the indictment, Meik Medical Equipment & Supply submitted more than $3.5 million in claims.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorney Andrew Estes of the Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Owner of Payday Lending Enterprise Found Guilty by Jury of Orchestrating $220 Million Fraudulent Lending SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that RICHARD MOSELEY SR. was found guilty today in Manhattan federal court of wire fraud, aggravated identity theft, and violating the Racketeer Influenced Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”) for operating a payday lending enterprise that systematically evaded state usury laws in order to charge illegally high interest rates, and for issuing payday loans to consumers who never even sought them. MOSELEY was convicted following a two-and-a-half week trial before U.S. District Judge Edgardo Ramos.
Acting U.S. Attorney Joon H. Kim said: “Richard Moseley Sr.’s predatory loan company exploited more than 600,000 of the most financially vulnerable people in the United States. Charging exorbitant interest, fees, and even signing up some individuals for loans they didn’t authorize, Moseley made it nearly impossible for those already struggling to make ends meet. With today’s conviction, however, Moseley can no longer take advantage of those already on the brink, and he now faces significant time in prison for his predatory ways.”
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
Between 2004 and September 2014, MOSELEY owned and operated a group of payday lending businesses (the “Hydra Lenders”) that issued and serviced small, short-term, unsecured loans, known as “payday loans,” through the Internet to customers across the United States.
For nearly a decade, MOSELEY systematically exploited more than 620,000 financially struggling working people throughout the United States, many of whom were having trouble paying for basic living expenses. MOSELEY, through the Hydra Lenders, targeted and extended loans to these individuals at illegally high interest rates of more than 700 percent, using deceptive and misleading communications and contracts and in violation of the usury laws of numerous states that were designed to protect residents from such abusive conduct.
In furtherance of the scheme, the Hydra Lenders’ loan agreements materially understated the amount the payday loan would cost and the total of payments that would be taken from borrowers’ bank accounts. The loan agreements suggested, for example, that the borrower would pay $30 in interest for $100 borrowed. In truth and in fact, however, MOSELEY structured the repayment schedule of the loans such that, on the borrower’s payday, the Hydra Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched. As a result, on the borrower’s next payday, the Hydra Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. Under MOSELEY’s control and oversight, the Hydra Lenders proceeded automatically to withdraw such “finance charges” payday after payday, applying none of the money toward repayment of principal. Indeed, under the terms of the loan agreement, the Hydra Lenders withdrew finance charges from their customers’ accounts unless and until consumers took affirmative action to stop the automatic renewal of the loan.
Through the Hydra Lenders, MOSELEY also extended numerous payday “loans” to victims across the country who did not even want the loans or authorize the issuance of the loans, but instead had merely submitted their personal and bank account information in order to inquire about the possibility of obtaining a payday loan. MOSELEY then automatically withdrew the Hydra Lenders’ usurious “financing fees” directly from the financially struggling victims’ bank accounts on a bi-weekly basis. Although hundreds of victims, over a period of years, lodged complaints that they had never approved or even been aware of the issuance of the loans, the Hydra Lenders, at MOSELEY’s direction, continued to issue loans to consumers without confirming that the consumers in fact wanted the loans that they received or had reviewed and approved the loan terms.
Throughout their existence, the Hydra Lenders were the subject of complaints from customers across the country, numerous state regulators, and consumer protection groups, about the Hydra Lenders’ deceptive and misleading practices in issuing usurious and fraudulent loans. Beginning in approximately 2006, in an attempt to avoid civil and criminal liability for his conduct, and to enable the Hydra Lenders to extend usurious loans contrary to state laws, MOSELEY created the sham appearance that the Hydra Lenders were located overseas. MOSELEY nominally incorporated the Hydra Lenders first in Nevis, and later in New Zealand, and claimed that the Hydra Lenders could not be sued or subject to state enforcement actions because they were beyond the jurisdiction of every state in the United States. In truth and in fact, the entirety of MOSELEY’s lending business, including all bank accounts from which loans were originated, all communications with consumers, and all employees, were located at MOSELEY’s corporate office in Kansas City, Missouri. The Hydra Lenders’ purported “offshore” operation consisted of little more than a service that forwarded mail from addresses in Nevis or New Zealand to the Kansas City, Missouri, office.
In furtherance of the scheme, MOSELEY falsely told his attorneys that the Hydra Lenders maintained physical offices and employees in Nevis and New Zealand and that the decision whether to extend loans to particular consumers was made by employees of the Hydra Lenders in Nevis and New Zealand. As MOSELEY knew, at no time did the Hydra Lenders have any employees involved in the lending business in Nevis or New Zealand, and at all times the decision whether to underwrite loans was made by employees under MOSELEY’s direction in Kansas City, Missouri. To defeat state complaints and inquiries, MOSELEY directed his attorneys at outside law firms to submit correspondence to state Attorneys General that stated – falsely, unbeknownst to MOSELEY’s attorneys – that the Hydra Lenders originated loans “exclusively” from their offices overseas and had no physical presence anywhere in the United States. In reliance on this materially false and misleading correspondence, many state Attorneys General and regulators closed their investigations on the apparent basis that they lacked jurisdiction over the Hydra Lenders and that the Hydra Lenders had no presence or operations in the United States.
From approximately November 2006 through approximately August 2014, the Hydra Lenders generated more than $200 million in revenues. MOSELEY himself made millions of dollars from the scheme, which he spent on, among other things, a vacation home in Mexico, luxury automobiles, and country club membership dues.
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MOSELEY, 73, of Kansas City, Missouri, was convicted of one count of conspiracy to collect unlawful debts in violation of RICO; one count of collecting unlawful debts in violation of RICO; one count of conspiracy to commit wire fraud; and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. In addition, he was convicted of one count of aggravated identity theft, which carries a maximum sentence of two years in prison, and one count of violating TILA, which carries a maximum sentence of one year in prison. MOSELEY is scheduled to be sentenced by Judge Ramos on April 27, 2018, at 11:00 a.m.
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.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the Office of the Inspector General for the Board of Governors of the Federal Reserve System. Mr. Kim also thanked the Consumer Financial Protection Bureau, which brought a separate civil action against MOSELEY, for referring the matter and for its assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore and David Abramowicz are in charge of the prosecution.
Oregon Man Pleads Guilty to Marijuana Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN G. KOUKOURAS, 40, of Eugene, Oregon, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to possess with intent to distribute marijuana.
According to court documents and statements made in court, in the summer of 2017, KOUKOURAS and an individual in Connecticut utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. On July 26, 2017, investigators executed a federal search warrant at the New York residence and seized 140 marijuana plants and equipment used to grow, process and distribute marijuana.
KOUKOURAS was arrested in Oregon on September 14, 2017. At the time of his arrest, he possessed an additional approximately 50 marijuana plants and equipment used to grow and process marijuana.
Judge Arterton scheduled sentencing for February 7, 2018, at which time KOUKOURAS faces a maximum term of imprisonment of five years. KOUKOURAS is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
Nine Indicted for Drug Trafficking and Money Laundering ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging nine people with participating in a drug trafficking and money laundering conspiracy.
According to the indictment and court documents, Alex Burnett is charged with being the head of a criminal organization operating on the Virginia Peninsula. The indictment charges Alex Burnett, Charles McMillan, Charles Bailey, Jr., Mario Barrett and Jordan Davis with conspiring to distribute and distributing heroin, cocaine, cocaine base and marijuana. This included using the 9Rounds Gym in Peninsula Town Center, owned by Alex and Shirley Burnett, for drug deals. In addition, Alex Burnett, along with his father, Robert Burnett, and his mother, Shirley Burnett, and Ada Rodriguez and Eleonora Paronuzzi are charged with laundering the monies made from the drug distribution. Alex Burnett, Barrett and Davis are also charged with possessing firearms as convicted felons and Barrett is additionally charged with possessing an assault rifle in furtherance of a drug trafficking offense.
The Grand Jury returned the following charges:
Name
Age, Hometown
Charges
Max Penalty
Alex Burnett
37, Hampton
Continuing Criminal Enterprise
Conspiracy to Distribute Drugs
Conspiracy to Launder Money
Distribution of Heroin
Felon in Possession of Firearm
Life
Life
20 years
20 years
10 years
Shirley Burnett
62, Carrollton
Conspiracy to Launder Money
20 years
Robert Burnett
64, Carrollton
Conspiracy to Launder Money
20 years
Jordan Davis
24, Williamsburg
Conspiracy to Distribute Drugs
Distribution of Cocaine Base
Felon in Possession of Firearm
Life
20 years
10 years
Charles McMillan
30, Newport News
Conspiracy to Distribute Drugs
Distribution of Cocaine Base
Life
20 years
Charles Bailey, Jr.
54, Newport News
Conspiracy to Distribute Drugs
Distribution of Cocaine Base
Life
20 years
Eleanora Paronuzzi
36, Newport News
Conspiracy to Launder Money
20 years
Ada Rodriguez
36, Jacksonvillle, Florida
Conspiracy to Launder Money
20 years
Mario Barrett
41, Hampton
Conspiracy to Distribute Drugs
Distribution of Heroin
Possess with Intent to Distribute Marijuana
Felon in Possession of Firearm
Firearm in Furtherance of Drug Trafficking
Life
20 years
5 years
10 years
Life
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-111.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Newark Woman Sentenced to 4 Years Imprisonment in Embezzlement CaseRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Roberta Czap, age 67, formerly of Newark, was sentenced on November 13, 2017, by Chief U. S. District Court Judge Leonard P. Stark to 48 months of imprisonment and three years of supervised release. In addition, Defendant will be required to forfeit more than $1 million in assets that represent the proceeds of her crimes.
The sentencing came after Ms. Czap pleaded guilty on June 1, 2017 to one count of wire fraud, one count of money laundering, and one count of making false statements on tax returns.
Beginning in January 2011 and through August 2016, while employed as the Vice President of Accounting at a financial services company in Newark, defendant made 497 separate fraudulent ACH transactions from the company’s accounts into her personal bank accounts. Defendant disguised these transactions, ranging from $1,000 to $38,527, as payments to corporate health insurance payments or payments to corporate marketers and altered the company’s general ledger to further conceal her actions. In total, Ms. Czap obtained more than $6.1 million through her fraud. Following the misappropriation of funds from the corporation, Ms. Czap converted these electronic transfers to cash, through either ATM withdrawals or cash advances at several casinos. After gambling, often briefly, defendant would cash out at the casino and receive United States Currency. Federal law requires that all income, whether obtained legally or illegally be declared on tax returns. However, Ms. Czap failed to report the proceeds of her fraud on her tax return for years 2013 through 2015.
Between April 2014 and September 2016, defendant’s husband made a series of structured cash deposits totaling $1,212,910, in increments approaching, but of less than $10,000. He was previously sentenced to a year and a day of imprisonment for his conduct in a separate criminal action, United States v. Matthew Czap, 17-4-LPS.
Acting U.S. Attorney Weiss stated, “Defendant’s conduct, which the Court accurately described as a ‘brazen and long-running fraud’ not only violated the law, but the trust of her employers and colleagues. She compounded her crimes by laundering the proceeds of her fraud and attempting to conceal the money from the government. Defendant’s desire to enrich herself at the cost of others represents serious criminal conduct that cannot be overlooked. Ms. Czap’s 4-year prison sentence should serve as a warning to others contemplating similar crimes that such conduct will eventually catch up with you and you will be held accountable.”
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lesley Wolf. Acting U.S. Attorney Weiss thanked the investigators for their excellent work in pursuing this investigation and for identifying assets acquired through defendant’s fraud. The government anticipates that these assets will be provided as partial restitution to the victims.
Midlands Man Sentenced in Federal Court for Possessing a FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Michael Jones, age 59, formerly of Irmo, South Carolina has been sentenced in federal court in Columbia, for felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1). United States District Judge Mary Geiger Lewis of Columbia sentenced Jones to 21 months incarceration followed by three years of supervised release.
Evidence presented at the change of plea hearing established that on July 8, 2015, the Irmo Police Department responded to a domestic dispute. Upon arriving at the scene, a woman informed the officers that her husband, Jones, was trying to cut her grandson. The younger male, who was standing on the front stoop of the house, informed the officers that his grandfather was trying to cut him with a piece of glass. They told the officers that Jones was in the back bedroom. Through the open front door, the officers repeatedly asked Jones to come outside, to which there was no response. The officers entered the home through a side door. They saw a closed doorway at the end of the hallway. Again, the officers repeatedly asked Jones to come out of the room, which Jones refused.
Other officers arrived and Jones partially opened the door with the left side of his body concealed by the door. From his position, one officer was able to see that Jones had a rifle with a brown stock and a black barrel in his hand, with his finger on the trigger guard. The officer deployed his Taser hitting Jones who fell to the floor, but was able to stand up and pointed the gun at the officers. The officers fired their weapons and Jones was struck multiple times.
Upon entering the room, the officers located a .22 caliber Remington rifle loaded with .22 caliber ammunition lying next to Jones. At the time of this incident, Jones had been previously convicted of two counts of common law robbery, which prevented him from possessing a firearm.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Irmo Police Department. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case. This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that SALVADOR TENOCO-RODRIGUEZ, age 40, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien after deportation, in violation of Title 8 U.S.C., Sections 1326(a) and (b)(2).
According to the Bill of Information, TENOCO-RODRIGUEZ reentered the United States on or about August 29, 2017, after having been previously removed therefrom on or about October 27, 2006.
TENOCO-RODRIGUEZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Kurt D. Engelhardt set sentencing for January 31, 2018.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Felipe Martinez-Rios, age 27, and a citizen of Mexico, was sentenced today to time served (3 months in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Rios admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on April 13, 2010.
On August 2, 2017, ICE Officers arrested Martinez-Rios in Amsterdam, New York.
Following the sentencing, Martinez-Rios was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Merced County Resident Pleads Guilty to Conspiracy to Grow Marijuana in Sequoia National Forest in Kern CountyRead the Press Release
FRESNO, Calif. —Jose Manuel Sanchez-Zapien (Sanchez), 38, a citizen of Mexico and resident of Dos Palos, pleaded guilty today to conspiring to manufacture marijuana and manufacturing marijuana in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 13, 2017, Sanchez was found at a drop point in the Slick Rock Creek drainage delivering supplies to growers at a marijuana cultivation site in Alder Creek in the Sequoia National Forest. The drop point has been used numerous times in the past as a supply drop point for marijuana growers to access marijuana grow sites in the Slick Rock Creek drainage. Law enforcement officers found over 20,952 marijuana plants at the Alder Creek site. According to the plea agreement, approximately three acres were almost completely stripped of vegetation and the ground was terraced to accommodate the marijuana plants. Large amounts of ammonium nitrate and other fertilizers were found at the site. Insecticide containers and other trash were scattered throughout the site.
Sanchez is scheduled for sentencing on February 5, 2018, by U.S. District Judge Dale A. Drozd. Sanchez faces a minimum statutory penalty of 10 years and up to life in prison and a $10 million fine. In pleading guilty, Sanchez also agreed to pay restitution to the U.S. Forest Service for damage to public land and natural resources caused by the cultivation operation. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
A superseding indictment filed in this case alleges that co-defendant Maximiliano Farias-Martinez (Farias), 48, also a citizen of Mexico and resident of Stevinson, California, supervised Sanchez and others associated with the grow site. Farias’ next court appearance is on November 27. He has entered a plea of not guilty to the charges. The charges, as to Farias, are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Forest Service with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife and the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Member of Sunland Park Heroin Trafficking Ring Sentenced to Prison for Federal Narcotics Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eleodoro Sanchez, 62, of Canutillo, Texas, was sentenced today in federal court in Las Cruces, N.M., to 36 months in prison for his conviction on heroin trafficking charges resulting from a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M. Sanchez will be on supervised release for three years after completing his prison sentence.
Sanchez was a member of a heroin trafficking organization operating out of Sunland Park, N.M., that was targeted by a DEA-led investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten members of the heroin trafficking ring were charged in July 2016, in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The indictment charged all ten defendants with conspiring to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also included 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Sanchez routinely distributed heroin for Raymundo Muñoz, 69, of Sunland Park, the leader of the drug trafficking organization, which was smuggled by couriers into the United States across the international border in El Paso. Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to Sanchez and others. Members of the conspiracy used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
On March 7, 2017, Sanchez entered a guilty plea to the conspiracy charge and to three counts of possession of heroin with intent to distribute. In entering the guilty plea, Sanchez admitted that from April 2016 through July 2016, he participated in a heroin trafficking conspiracy by obtaining heroin from Munoz and reselling the heroin to others. Specifically, Sanchez admitted that on at least six dates in April and May 2016, he purchased and distributed more than 57 grams of heroin to other individuals on behalf of Munoz.
The following defendants previously entered guilty pleas in the case:
- Raymundo Munoz pled guilty on March 1, 2017, and was sentenced on Aug. 15, 2017, to 72 months in prison followed by four years of supervised release;
- Juan Francisco Rivera, 61, of El Paso, Texas, pled guilty on Feb. 7, 2017, and was sentenced on Oct. 18, 2017, to 108 months in prison followed by five years of supervised release;
- Salvador Delgadillo, 39, of La Mesa, N.M., pled guilty on Aug. 31, 2017, and is pending sentencing;
- Carlos Diaz, 37, of El Paso, Texas, pled guilty on Jan. 24, 2017, and was sentenced on June 29, 2017, to 18 months in prison followed by three years of supervised release;
- Sandra Francis Guzman, 53, of El Paso, Texas, pled guilty on March 21, 2017, and was sentenced on July 25, 2017, to 18 months in prison followed by three years of supervised release;
- Blanca Elisa Tovar, 43, of Phoenix, Ariz., pled guilty on Dec. 13, 2016, and was sentenced on Aug. 23, 2017, to 24 months in prison followed by three years of supervised release;
- Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and was sentenced on May 24, 2017 to time served followed by one year of supervised release; and
- Armando Daniel Marquez, 54 of Sunland Park, N.M., pled guilty on Feb. 23, 2017, and was sentenced on Sept. 19, 2017, to time served followed by three years of supervised release.
The remaining codefendant has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Member of Plant City Money Laundering and Drug Trafficking Organization SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven yesterday sentenced Joseph Rumore (34, Plant City) to nine years and two months in federal prison for conspiracy to distribute five kilograms or more of cocaine. As part of his sentence, the Court also entered a money judgment in the amount of $2,560,000, the proceeds of the drug trafficking conspiracy.
Rumore pleaded guilty on January 26, 2017.
According to court documents, Rumore served as a significant distributor for the Plant City, Florida-arm of a Matamoros, Mexico-based money laundering and drug trafficking organization operating out of SAME Pallets Company in Plant City. He obtained kilograms of cocaine at the pallet yard and then re-sold them at a profit, selling from one to five kilograms per week throughout most of 2016. During the investigation, law enforcement seized cocaine, methamphetamine, and over $775,000 in drug proceeds from members of the drug trafficking organization. During Rumore’s participation in the conspiracy, the drug trafficking organization obtained at least $3,823,000 in proceeds.
“HSI special agents, with our Hillsborough County Sheriff’s Office partners, have dismantled a drug trafficking organization that was targeting our local communities,” said HSI Tampa Special Agent in Charge James C. Spero. “This sentencing highlights HSI’s vigilance in the investigation and prosecution of those engaging in drug activity.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Member of Drug Trafficking Organization Gets over 17 Years in Prison for Conspiring to Sell Heroin in Hudson CountyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 210 months in prison for distributing heroin in Hoboken, New Jersey, on multiple occasions, Acting U.S. Attorney William E. Fitzpatrick announced.
Travis Thomas, a/k/a “Mush,” 27, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of conspiracy to distribute heroin and seven substantive counts of heroin distribution. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between July 2015 and December 2015, Thomas conspired with others to distribute heroin in Hudson County, including Hoboken. Thomas admitted that he distributed over 100 grams of heroin and worked with others, including Sterling McCoy, a/k/a “Boogs,” 34, of Pleasantville, New Jersey, and Jason Henderson Wheeler, a/k/a “J,” 29, of Hoboken, in furtherance of the conspiracy.
In addition to the prison term, Judge Wigenton sentenced Thomas to eight years of supervised release. McCoy and Wheeler have also been convicted and sentenced for their roles in the conspiracy.
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.
The government is represented by Assistant U.S. Attorneys Brian Urbano and Erica Liu of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Jason N. Orlando Esq., Jersey City
Mattapan Man Sentenced for Distributing CocaineRead the Press Release
BOSTON – A Mattapan man was sentenced today in federal court in Boston for distributing cocaine and conspiring with others to distribute cocaine.
Francisco Torres, 37, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison and five years of supervised release. In August 2017, Torres agreed to plead guilty to two counts of distributing cocaine and one count of conspiring with others to distribute cocaine.
On Feb. 16, 2017, Torres was arrested in the South End neighborhood of Boston following a sting operation in which he was caught exchanging 850 grams of cocaine for more than $33,000 in cash concealed in a paper bag. Immediately after the exchange, officers approached Torres, who threw the bag of cash over a fence. Officers arrested Torres and recovered the money.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Wagner, Director of the New Hampshire State Police; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit prosecuted the case.
Maryland woman admits to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chasity Chandae Stone, of Brooklyn, Maryland, has admitted to heroin distribution, United States Attorney William J. Powell announced.
Stone, age 25, pled guilty to one count of “Possession with Intent to Distribute Heroin.” Stone admitted to being in possession of heroin with the intent of distributing in May 2015 in Berkeley County.
Stone faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Maryland State Senator Indicted on Additional Obstruction of Justice ChargeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Maryland State Senator Nathaniel Thomas Oaks, age 71, of Baltimore, Maryland, with obstruction of justice. Oaks had agreed to cooperate with the FBI by recording his conversations with the target of a new investigation. The superseding indictment alleges that Oaks tipped off the target thus thwarting the FBI investigation and obstructing justice. The original indictment charged Oaks with wire fraud, honest services wire fraud, and violations of the Travel Act in a scheme for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. Oaks’ trial is currently scheduled for April 16, 2018.
The superseding indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the ten-count superseding indictment, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
According to the new charge in the superseding indictment, on or about January 9, 2017, Oaks agreed to cooperate with the FBI in an investigation of Person #1 for possible violations of federal criminal laws. As part of that cooperation, and at the direction of the FBI, Oaks covertly recorded his telephone conversations and in-person meetings with Person #1 beginning on January 9, 2017 and continuing until March 30, 2017. Oaks knew and understood that in connection with the investigation of Person #1, he could be required to testify in a future official proceeding about his cooperation and his contacts with Person #1.
On or about March 17, 2017, without recording or disclosing the existence of the conversation to the FBI, Oaks approached Person #1 at a bar in Annapolis and told him “what we talked about, just say no.” On March 30, 2017, Oaks again approached Person #1 in the hallway of a State government building in Annapolis and said “I’m going to ask you for something, just say no.” The indictment charges that these statements were intended to dissuade Person #1 from engaging in the activity that was the subject of the criminal investigation and which activity Oaks and Person #1 had discussed in a recorded conversation earlier that day.
Person #1 understood from Oaks’ statements on March 17 and March 30, 2017, that Oaks was warning him not to engage in the activity because there was a criminal investigation underway.
The original indictment alleged that on September 21, 2015, a cooperating individual (the Cooperator) introduced Oaks to an FBI confidential human source (the CHS) who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore through a minority-owned business (the Company). The Company is a real business that is operated by a different cooperating defendant who is assisting the FBI with the investigation. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by the Cooperator and the CHS. During the meeting, Oaks offered to assist the CHS with business development in Maryland.
During the months following the September 21, 2015 meeting between the CHS and Oaks, the CHS consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to the CHS in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that the CHS told Oaks that he was interested in developing in the City. Oaks told the CHS that he wanted to help with the HUD project.
According to the original indictment, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead to a person whom he believed to be a HUD official which contained materially false and fraudulent representations in order to assist the CHS in obtaining federal grant funds from HUD. The CHS paid Oaks $10,300 for his assistance.
Further, the original indictment alleges that on September 22, 2016, the CHS paid Oaks $5,000 in exchange for Oaks’ agreement to file a bond bill request with the Maryland Department of Legislative Services (DLS) seeking $250,000 in state funds for the Project. Oaks filed the bill request with DLS later that day. On November 21, 2016, Oaks forwarded an email to the CHS that had been sent to him by DLS. The email attached the draft of the bill to establish a $250,000 bond to be used for the project.
All the money paid to Oaks by the CHS was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
Oaks faces a maximum sentence of 20 years in prison for each count of wire fraud; 20 years in prison for honest services wire fraud; five years in prison for each count of the Travel Act and 20 years in prison for the obstruction of justice. An initial appearance has not yet been scheduled in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
Manager of Home Health Agency Sentenced to 30 Months in Federal Prison for Paying Illegal Kickbacks for Medicare ReferralsRead the Press Release
LOS ANGELES – An Inland Empire woman who ran a home health agency that paid more than $1.25 million in illegal kickbacks for referrals of Medicare patients has been sentenced to 30 months in federal prison.
Elaine C. Lat, 47, of Fontana, was sentenced on Monday by United States District Judge Philip S. Gutierrez. In addition to the prison term, Judge Gutierrez ordered Lat to pay $41,930 in restitution to Medicare.
Lat pleaded guilty in May to one count of conspiracy and four counts of paying illegal kickbacks.
Lat was the chief operating officer of Star Home Health Resources, Inc., a La Verne-based home health agency that received more than $8.5 million from Medicare after Star submitted bills for services provided to patients who were referred through the illegal kickback scheme.
According to court documents, from May 2008 through May 2016, Lat conspired with others to pay illegal kickbacks to physicians and individuals in exchange for referrals of Medicare beneficiaries to Star for home health services. Lat and her co-conspirators paid kickbacks totaling at least $1,257,487 to physicians and other referral sources, including marketers. Lat paid the kickbacks with cash she withdrew from Star’s bank accounts or with checks drawn from the accounts, directly to the physicians and marketers.
Five other defendants have been charged in relation to the Star kickback scheme. Four of those defendants were named in the same indictment as Elaine Lat. Elaine Lat’s parents – Errol Lat, 73, and Thelma Lat, 72, both of Alta Loma – also pleaded guilty in May to conspiracy to pay illegal kickbacks and four counts of paying illegal kickbacks. They are scheduled to be sentenced on March 26, 2018.
Corinne Chavez, 34, a resident of Rosamond in Kern County, who was a marketer for Star, pleaded guilty in June to conspiracy to pay and receive illegal kickbacks. Chavez is scheduled to be sentenced on June 11, 2018.
Dr. Kain Kumar, 54, of Malibu, California, one of the physicians who allegedly received kickbacks from Star, has pleaded not guilty to 19 charges contained in a second superseding indictment that accuses him of participating in the Star kickback conspiracy, as well as engaging in health care fraud and illegally prescribing controlled substances. According to the indictment in this case, Medicare paid $4,398,599 to Star after the illegal referrals by Kumar.
Kumar – who operated medical clinics in Palmdale, Rosamond and Ridgecrest – is scheduled to go on trial before Judge Gutierrez on May 8, 2018.
Another doctor who allegedly received kickbacks from Star is charged in a separate case. Dr. Kanagasabai Kanakeswaran, 65, of Lancaster, has pleaded not guilty and is scheduled to go on trial on January 30, also before Judge Gutierrez.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The case against Lat and the other charged defendants was investigated by the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General, Office of Investigations; and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Alexander F. Porter of the Major Frauds Section and Trial Attorney Claire Yan of the Fraud Section in the Criminal Division of the Justice Department.
Man Sentenced for Spree of Robberies Throughout LouisianaRead the Press Release
Acting United States Attorney Corey Amundson announced today that United States District Court Chief Judge Brian A. Jackson sentenced GREGORY D. CHISOLM, age 53, of New Orleans, to 188 months, or fifteen and a half years, in federal prison for two bank robberies and an attempted robbery of a casino.
Between January 4 and January 17, 2016, CHISOLM robbed a J.P. Morgan Chase Bank in Baton Rouge, Louisiana, a Whitney Bank in New Orleans, Louisiana, and attempted to rob the Coushatta Casino and Resort in Kinder, Louisiana. In each robbery, CHISOLM presented the teller with a note demanding cash, and threatened to detonate an explosive device. CHISOLM obtained several thousand dollars in cash from the banks in Baton Rouge and New Orleans before he was apprehended while trying to rob the casino in Kinder.
Acting U.S. Attorney Amundson stated, “These convictions and this sentence should serve as a strong reminder of this office’s commitment to keeping the Baton Rouge community and surrounding region safe. I want to thank Acting United States Attorney Duane Evans of the Eastern District of Louisiana, and Acting United States Attorney Alexander Van Hook of the Western District of Louisiana for their assistance in working to resolve these cases together. I also want to thank the FBI, the BRPD, and the Louisiana State Police for their expertise and investigative efforts. We will continue to work together to pursue those who threaten our communities through their violent and dangerous actions.”
The matter in the Middle District of Louisiana was investigated by the Federal Bureau of Investigation, with valuable assistance from the Baton Rouge Police Department and the Louisiana State Police Crime Lab. All three matters are being prosecuted by Assistant United States Attorney Peter Smyczek.
Macomb Township Trustee Dino Bucci Charged with Bribery, Extortion, Fraud, Theft and Money LaunderingRead the Press Release
Macomb Township Trustee and former Macomb County official Dino Bucci, 58, of Macomb Township, was indicted today by a federal grand jury on eighteen counts of conspiracy, bribery, embezzlement, extortion, mail fraud, and money laundering, in connection with public contracts in Macomb Township and the Macomb County Department of Public Works, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Count One of the indictment charges Bucci with participating in a nine-year long bribery conspiracy with other public officials and with various contractors. As part of the conspiracy, Bucci directed contractors to give him tens of thousands of dollars in cash, checks, and gift cards in exchange for work and contracts with Macomb Township and Macomb County. Bucci also directed the contractors to give him hundreds of thousands of dollars in checks and cash as part of political fundraising events, including golf outings and dinners, in exchange for county and township contracts. During the course of the conspiracy, Bucci served as an elected Trustee of Macomb Township and as the Operations Manager, among other positions, at the Macomb County Department of Public Works.
As part of the conspiracy, engineering and other contractors knew that they had to “pay-to-play” in order to get county and township contracts by giving money to Bucci and buying tickets to political fundraisers for Bucci and his political allies. One contractor decided to “get in the game” by purchasing thousands of dollars in fundraising tickets in order to get engineering contracts.
In addition to bribery, Bucci is charged with engaging in extortion over the course of at least five years. In this regard, Bucci used his official positions at the county and the township to threaten to withhold permits on development work and home construction in order to force them to pay him tens of thousands of dollars in cash and kickbacks.
Other counts of the indictment charge Bucci with embezzling and conspiring to embezzle tens of thousands of dollars from Macomb Township through a variety of criminal and fraud schemes. For example, Bucci got one contractor awarded a job to pave the Macomb Township Hall parking lot for over $250,000. Unbeknownst to the township, however, Bucci had gotten another contractor to do the work for just over $180,000, with Bucci collecting a kickback of $66,000 in cash in a bag at the headquarters of the Macomb County Department of Public Works.
Bucci also is charged in the indictment with stealing from Macomb County by using county employees and equipment to do personal work for Bucci. For example, for years, Bucci forced county employees to plow the snow at Bucci’s residence and at his mother’s residence every time it snowed. When there was a heavy snowfall, Bucci would force county employees to plow the snow for other relatives and friends. Bucci ensured that his home was plowed before county facilities were taken care of by the employees. County employees also did lawn and other maintenance work at Bucci’s home, and one employee was forced to drive Bucci’s child to a school about 25 minutes away. Bucci threatened to dock the pay of county employees, take away overtime opportunities, and send them to undesirable work locations if they refused to do this personal work for him.
Portions of today’s indictment against Bucci charge him with offenses that involve Charles B. Rizzo, Clifford Freitas, Christopher Sorrentino, and Paulin Modi. Each of these men have already pleaded guilty to federal corruption felonies involving Macomb County contracting.
Each of the nine bribery and embezzlement charges carry a maximum sentence of 10 years imprisonment and a fine of $250,000. Each of the six mail fraud, extortion, and money laundering counts carry a maximum sentence of 20 years imprisonment and a fine of $250,000. The three bribery conspiracy counts each carry a maximum sentence of 5 years imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said, “Today’s sweeping indictment of Mr. Bucci, who was a public official of both Macomb County and Macomb Township, embodies our unbending resolve to unwind long established pay-to-play politics and call to task corrupt officials no matter where they seek to violate the public trust.”
“The crimes as alleged in today’s indictment highlight a pervasive pattern of past corrupt and illegal practices in Macomb County”, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “As such, the FBI and the IRS will continue in the foreseeable future to dedicate investigative resources in Macomb County and elsewhere until the public’s trust in elected officials is bolstered, and honest and responsible government is the order of the day.”
“The eighteen-count indictment handed down today should reassure the public that the investigative team will not leave any rock unturned in the Macomb County corruption investigation,” stated Special Agent in Charge Manny Muriel, IRS-Criminal Investigation. “Bringing to justice those involved in this near decade long scheme should send a loud and clear message to others that abusing your position as a public official and stealing from the taxpayers will not be tolerated.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell.
An indictment is only a charging document 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
Little Rock Man Sentenced to 96 Months in Prison for Illegal Possession of Firearm Used in ShootingRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Jeffrey Reed, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced today that five-time convicted felon Andre Smalley, 33, of Little Rock, was sentenced to 96 months in federal prison for his illegal possession of a firearm.
A grand jury charged Smalley with one count of being a felon in possession of a firearm on May 6, 2015, and he pleaded guilty to that count on May 19, 2017. On Wednesday, United States District Court Judge D.P. Marshall, Jr., sentenced Smalley to eight years in prison, to be followed by three years of supervised release. There is no parole in the federal system.
“Andre Smalley is a dangerous, repeat offender who should not be free on the streets of Little Rock, and this sentence properly reflects the seriousness of his crime,” Hiland said. “Prosecuting repeat offenders who terrorize our community by engaging in gun violence will be one of this office’s top priorities. Dangerous criminals who illegally possess and use firearms should know there will be a spot in a federal prison waiting for them.”
At his change of plea hearing Smalley admitted that he possessed a gun during a fight on April 5, 2015. On that evening, Little Rock police officers responded to a fight in progress with shots fired at Our Community Market, located at 1901 Wright Avenue in Little Rock. While in route, communications relayed to officers that there was a male subject lying on the ground suffering from a gunshot wound and there were people trying to load him into a vehicle. Upon arrival, officers located what appeared to be a crime scene, but found that both the victims and suspects had fled the area prior to officers’ arrival.
Following witnesses’ descriptions, and with the aid of security camera footage, officers identified Smalley as one of the people involved in the fight. Footage showed Smalley appear to shoot a gun at victims. Two victims eventually went to the hospital with gunshot wounds.
A short time later, officers located a vehicle matching the description of one of the vehicles seen at Our Community Market during the fight. Smalley was driving the vehicle. Following the execution of a search warrant, officers located a Ruger 9mm handgun, which was consistent with the description of the gun used in the shooting. Additionally, three expended shell cartridges located at Our Community Market were forensically determined to have been fired from the Ruger pistol that was recovered from Smalley.
The investigation was conducted by the Little Rock Police Department and the ATF. The case was prosecuted by Assistant United States Attorneys Edward Walker and Kristin Bryant.
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Lima man indicted for child pornography violationsRead the Press Release
A Lima man was indicted on child pornography charges, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Mason Shepherd, 28, knowingly received and distributed numerous images of minors engaged in sexually explicit conduct. This took place between 2013 and 2017, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lake County woman indicted for failing to register as sex offenderRead the Press Release
A federal grand jury returned a one-count indictment charging April Baxley-Humbert, 48, of Lake County, with failure to register as a sex offender, said U.S. Attorney Justin E. Herdman and U.S. Marshal Peter J. Elliott.
The indictment charges that beginning on or about Jan. 9, 2015, through Oct. 18, 2017, Baxley-Humbert failed to register, or update a registration, as a sex offender as required under the Sex Offender Registration and Notification Act (“SORNA”), after having traveled in interstate commerce.
Humbert was convicted in 2002 in Uniontown, Pennsylvania, of indecent assault and corruption of minors, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the U.S. Marshals Service. The matter is being prosecuted by Assistant U.S. Attorneys Danielle Angeli and Michael Sullivan.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kinston Man Sentenced for Robbery and Firearm OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr., announced that yesterday in federal court today, Chief United States District Judge James C. Dever III, sentenced JAMES EARL SUTTON, 55, of Kinston, NC to 108 months of imprisonment followed by 3 years of supervised release.
SUTTON was named in an Indictment filed on February 28, 2017 along with two other individuals, alleging conspiracy to commit robbery and subsequent counts. SUTTON subsequently pled guilty to two counts in the Indictment, Hobbs Act robbery and brandishing a firearm in furtherance of a crime of violence.
The investigation began in August of 2015, after a robbery occurred at the U.S. Cellular Store in Beulaville, North Carolina. Additional robberies occurred in Kinston, Pink Hill, Faison, Kenansville, and Snow Hill, North Carolina. Law Enforcement identified SUTTON and co-defendants and associates Keenan Drake, Charles Nobles and Kindra Arnold, as suspects in these robberies.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Duplin County Sheriff’s Office, the Kenansville Police Department, the Lenoir County Sheriff’s Office, the Kinston Police Department, the Snow Hill Police Department, the New Bern Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Justice Department Sends Letters to 29 Jurisdictions Regarding Their Compliance with 8 U.S.C. 1373Read the Press Release
The Department of Justice today sent the attached letters to 29 jurisdictions that may have laws, policies, or practices that violate 8 U.S.C. 1373, a federal statute that promotes information sharing related to immigration enforcement.
“Jurisdictions that adopt so-called ‘sanctuary policies’ also adopt the view that the protection of criminal aliens is more important than the protection of law-abiding citizens and of the rule of law,” said Attorney General Jeff Sessions. “I urge all jurisdictions found to be potentially out of compliance in this preliminary review to reconsider their policies that undermine the safety of their residents. We urge jurisdictions to not only comply with Section 1373, but also to establish sensible and effective partnerships to properly process criminal aliens.”
The following jurisdictions have preliminarily been found to have laws, policies, or practices that may violate 8 U.S.C. 1373:
- Albany, New York;
- Berkeley, California;
- Bernalillo County, New Mexico;
- Burlington, Vermont;
- Contra Costa County, California;
- City and County of Denver, Colorado;
- Fremont, California;
- Jackson, Mississippi;
- King County, Washington;
- Lawrence, Massachusetts;
- Los Angeles, California;
- Louisville Metro, Kentucky;
- Middlesex, New Jersey;
- Monterey County, California;
- Multnomah County, Oregon;
- Newark, New Jersey;
- Riverside County, California;
- Sacramento County, California;
- City and County of San Francisco, California;
- Santa Ana, California;
- Santa Clara County, California;
- Seattle, Washington;
- Sonoma County, California;
- Washington, District of Columbia;
- Watsonville, California;
- West Palm Beach, Florida;
- State of Illinois;
- State of Oregon; and
- State of Vermont.
The letters remind the recipient jurisdictions that, as a condition for receiving certain FY2016 funding from the Department of Justice, each of these jurisdictions agreed to comply with Section 1373.
The Department of Justice periodically reviews the laws, policies, or practices of jurisdictions that previously certified compliance with Section 1373 as a condition of their FY2016 Byrne JAG awards.
In addition to raising concerns about these jurisdictions’ Section 1373 compliance during FY2016, the Justice Department asked jurisdictions to determine that they will comply with Section 1373 should they receive an FY2017 Byrne JAG award.
Jurisdictions that were found to have possible violations of 8 U.S.C. 1373 will have until December 8, 2017 to demonstrate that the interpretation and application of their laws, policies, or practices comply with the statute.
Justice Department Files Disability Discrimination Lawsuit Against the Housing Authority of the City of BridgeportRead the Press Release
The U.S. Department of Justice today filed a lawsuit against the Housing Authority of the City of Bridgeport (HACB), doing business as Park City Communities. The lawsuit, filed in the U.S. District Court for the District of Connecticut, alleges that HACB discriminated against persons with disabilities in violation of Section 504 of the Rehabilitation Act, Title II of the Americans with Disabilities Act, and the Fair Housing Act.
HACB owns and manages more than 2,600 units of public housing and administers more than 2,800 vouchers under the U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 Housing Choice Voucher program. The lawsuit arose from a compliance review initiated by HUD. After issuing a determination of noncompliance and attempting resolution, HUD referred the case to the Justice Department.
The complaint alleges that HACB failed to properly process, decide, and fulfill requests for reasonable accommodations for tenants with disabilities over at least two years. Federal law requires HACB to provide reasonable accommodations, such as physical modifications to public housing units, changes to program rules, or transfers to appropriate housing, when requested to meet a tenant or applicant’s disability-related needs. The complaint also alleges that HACB failed to provide a sufficient number of public housing units that are accessible to tenants with mobility, vision, or hearing-related disabilities.
“Tenants with disabilities deserve the same opportunity to use and enjoy their homes as everyone else,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “This lawsuit seeks to ensure that HACB provides reasonable accommodations and accessible housing as required by federal law.”
“The complaint alleges that HACB ignored requests for reasonable accommodation from tenants with disabilities, failed to adequately communicate with tenants with disabilities, and failed to provide a sufficient number of accessible housing units,” said U.S. Attorney John H. Durham. “The government filed this complaint after multiple unsuccessful attempts to resolve this matter with HACB. Individuals with disabilities deserve public housing administrators that make life easier for them, not more difficult.”
The lawsuit seeks monetary damages to compensate victims, a court order requiring HACB to remedy past and prevent further discrimination, and a civil penalty. The case is being jointly handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Connecticut. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have been victims of discrimination by HACB or who have information relevant to this case are encouraged to contact the Civil Rights Division at 1-800-896-7743, mailbox number 992, or by email at [email protected]. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt.
Irish National Sentenced to 18 Months in Prison for Trafficking of Endangered Rhinoceros Horn Libation CupRead the Press Release
Michael Hegarty, an Irish national, was sentenced in federal court in Miami, Florida, yesterday to 18 months in prison to be followed by three years of supervised release for fraudulently facilitating the transportation and concealment of a libation cup carved from the horn of an endangered rhinoceros, announced Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Jeffrey H. Wood, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. U.S. District Court Judge Donald M. Middlebrooks issued the sentence.
In May 2014, a federal grand jury sitting in Miami, Florida, returned an indictment charging Michael Hegarty and a co-defendant with conspiring to traffic a libation cup made from an endangered rhinoceros. In addition to conspiracy, the indictment included charges for smuggling the cup from the United States to the United Kingdom and for obstructing justice by attempting to influence a witness. According to the indictment, and a Joint Factual Statement by the parties, Hegarty, along with co-defendant Richard Sheridan and a Florida resident, purchased the libation cup from an auction house in North Carolina. The group then transported the cup to Florida and falsified documentation to smuggle the cup from the United States.
“We are committed to combatting international wildlife trafficking,” said Acting U.S. Attorney Benjamin G. Greenberg. “Our experienced prosecutors and law enforcement agents will continue to investigate, prosecute and bring to justice any violators who exploit and destroy protected wildlife for profit.”
“Today’s sentencing is the result of the strong partnership between the U.S. Fish and Wildlife Service and the Justice Department to investigate and prosecute those who engage in illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “There is a frequent connection between wildlife smuggling and organized criminal activity. We remain committed to combatting this illegality.”
“Today’s sentencing sends a message to those who profit from the slaughter and illicit trade of wildlife, you will be caught and prosecuted no matter where you hide,” said Ed Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. “I commend our special agents who connected this defendant to the Rathkeale Rovers, a transnational organized crime syndicate responsible for trafficking endangered rhinoceros products worldwide. Thank you to our international counterparts and to the U.S. Department of Justice for arresting, extraditing, and prosecuting this individual.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Hegarty was arrested on Jan. 19, 2017, in Belgium pursuant to an international Red Notice submitted by the United States. Red Notices are requests, coordinated through Interpol, that ask member countries to provisionally arrest fugitives within their borders so that extradition proceedings can begin. In July 2017, Belgium extradited Hegarty to the United States for his role in trafficking a libation cup made from the horn of an endangered rhinoceros. Hegarty’s arrest and subsequent extradition were part of “Operation Crash,” a nationwide crackdown on criminal trafficking in rhinoceros horns.
Federal courts determine a sentencing range for every convicted defendant. This range is found by applying factors that are common for particular crimes, as set out in the United States Sentencing Guidelines. Although guidelines are advisory, many courts do sentence within the range. Hegarty’s eighteen month sentence was the high end of the sentencing range for his crime.
Operation Crash was conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash was an effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The investigation by was handled by the U.S. Fish & Wildlife Service, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section. Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
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.