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9 November 2017
Plainville Man Sentenced to 5 Years in Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL KELLEY, 36, formerly of Plainville, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that KELLEY supplied Eduardo Zayas with large quantities of crack cocaine. Zayas, in turn, suppled crack to members and associates of Los Solidos.
On May 14, 2015, investigators learned that KELLEY and Zayas planned to meet to conduct a drug transaction. That evening, Hartford Police confronted KELLEY and ZAYAS in a parking lot on New Britain Avenue. A search of KELLEY’s person revealed approximately 320 grams of crack. KELLEY also possessed four cell phones and $2,573 in cash. KELLEY and Zayas were arrested on state charges at that time.
A subsequent search of an apartment in Plainville where KELLEY resided revealed approximately 1.1 kilograms of crack, approximately two kilograms of powder cocaine, approximately two kilograms of marijuana, and $49,026 in cash. In addition, a search of a Hartford apartment connected to KELLEY revealed approximately 50 grams of crack.
KELLEY was arrested on federal charges on June 15, 2015. On April 17, 2017, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Zayas, of East Hartford, pleaded guilty to the same charge and, on January 27, 2017, was sentenced to 65 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Philadelphia Man Charged with Aggravated Identity Theft.Read the Press Release
Terrence Williams, 31 of Philadelphia, PA, was charged today by Indictment with Aggravated Identity Theft and thirteen counts of Bank Fraud, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that between February and June 2017, Mr. Williams repeatedly stole and altered checks and deposited or attempted to deposit those altered checks into various bank accounts. The indictment additionally alleges that, in the course of perpetuating his bank fraud scheme, Mr. Williams possessed without permission the name and bank account numbers of a victim.
If convicted the defendant faces a potentially significant sentence of incarceration, including a mandatory minimum sentence of two years for the commission of Aggravated Identity Theft.
The case was investigated by the United States Department of State and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pawtucket Man Charged with Trafficking Crack Cocaine, FentanylRead the Press Release
PROVIDENCE, RI – A federal criminal complaint was filed in U.S. District Court in Providence today charging David J. Reis, 40, of Pawtucket, with trafficking crack cocaine and fentanyl.
The filing of the federal criminal complaint charging Reis with possession with the intent to distribute 28 grams or more of cocaine base and possession with the intent to distribute fentanyl is announced by Acting United States Attorney Stephen G. Dambruch; Pawtucket Police Chief Tina Goncalves; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to federal court documents, the Pawtucket Police Special Squad Narcotic Unit received information that Reis was allegedly distributing large amounts of cocaine throughout the city of Pawtucket. As part of the investigation, on November 1, 2017, members of the Pawtucket Police Special Squad Narcotic Unit executed a court authorized search of Reis’ residence and seized nearly 200 grams of crack cocaine, 10 small plastic bags with a substance that tested positive for fentanyl, and packaging materials and cutting agents consistent with the distribution of narcotics.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Reis is currently being held in state custody on Rhode Island state charges brought by the Pawtucket Police Department.
The case in federal court is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Owner of Hudson County, New Jersey, Scrap Metal Company Admits Role in 17-Year Conspiracy to Defraud CustomersRead the Press Release
Former Chief Financial Officer Has Pleaded Guilty to Related Charge
NEWARK, N.J. – The minority owner of Cinelli Iron & Metal Co. (CIMCO) today admitting operating a 17-year conspiracy that defrauded customers out of millions of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Craig Cinelli, 47, of Allendale, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count One of an indictment that charged him with conspiracy to commit wire fraud.
David Barteck, 53, of Wood Ridge, New Jersey, the former chief financial officer of CIMCO, and Michael A. Valenti III, 43, of Hasbrouck Heights, New Jersey, the former senior vice president of sales at CIMCO, each previously pleaded guilty before Judge Wigenton to participating in the conspiracy.According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Craig Cinelli, his brother, Joseph Cinelli Sr., Barteck, Valenti, and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul. Cinelli admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million.
The wire fraud conspiracy and substantive wire fraud counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 15, 2018.
Charges against Joseph Cinelli Sr., remain pending, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Ray Flood Esq., Hackensack, New Jersey
Okreek Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, man convicted of Abusive Sexual Contact was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Marcos Lorenzo Bear Shield, age 22, was sentenced to 33 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bear Shield was indicted by a federal grand jury on December 14, 2016. He pled guilty on August 10, 2017.
The conviction stemmed from an incident that occurred on August 3, 2015, wherein Bear Shield sexually assaulted a 15-year-old girl at a house in North Antelope, South Dakota. Bear Shield had been drinking with the girl that evening and she was intoxicated at the time of the sexual assault.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Bear Shield was immediately turned over to the custody of the U.S. Marshals Service.
Oklahoma City man sentenced to 188 months in federal prison for his role in the robbery of Haltom’s JewelersRead the Press Release
FORT WORTH — Melvin Lewis Andrews, 55, of Oklahoma City, Oklahoma, was sentenced this week by U.S. District Judge Reed C. O’Connor to serve 188 months in federal prison, following his guilty plea in August 2017 to his role in the conspiracy to rob Haltom’s Jewelers in Grapevine, announced U.S. Attorney John Parker of the Northern District of Texas.
Andrews pleaded guilty to one count of interference with commerce by robbery. He has been in Federal custody since his arrest in March 2017.
According to plea documents filed in the case, on October 3, 2014, Andrews, along with co-defendants Garland Gilmore Lenoir III, Willie Thompson Jr., Tony Eugene Gabriel and Kim Yvette Brown, traveled to Haltom’s Jewelers in a stolen vehicle. Andrews, Lenoir, Thompson and Gabriel, entered the store wearing masks and carrying handguns and hammers. Andrews, Lenoir, and Gabriel smashed the display cases with hammers and stole merchandise, to include jewelry and watches. After the robbery, Andrews was paid approximately $10,000 for his participation.
The FBI and Grapevine Police Department investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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New York Man Pleads Guilty to Trafficking in Endangered Lion and Tiger PartsRead the Press Release
Arongkron “Paul” Malasukum, a resident of Woodside, New York, pleaded guilty today to illegally trafficking parts from endangered African lions and tigers.
The guilty plea was announced by Acting Assistant Attorney General Jeffrey Wood for the Department of Justice’s Environment and Natural Resources Division and Brit Featherston, Acting United States Attorney for the Eastern District of Texas.
Malasukum, 41, pleaded guilty today in Plano, before U.S. Magistrate Judge Kimberly Priest Johnson for the Eastern District of Texas, to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
In papers filed in federal court in April 2016, Malasukum admitted to purchasing a tiger skull from undercover agents who were working for the U.S. Fish and Wildlife Service. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents on another occasion. The agents were acting as “straw buyers” for Malasukum. Malasukum, who knew his out-of-state purchases could draw attention from federal law enforcement, gave the undercover agents cash and told them which items to bid on and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer.
As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he exported approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000. All of the exports were sent to Thailand.
“This guilty plea is another positive result from the continued partnership between the U.S. Fish and Wildlife Service and the Justice Department,” said Acting Assistant Attorney General Wood. “Together we will continue to investigate and prosecute those who engage in illegal trade in protected wildlife.”
“Reasonable laws are in place to protect endangered animals, and to ensure that future generations have the opportunity to see and enjoy wildlife as we do today,” said Acting United States Attorney Featherston. “There are fewer than four thousand tigers remaining in the wild and they must be protected from harm. Malasukum’s illegal actions breed further destructive behavior by others, such as the poaching of other endangered animals for greed. Lawful hunting and conservation go hand in hand; and law enforcement will protect those animals that are deemed endangered.”
"The U.S. Fish and Wildlife Service works to combat the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Ed Grace. “We work closely with the Department of Justice and others to investigate these cases and will continue to apprehend those who exploit these species for commercial gain.”
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, U. S. Attorney’s Office for the Eastern District of Texas, the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
New Orleans Woman Convicted for Role in $3.2 Million Medicare Kickback SchemeRead the Press Release
WASHINGTON – A federal jury found a New Orleans woman guilty today for her role in an approximately $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Acting Special Agent in Charge Daniel Evans of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
After a three-day trial, Sandra Parkman, 61, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, two counts of health care fraud and five counts of accepting kickbacks. Sentencing is scheduled for Jan. 17, 2018, before U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who presided over the trial.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to provide medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from the equipment supply company in return for providing eligible Medicare beneficiaries’ personal information to the company, as well as to obtain physican signatures on order forms.
As a result of the scheme, Parkman’s co-defendant, Tracy Richardson Brown, caused Medicare to pay over $3.2 million based on those illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in June 2016 and was sentenced to 48 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New Orleans Woman Convicted for Role in $3.2 Million Medicare Kickback SchemeRead the Press Release
A federal jury found a New Orleans woman guilty today for her role in an approximately $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Acting Special Agent in Charge Daniel Evans of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
After a three-day trial, Sandra Parkman, 61, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, two counts of health care fraud and five counts of accepting kickbacks. Sentencing is scheduled for Jan. 17, 2018, before U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who presided over the trial.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to provide medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from the equipment supply company in return for providing eligible Medicare beneficiaries’ personal information to the company, as well as to obtain physican signatures on order forms.
As a result of the scheme, Parkman’s co-defendant, Tracy Richardson Brown, caused Medicare to pay over $3.2 million based on those illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in June 2016 and was sentenced to 48 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New Jersey Man Sentenced to Prison for Using Stolen IDS to Seek Fraudulent Tax RefundsRead the Press Release
A New Jersey man was sentenced to three months in prison for conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting U.S. Attorney Louis D. Lappen
According to documents filed with the court, Peterson Blanc, 36, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false tax returns using stolen personal identifying information. At least one of Blanc’s co-conspirators electronically filed the returns, which directed that the fraudulently claimed refunds be deposited into bank accounts at TD Bank and Citizens Bank in the name of Peterson Tax Services. Blanc did not have a tax preparation or bookkeeping service, but had opened up the accounts in order to facilitate the crime. He admitted to causing a loss of more than $100,000.
In addition to the term of prison imposed, U.S. District Judge John R. Padova ordered Estelly to serve three years of supervised release and to pay $100,049.10 in restitution to the Internal Revenue Service (IRS).
The case was investigated by Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations and is being prosecuted by Assistant United States Attorney David J. Ignall
New Hampshire Man Sentenced to 11 Years in Prison for Bank Robberies During Spring 2016 Crime SpreeRead the Press Release
CONCORD, N.H. – Michael Munroe, a/k/a Michael Monroe, 34, previously of Raymond, New Hampshire, was sentenced in federal court on Tuesday to 11 years in prison for his role in two bank robberies and other criminal conduct in 2016, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Munroe robbed a Northway Bank branch location in Ossipee, New Hampshire on March 28, 2016, and a Granite State Credit Union branch location in Seabrook, New Hampshire on April 1, 2016. He committed each robbery by passing a demand note to the teller threatening that he had a gun and demanding money. There was no evidence that Munroe actually was armed at the time. Following each robbery, Munroe fled the scene.
The two bank robberies, to which Munroe pleaded guilty in June 2017, were part of a larger well-publicized two-state multi-week crime spree perpetrated by Munroe in March and April 2016. As part of his federal plea agreement, Munroe also admitted to other criminal conduct, including: (1) the March 19, 2016, assault on an individual in his home in Epping, New Hampshire; (2) the March 27, 2016, taking of a victim’s Honda Pilot from her possession in Manchester, New Hampshire; (3) the March 30, 2016, taking of a victim’s Lexus ES300 from her possession in Tewksbury, Massachusetts; (4) the March 31, 2016, attempted taking of a victim’s Toyota Highlander from her possession in Reading, Massachusetts; and (5) the April 1, 2016, theft of a Honda CRV while it was parked in Derry, New Hampshire. Munroe has been in custody since his arrest by Hancock Police on April 2, 2016.
Munroe, who previously pleaded guilty, will serve three years of supervised release following completion of his sentence. The Court additionally ordered Munroe to pay restitution to the banks and other victims, totaling $14,856.63.
“The United States Attorney’s Office is committed to working with our federal, state, and local law enforcement partners to combat violent crime,” said Acting U.S. Attorney Farley. “The robberies and other violent acts committed by this defendant cannot be tolerated. I commend the hard work of the law enforcement officers who put a stop to this defendant’s crime spree and prevented him from committing further acts of violence.”
“The FBI will do everything in its power to prevent criminals like Mr. Munroe from casting a shadow of violence over our streets,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “While his crime spree has come to an end, we’ll continue to work with our law enforcement partners to combat violent crime and keep our communities safe.”
This matter was investigated by the Federal Bureau of Investigation, the Manchester Police Department, the Ossipee Police Department, the Seabrook Police Department, the Hancock Police Department, the Epping Police Department, the Derry Police Department, the Tewksbury, Massachusetts Police Department, and the Reading, Massachusetts Police Department. Assistance was provided by the County Attorney’s Offices for Hillsborough, Carroll, and Rockingham Counties in New Hampshire and the Middlesex County, Massachusetts District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Nashville Man Indicted in Drug Distribution ConspiracyRead the Press Release
Walter Jones, 46, of Nashville, Tenn., was indicted yesterday by a federal grand jury for his role in a drug distribution conspiracy, which included the possession and intent to distribute cocaine, heroin and fentanyl, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. The indictment also charged Jones with being a convicted felon in possession of firearms and possessing a firearm in furtherance of a drug trafficking crime.
“The quantity of fentanyl seized, 40 grams or more, as alleged in the indictment, is significant enough to have posed a grave danger to the community,” said U.S. Attorney Cochran. “In the midst of our nation’s opioid epidemic, had law enforcement not seized these illicit drugs, we could have been dealing with numerous overdoses and deaths. I commend the Metro Nashville Police Department and our federal law enforcement partners for their outstanding work in this investigation and preventing these drugs from making it to the streets of middle Tennessee.”
According to the indictment, and documents filed with the court, on February 21, 2017, Metropolitan Nashville police detectives from the East Precinct Crime Suppression Unit were conducting a drug investigation and stopped the car Jones was driving. As the detectives approached the car they smelled an odor of marijuana and observed the juvenile passenger attempting to conceal a pistol in his waistband. Based on evidence recovered from the car, detectives obtained a search warrant for a storage unit located in Antioch, Tenn.
During the search of the storage unit, detectives recovered drug processing materials, two loaded handguns and additional ammunition, approximately 10 kilograms of cocaine and three kilograms of heroin, among other items.
If convicted, Jones faces mandatory minimum sentences of 10 years, up to life in prison.
This case was investigated by the Metropolitan Nashville Police Department, the DEA and the ATF. Assistant U.S. Attorney Amanda Klopf is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Munster Man Indicted in East Chicago, Post Office Bombing CaseRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that a grand jury sitting in South Bend returned a 5-count indictment against Eric P. Krieg, age 45, of Munster, Indiana.
Krieg was indicted on the following charges:
- Count 1- Making an Unregistered Destructive Device
- Count 2- Mailing a Destructive Device
- Count 3- Malicious Use of Explosive Materials
- Count 4- Possessing a Destructive Device In Furtherance of a Crime of Violence
- Count 5- Mailing a Threatening Communication
The indictment alleges from at least 2012 through August 2017, Krieg engaged in a series of online postings and communications concerning other residents of Northwest Indiana. Krieg made these statements in multiple online forums, including a webpage “blog” format that he controlled. A lawsuit was filed in the Lake County, Indiana Superior Court in 2013 based upon statements Krieg made on his blog. After the lawsuit was filed against Krieg, he filed for bankruptcy. Victim 1 was the attorney who represented an individual in a lawsuit against Krieg. Through filings in Bankruptcy Court, Victim 1 claimed the lawsuit could not be discharged in bankruptcy. Krieg and Victim 1’s client agreed to settle the lawsuit. The settlement required Krieg to pay the client $45,000 and post an apology on Krieg’s blog.
The indictment alleges that an explosion took place at an U. S. Postal facility in East Chicago, Indiana on or about September 6, 2017 injuring a Postal Service employee (Victim 2). The package that exploded was addressed to Victim 1. The indictment also alleges that on or about September 29, 2017, a suspicious package was mailed to Victim 3 that contained a threat to injure Victim 3.
U.S. Attorney Kirsch said, “When individuals use dangerous, explosive devices as the means to commit or attempt to commit violent acts, those individuals will be held accountable for their actions. We will continue to partner with our Federal, State and Local law enforcement agencies to vigorously investigate and prosecute all manner of violent crime.”
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This complaint results from an investigation by the United States Postal Inspection Service; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco Firearms and Explosives; United States Marshal’s Service; East Chicago Police; Hammond Police; Indiana State Police; Munster Police; and Porter County Sheriff’s Department. This case is being handled by Assistant United States Attorney Joshua P. Kolar and Jennifer Chang.
Members and Associates of Gambino and Bonanno Organized Crime Families Arrested in Coordinated U.S.-Canadian TakedownRead the Press Release
Earlier today, three indictments were unsealed in United States District Court for the Eastern District of New York charging four defendants with narcotics trafficking, loansharking and firearms offenses. The defendants—Damiano Zummo, an acting captain in the Bonanno crime family; Salvatore Russo, an associate of the Bonanno crime family; Paul Semplice, a member of the Gambino crime family; and Paul Ragusa, an associate of the Bonanno and Gambino crime families—were arrested yesterday and are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. In a coordinated operation, Canadian law enforcement authorities today arrested nine organized crime members and associates in Canada, including members of the Todaro organized crime family, who are charged with, among other crimes, narcotics trafficking.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Today’s arrests send a powerful message that this Office and our law enforcement partners here and abroad are committed to dismantling organized crime groups wherever they are located — whether local or international in scope,” stated Acting United States Attorney Rohde. “The recording of a secret induction ceremony is an extraordinary achievement for law enforcement and deals a significant blow to La Cosa Nostra.” Ms. Rohde praised the exceptional investigative efforts of the FBI, and extended special thanks to U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and the New York City Police Department (NYPD). Ms. Rohde also expressed her thanks to the Office’s law enforcement partners in Canada, including the Royal Canadian Mounted Police and the GTA Combined Forces Special Enforcement Unit Public Prosecution Service of Canada, Ontario Regional Office.
“Criminal enterprises, both national and international, contribute to the breakdown of a lawful society,” stated FBI Assistant Director-in-Charge Sweeney. “And yet, the allure of this gangland culture is often embraced and glamorized in movies and on television, where the threats posed to our economic and national security are seldom displayed. Dismantling and disrupting major international and national organized criminal enterprises is a longstanding area of FBI expertise, which is significantly enhanced through collaboration with our law enforcement partners and our Canadian partners. While we have more work to do, this operation is a giant step in the right direction.”
The coordinated investigation lasted more than two years and revealed criminal activity spanning the United States and Canada. As detailed in court filings, in 2015, one of the defendants sponsored a confidential informant to become a full-fledged member of the Bonanno crime family and as part of the investigation, law enforcement secretly video- and audio-recorded the induction ceremony, which occurred in Canada.
As detailed in the indictment and other court filings, Zummo, an acting captain in the Bonanno crime family, engaged in a cocaine trafficking conspiracy with Bonanno associate Salvatore Russo and others introduced by the confidential informant. In one transaction, on September 14, 2017, Zummo and Russo sold over a kilogram of cocaine inside a Manhattan gelato store. Zummo is also charged with laundering over $250,000 in cash by providing business checks issued to a fictitious consulting company that purported to bill the company for consulting services. Zummo took a fee of approximately 10 percent for each money laundering transaction.
As also detailed in the indictments and other court filings, Semplice, a member of the Gambino crime family, is charged with conducting a loansharking scheme in which he and others extended extortionate loans with interest rates of up to 54% per year. The alleged scheme generated thousands of dollars per week for Semplice and others. Paul Ragusa, a long-standing associate of the Bonanno and Gambino organized crime families, is charged with being a felon in possession of nine firearms, including three automatic assault rifles and one silencer. As alleged, Ragusa transported the firearms in exchange for $2,000 in cash.
If convicted, Zummo and Russo each face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment; Semplice faces a maximum sentence of 20 years’ imprisonment on each of three loansharking charges; and Ragusa faces a mandatory minimum sentence of 15 years and a maximum sentence of life imprisonment under the Armed Career Criminal Act.
The charges in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys M. Kristin Mace, Tanya Hajjar and Drew Rolle are in charge of the prosecution.
The Defendants:
DAMIANO ZUMMO
Age: 44
Residence: Roslyn Heights, New YorkSALVATORE RUSSO
Age: 45
Residence: Bellmore, New YorkPAUL SEMPLICE
Age: 54
Residence: Brooklyn, New YorkPAUL RAGUSA
Age: 46
Residence: Brooklyn, New YorkE.D.N.Y. Docket Nos. 17-CR-601 (ENV); 17-CR-612 (PKC); and 17-CR-613 (PKC)
Member of Lawrence Kidnapping Crew Sentenced to 13 Years in PrisonRead the Press Release
BOSTON – A member of a Lawrence-based kidnapping crew was sentenced yesterday in federal court in Boston for his role in a 2012 kidnapping.
Thomas Wallace, 29, of Raymond, N.H., was sentenced by U.S. District Court Judge Richard G. Stearns to 13 years in prison and three years of supervised release. In January 2014, Wallace pleaded guilty to conspiracy to commit kidnapping.
Wallace was charged in connection with a wide-ranging investigation targeting violent kidnapping and home invasion crews operating in Lawrence. According to court documents, these crews – often referred to as “joloperros,” which loosely translates to “stick-up guys” – were organized, armed and violent.
Wallace was identified as part of a violent, sophisticated kidnapping crew that included Danny Veloz, a/k/a “Maestro;” Jose Guzman, a/k/a “Cano;” Jose Matos, a/k/a “Boyca;” Luis Reynoso, a/k/a “Prieto;” and Gadiel Romero, a/k/a “TC,” all of Lawrence; and Henry Maldonado, of Manchester, N.H.
On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H., and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement. Several cooperating defendants advised that the July 23, 2012 kidnapping was one of several kidnappings or attempted kidnappings committed by this crew in Lawrence in 2012.
A federal investigation identified this crew as one of several kidnapping and home invasion crews. The crews typically kidnapped drug dealers for large ransoms that were paid in cash or drugs; used safe houses to stash their victims; and used sophisticated tracking techniques, such as GPS devices, to follow their victims. The crews targeted drug dealers because they believed that the drug dealers were unlikely to cooperate with law enforcement, were subject to deportation, or feared reprisals, either against themselves or their families in Lawrence or in their native country. Numerous kidnapping victims described how they were abducted, tortured, and forced to pay ransoms of hundreds of thousands of dollars (either in the U.S. or in the Dominican Republic) to joloperros crew members. Victims were burned, scarred, bruised, and given other significant physical injuries marking them as kidnapping victims. During the investigation, law enforcement seized dozens of firearms, including shotguns, GPS devices, irons used to torture victims, masks, zip ties, t-shirts with the word “police” on them, fake police badges, handcuffs, and drugs.
Veloz was convicted by a federal jury in August 2017, and will be sentenced on Nov. 16, 2017. Matos and Romero were previously sentenced to 12 years and 23 years in prison, respectively. Guzman, Reynoso and Maldonado previously pleaded guilty and are scheduled to be sentenced in November 2017.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Essex County Sheriff Kevin F. Coppinger; Lawrence Police Chief James X. Fitzpatrick; and Manchester (N.H.) Police Chief Nick Willard made the announcement today. The cases are being prosecuted by Weinreb’s Organized Crime and Gang Unit.
Massachusetts Man Charged with Travelling in Interstate Commerce to Transport Child PornographyRead the Press Release
PROVIDENCE, RI – A federal criminal complaint was filed in U.S. District Court in Providence today charging Fetahe Makonnen, 34, of Malden, Mass., with travelling in interstate commerce for the purpose of transporting child pornography, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
It is alleged that Makonnen travelled from Massachusetts to Rhode Island on October 28, 2017, for the purpose of transporting digital storage devices containing hundreds of videos and images of child pornography.
According to an affidavit in support of a criminal complaint filed with the Court, it is alleged that in July 2017, Makonnen began communicating online with a member of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. The conversation turned to a discussion about the sharing of child pornography. Makonnen did not communicate again with the ICAC Detective until September 16, 2017.
According to the affidavit, it is alleged that beginning on September 16, 2017, Makonnen began again to communicate with members of the ICAC Task Force through various methods, including by telephone, with discussions centered around his interests in the viewing of child pornography involving prepubescent minors between 1 year and 13 years of age. On October 27, 2017, Makonnen agreed to travel to Rhode Island the next day, expecting to meet with the person he had been communicating with and to view child pornography. He agreed to bring images and videos of child pornography with him. When they met the next day, it is alleged that Makonnen provided an undercover ICAC Task Force Detective with two thumb drives which the detective opened on his laptop computer. It is alleged both thumb drives contained images and videos depicting child pornography involving prepubescent children.
Makonnen was arrested on a Rhode Island state charge and ordered held on $10,000 surety bail.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case in federal court is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Massachusetts Business Owner Charged with Tax CrimesRead the Press Release
A business owner was charged by a federal grand jury in Boston, Massachusetts, with attempting to obstruct the internal revenue laws, aiding and assisting in the filing of fraudulent corporate, personal, and employment tax returns, tax evasion, and structuring financial transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Nicholas Boulas, of North Reading, owned and operated Nick’s Painting Service Inc. (NPS), which provided painting services to residential and commercial customers in the Boston area. From 2009 through 2014, Boulas allegedly concealed approximately $4 million in business receipts by cashing approximately $2.7 million in checks and directing a substantial number of customers to write checks to him personally, which he cashed and deposited using multiple personal bank accounts. According to the indictment, he structured cash transactions to involve less than $10,000 in currency in order to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for transactions involving more than $10,000 of currency, conducted by or on behalf of the same person on the same day.
The indictment alleges that Boulas caused the filing of fraudulent corporate and personal income tax returns that underreported NPS’s gross receipts, and as a result, the income Boulas earned from NPS. It further alleges that Boulas underreported income he earned from several rental properties. Boulas also allegedly paid employees “off the books” in cash to avoid paying payroll taxes, and caused the filing of fraudulent employment tax returns that concealed the number of NPS’s employees, wages paid and taxes owed.
Boulas is also charged with obstructing the internal revenue laws by, among other things, falsely stating to IRS special agents that he reported all of NPS’s income, obstructing an IRS summons and following his interview with special agents, altering checks he received from NPS customers to conceal the memo line and hide the purpose of the payments.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Boulas faces a statutory maximum sentence of five years in prison for tax evasion, three years for obstructing the internal revenue laws, three years for aiding and assisting in the filing of fraudulent returns and ten years in prison for structuring financial transactions as a part of a pattern of illegal activity involving more than $100,000 in a 12-month period and while violating another law of the United States. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant Chief John Kane and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Manager of Express Lane Market Sentenced on Federal Charges Involving Food Stamp FraudRead the Press Release
St. Louis, MO – Ayman Barghouty, 55, of Maryland Heights, was sentenced to 13 months in prison on charges of conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) fraud. SNAP was formerly known as the food stamp program.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT) for SNAP Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Ayman Barghouty managed the Express Lane Market located at 3846 Keokuk, St. Louis, MO. He employed and trained employees Steven Holman and Timothy Zollner on the SNAP rules.
On March 28, 2012, Express Lane was permanently disqualified from the SNAP by the U.S.D.A. and prohibited from accepting EBT cards or SNAP benefits for payment. To continue to obtain money from the SNAP program, Barghouty, Holman and Zollner agreed to engage in a scheme to purchase food with other individuals’ EBT cards at local stores and place that food in Express Lane for sale in spite of being barred by the USDA from participating in SNAP. They engaged in this scheme from approximately March 2010 to November 2015 and purchased approximately $145,107.75 of food for resale in Express Lane
Barghouty pled guilty in August to conspiracy to commit SNAP fraud. He appeared yesterday before United States District Judge Catherin D. Perry.
Zollner pled guilty in September and was sentenced to 5 years’ probation and Holman will be sentenced in December.
This case was investigated by the Missouri Department of Social Services, United States Department of Agriculture, and Department of Homeland Security. Assistant United States Attorneys Anthony L. Franks and Gwen Carroll handled the case for the U.S. Attorney’s Office.
Man who “sextorted” 12-year-old girl receives 10-year prison sentenceRead the Press Release
ATLANTA - Gerardo Perez Uribe has been sentenced to 10 years in prison for coercing a minor girl in North Carolina to produce child pornography of herself and send it to him over the Internet.
“‘Sextortion’ is a growing problem on social media sites,” said U. S. Attorney Byung J. “BJay” Pak. “Our office along with our federal, state, and local law enforcement partners encourage parents to help us target those who seek to prey on children by watching what your children are doing on the Internet, and who they are communicating with. Most children do not understand the dangers that may lurk on the Internet, and can easily fall victim to predators like Uribe.”
“Social media sites are a convenient way for young children to network with their friends and family, but unfortunately, they also make children easy targets for online predators like Uribe,” said David J. LeValley, Special Agent in Charge of the Atlanta Field Office. “Our Crimes Against Children unit is dedicated to weeding out sexual predators who troll the internet for unsuspecting children. They can’t do it alone and that’s why it is so important for parents to educate their children and monitor their activities on social media sites.”
According to U.S. Attorney Pak, the charges and other information presented in court: In the summer of 2014, Perez Uribe met a 12-year-old girl on Facebook. He first told her that he was 13-years-old but later claimed to be 25-years-old. He asked the girl to send him nude images of herself, and she did. After receiving the images in August 2014, Perez Uribe took over the girl’s Facebook account, changed her password, and locked her out of the account. He then threatened to post the girl’s nude images on her Facebook page if she refused to send him more nude photos of herself. The victim believed Perez Uribe’s threat and sent him four photographs of herself that met the federal definition of child pornography. The girl’s parents discovered the crime and reported the incident to the Cabarrus County (North Carolina) Sheriff’s Office. The Sheriff’s Office investigated the case and then referred the matter to the Federal Bureau of Investigation once Perez Uribe was located in Georgia.
Gerardo Perez Uribe, 32, of Rex, Georgia, was sentenced to 10 years in prison to be followed by 10 years of supervised release. He pleaded guilty on August 24, 2017. He was born in Mexico but was living in the United States as a permanent resident. He will be deported to Mexico after he completes his prison sentence.
This case was investigated by the Federal Bureau of Investigation and Cabarrus County (North Carolina) Sheriff’s Office.
Assistant U.S. Attorneys Paul R. Jones and Mary Webb prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Sentenced to Ten Years in Prison for Second Offense Involving the Sex Trafficking of MinorsRead the Press Release
Assistant U. S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – November 9, 2017
SAN DIEGO, CA – Anthony Khyree Dotson aka “Ant” was sentenced today to 120 months in prison and 10 years of supervised release for sex trafficking a 17-year old minor female while a fugitive for a prior federal conviction involving the same conduct.
The case was initiated in April 2015 after a local high school counselor suspected that a student who attended the local high school was being trafficked. The counselor contacted the San Diego Police Department. San Diego police detectives identified a vehicle that picked up the minor female from school and traced that vehicle back to Dotson, who was listed as an escapee from a halfway house in Los Angeles. Dotson was serving the remainder of his federal prison sentence for a 2012 conviction for the same conduct involving two 16-year old minor females.
In the current case, detectives identified an online ad for the minor on backpage.com in May of 2015 and called the number. A young female answered the call and directed the detective, posing as a customer, to a hotel in Mission Valley. Detectives observed Dotson with the minor in the parking lot of the hotel. The minor exited Dotson’s vehicle and directed the “customer” - an undercover officer, posing as a sex buyer - to a room where the minor was arrested. Detectives located male clothing and used condoms in the trash can. The room was registered to Dotson and video surveillance showed Dotson checking into the room with the minor female wearing the same clothing found in the hotel room. Dotson was apprehended waiting in his vehicle in the hotel parking lot.
United States District Judge Dana M. Sabraw, who sentenced Dotson for his prior offense, stated that he hoped Dotson “would move away” from this activity as he would be facing more significant prison time if he chose to engage in this offense in the future. Sabraw noted that the penalties are harsh “for good reason” as the victims of these crimes are forever affected. Assistant U.S. Attorney Alessandra P. Serano noted that the sentence imposed was more than double the amount of time Dotson received in 2012.
“We will continue to work tirelessly with our law enforcement partners to detect and prosecute persons who engage in sex trafficking, a form of modern day slavery,” said Acting U.S. Attorney Alana Robinson.
“Every day, the FBI and our law enforcement partners at the Innocence Lost Task Force work to thwart these child predators. In this case, it was an alert school counselor who noticed the signs of human trafficking and reported it to law enforcement,” said FBI Special Agent in Charge Eric S. Birnbaum. “This case shows the community working together with law enforcement to combat this horrific crime.”
If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur.
This prosecution is the fruit of the collaborative work of the San Diego Police Department and the FBI’s Innocence Lost Task Force.
DEFENDANTS Case Number: 17CR0638-DMS
Anthony Khyree Dotson aka “Ant” Age: 26 San Diego, CA
SUMMARY OF CHARGES
Sex Trafficking of Children, Title 18 U.S.C. § 1591(a) and (b) – Maximum Penalties: life in prison, Sex Offender Registration
INVESTIGATING AGENCIES
San Diego Police Department
Federal Bureau of Investigation
Man Sentenced for Three Separate Frauds Totaling $3.5 MillionRead the Press Release
RICHMOND, Va. – A Charlottesville man was sentenced today to seven years in prison for committing three fraud schemes that resulted in total losses of over $3.5 million.
According to court documents, Victor M. Dandridge, III, 53, committed three separate frauds. First, in 2006, he offered to handle the finances of his best friend’s widow and her minor children. Over the following 10 years, Dandridge diverted most of their money to bank accounts for entities he owned and controlled, using most of her money for his personal expenditures and to prop up his other failing businesses, without telling the widow. In total, Dandridge stole nearly $3.2 million from the widow. Second, in 2015, Dandridge provided false representations and omissions to Blue Ridge Bank to obtain a $300,000 line of credit. He also created fake statements for a brokerage account that was supposed to serve as collateral for the loan. Third, Dandridge embezzled over $100,000 from his fraternity alumni association, the Virginia Omicron Chapter House Association. Dandridge served as the chapter president and in 2014 refinanced their fraternity house, but diverted proceeds to his own personal bank account.
In addition to his prison sentence, Dandridge was also ordered to forfeit over $3.5 million and pay that same amount in restitution to his victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Jessica D. Aber prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-83.
Man Admits Assaulting Sleeping Girl on AirplaneRead the Press Release
NEWARK, N.J. – An Indian national admitted that he assaulted a girl on a flight from Seattle, Washington, to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced today.
Vijaykumar Krishnappa, 29, pleaded guilty Nov. 8, 2017 before U.S. Magistrate Judge James B. Clark in Newark federal court to a superseding information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, while on a United Airlines flight from Seattle to Newark on July 23, 2017, Krishnappa intentionally assaulted a girl who was unknown to him and seated next to him on the flight. Krishnappa admitted that while the victim was asleep, he intentionally touched her near her groin over her leggings without her consent.
Under the terms of the plea agreement, Krishnappa will be sentenced to between 30 and 90 days in prison. Sentencing is scheduled for Jan. 17, 2018.Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: John H. Yauch Esq., Newark
Logansport Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Justin Birnell, age 30, of Logansport, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for being a felon in possession of a firearm.
Birnell was sentenced to 85 months imprisonment followed by 1 year of supervised release.
According to documents in this case, on February 19, 2017 Birnell knowingly possessed several firearms and ammunition in Logansport, Indiana after being convicted of a crime punishable by a term of imprisonment of more than one year.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being handled by Assistant U.S. Attorney Frank E. Schaffer.
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Little Eagle Man Convicted of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that Chavez Spotted Horse, age 40, of Little Eagle, South Dakota, was found guilty of Receipt of Images Depicting the Sexual Exploitation of Minors and Possession of Child Pornography as a result of a federal jury trial in Aberdeen, South Dakota.
The charges carry a maximum penalty of 30 years in custody and/or a $500,000 fine, life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Spotted Horse was indicted by a federal grand jury on March 15, 2017.
The convictions stem from the execution of a search warrant on November 3, 2015, at the home of the defendant in Little Eagle. Seized during this search were multiple computers, hard drives, and other electronic devices. Analysis discovered images of child pornography on three separate hard drives, located within two computers. Also discovered were tools and programs designed to erase the images and hide the IP address of the defendant as he viewed images of child pornography.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security Homeland Security Investigations, the North Dakota Crime Bureau’s Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation-Internet Crimes Against Children Task Force, and the BIA-OJS Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for January 4, 2018. Spotted Horse was remanded to the custody of the U.S. Marshals Service.
Lebanese National Indicted for CybercrimesRead the Press Release
Jackson, Miss – Rani Bin Muhammad Qubaysi, 29, of Beirut, Lebanon, has been charged in a two-count federal indictment with knowingly transmitting a program, information, code, or command causing damage to a protected computer, and extorting money by threatening to damage a protected computer, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
According to the indictment, Qubaysi, a Lebanese national, executed a distributed denial of service ("DDoS") attack on a Ridgeland, Mississippi business. Qubaysi utilized a computer in Beirut, Lebanon to extort payments from the business while conducting computer attacks to interfere with their computer business and operations.
If convicted on all charges, Qubaysi faces a maximum penalty of 10 years in prison and a $250,000 fine. The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Gregory Kennedy.
The public is reminded that a criminal indictment is a formal charge against a defendant. It is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
Laurel Man Sentenced to Prison for Stealing Veterans BenefitsRead the Press Release
Jackson, Miss. - Gregory Donald Myrick, 50, of Laurel, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan, to thirteen months in federal prison, followed by three years of supervised release, for theft of government funds, announced U. S. Attorney Mike Hurst and Special Agent in Charge James Werner of the U.S. Department of Veterans Affairs – Office of Inspector General. Myrick was also ordered to pay restitution in the amount of $143,106.00.
Myrick pled guilty on July 31, 2017, to a criminal indictment charging him with theft of government funds. Myrick’s grandfather, an Army veteran, received U.S. Department of Veterans Affairs benefits for his service in the United States Army. After his grandfather passed away in 2008, Myrick continued to receive the deceased veteran’s checks, which were electronically deposited into a bank account the two men shared. From May 2008, through May 2015, Myrick fraudulently received and used for his personal gain a sum of $143,106.00 in veterans disbursements to which he was not entitled.
The investigation in this case was led by Special Agent Gwendolyn McCleave of the U.S. Department of Veterans Affairs – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Mary Helen Wall.
Justice Department Sues Northwest Trustee Services, Inc. of Bellevue, Washington for Illegally Foreclosing on Homes of at least 28 ServicemembersRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington, alleging that Northwest Trustee Services, Inc. (“Northwest”) violated the Servicemembers Civil Relief Act (“SCRA”). The complaint alleges that since 2010, Northwest completed foreclosures on at least 28 homes owned by servicemembers without obtaining the required court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of active military service.
The Department of Justice launched an investigation into Northwest’s practices after United States Marine veteran Jacob McGreevey of Vancouver, Washington submitted a complaint to the department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis. The department’s investigation revealed that, in addition to McGreevey, NWTS had foreclosed on other homes of SCRA-protected servicemembers in violation of the SCRA since 2010.
“The loss of a home is a devastating blow for anyone – but far worse for active duty service members often called to war zones far from Western Washington,” said U.S. Attorney Annette L. Hayes. “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our servicemembers do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures. My office will continue to work closely with our colleagues in the Civil Rights Division in Washington, D.C. to protect Western Washington service members from this kind of misconduct.”
“As we reflect this Veterans Day on the great debt we owe to those who have fought so hard for our freedom, we also reaffirm our commitment to protecting the rights of those who serve,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “Our men and women in uniform make immense personal sacrifices to keep our country safe. Losing their home to an unlawful foreclosure should not be one of them.”
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense. The department will also seek injunctive relief to prevent future foreclosures that violate the SCRA.
Northwest Trustee Services is based in Bellevue, Washington and describes itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by Assistant Attorney J. Michael Diaz of the United States Attorney’s Office for the Western District of Washington and Trial Attorney Alan Martinson of the Civil Rights Division for the U.S. Department of Justice.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department Sues Northwest Trustee Services, Inc. in Bellevue, Washington, for Illegally Foreclosing on Homes of at Least 28 ServicemembersRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington, alleging that Northwest Trustee Services, Inc. (Northwest) violated the Servicemembers Civil Relief Act (SCRA). The complaint alleges that since 2010, Northwest completed foreclosures on at least 28 homes owned by servicemembers without obtaining the required court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
The department launched an investigation into Northwest’s practices after United States Marine veteran Jacob McGreevey of Vancouver, Washington, submitted a complaint to the department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis. The department’s investigation revealed that, in addition to McGreevey, NWTS had foreclosed on other homes of SCRA-protected servicemembers in violation of the SCRA since 2010.
“As we reflect this Veterans Day on the great debt we owe to those who have fought so hard for our freedom, we also reaffirm our commitment to protecting the rights of those who serve,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “Our men and women in uniform make immense personal sacrifices to keep our country safe. Losing their home to an unlawful foreclosure should not be one of them.”
“The loss of a home is a devastating blow for anyone – but far worse for active duty service members often called to war zones far from Western Washington,” said U.S. Attorney Annette L. Hayes. “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our service members do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures. My office will continue to work closely with our colleagues in the Civil Rights Division in Washington, D.C. to protect Western Washington service members from this kind of misconduct.”
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense. The department will also seek injunctive relief to prevent future foreclosures that violate the SCRA.
Northwest Trustee Services is based in Bellevue, Washington, and describes itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Judge Finds Two-Time Convicted Sex Offender Guilty of Child Sex CrimesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that U.S. District Judge James S. Moody, Jr. has found Clayton Junior Thornburg (55, Iuka, Mississippi) guilty of attempted enticement of a minor, attempted transfer of obscene material to a minor, transportation of child pornography, and enhanced penalties for sex offenders. He faces a mandatory minimum of 25 years, up to life, in federal prison. His sentencing hearing is scheduled for February 1, 2018.
According to evidence presented at trial, between August and November 2015, Thornburg communicated online with an undercover agent who he believed to be a 13-year-old girl. He repeatedly expressed explicit interest in having sex with the “child,” and he sent multiple pornographic images and videos in attempts to illustrate what “it’s like for a young girl to have sex.” Thornburg is a two-time convicted sex offender and was on probation in Illinois for possession of child pornography at the time of the offenses in this case.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jefferson County Felon Guilty of Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 35-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Michael Anthony Victoria pleaded guilty to being a felon in possession of a firearm today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on Dec. 10, 2016, Victoria was arrested and charged with being a felon in possession of a firearm and ammunition. As a convicted felon, Victoria is prohibited by federal law from owning or possessing firearms or ammunition. Victoria was indicted by a federal grand jury on July 6, 2017 and charged with federal firearms violations.
Under federal statutes, Victoria faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Japanese Steakhouse Owners Plead Guilty to Harboring Undocumented AliensRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Xiu Rong Liu (43) and Liang Wu Yang (44), both of Jacksonville, have pleaded guilty to harboring undocumented aliens for commercial advantage and private financial gain. They each face a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled.
Liu and Yang were charged on July 31, 2017.
According to court documents, Liu and Yang are husband and wife and operated the Fujiyama Japanese Steakhouse and Sushi Lounge in Jacksonville. On July 6, 2017, U.S. Homeland Security Investigations agents went to a residence in Jacksonville owned by Liu and Yang as part of an unrelated immigration investigation and encountered several people living there. The agents observed mattresses on the floor of the formal dining room, which had been converted into a makeshift bedroom. Further investigation revealed that all of the people who lived at the residence, except one, were undocumented aliens from Indonesia and Guatemala, that they all lived at the house rent free, and that they worked at the Fujiyama restaurant. Yang provided some of the workers with rides between the residence and the restaurant.
Under federal law, an employer is required to complete an Enforcement Employment Eligibility Verification Form (I-9) verifying that an employee is lawfully permitted to work in the United States. Liu and Yang did not complete the form certifying the aliens. The aliens were paid in cash and Liu and Yang did not withhold taxes and other payments from the workers’ wages and did not pay the employer’s portion of these payments to government authorities. They also did not report the workers to state revenue authorities as required under Florida law, ensuring the collection of the proper amount of unemployment compensation tax.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on November 8, 2017 and entering pleas of Not Guilty were:
- BRIAN WALTER WEBER, a 41-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute controlled substances. If convicted of the most serious charge contained in the indictment, WEBER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-76
Appearing before U.S. Magistrate Lynch in Missoula on November 8, 2017 and entering pleas of Not Guilty were:
- JASON MAXWELL MEHL, a 42-year-old resident of Missoula, appeared on charges of conspiracy to distribute heroin, and possession with intent to distribute heroin. If convicted of the most serious charge contained in the indictment, MEHL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force and the Federal Bureau of Investigation. PACER Case Reference. 17-29
Appearing before U.S. Magistrate Cavan in Billings on November 7, 2017 and entering pleas of Not Guilty were:
- DONALD FRIEDLICH MILLS III, a 33-year-old resident of Billings, appeared on charges of tampering with consumer products, and acquiring fentanyl by misrepresentation, fraud, forgery, and deception. If convicted of the most serious charge contained in the indictment, MILLS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 17-120
- MIGUEL MORALES, a 25-year-old resident of San Jose, California, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MORALES faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-108
Appearing before U.S. Magistrate Johnston in Great Falls on November 7, 2017 and entering pleas of Not Guilty were:
- CODY SWAN JACKSON, a 39-year-old resident of Browning, appeared on charges of involuntary manslaughter and attempted witness tampering. If convicted of the most serious charge contained in the indictment, JACKSON faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-73
Appearing before U.S. Magistrate Cavan in Billings on November 6, 2017 and entering pleas of Not Guilty were:
- BRIAN ALBERT BENTZ, a 36-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BENTZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-116
- CHARLES JESSE SANCHEZ, JR., a 52-year-old resident of Billings, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SANCHEZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-121
Appearing before U.S. Magistrate Cavan in Billings on November 3, 2017 and entering pleas of Not Guilty were:
- MICHAEL CHAVEZ, JR., a 64-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CHAVEZ faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-122
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hartford Man Sentenced to 34 Months in Federal Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that COREY MAPP, also known as “Fresh,” 32, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by three years of supervised release, for firearm possession and drug distribution offenses.
According to court documents and statements made in court, on May 12, 2016, Hartford Police, who were patrolling the Barbour Street area of Hartford in response to multiple incidents of shots fired the previous day, attempted to stop MAPP’s car as it departed MAPP’s Taylor Drive residence. Officers had observed that the car did not have a front license plate. The car fled at a high rate of speed. Later that evening, officers located the car, a search of which revealed a 9mm pistol with a high capacity magazine loaded with 17 rounds of ammunition. A search of MAPP’s residence also revealed approximately 28 grams of cocaine, narcotics packaging materials, a .40 caliber bullet, and approximately $2,800 in cash.
MAPP’s criminal history includes felony convictions.
MAPP has been detained since his arrest on May 13, 2016. On June 26, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of possession with intent to distribute cocaine.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jimmy Jivens, age 42, of Harrisburg, Pennsylvania, was indicted on November 8, 2017, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Jivens possessed with the intent to distribute crack cocaine on March 23, 2017, in Harrisburg. The indictment also alleges that Jivens unlawfully possessed two firearms (.357 Ruger revolver and AKS 7.62 rifle) and ammunition as a previously convicted felon and possessed the firearms in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department and is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is a lifetime term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Guatemalan National Sentenced to 240 Months in Prison for Trafficking over One Ton of CocaineRead the Press Release
On November 8, 2017, a Guatemalan national was sentenced to 240 months in prison by United States District Judge Robert N. Scola, Jr. for trafficking over one ton of cocaine.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
The trial evidence showed that defendant Santos Gonzales-Cahvec, 38, of Guatemala, assisted in the transportation of over one ton of cocaine from Colombia destined for Mexico before being intercepted by the U.S. Coast Guard approximately 382 nautical miles off the Pacific coast from the Guatemalan/Mexican border. Mexico is a known transit zone through which Mexican drug traffickers smuggle cocaine into the United States and onto Europe. Gonzales-Cahvec testified at trial and claimed to have been abducted by drug traffickers while visiting in Cali, Colombia and forced to participate in transporting what he later learned to be cocaine. Government witnesses told the jury that Gonzales-Cahvec was sent from Guatemala to Colombia by the Mexican drug Cartel to arrange for the transfer of the narcotics from the vessel to a Mexican vessel for delivery of the cocaine to Cartel members in Mexico.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Greenberg commended the interdiction efforts of the U.S. Coast Guard and the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorney Scott Behnke.
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.
Guatemalan National Charged with Illegal Re-entry After DeportationRead the Press Release
Domingo Ajanel-Box, a/k/a “Diego Hernandez-Perez,” of Guatemala, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 25, 2017, Ajanel-Box, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about April 12, 2000, June 9, 2000, March 14, 2002, September 16, 2004, August 27, 2005, and December 28, 2011.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury indicts nine Bloods Street gang members for several violent robberiesRead the Press Release
DALLAS — A federal grand jury returned a eleven-count superseding indictment yesterday charging nine men with various violent offenses stemming from several armed robberies in North Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Yesterday’s indictment supersedes the August 2017 indictment by adding four defendants and additional robbery offenses. The following defendants, mostly from Cedar Hill, Texas, are charged with at least one count of interference with commerce by robbery:
Charles Lampkins, aka “K3” and “Kc,” 20
Justin Gilbert, aka “Slim,” 21
Jahad Givens, aka “Had,” 21
Terance Ross Johnson, aka “TJ,” 21
Jaala Dill, 19, of Dallas
Darius Devvion Hinton, aka “Stanka,” 20
Billterious Dominique Lewis, aka “Bill T,” 21
Xavion Mitchell George, 23
Joel Louis Davis, 20
The defendants are scheduled to be arraigned later next week.
According to documents filed in the case, between October 2016 and May 2017, the defendants, led by Lampkin, committed a series of at least seven and up to forty robberies at various motels, hotels, and other commercial establishments throughout the Dallas-Fort Worth metroplex. The robbery crew performed surveillance of victims and targeted locations and utilized firearms to intimidate their victims, often pointing guns at the heads of tellers and cashiers during the robberies.
The robbers often disguised themselves during the robberies by wearing dark clothes, hoodies, and other items meant to conceal their true identity, including a distinguishable fake blue beard connected to a stocking cap.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each interference with commerce by robbery count in the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Lampkins is also charged with one count of using, carrying, brandishing, and discharging a firearm in furtherance of a crime of violence. The firearm count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigations, Plano Police Department, Carrollton Police Department, Addison Police Department, Farmers Branch Police Department, Grand Prairie Police Department, Arlington Police Department, Lewisville Police Department, Sulphur Springs Police Department, Dallas Police Department, and Cedar Hill Police Department. Assistant U.S. Attorney P.J. Meitl in charge of the prosecution.
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Garbage Company Executive Charles B. "Chuck"Rizzo Pleads Guilty to Bribery and FraudRead the Press Release
The former CEO of garbage hauler Rizzo Environmental Services (RES), pleaded guilty today to conspiring to commit bribery and wire fraud, in connection with millions of dollars of municipal garbage contracts in Macomb County and with the embezzlement of hundreds of thousands of dollars from RES, 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.
Charles B. “Chuck” Rizzo, 46, of Bloomfield Hills, pleaded guilty before United States District Judge Robert H. Cleland in Port Huron, Michigan.
Rizzo admitted at the plea hearing that he conspired to pay bribes to Clinton Township Trustee Dean Reynolds and Macomb Township Trustee Clifford Freitas in order to secure and maintain favorable municipal garbage contracts for RES. Rizzo admitted giving Reynolds over $50,000 in cash bribes, plus free legal services in order to get a garbage contract extension from Clinton Township. He also admitted to offering to pay Freitas a bribe of $35,000, plus a salary increase, if Freitas voted to put the RES garbage bill on the Macomb Township water bill, which would reduce RES’s cost of doing business.
Besides pleading guilty to bribery, Rizzo also pleaded guilty to conspiring to commit wire fraud. Rizzo admitted to embezzling hundreds of thousands of dollars from RES while Rizzo served as the CEO of the company. The fraud conspiracy took place between 2014 and 2016, when the majority owner of RES was a New York based private equity firm. During the conspiracy, Rizzo used a variety of schemes to steal money from RES for his own enrichment. Rizzo used a fake legal settlement agreement, fraudulent consulting deals, cash kickbacks, shell companies, and methods to defraud the other owners of RES, who owned over 80% of the company, while Rizzo owned a small minority share. As one part of the embezzlement scheme, Rizzo received weekly envelopes containing thousands of dollars in cash kickbacks from a company that submitted fraudulently inflated invoices to RES.
The Rule 11 Plea Agreement provides that the sentencing guideline range that Rizzo faces at sentencing based on his criminal activity is 168-210 months, with a statutory maximum of ten years in prison.
As part of the plea today, Rizzo agreed to forfeit $4 million to the United States government. This money represents the proceeds of Rizzo’s criminal activity in securing municipal garbage contracts by paying bribes and embezzling money.
Each of the two conspiracy charges carries a maximum sentence of 5 years imprisonment and a fine of $250,000. Because of the charges to which he pleaded guilty, Rizzo faces a maximum of 10 years in prison.
Acting United States Attorney Lemisch said, “The plea today demonstrates that bribe payers face significant penalties for spreading corruption through municipal government—penalties just as severe as those faced by the public officials who take the bribes.”
"The actions of Mr. Rizzo and others implicated in this wide ranging Macomb County corruption investigation erodes our trust and confidence in public officials" said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Today's guilty plea represents another significant step towards reinforcing to the public that honest government is essential to our way of life and the FBI and our partners will continue to prioritize the prosecution of both corrupt elected officials and those that would endeavor to bribe them."
“IRS - Criminal Investigation is working vigorously with our partners in the Macomb County corruption investigation,” said Special Agent in Charge Manny Muriel, IRS- Criminal Investigation. “The investigators sifted through volumes of evidence to unravel the multiple and complex schemes which this group employed to conceal the scent of their illegal activity. Today’s guilty plea is the result of the diligent work of the investigation team to hold those involved accountable.”
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.
Fresno Man Indicted for Laser Strike on Fresno Police HelicopterRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Michael Vincent Alvarez, 32, of Fresno, charging him with aiming the beam of a laser pointer at a Fresno Police Department helicopter, U.S. Attorney Phillip A. Talbert announced.
According to court documents, it is alleged that on October 22, 2017, just after midnight, Alvarez struck a Fresno Police helicopter several times with a powerful green laser. The laser caused visual interference of the Tactical Flight Officer and disrupted an air support response to a domestic violence call. Alvarez was driving a vehicle on Highway 99 when he allegedly pointed the laser at the helicopter and tracked and struck it. When ground units were called to apprehend Alvarez, he drove through the streets of Fresno at a high rate of speed, eluding officers for several miles until he crashed into the center divider at First Street and Floradora Avenue. Following the crash, Alvarez ran into a residential area, jumping several fences until he was arrested in a backyard. A green laser pointer that officers found inside the driver side door pocket of Alvarez’s vehicle had a danger warning on it.
This case is the product of an investigation by the Federal Bureau of Investigation and Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Alvarez faces a maximum statutory penalty of five years in prison and a $250,000 fine. 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Bronx Men Admit to Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Four Bronx men entered guilty pleas over the last two weeks to conspiring to commit mail and wire fraud and related charges in an effort to steal over 2.8 million dollars in federal tax refunds using stolen identities, announced Acting United States Attorney Grant C. Jaquith, Shelly Binkowski, Postal Inspector in Charge, Boston Division, James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (IRS-CI), and acting Chief John Anton, Town of Dewitt Police.
As part of their guilty pleas, Ronnie E. Mejia, 28, Cerrone Hall, 29, Luis Morillo, 28, and Jeffrey Carvajal, 26, all residents of the Bronx, New York, admitted that they conspired to defraud the IRS by creating and electronically filing false and fraudulent tax returns that utilized stolen identities from Puerto Rico and mailing addresses in the Syracuse area and elsewhere. The scheme fell apart on September 21, 2011 when an alert house painter in Dewitt called police when he saw a car cruising up and down the street stealing mail from residential mailboxes. Dewitt Police stopped a Toyota Camry occupied by Ronnie E. Mejia and Jeffrey Carvajal matching the description of the suspect vehicle. Dewitt Police Officers and U.S Postal Inspectors searched the vehicle and located eight un-mailed federal income tax returns that included stolen personal identification information from people who live in Puerto Rico. Dewitt Police located a second vehicle nearby occupied by Luis Morillo and Jeffrey Carvajal. A search of this vehicle located six U.S. Treasury tax refund checks stolen from residential mailboxes in Dewitt and Syracuse. In the following days, Special Agents from IRS-CI recovered over $700,000.00 in fraudulent tax refund checks obtained through the electronic filing of false and fraudulent tax returns using stolen identities from Puerto Rican residents and addresses of uninvolved persons in the Syracuse area. In all, the scheme included over 380 fraudulent tax returns seeking refunds of over 2.8 million dollars.
Cerrone Hall pled guilty on November 1, 2017, will be sentenced on March 1, 2018 and faces a sentence of up to 22 years in prison, a fine of up to $250,000.00 and three-year term of supervised release in connection with his convictions for conspiring to commit mail and wire fraud, as well as aggravated identity theft. Luis Morillo pled guilty on November 7, 2017, will be sentenced on March 2, 2018 and faces up to 20 years in prison, a fine of up to $250,000.00 and three-year term of supervised release in connection with his conviction for conspiring to commit mail and wire fraud. Ronnie Mejia pled guilty on November 9, 2017, will be sentenced on March 13, 2018 and faces a sentence of up to 24 years in prison, a fine of up to $250,000.00 and a three-year term of supervised release in connection with his convictions for conspiring to commit mail and wire fraud, as well as two counts of aggravated identity theft. Jeffrey Carvajal pled guilty on November 9, 2017, will be sentenced on March 14, 2018 and faces a sentence of up to 20 years in prison, a fine of up to $250,000.00 and three-year term of supervised release in connection with his convictions for conspiring to commit mail and wire fraud, as well as theft of government property. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Internal Revenue Service, Criminal Investigations, the United States Postal Inspection Service and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Former bank vice president charged with bank fraud and demanding bribes in return for loan approvalsRead the Press Release
The former vice president of a bank in Kent was charged with defrauding his employer out of at least $160,000 and demanding bribes in return for approving loans, said U.S. Attorney Justin Herdman, FBI Special Agent in Charge Stephen D. Anthony and IRS Special Agent in Charge Ryan Korner.
Steven P. McDonald, 43, of Kent, was charged in an 18-count criminal information with bank fraud, receipt of a bribe by a bank official, filing false tax returns and other charges.
McDonald was employed as a commercial loan officer and then vice president of commercial lending at Hometown Bank.
McDonald, in 2011, submitted an application for a $225,000 loan in the name of a friend, without that friend’s knowledge. McDonald directed the statements to be mailed to a post office box he controlled and withdrew approximately $223,000 to pay personal debts, according to the information.
McDonald made some payments on the loan but Hometown sustained a loss of approximately $160,000 from his conduct, according to the information.
McDonald also corruptly solicited and demanded bribes in return for approving loans for bank customers. These bribes came in the form of cashier’s checks totaling approximately $80,000 and a personal loan from a bank customer to McDonald in the amount of $165,000, according to the information.
McDonald also falsified bank records and failed to pay taxes on the income he derived from the fraud scheme, according to the information.
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.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the FBI and IRS.
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.
Former U.S.D.A. Farm Service Agency Loan Officer in Uvalde and Two Receipients Arrested and Charged in Farm Loan Fraud CaseRead the Press Release
In Del Rio, federal authorities filed a criminal complaint against three individuals for their alleged roles in a farm loan fraud scheme announced United States Attorney Richard L. Durbin, Jr.
The criminal complaint, filed this week, charges Barbara Serna Salinas, a 42-year-old former loan officer for the United States Department of Agriculture (USDA) Farm Service Agency (FSA) in Uvalde, and two loan recipients—Ruben James Valadez, age 43 of Uvalde, and Eric Torres Neira, age 43 of San Antonio--with wire fraud and making false statements on a loan application.
The complaint alleges that from May 2011 through June 2016, Serna in her official capacity issued multiple fraudulent FSA loans. Furthermore, in exchange for approving the loans, Serna accepted cash or other forms of payment from Neira and Valadez. According to the complaint, a review of USDA loans approved by Serna after 2011 identified several to Neira and Valadez, which totaled more than $150,000.
Federal authorities arrested Serna and Valadez yesterday in Uvalde, TX. Neira was taken into custody this morning in San Antonio. All three have made their initial appearances in federal court and have been released on bond pending resolution of this case.
Upon conviction, the defendants face up to 30 years in federal prison for wire fraud and up to 20 years in federal prison for making a false statement on loan application.
The United States Department of Agriculture Office of Inspector General-Investigations, with the assistance of the Federal Bureau of Investigation, conducted this investigation. Assistant United States Attorneys Goran Krnaich and Todd Keagle are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Richland County Recreation Commission Employee Pleads Guilty to Distribution of MethamphetamineRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that James Anthony Brown, age 39, of Columbia, entered a guilty plea today before Senior United States District Judge Joseph F. Anderson to one count of possessing with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). As a result of this plea, Brown faces a mandatory minimum of 5 years imprisonment and a possible maximum of 40 years imprisonment, followed by at least 4 years of supervised release.
Evidence presented in court established that on May 27, 2016, Richland County Deputy Sheriffs stopped Brown after deputies observed him retrieving a package, suspected of containing narcotics, from the front porch of a residence in Columbia, SC. After encountering Brown, deputies searched the package and found 11.9 pounds of marijuana. Deputies then searched Brown’s home and found a second package containing approximately 775 grams of methamphetamine (street value of approximately $20,000). This second package was addressed to Brown and had the same return address as the previous package containing 11.9 pounds of marijuana. Additionally, deputies found more marijuana, drug paraphernalia, ecstasy and an assault rifle inside of Brown’s home.
The case was investigated by the Federal Bureau of Investigation, Richland County Sheriff’s Department, South Carolina Law Enforcement Division, and the South Carolina Attorney General’s Office. Assistant United States Attorneys William C. Lewis and Alyssa L. Richardson of the Columbia office prosecuted the case.
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Former Investment Advisor Indicted for Defrauding Brentwood WomanRead the Press Release
Jay Costa Kelter, formerly known as Ignatius J. Costa, III, 48, was indicted yesterday by a federal grand jury on five counts of wire fraud, 16 counts of mail fraud, and one count of securities fraud, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
The indictment alleges that Kelter, who was affiliated with a Florida-based insurance and investment company, defrauded an elderly Brentwood, Tenn. woman out of approximately $1.4 million. Detailed allegations set forth in the indictment include that Kelter convinced the victim to open investment accounts with a discount brokerage company by falsely stating that he was employed with the discount brokerage company. Kelter routinely posed as the victim investor to conduct trades and transfer funds to accounts which he personally owned or controlled. Kelter spent thousands of the victim’s investment funds on expenditures benefitting himself and others, including purchases and payments for luxury cars such as a Mercedes, a Lamborghini and a $101,400 Bentley; and paying more than $21,000 for custom jewelry. The indictment also alleges that Kelter used some of the client funds to repay other investment clients.
If convicted, Kelter faces up to 20 years in prison on each count and up to a $5 million fine.
This case is being investigated by Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Stephanie N. Toussaint.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Former Department of Veterans Affairs Employee Indicted on Charges of Wire Fraud, Bribery and TheftRead the Press Release
A federal grand jury sitting in the District of Columbia returned an indictment yesterday charging a former Department of Veterans Affairs (VA) official with a scheme to steal benefit money for veterans in need from the VA.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
Russell M. Ware, 39, of Upper Marlboro, Maryland, was charged with four counts of wire fraud in connection with a scheme to steal more than $66,000 from the VA. Ware was also charged with one count of bribery and one count of theft of government property.
According to the indictment, between September 2013 and May 2014, Ware devised a scheme to steal more than $21,000 in VA disability benefit money, which he had wired to his own bank account. The indictment further alleges that from October 2014 to February 2015, Ware directed additional disability benefits totaling almost $46,000 to a friend, Jacqueline Crawford, 33, of Gulfport, Mississippi, who was not entitled to receive the money. Crawford then kicked back more than $13,000 to Ware, at Ware’s direction, usually through the use of Walmart2Walmart money transfers. Crawford pleaded guilty in February 2017, to an information charging her with a single count of theft of government property related to the scheme, and is awaiting sentencing.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the Department of Veterans Affairs Office of Inspector General and is being prosecuted by Trial Attorneys Richard B. Evans and Rebecca Moses of the Criminal Division’s Public Integrity Section.
Former Correctional Officer at Southwest Virginia Regional Jail in Abingdon SentencedRead the Press Release
Abingdon, VIRGINIA – A correctional officer at Southwest Virginia Regional Jail in Abingdon, who agreed to smuggle contraband items into the facility, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Justin Andrew Brown, 23, of Lebanon, Va., was sentenced today to six months in prison and six months house arrest, followed by three years of supervised release. He was forfeited $6,500. Brown previously pleaded guilty to one count of accepting a bribe as a public official, and one count of conspiring to accept a bribe as a public official.
Robert Lewis Jones, 25, also previously pleaded guilty to one count of conspiring to accept a bribe as a public official. Jones will be sentenced on November 29, 2017.
According to evidence presented at a previous hearing by Assistant United States Attorney Zachary T. Lee, Brown was a correctional officer at Southwest Virginia Regional Jail in Abingdon. In the summer of 2015, an inmate approached Brown about smuggling contraband, specifically tobacco, controlled substances and nude pictures into the jail. Following numerous discussions with the inmate, Brown agreed to smuggle controlled substances, tobacco and nude pictures into Southwest Virginia Regional Jail in exchange for $10,000 in United States currency. Law enforcement agents became aware of Brown’s plan in March of 2016. With the assistance of a cooperating witness, law enforcement arranged for a meeting between Brown and the cooperating witness at which Brown believed he would be receiving $10,000 in United States currency and various contraband items that he was to smuggle into the Southwest Virginia Regional Jail. Brown offered Jones $2,000 to “watch his back” during the meeting.
The meeting between Brown, Jones, and the cooperating witness occurred on March 22, 2016, at a restaurant in Abingdon. At the meeting, Jones and Brown took possession of the contraband items and a quantity of United States currency and Brown agreed to smuggle the contraband items into the Southwest Virginia Regional Jail facility. Shortly thereafter, law enforcement arrested both Brown and Jones.
The investigation of the case was conducted by Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Abingdon Police Department, and the Washington County Sheriff’s Department. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Former Army Official and Contractor Sentenced to 18 Months in Federal Prison for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On November 8, 2017 United States District Judge George L. Russell III sentenced Danielle N. Kays, age 41, of Bel Air, Maryland to 18 months in federal prison for conspiracy to defraud the United States and commit bribery related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. Judge Russell also ordered Kays pay forfeiture of $250,700. Kays' husband John Kays, age 42, of Bel Air, Maryland and Matthew Barrow, age 42, of Toledo, Ohio were also charged in the scheme, have pled guilty and are awaiting sentencing.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
According to the court documents, Danielle Kays was a civilian employee who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
According to the plea agreements, from August 2008 to June 2014, John Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Mrs. Kays has admitted using her official position to benefit Barrow and MJ-6 during the period 2011- 2014. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various Task Orders, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The indictment alleges that the Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow withdrew from his personal accounts and from MJ-6 accounts To conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow. The Kays used the cash for their personal benefit, including purchasing two new vehicles; a power boat, jewelry, a pool party at their country club, and to pay credit card bills.
Barrow later agreed to pay the Kays their corrupt money from MJ-6 disguised as employment salary.
John Kays also pled guilty and is scheduled to be sentenced December 15, 2017 at 2 p.m. Matthew Barrow is scheduled to be sentenced January 12, 2018.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning thanked the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning praised Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Five people indicted for firearms crimesRead the Press Release
Five people were indicted for firearms crimes and, in some cases, related violations, said U.S. Attorney Justin Herdman.
Indicted are: Joey D. Wiseman, Jr., 36, of Elyria; Ryan D. Drummond, 30, of Warren; Dijoun Reed, 25, of Akron; Calvin Jones, Jr., 26, of Cleveland; Jean Claude Phillip McKenzie, 34, a citizen of Jamaica.
Wiseman on Aug. 4 had a Lorcin 9mm pistol with an obliterated serial number and ammunition, despite numerous previous convictions that made it illegal for him to have a firearm, including possession of cocaine, having weapons while under disability, improperly handling firearms in a motor vehicle and drug trafficking. Wiseman also sold cocaine on the same day, according to the indictment.
Drummond possessed a Smith and Wesson, model SD40VE, .40 caliber pistol, a Smith and Wesson, model SD40VE, .40 caliber pistol, a Remington, model 870 Express Magnum, 12 gauge shotgun and ammunition on Aug. 21, after previous convictions for possession of cocaine with a firearms specification and trafficking in cocaine, according to the indictment.
Reed on Oct. 24 possessed a Smith & Wesson, M&P, 40-caliber pistol, and ammunition despite prior convictions for tampering with evidence and having weapons while under disability that made it illegal for him to have a firearm, according to the indictment.
Jones was found on Sept. 27 to have a Colt .25-caliber handgun despite prior convictions for aggravated assault and attempted felonious assault that made it illegal for him to have a firearm, according to the indictment
McKenzie was found on Oct. 1 in possession of a SCCY 9 mm pistol in Cleveland after having been deported from the United States in 2012, McKenzie was also indicted for illegally reentering the United States.
The Wiseman case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Elyria Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The Drummond case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the ATF, the Warren Police Department and the Adult Parole Authority.
The Reed case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the ATF and the Ohio Adult Parole Authority.
The Jones case is being prosecuted by Assistant U.S. Attorney Danielle Angeli following an investigation by the Shaker Heights Police Department and the ATF.
The McKenzie case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the U.S. Department of Homeland Security, Immigration and Custom Enforcement and the Cleveland Division of Police.
If convicted, the court will determine the defendant’s sentence after a 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 violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
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.
Federal Jury Convicts Andrews Electrician of a False Billing Scheme and for Failing to File Tax ReturnsRead the Press Release
In Midland, a jury yesterday afternoon convicted Andrews County electrician Randall Varian Hanks on federal charges in connection with a false billing scheme and failing to file tax returns that resulted in excess of $1.5 million loss to local businesses announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
The jury convicted the 46-year-old, who once owned and operated Sandhills Electric, Inc., of four counts of mail fraud and three counts of failure to file a tax return.
Evidence presented at trial revealed that from June 2013 to May 2016, Hanks, while working for two area oilfield services companies, generated fraudulent service tickets and invoices in excess of $1.5 million for parts and services that he fraudulently claimed to have provided to the two companies’ customers. Both oilfield service companies paid Hanks and then billed the respective customers for parts and services Hanks claimed to have provided.
Furthermore, testimony revealed that Hanks received more than the applicable threshold in personal income each year, yet failed to file income tax returns with the Internal Revenue Service for the calendar years 2013, 2014, and 2015, resulting in tax losses to the U.S. Government of nearly $500,000.
Hanks remains on bond pending sentencing. Hanks faces up to 20 years in federal prison and a $250,000 fine on each mail fraud count and up to one year in federal prison and a $25,000 fine for each failure to file a tax return count. Additionally, he may be required to forfeit property and money he acquired because of his fraudulent scheme. Sentencing is scheduled for February 13, 2018, in Midland before Senior United States District Judge Robert A. Junell.
The FBI Oilfield Theft Task Force and IRS-CI agents investigated this case.
Fairbanks Sex Offender Convicted of Receipt of Child PornographyRead the Press Release
U.S. Attorney Bryan Schroder announced today that on November 8, 2017, a federal jury in Fairbanks convicted Tommy Hanson, 54, of receipt of child pornography.
Hanson was found guilty after a three-day trial before U.S. District Judge Ralph R. Beistline of the District of Alaska. Sentencing is scheduled for January 19, 2018, in Fairbanks, Alaska. Because Hanson was previously convicted of possession of child pornography, the maximum penalty for the defendant’s conviction is not less than 15 years imprisonment and up to 30 years imprisonment, a fine of $250,000, a term of supervised release of five years to life, and a $100 special assessment.
According to evidence presented at trial, in 2007 Hanson pled guilty to the possession of child pornography and was sentenced to 96 months imprisonment. In that case, Hanson admitted to the use of newsgroup binaries to receive thousands of images of depicting child sexual exploitation, and then backing those images up to CD-ROMS.
Following his release from imprisonment in 2012, Hanson was subjected to a term of supervised release. As a condition of his release, Hanson was not to possess computers without the approval of the probation office, and if found in possession of any computers, the devices were subject to search.
United States Probation Officers searched the defendant’s home in North Pole, Alaska on October 12, 2016. During the search, the probation officers found the defendant in possession of an unauthorized computer and an external hard drive. A forensic search of the computer and hard drive by the FBI revealed thousands of images of child pornography that the defendant had downloaded between 2012 and 2016 using internet newsgroups, after his release in the prior case. The FBI discovered additional forensic evidence linking Hanson to the computer and external hard drive, such as Skype chat logs. In those Skype chat logs Hanson told a friend that he was not allowed to have computer but that he was not concerned about being searched by the “feds” given the remote location of his home.
This case was investigated by the United States Probation Office, FBI agents and analysts in Fairbanks and Anchorage, and FBI’s Electronic Device Analysis Unit in Quantico, Virginia. The case was prosecuted by Assistant United States Attorneys Adam Alexander and Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide 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 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.