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7 November 2017
Waldorf Man Exiled to 20 Years in Federal Prison for Distribution of CocaineRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On November 6, 2017 United States District Judge George J. Hazel sentenced Darryl Michael Franklin, a/k/a “D”, age 43, of Waldorf, Maryland, to 20 years in prison, followed by 5 years of supervised release for Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, and 10 years in prison, followed by three years of supervised release, to run concurrent to that sentence, for Possession of a Firearm and Ammunition by a Convicted Felon.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration, Washington Division Office; Sheriff Timothy K. Cameron, St. Mary’s County Sheriff’s Office; and Chief Henry P. Stawinski III, Prince George’s County Police Department.
According to his guilty plea, from February 2015 through December 2016, Franklin, along with his co-conspirators, Darryl Eugene Hill, Marvin Leon Young, Joseph Darren Brooks, Thomas Larvell Herbert, Brandon Darnell Bowman, Joseph Marlow Brooks, Jr., and Andre Antwon Montgomery, trafficked cocaine in the Prince George’s County and St. Mary’s County areas.
On December 15, 2016, law enforcement officers executed search warrants at a number of different locations that were part of the narcotics organization, including Hill’s, Young’s and Franklin’s residences. Law enforcement officers seized approximately 34 bricks of cocaine weighing around 33 kilograms, with an approximate street value of $1,566,168 from Hill’s residence. At Franklin’s residence, law enforcement officers located seven cans with false bottoms; $3,366 in U.S. currency from drug proceeds, a gun cleaning kit, .380 caliber shotgun shells, a loaded Bersa Firestorm .380 semi-automatic pistol bearing serial number 882491, and a loaded Mossberg Mod 88 12 gauge shotgun. In addition, two vehicles located at Franklin’s residence contained hidden compartments used to conduct the drug transactions.
On December 19, 2016, law enforcement officers executed a second search warrant on another vehicle belonging to Franklin. During the course of this search, law enforcement officers located 3,845 grams of cocaine in various bags; a digital scale containing cocaine residue; $57,625 in U.S. currency representing proceeds of drug transactions; a loaded black Beretta PX4 Storm 9mm handgun with an extended magazine, and fourteen 9mm bullets. These items were found within a locked safe in the hatchback area of the car.
According to his plea agreement, Franklin told law enforcement officers that he had been selling cocaine for about seven years, and admitted that he used the hidden compartments in his cars to store money and drugs. Franklin noted that he typically sold narcotics to “the Country Boys,” a reference to his coconspirators, Young and Brooks, who operated in the St. Mary’s County area.
Prior to his December 15, 2016 arrest, Franklin had sustained convictions in Prince George’s County for Possession with Intent to Distribute Cocaine in 2003, 2010 and 2013, which made him ineligible to possess firearms or ammunition.
Acting United States Attorney Stephen M. Schenning commended the Drug Enforcement Administration, the St. Mary’s County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Erin Pulice, Leah Bressack, and Menaka Kalaskar who prosecuted this Organized Crime Drug Enforcement Task Force case.
Virginia Man Pleads Guilty in Manhattan Federal Court to $100 Million Market Manipulation Scheme Involving Fitbit StockRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ROBERT WALTER MURRAY pled guilty today in Manhattan federal court to securities fraud. In November 2016, MURRAY conducted a scheme to manipulate the market for the stock of Fitbit, Inc. (“Fitbit”) by filing a sham tender offer with the Securities and Exchange Commission (“SEC”). The sham tender offer falsely reported that another entity had made a bid to purchase all outstanding Fitbit stock at a significant premium to the then-existing market price. As a result, the price of Fitbit stock temporarily but significantly increased in price, allowing MURRAY to sell for a profit options that he had previously purchased. MURRAY’s sham tender offer, moreover, resulted in a temporary inflation in Fitbit’s market capitalization of over $100 million.
Acting U.S. Attorney Joon H. Kim said: “As Robert Murray admitted today, he manipulated the market in Fitbit stock by making a false filing with the SEC about a tender offer. After manipulating Fitbit's stock price and temporarily inflating its market capitalization by over $100 million, Murray sought to take a quick profit from trading in Fitbit stock. Murray’s ill-advised and criminal attempt to game the system has ended in a federal securities fraud conviction.”
According to the allegations in the Complaint and Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
On November 8, 2016, MURRAY, falsely purporting to be an officer at a China-based entity called ABM Capital, created an account on the SEC’s Electronic Data Gathering, Analysis, and Retrieval (or “EDGAR”) system. The next day, MURRAY submitted a filing on EDGAR that reported that ABM Capital had offered to purchase Fitbit for approximately $12.50 a share, a significant premium to the price of Fitbit stock at the time. This filing was made public on November 10, 2016, and, when it was, Fitbit’s stock temporarily increased in response to the news. While Fitbit’s stock had closed at approximately $8.55 a share on November 9, 2016, it reached a high of approximately $9.27 per share, with significantly increased trading volume, after the false tender offer filing was made public. MURRAY’s filing, however, was entirely fictitious, and was instead meant only to increase the value of options in Fitbit stock that he had purchased just before filing the sham tender offer.
MURRAY, moreover, took significant steps to hide his connection to the tender offer filing. He created a separate email account to register with the SEC and to file the sham tender offer, taking care to disguise his actual IP address when accessing it.
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MURRAY, 24, of Chesapeake, Virginia, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million. In addition, pursuant to a plea agreement with the Government, MURRAY agreed to forfeit proceeds of the offense. MURRAY is scheduled to be sentenced by Judge Katherine B. Forrest on March 9, 2018.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the exceptional work of the Office’s criminal investigators, and thanked the United States Postal Inspection Service and the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
Ventura County Man Who Used Peer-to-Peer Network to Distribute Child Pornography Sentenced to 15 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Simi Valley man who admitted that he distributed child pornography – including a video with a filename indicating an 8-year-old girl was being abused – has been sentenced to 15 years in federal prison.
Eric Allen Haensgen, 38, was sentenced yesterday by United States District Judge Percy Anderson.
Haensgen pleaded guilty on August 22 to one count of distribution of child pornography, admitting that he used peer-to-peer software on his computer to share files that he knew depicted minors, some of whom were under the age of 12, engaged in sexually explicit conduct.
During the execution of a search warrant in 2016 at Haensgen’s residence, federal law enforcement authorities recovered digital devices that contained at least 114 images of child pornography and at least 3 videos of child pornography.
During yesterday’s sentencing hearing, Judge Anderson noted Haensgen’s history of possessing child pornography, citing evidence that the defendant in 2003 had paid a website for child pornography. Judge Anderson also found that Haensgen had sexually abused a minor by taking photographs and videos of a 6-year-old girl that focused on her genitals.
Haensgen has been in custody since he was arrested on March 24 by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This case was prosecuted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Two Indicted in Store Break-In, ATM Cash TheftRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence today returned a four-count indictment charging two Albanian nationals from New York with allegedly conspiring to break into a Smithfield, R.I., Target department store in October by cutting a hole in the roof, prying open an ATM inside the store and stealing more than $14,000 in cash, and breaking through a wall inside the store to gain access to a pharmacy and attempting to steal more than $500 worth of controlled substances.
Smithfield Police Department officers responding to a burglary alarm allegedly located the men hiding inside air conditioning units on the roof of the building.
The indictment charges Epirot Krasniqi, 26, of Brooklyn, N.Y., and Liridon Gashi, 32, of Bronx, N.Y., with one count each of conspiracy to commit larceny from a financial institution, bank larceny, conspiracy to commit burglary involving controlled substances, and burglary involving controlled substances.
Acting United States Attorney Stephen G. Dambruch, Smithfield Police Chief Richard P. St.Sauveur, Jr., and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division announced the indictment.
According to the indictment, sometime after the store closed on October 9, 2017, and in the early morning hours of October 10, Krasniqi and Gashi, allegedly equipped with portable two-way radios and hand tools, cut through the roof of the store and used the tools to force open an ATM, and to forcibly break through the wall of a pharmacy inside the store and break open a locked container holding controlled substances.
It is alleged in the indictment that the pair stole approximately $14,720 from the ATM.
According to the indictment, it is alleged that the defendants fled from the store to the roof where they concealed themselves and items they had stolen inside air conditioning units. Krasniqi and Gashi were discovered and arrested by Smithfield Police Department officers who responded to an electronic burglary alarm and searched the premises. The defendants were initially charged in Rhode Island state court and released on bail.
Epirot Krasniqi was arrested today in New York by FBI agents on a federal arrest warrant issued by the U.S. District Court in Providence. He was ordered detained in federal custody during an initial appearance in the U.S. District Court for the Southern District of New York.
A federal arrest warrant has been issued for Liridon Gashi.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Smithfield Police Department, with the assistance of the Rhode Island FBI Safe Streets Task Force.
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Twenty-Two Individuals Indicted for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On November 2, 2017, a federal grand jury returned seventeen separate indictments charging twenty-two individuals for trafficking firearms without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The agencies in charge of the investigation are the Puerto Rico Police Department, the Bureau of Alcohol, Tobbaco, Firearms and Explosives (ATF), and the Puerto Rico Department of Justice with the collaboration of Immigration and Customs Enforcement Homeland Security Investigations.
The defendants are also facing charges for: possession of a firearm by a convicted felon, possession of a firearm with an obliterated serial number, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. During the investigation and leading up to today’s take-down, authorities seized 35 firearms, including 20 pistols and 15 rifles, among these, five were machine guns.
Today, as part of this joint effort, the Puerto Rico Department of Justice charged eight other defendants with firearms violations.
“We will vigorously prosecute those involved in the illegal sale and trafficking of firearms, which are then used in the commission of violent crimes,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “We will continue working with the state authorities to keep firearms out of the hands of criminals, who all too frequently endanger our community.”
“Today is a good day for the citizens of Puerto Rico as these indictments exhibit a collective effort to combat violent crime in the community. Together with the Police of Puerto Rico and HSI, we have dismantled a group dedicated to firearms trafficking in Puerto Rico,” said Ari C. Shapira, Assistant Special Agent in Charge for the Bureau of Alcohol, tobacco, Firearms and Explosives, Miami Field Division.
Assistant U.S. Attorney Marie Christine Amy and Special Assistant U.S. Attorney Daynelle M. Álvarez-Lora are in charge of the prosecution of the cases. If convicted, the defendants face up to five years in prison for engaging in the business of dealing firearms without a license, up to 10 years for possession of a machine gun and for possession of a firearm by a convicted felon, and up to life in prison for possession of firearms in furtherance of a drug trafficking crime. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Three Cuban Nationals Convicted of Credit Card Fraud and Identity TheftRead the Press Release
Three Cuban nationals who traveled across Iowa while using stolen identities and credit and debit card numbers pled guilty in federal court in Cedar Rapids.
Pedro Alvarez Rodriguez, age 36, from Miami, Florida, was convicted of aggravated identity theft and conspiracy to commit access device fraud on September 21, 2017. Dunieski Santana Moreno, age 26, from Miami, Florida, was convicted of aggravated identity theft and conspiracy to commit access device fraud on November 1, 2017. Liliany de Armas Mena, age 21, from Louisville, Kentucky, was convicted of aggravated identity theft and conspiracy to commit access device fraud on November 1, 2017. Though living in the United States, all three are Cuban citizens.
In their plea agreements, Alvarez Rodriguez, Santana Moreno, and de Armas Mena admitted that in January and February of 2017, they used counterfeit cards with account information stolen from at least thirty-five accounts. They used the counterfeit cards to make unauthorized purchases at Wal-Mart stores throughout Iowa. These purchases included goods as well as the purchase and reloading of “shopping cards” or “gift cards.”
In his plea agreement, Alvarez Rodriguez admitted that the account numbers on the counterfeit cards were obtained via “skimming” devices designed to obtain victims’ numbers without their authorization or knowledge. These stolen account numbers would then be encoded onto counterfeit magnetic stripe cards that had the appearance of credit cards, which were then used at Wal-Mart self-checkout registers.
In the four-day period of January 29, 2017, to February 1, 2017, Alvarez Rodriguez, Santana Moreno, and de Armas Mena drove hundreds of miles across the state of Iowa to use these counterfeit cards for fraudulent purchases at various Wal-Mart stores, including those in Mount Pleasant, Altoona, Le Mars, Sioux Center, Spencer, Spirit Lake, Mason City, Waverly, and Cedar Falls, Iowa.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after presentence reports are prepared. Alvarez Rodriguez, Santana Moreno, and de Armas Mena remain in the custody of the United States Marshal and will remain in custody pending sentencing. Each faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 9.5 years’ imprisonment, a $500,000 fine, $200 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Lyndie M. Freeman and was investigated by Homeland Security Investigations and the Waverly Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2044.
Follow us on Twitter @USAO_NDIA.
Texas man sentenced to more than 15 years in prison for meth distribution in Shreveport/Bossier areaRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that the last defendant remaining in a Shreveport/Bossier City area methamphetamine distribution case was sentenced Monday to 188 months in prison.
Jose Mejia Jr., 33, of Tyler, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of conspiracy to possess with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to documents filed in the case, Mejia and others conspired to distribute methamphetamine in the Shreveport/Bossier City area from March 1, 2016 to December 1, 2016. Mejia was the source of supply from Texas. Meija would provide drugs and took part in directing their sale.
Other defendants prosecuted and sentenced include:
Joshua Caleb Tanner, 38, of Shreveport, sentenced on October 25, 2017 to 70 months in prison and five years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
Dusty Eugene Loughridge, 35, of Monroe, sentenced on October 25, 2017 to 235 months in prison and five years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
Cody James Bradberry, 33, of Shreveport, sentenced on October 11, 2017 to 124 months in prison and five years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
Jimmy E. Sollers, 29, of Shreveport, sentenced on October 5, 2017 to 70 months in prison for one count of conspiracy with intent to distribute methamphetamine and 60 months in prison for possession of firearms in furtherance of a drug trafficking crime, to run consecutively. He was also sentenced to five years of supervised release and possession of firearms in furtherance of a drug trafficking crime.
Jonathan S. Hall, 33, of Bossier City, sentenced on October 5, 2017 to 37 months in prison and three years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
The DEA and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Take Back Initiative an Overwhelming SuccessRead the Press Release
- 11,076 pounds of prescription drugs collected in Kentucky on October 28th!
LOUISVILLE, KY – Kentuckiana residents assisted in dramatically reducing the number of potentially dangerous prescription drugs from their homes by cleaning out medicine cabinets and safely disposing of 11,076 pounds of unused medications at more than 70 collection locations on Saturday, October 28th, announced United States Attorney Russell M. Coleman and DEA Associate Special Agent in Charge D. Christopher Evans.
In the Western District of Kentucky, residents did their part to reduce the opioid crisis by bringing DEA and participating law enforcement partners, 4,565 pounds of potentially dangerous, expired, unused, and unwanted prescription drugs for disposal. That is 665 more pounds than was collected at last spring’s event.
DEA’s Detroit Field Division, which covers Michigan, Ohio, and Kentucky, collected 67,211 pounds—over 33 tons of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its more than 526 collection sites.
According to DEA, Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com DEA’s next Prescription Drug Take Back Day is April 28, 2018.
Swiss Citizen Serves 11 Months for Bankruptcy PerjuryRead the Press Release
DALLAS — Rudolf Suter, 67, formerly of Dallas, appeared in federal court yesterday before U.S. District Judge David C. Godbey and was sentenced to time served (nearly 11 months in federal custody) for committing perjury in a federal proceeding under oath. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Based on witness testimony at the sentencing hearing, Judge Godbey ordered Suter to appear on March 9, 2016 for a show cause hearing to determine if Suter should be held in contempt for violation of several court orders in Civil Case No. 3:11-CV-02559-N. Instead of appearing at the show cause hearing, Suter fled to Switzerland. On March 10, 2016, Judge Godbey held Suter in civil contempt of court and also ordered the issuance of a civil contempt arrest warrant.
In August and early September 2016, the United States Marshal Service (USMS) in Dallas had several contacts with Suter while he was in Switzerland. Despite repeated efforts by the USMS encouraging Suter to return to Dallas, fugitive Suter refused to voluntarily surrender.
Based on witness testimony at the sentencing hearing, fugitive Suter traveled to Canada on September 13, 2016 and testified at a civil deposition. In his sworn deposition testimony, Suter testified falsely under oath that he had “made arrangements” with the judge and caused the arrest warrant to be dismissed.
On December 11, 2016, Suter was arrested in New York City based on Judge Godbey’s civil contempt warrant when he attempted to re-enter the United States. On January 6, 2017, a criminal complaint was filed in Dallas. On January 17, 2017, Suter was ordered detained as a flight risk following a contested detention hearing. Suter has remained continuously in custody for nearly 11 months since his arrest.
According to the plea documents, on January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas. Suter concealed his true financial condition when he filed several bankruptcy related documents. In his plea documents, Suter admitted to making a false statement under penalty of perjury in his filed Statement of Financial Affairs, in which Suter concealed several banks accounts which he recently closed. Some of the concealed bank accounts were closed in December 2013, the month before he filed for bankruptcy. After remaining a fugitive outside the United States for approximately nine months, on December 11, 2016, Suter was arrested as he attempted to re-enter the U.S. at JFK International Airport in New York City.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Each felony indictment is the result of a bankruptcy criminal referral submitted to the United States Attorney’s Office by the United States Trustee’s Office in Dallas, Texas. As part of that initiative, 23 defendants have been convicted and 2 defendants are pending trial.
The Internal Revenue Service Criminal Investigation was in charge of the investigation. Assistant U.S. Attorney David Jarvis prosecuted.
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St. Louis County Man Pleads Guilty to Scamming IndividualsRead the Press Release
St. Louis, MO – David E. Schultz, 50, of St. Louis County, pleaded guilty to two counts of wire fraud. He appeared in federal court this morning before U.S. District Judge Ronnie White.
David E. Schultz defrauded multiple victims by falsely stating that he could provide various legal remedies to them. He demanded victims provide him cash or assets, such as jewelry, gold, silver, and other items of value that could quickly be converted into cash in exchange for future services. Schultz demanded victims borrow money from their family members or open lines of credit in order to provide him with money in exchange for future services.
As part of his fraudulent scheme, Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended in 2014. David E. Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David E. Schultz approximately $50,000 for services which were never provided and which David E. Schultz never intended to provide.
He also developed a relationship with victim E.B. Victim E.B. owned and operated a health care products distribution firm and was convicted of health care fraud in 2015. David E. Schultz falsely represented to Victim E.B. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. David E. Schultz represented to Victim E.B. that in exchange for payments, he would be able to have E.B.’s conviction overturned. In July 2016, David E. Schultz presented to Victim E.B. two fraudulent and forged documents falsely representing that E.B.’s conviction was overturned. Victim E.B. paid David E. Schultz approximately $81,000 for services which were never provided.
Schultz also developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in 2014. David E. Schultz falsely represented to Victim D.G. that in exchange for payments, he would have D.G.’s conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David E. Schultz approximately $17,000 for services which were never provided.
Schultz also developed a relationship with Victim O.G. Victim O.G. was the sister of Victim D.G. David E. Schultz falsely represented to Victim O.G. that he was working with attorneys to secure her brother’s release from prison. David E. Schultz also falsely represented to Victim O.G. that upon Victim D.G’s release from prison, he intended to open several Dollar Stores with Victim D.G. David E. Schultz represented to Victim O.G. that in exchange for payments, he would pay attorneys to have her brother released from prison and pay for hotel and meal expenses for Dollar Store executives that he hosted. Victim O.G. paid David E. Schultz approximately $22,000 for services which were never provided.
Schultz developed a relationship with Victim R.J. Victim R.J. was a former cardiologist convicted of health care fraud in 2002 and 2009. David E. Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David E. Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney, V.A., to secure “immunity” for Victim R.J. Additionally, David E. Schultz falsely represented that he would pay attorneys to testify for R.J. during the medical license reinstatement process; hire private investigators; and make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David E. Schultz approximately $162,000 for services which were never provided.
Furthermore, Schultz developed a romantic relationship with Victim S.M. David E. Schultz falsely represented to Victim S.M. that he was a “hard money lender” and was a wealthy real estate investor. David E. Schultz promised to marry Victim S.M. and provide her with a lifetime of financial security. David E. Schultz represented to Victim S.M. that he needed to borrow money from her only until he received several large cash payments from his overseas accounts. Victim S.M. drained her own saving and retirement accounts, borrowed money from her parents, borrowed money from her siblings and opened credit accounts to generate money for David E. Schultz. In total, Victim S.M. paid David E. Schultz approximately $120,000.
Schultz faces up to 20 years imprisonment on each of two counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office.
Seven-time Convicted Felon Pleads Guilty to Bank RobberyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to robbing a Wells Fargo Bank in Newport News.
According to court documents, on Nov. 18, 2016, Carl E. Knightor, 33, went into a Wells Fargo Bank in Newport News with his face covered and demanded money from a bank teller. After the teller gave Knightor money, he stated that it was not enough, and the teller handed him more money from a second drawer. Knightnor fled the bank with a total of $5,368 and got into a taxi. The money Knightnor stole contained a GPS tracker, and law enforcement tracked the signal. Knightor was apprehended minutes later in the back seat of a taxi with the money from the bank robbery.
Knightnor, who has seven prior felony convictions, including possession of a sawed off shotgun and grand larceny, pleaded guilty to bank robbery and faces a maximum penalty of 20 years in prison when sentenced on February 26, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Michael C. Grinstead, Acting Chief of Newport News Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-10.
Record Amounts of Unwanted and Expired Pills Collected on Drug Take Back DayRead the Press Release
PROVIDENCE – Rhode Islanders joined Americans nationwide to do their part to reduce the opioid crisis by bringing the DEA nearly two tons - 3,825 pounds - of expired, unused and unwanted prescription drugs to 149 collection points across the state on National Drug Take Back Day on October 28, 2017. That’s a fifty-percent increase over last year’s collection. Nationwide more than 4,200 local and tribal law enforcement partners collected a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible—and everyone who participated. They're helping us end this crisis one pill at a time.”
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.
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Randolph County man indicted for failure to update sex offender registryRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Mill Creek, West Virginia, man was indicted by a federal grand jury today on a charge of failing to update his sex offender registry, United States Attorney William J. Powell announced.
Daniel Lee Vance, age 22, was indicted on one count of “Failure to Update Sex Offender Registration.” Vance is accused traveling from West Virginia to Ohio and failing to update his sex offender registration. The crime is alleged to have occurred from July to October 2017 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The United States Marshal Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Princeton drug dealer sentenced to nearly five years in federal prison for heroin crimeRead the Press Release
BLUEFIELD, W.Va. – A Princeton heroin dealer was sentenced today to four years and nine months in federal prison for a drug charge, announced United States Attorney Carol Casto. Terrance Raheem Simmons, 41, previously pleaded guilty plea to distribution of heroin.
Simmons admitted that on April 20, 2017, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in Princeton.
The case was investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John L. File is responsible for the prosecution. Senior United States District David A. Faber imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Phoenix Man Sentenced to 260 Years in Prison for Violent Robbery SpreeRead the Press Release
PHOENIX – Yesterday, U.S. District Judge John. J. Tuchi sentenced Anthony Wayne Hamilton, 27, of Phoenix, Ariz., to 260 years in prison for a series of violent gas station robberies committed throughout the Phoenix area. Hamilton was found guilty by a federal jury on June 12, 2017, of 11 counts of Hobbs Act Robbery and 11 counts of brandishing a firearm during a crime of violence.
“The U.S. Attorney’s Office is committed to vigorously prosecuting all violent offenders,” said Acting United States Attorney Elizabeth A. Strange. “We commend the federal and local law enforcement agencies for their collaboration in investigating and apprehending this violent criminal.”
“Anthony Hamilton was convicted of committing violent armed robberies throughout Arizona which impacted countless victims. The FBI and our law enforcement partners are committed to keeping our communities safe through shared information, collaboration, and investigative initiatives,” said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office. “This case was worked jointly with almost a dozen Arizona law enforcement agencies and is yet another example of law enforcement agencies coming together to combat violent crime and ensure the safety of our citizens.”
Evidence at trial showed that during a seven-week period from Dec. 20, 2015 through Feb. 9, 2016, Hamilton robbed eleven different gas stations and convenience stores at gunpoint. During the course of the robberies, Hamilton stole money from the gas stations and from gas station employees while displaying and threatening to use a handgun. Hamilton robbed stores in nearly every city in the Phoenix metropolitan area.
The investigation in this case was a product of significant collaboration between the FBI’s Robbery Task Force, the Phoenix Police Department, the Glendale Police Department, the Tempe Police Department, the Peoria Police Department, the Scottsdale Police Department, the Mesa Police Department, the Chandler Police Department, the Maricopa County Sheriff’s Office, the Pinal County Sheriff’s Office, and the U.S. Marshals Service. The prosecution was handled by Robert I. Brooks and Anthony W. Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-0268-PHX-JJT
RELEASE NUMBER: 2017-109_Hamilton
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pharmacist Pleads Guilty in Scheme to Re-use Medications Left over from Nursing HomesRead the Press Release
PITTSBURGH - A resident of Butler County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, Acting United States Attorney Soo C. Song announced today.
Gino Cordisco, 47, of Mars, PA, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that according to Pennsylvania Board of Pharmacy, pharmacists are not permitted to restock medications that have left the pharmacy’s control. These must be destroyed. According to the FDCA, if a prescription or a container of stock drugs falsely describes the lot numbers, expiration dates or manufacturers, then the drugs are rendered/deemed misbranded. For example, when pills that left the pharmacy are returned and comingled with stock drugs instead of being destroyed, and the required labeling on stock containers does not accurately state the actual manufacturer, date of expiration and lot number, then the drugs in the stock container or prescription package are misbranded.
The evidence would show that at all times relevant to the charges, Cordisco, a pharmacist, was the supervisor over a chain of about nine pharmacies known as MedFast Pharmacies. He reported directly to its owner, Kaleugher. Most of the conduct that supports the charges occurred at MedFast Institutional Pharmacy, 2003 Sheffield Road, Aliquippa, PA.
MedFast Institutional Pharmacy supplied nursing home chains with individualized medication packages for the patients/residents. If the nursing home had unused pills from prescriptions filled by MedFast or other pharmacies from, for example, a resident passing or a change in medications, MedFast delivery drivers were instructed to collect the unused medications and return them to MedFast. Once these drugs were returned to MedFast, the drugs would be removed from their packaging and returned to stock. As a result, pills with different lot numbers, different expiration dates and different manufacturers were comingled. These comingled pills were thereafter used to fill new prescriptions. This conduct was initially directed by the defendant. The immediate supervisor of the MedFast Institutional Pharmacy, Correna Pfeiffer, who reported directly to the defendant, was responsible for carrying out this policy on a day-to-day basis. The evidence would establish that the defendant was a leader and organizer of the criminal conduct under 3B1.1 (a) of the USSG.
In addition to the crime charged, the parties have agreed to a two-point enhancement under the guidelines for obstruction of justice, pursuant to Section 3C1.1. The government would prove that the defendant became aware that narcotic drugs were being stolen from the MedFast, and that Jade Gagianas was suspected of stealing the drugs and providing them to her boyfriend, a drug dealer named David Best. In October 2011 the defendant arranged for a surveillance technician to focus a camera in her area in an attempt to catch Gagianas stealing. A day after the camera was moved, the defendant reviewed the recording and did not see anything suspicious, but noted that Gagianas was the one who unpacked a shipment of drugs. Between 1 p.m. and 2 p.m. that day, the defendant conducted an inventory and realized there was a shortage of Opana ER 40 mg. The defendant took Gagianas to a back room and questioned her about the theft. She eventually admitted to this theft as well as additional thefts that had taken place in the past. She told the defendant that she gave the Opana prescription to her boyfriend, David Best. The defendant told Gagianas that he wanted the drugs back and told her to call Best to ask him to return them. Gagianas made the call, but Best would not bring them back for fear of getting arrested. The defendant told Best he would contact the police if Best did not agree to return the stolen Opana. After about two hours, Best showed up at the pharmacy but did not have the drugs in his possession. Best told Gagianas where he had hidden the drugs down the street. The defendant took Gagianas and drove to the location where Best said he had hidden the drugs. The drugs were recovered by Gagianas from a bush in front of a convent. The defendant took the Opana pill vial from Gagianas and observed that the seal had been broken on the prescription vial and opened the vial to see that the cotton was still in the vial. He returned to the pharmacy with it. The drugs had been out of the possession of the pharmacy from between two and six hours. Knowing that the drugs had been stolen, had been in the hands of a drug dealer, that they were recovered from a bush after being gone from the pharmacy from between two and six hours, the defendant thereafter ordered another pharmacist to restock the Opana. The Schedule II log of the pharmacy relflects that 79 Opana pills were restocked. Jade Gagianas was fired that day by the defendant for stealing Opana.
The defendant was interviewed by DEA S.A. Vijay Nemani on May 29, 2013. S/A Nemani asked the defendant if there had ever been any diversion of pharmaceutical or disciplinary problems of any current or former employees. The defendant stated there were "none that he knew of." This statement was not true.
S/A Nemani then asked the defendant about any former employees and he stated Jade Gagianas worked there as a Pharmacy Technician for a while and that her boyfriend had drug issues. The defendant stated Gagianas quit awhile back claiming she was "stressed out." The defendant stated Gagianas quit her job but was not fired or let go. This statement was not true.
S/A Nemani asked the defendant pointedly if there were any instances of any current or former employees, at the Baden pharmacy, where the employee had stolen controlled substances and then was asked to return the controlled substances to the pharmacy. The defendant stated that he was not aware of any instances. This statement was not true.
S/A Nemani also asked if there were any current or former employees that had been fired or asked to resign as a result of the diversion of controlled substances and the defendant stated, "no." This statement was not true.
We have no evidence that any patient was harmed in any way as a result of any of the conduct described herein.
Judge Schwab scheduled sentencing for April 16, 2018. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Health and Human Service-OIG and the Office of Personnel Management-OIG conducted the investigation leading to the information in this case.
Palmetto Man Sentenced to Four Years in Prison for Tax FraudRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody Jr. today sentenced Samuel Priester to four years in federal prison for tax fraud. As part of his sentence, the Court also ordered him to forfeit the proceeds from the offense and to pay restitution to the Internal Revenue Service in the amount of $152,418.
Priester pleaded guilty on June 13, 2017.
According to court documents, in March 2012, Priester was in possession of numerous unauthorized prepaid cards, in other peoples’ names, that had been loaded with tax refunds from unauthorized and fraudulently filed federal tax returns. Some of the cards were still attached to mailers from the card issuers. Preister also possessed a hand-written ledger containing personally identifying information (PII) with notations such as “used,” “good,” or “rejected,” along with instructions as to how much money could be withdrawn from ATMs daily, using various types of prepaid debit cards. One of the cards and PII found matched a card that had been used to purchase new merchandise found in Priester’s room.
In total, there were 34 false 2011 income tax returns filed with the IRS from the PII and prepaid cards in Priester’s possession, claiming a total of $230,045. Of these, $205,785 had been accurately noted in the hand written ledger. A total of $152,418 in fraudulent tax refunds were issued.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Orlando Lawyer Convicted of Tax EvasionRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found William B. Pringle, III (55, Orlando) guilty of tax evasion. He faces a maximum penalty of five years in federal prison and a maximum fine of $100,000. His sentencing hearing is scheduled for January 22, 2018.
Pringle was indicted on June 14, 2017.
According to evidence presented at trial, Pringle owed more than $2.1 million in federal income taxes, interest, and penalties for the years 1996 and 1998-2010. Over a period of at least nine years, Pringle avoided paying his income taxes by hiding his substantial income and luxury assets from the Internal Revenue Service and engaging in tactics to stop the IRS from locating and seizing his assets to pay the taxes that he owed.
This case was investigated by the Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Gable.
Ohioans turn in nearly 18 tons of pills on Drug Take Back DayRead the Press Release
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
In Ohio, nearly 18 tons – 35,797 pounds – of unused pills were collected.
Now in its 8th year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
“We know of many cases where leftover pain pills have led to an opioid addiction,” said U.S. Attorney for the Northern District of Ohio Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
Ohio Businessman Convicted of Tax FraudRead the Press Release
A Germantown, Ohio, businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio, was convicted today of seven counts of filing false corporate, individual, and private foundation tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment and evidence presented at trial, James Wright, 62, ran the day-to-day operations of B&P Company Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities. Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since. Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant Inc. (The Remnant), to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he deducted personal expenses, including rent, utilities, and pool and lawn care for his residence. Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California. Wright paid personal expenses directly out of B&P’s bank accounts as well. He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.
In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. Wright caused B&P to made donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children. According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on. When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.
The evidence at trial established that Wright had a long history of interactions with the IRS. In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS. This criminal case arose from an audit of Wright’s individual income tax returns. In 2002, the IRS initiated an audit of The Remnant’s income tax returns. During a 2010 audit of B&P’s income tax returns, Wright falsely stated to an IRS revenue agent that he had no prior dealings with the IRS, despite the fact that he had been criminally prosecuted in the 1990s and audited in both the 1990s and early 2000s.
U.S. District Judge Walter H. Rice did not set a date for sentencing. Wright faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Ocean Springs Man Pleads Guilty to Accessing the Internet with the Intent to View Child PornographyRead the Press Release
Gulfport, Mississippi. – Steven Dedual, Jr., 45, of Ocean Springs, Mississippi, pled guilty in United States District Court to accessing the internet with the intent to view child pornography, announced U.S. Attorney Mike Hurst and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
From November 2015 through May 2016, Steven Dedual, Jr., through the use of computers in Gulfport and Ocean Springs, Mississippi, accessed the internet as a user of a file-sharing network, with the intent to view visual depictions of minors engaging in sexually explicit conduct, including visual depictions of a minor who had not attained 12 years of age.
Dedual will be sentenced on February 9, 2018, at 9:00 a.m., by U. S. District Judge Sul Ozerden, and faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime of supervised release.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Andrea Jones.
Mobile Man Sentenced on Felon in Possession of Firearm ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Brad Jason Long of Mobile County, Alabama was sentenced in federal court today to 180 months imprisonment based on his guilty plea to the crime of being a felon in possession of a firearm and being found to be a career criminal, subject to 18 U.S.C. 924(e). The sentence was imposed by Chief Judge Kristi K. DuBose.
On or about January 3, 2017, in Mobile County, Brad Jason Long, was found to be in possession of two firearms, namely, a Sig Sauer P220, .45 caliber semi-automatic pistol and a Walther, .380 caliber semi-automatic pistol, knowing that he had been previously convicted of a felony crime. It is a federal crime for any person who has been convicted of a felony to be in possession of a firearm or ammunition.
This case was investigated by the Federal Bureau of Investigation, in close cooperation with the Mobile County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney, Gregory Bordenkircher, United States Attorney’s Office for the Southern District of Alabama.
Minnesota Resident Sentenced to 170 Months in Prison for Distribution of Child PornographyRead the Press Release
DAVENPORT, Iowa – On November 7, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Michael W. Kennedy, a.k.a. Ian Curtis, 49, of Monticello, Minnesota, to 170 months in prison for distribution of visual depiction of minors engaging in sexually explicit conduct, announced United States Attorney Marc Krickbaum. Kennedy was also ordered to serve 10 years of supervised release following his imprisonment, pay $100 to the Crime Victims’ Fund, and comply with the Sex Offender Registry Requirements upon release.
On May 18, 2017, Kennedy pled guilty to the charges, which arose from an investigation initiated by the University of Iowa Police Department. As stated in the plea agreement, Kennedy was a patient at the University of Iowa Hospital and Clinic in Iowa City. While there, hospital staff thought Kennedy was taking photographs of female staff with his tablet, which is against written hospital policy. The staff confiscated his electronic devices and saw what appeared to be multiple images of child pornography. A forensic examination was conducted which showed that Kennedy was posing as a young male and trading child pornography videos with others through multiple social media applications on his tablet while he was a hospital patient.
This matter was investigated by University of Iowa Police Department, National Center for Missing and Exploited Children, and the Cedar Rapids, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Michigan Doctor and Owner of Medical Billing Company Sentenced to 15 Years in Prison for $26 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area doctor was sentenced to 180 months in prison today for his role in a $26 million health care fraud scheme that involved billing Medicare for nerve block injections that were never provided and efforts to circumvent Medicare’s investigation of the fraudulent scheme. A co-conspirator who owned a medical billing company was previously sentenced to 10 years in prison.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Manny Muriel of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Johnny Trotter M.D., 42, of Bloomfield Hills, Michigan, was sentenced today by U.S. District Judge George C. Steeh of the Eastern District of Michigan. The owner of the medical billing company, Elaine Lovett, 61, of Detroit, was sentenced by Judge Steeh on Sept. 26. Judge Steeh also ordered each defendant to pay $9,199,946 in restitution and scheduled a hearing tomorrow on forfeiture. Trotter and Lovett were convicted in April 2017 after a four-week jury trial of one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud. Trotter was remanded to custody pending a detention hearing tomorrow.
According to the evidence presented at trial, from May 2008 until May 2014, Trotter and Lovett knowingly submitted fraudulent bills for services that they knew had not been provided, mainly nerve block injections. Additionally, after Medicare imposed a requirement in 2009 that required Trotter’s claims to undergo a medical review prior to payment, Trotter and Lovett conspired to circumvent Medicare’s fraud investigation of Trotter by creating sham medical practices, the evidence showed. To continue to receive payment for services that were not provided, Trotter and Lovett concealed their involvement with these practices from Medicare, and instead recruited their family members and employees to serve as straw owners of the companies, the evidence further showed.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Assistant Chiefs Malisa Dubal and Allan Medina, as well as Trial Attorneys Tom Tynan and Jacob Foster, prosecuted 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.
Meridian Man and Woman Plead Guilty to Conspiracy to Obtain a Controlled Substance by FraudRead the Press Release
BOISE – Kellie Cansaydee Sebastian, 33, and Ramon Leon Garcia, 28, of Meridian, Idaho, pleaded guilty to conspiracy to obtain a controlled substance by fraud, U.S. Attorney Bart M. Davis announced. Sebastian pleaded guilty yesterday and Garcia pleaded guilty on September 19. They were indicted by a federal grand jury in Boise in May 2017.
According to court records, Garcia and Sebastian agreed to obtain and attempt to obtain possession of oxycodone and promethazine-codeine cough syrup. Sebastian was employed as a medical assistant for a local doctor. As a medical assistant, Sebastian had the ability to print out prescriptions using the doctor’s information and the name of his practice. Sebastian printed out prescriptions for controlled substances and provided those to her co-conspirator, Ramon Garcia, who took the prescriptions to different pharmacies and attempted to fill them. For example, Garcia took a fraudulent prescription for 120 tablets of oxycodone 20mg to a pharmacy and successfully filled it.
The charge of conspiracy to obtain a controlled substance by fraud is punishable by up to four years in prison, a maximum fine of $250,000, and term up to one year of supervised release.
Sentencing for Garcia is set for December 7, 2017, and sentencing for Sebastian is set for February 6, 2018. Both sentencings are before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement from the DEA, Ada County Sheriff’s Office, and U.S. Department of Health and Human Services Office of Inspector General.
Members of International Bank Fraud Ring Sentenced to Prison for Role in SchemeRead the Press Release
TUCSON, Ariz. – Four members of an international fraud syndicate have been sentenced to federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with their scheme to manufacture and use fraudulent credit cards using the personally identifiable information of US-based individuals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Elizabeth A. Strange for the District of Arizona, and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Phoenix Field Office made the announcement.
“Our office is dedicated to combatting transnational fraud and identity theft,” said Acting U.S. Attorney Strange. “The scope of the fraud scheme in this case was staggering, and we commend our law enforcement partners for apprehending the perpetrators and bringing them to justice.”
“This appalling international scheme illustrates the lengths to which fraudsters will go to game the system for financial gain,” said HSI Special Agent Brown. “We will continue to work tirelessly with our law enforcement partners to hold shameless, brazen fraudsters accountable for their crimes.”
According to admissions made in connection with their guilty pleas, the defendants participated in a conspiracy that bought stolen personally identifiable information, credit card account information, and other financial information over the Internet from individuals located in Ukraine, Tajikistan, and Russia, among other countries. The stolen personally identifiable information and stolen credit card account information were then used to unlawfully manufacture fraudulent credit cards.
Participants in the fraud scheme traveled on multiple occasions from Mexico into the United States and used the fraudulent credit cards to purchase gift cards and high end merchandise, such as iPhones, laptop computers, and designer clothing, from retailers throughout Arizona and elsewhere in the United States. After purchasing merchandise and gift cards, the co-conspirators transported the unlawfully purchased merchandise and gift cards to Mexico for future sale and profit for scheme participants. The defendants admitted in their guilty pleas that they collectively possessed at least 5,684 fraudulent credit cards resulting in the loss of hundreds of thousands of dollars.
The defendants each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. Today, Rey Martinez-Lopez, 33, of Hermosillo, Sonora, Mexico, was sentenced to four years and six months in prison, to be followed by five years of supervised release by U.S. District Judge Rosemary Marquez of the District of Arizona.
Judge Marquez sentenced the other three defendants to the following prison terms:
- On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
- On Sept. 12, Jorge Williams-Araiza, 38, of Hermosillo, Sonora, Mexico, was sentenced to three years and two months in prison, to be followed by five years of supervised release.
- On Aug. 23, Javier Ramirez-Villegas, 36, of Hermosillo, Sonora, Mexico, was sentenced to four years in prison to be followed by five years of supervised release.
The defendants’ restitution will be determined by the Court at a later hearing, which has not been scheduled yet.
The investigation in this case was conducted by HSI Nogales. The prosecution was handled by Assistant U.S. Attorney Matthew G. Eltringham, Organized Crime and Drug Enforcement Task Force, District of Arizona, Tucson and Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section.
CASE NUMBER: CR-0184-TUC JGZ (LAB)
RELEASE NUMBER: 2017-110_Martinez_Lopez_etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
- On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
Members of International Bank Fraud Ring Sentenced to Prison for Role in SchemeRead the Press Release
Four members of an international fraud syndicate have been sentenced to federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with their scheme to manufacture and use fraudulent credit cards using the personally identifiable information of US-based individuals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Elizabeth A. Strange for the District of Arizona, and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Phoenix Field Office made the announcement.
According to admissions made in connection with their guilty pleas, the defendants participated in a conspiracy that bought stolen personally identifiable information, credit card account information, and other financial information over the Internet from individuals located in Ukraine, Tajikistan, and Russia, among other countries. The stolen personally identifiable information and stolen credit card account information were then used to unlawfully manufacture fraudulent credit cards.
Participants in the fraud scheme traveled on multiple occasions from Mexico into the United States and used the fraudulent credit cards to purchase gift cards and high end merchandise, such as iPhones, laptop computers, and designer clothing, from retailers throughout Arizona and elsewhere in the United States. After purchasing merchandise and gift cards, the co-conspirators transported the unlawfully purchased merchandise and gift cards to Mexico for future sale and profit for scheme participants. The defendants admitted in their guilty pleas that they collectively possessed at least 5,684 fraudulent credit cards resulting in the loss of hundreds of thousands of dollars.
The defendants each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. Today, Rey Martinez-Lopez, 33, of Hermosillo, Sonora, Mexico, was sentenced to four years and six months in prison, to be followed by five years of supervised release by U.S. District Judge Rosemary Marquez of the District of Arizona.
Judge Marquez sentenced the other three defendants to the following prison terms:
- On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
- On Sept. 12, Jorge Williams-Araiza, 38, of Hermosillo, Sonora, Mexico, was sentenced to three years and two months in prison, to be followed by five years of supervised release.
- On Aug. 23, Javier Ramirez-Villegas, 36, of Hermosillo, Sonora, Mexico, was sentenced to four years in prison to be followed by five years of supervised release.
The defendants’ restitution will be determined by the Court at a later hearing, which has not been scheduled yet.
HSI Nogales investigated the case. Assistant U.S. Attorney Matthew G. Eltringham, Organized Crime and Drug Enforcement Task Force of the District of Arizona and Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Marion County man indicted on firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia, man was indicted by a federal grand jury today on an illegal firearm charge, United States Attorney William J. Powell announced.
Rocmond Lewis, Sr., age 40, was indicted on one count of “Unlawful Possession of a Firearm.” Lewis, having previously being convicted of a felony in the Circuit Court of Marion County, West Virginia, is accused of possessing a .45 caliber pistol, a 9mm pistol, and a .380 caliber pistol. The crime is alleged to have occurred in March 2017 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Marion County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – Patrick Darrell Smith, 35, Hannibal, MO, was sentenced to 30 years in prison on charges of producing child pornography.
According to court documents, in August 2016 Smith took sexually explicit videos of his girlfriend’s minor daughter. After discovering the videos on Smith’s cell phone, the girlfriend called police who obtained a search warrant for the phone. Located on the phone was an app called “Smart Calculator Gallery Lock” which was disguised to look like a calculator but was actually an app to store photos or videos.
Smith pled guilty in June to two felony counts of production of child pornography and appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.
Man pleads guilty to obstructing justice in City of Atlanta corruption investigationRead the Press Release
ATLANTA - Shandarrick Barnes has pleaded guilty to obstructing justice in the federal corruption investigation involving City of Atlanta government. The defendant threw a concrete block through the window of E.R. Mitchell’s home, and placed dead rodents on his porch and elsewhere hoping to thwart his cooperation with federal law enforcement.
“Barnes threw the concrete block through Mitchell’s dining room window to get him to ‘shut up,’” said U. S. Attorney Byung J. “BJay” Pak. “Instead, that violent act made Mitchell even more resolute in his cooperation with federal law enforcement. Barnes now faces a significant prison sentence because he decided to obstruct a federal investigation.”
“Attempts to subvert justice, whether through intimidation of witnesses or by any other means, will not be tolerated. The FBI will expend any resources necessary to ensure that those who seek to obstruct criminal investigations are held accountable for their actions. This plea by Shandarrick Barnes is evidence of the FBI’s commitment to protect those willing to cooperate with law enforcement’s efforts to improve their communities,”
“Individuals who obstruct justice will be held accountable for their actions. Intimidation of witnesses is never acceptable,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “This investigation was complex and multifaceted, and it underscores the reason we are committed to working with our law enforcement partners to dismantle any and all public corruption schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In late July 2015, special agents with IRS and the FBI approached E.R. Mitchell for an interview relating to an ongoing investigation into corruption at the City of Atlanta. During the meeting, agents discussed corruption allegations as well as potential tax improprieties. Shortly after the IRS and FBI agents approached and interviewed him, Mitchell informed others that federal law enforcement had spoken with him and was asking questions.
Mitchell was interviewed on September 2, 2015, by the U.S. Attorney’s Office and FBI and IRS agents and confessed to regularly paying “up-front money” for City of Atlanta contracts. On September 8, 2015, Mitchell returned to the office and completed a second debriefing with prosecutors and agents.
On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block with the words “ER, keep your mouth shut!” written on the side, through a plate glass window in Mitchell’s home. When Mitchell emerged from the house to see who had thrown the block, he saw that dead rats had been placed on his porch, car and in his mailbox. The police and FBI were summoned to the scene and law enforcement obtained security footage from the subdivision. The video revealed a car that appeared to match Barnes’ vehicle left the area minutes after the block was thrown through the front window. Further investigation by agents suggested that Barnes was involved.
On July 13 and August 17, 2016, Barnes was interviewed by the FBI and IRS. During the interviews, he admitted he threw the concrete block through Mitchell’s window. Barnes specifically acknowledged that he was aware of the IRS tax investigation into Mitchell and others and that agents had asked about Mitchell’s taxes as well as payments Mitchell made to businesses associated with Barnes’ employer. He was well aware that Mitchell was actively cooperating with agents. He said he was livid and his decision to throw the brick through Mitchell’s window was motived by his desire to hinder Mitchell’s communication with agents concerning possible tax violations. He said he felt that Mitchell’s communications to federal law enforcement would negatively affect his employer’s businesses. Barnes was concerned that the communication with agents was detrimental to obtaining other business that he and others were actively seeking at that time.
Sentencing for Shandarrick Barnes, 41, of Atlanta, Georgia, is scheduled for February 7, 2018.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Kurt R. Erskine and Jeffrey Davis are prosecuting the case.
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 from El Salvador sentenced to 12 months in prison for reentering the United States multiple timesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from El Salvador was sentenced to 12 months in prison last week for reentering the country after being deported.
Nelson Antonio Orellana, 30, of San Miguel, El Salvador, was sentenced on October 30, 2017 by U.S. District Judge Donald E. Walter on one count of illegal reentry following deportation. According to the July 13, 2017 guilty plea, U.S. Customs and Border Patrol agents stopped a vehicle February 21, 2017 traveling east on Interstate 10. Agents found eight undocumented illegal aliens and one driver who had lawful status in the United States. Agents discovered Orellana among the group. They also discovered the defendant had illegally reentered the United States multiples times. Orellana was found to have been deported multiple times with the most recent deportation being March 4, 2016 from Alexandria, La. He reentered the country illegally on February 14, 2017 near Laredo, Texas.
United States Customs and Border Patrol conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Long Island Woman Pleads Guilty to Operating Credit Card Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LISA REID, 45, of Amityville, New York, waived her right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to fraud and identity theft offenses stemming from a credit card fraud scheme.
According to court documents and statements made in court, between February 2015 and January 2017, REID was involved in a scheme to defraud credit card companies and their customers by fraudulently taking over credit card accounts and, using those accounts, making unauthorized purchases from high-end retailers.
Specifically, REID used publicly available information to obtain phone numbers for wealthy senior citizens. She then called her victims pretending to be a representative of a credit card company and claiming that the company needed information about the victim’s account. The victims then provided REID with their account information, including credit card numbers and passwords. REID then contacted the credit card company, pretending to be the victim. After providing all of the requested security information, she added a new phone number and address to the account. The address was typically an abandoned or foreclosed property near her home in New York. REID then used the compromised credit card accounts to order merchandise from high-end retailers and had the merchandise shipped to an address that she had previously added to the credit card account. After REID, or a “runner,” retrieved the merchandise, she sold it at a pawnshop or to another individual.
Through this scheme, REID stole the identities of more than 50 individuals and used their credit card information to purchase more than $1 million in merchandise. Victim credit card companies successfully thwarted approximately $3.8 million worth of REID’s attempted purchases.
REID pleaded guilty to one count of mail fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of two years. A sentencing date has not been scheduled.
REID has been detained since her arrest on February 5, 2017.
In October 2010, REID was convicted in the Eastern District of Kentucky of federal bank fraud and aggravated identity theft offenses, and was sentenced to 27 months of imprisonment and five years of supervised release. The convictions stemmed from a similar credit card takeover scheme that also defrauded victims of approximately $1 million.
REID, who was on supervised release while engaged in her most recent criminal conduct, faces an additional term of imprisonment if she is found to have violated the conditions of her supervised release.
This matter is being investigated by the U.S. Postal Inspection Service, Greenwich Police Department and Connecticut Financial Crimes Task Force, which also includes the U.S. Secret Service, Internal Revenue Service, Connecticut State Police and the Shelton, Stamford, Hartford, and Norwalk Police Departments. The U.S. Marshals Service has assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Long Island Convenience Store Owner and Clerks Plead Guilty to Drug TraffickingRead the Press Release
Earlier today, Osman Ak and Murat Ak pleaded guilty to drug trafficking charges before United States Magistrate Judge Steven I. Locke in federal court in Central Islip, New York. A third defendant in the indictment, Mehmet Akpinar, previously pled guilty to drug trafficking. The three defendants were arrested on September 28, 2017 in connection with a four-count indictment. The defendants admitted to selling K-2, an illegal controlled substance, out of Eyup Gas & Convenience Store, Inc., d/b/a VS Food Mart, in Medford, New York.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and George Beach, Superintendent, New York State Police (NYSP), announced the pleas.
According to court documents, the defendants trafficked K-2 or “spice” from the convenience store owned and operated by Osman Ak. The sales were made out of a cigar boxes hidden behind the cash register. The K-2 was packaged in glitter bags with cartoon and cartoon-like characters including “Dopey,” one of Disney’s Seven Dwarfs, and names like “OMG,” “Hayze Peachy King,” “Joker” and “Hayze Hawaiian Ultra.” K-2 is an illegal and dangerous DEA Schedule 1 drug with no medicinal use.
When they are sentenced, each of the defendants face up to 20 years’ imprisonment on the drug trafficking charge to which they pled guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
OSMAN AK
Holbrook, New York
Age: 45MURAT AK
Holbrook, New York
Age: 35MEHMET AKPINAR
Nesconset, New York
Age: 51E.D.N.Y. Docket No. 17-CR- 527 (DRH)(SIL)
Lawrence Man Pleads Guilty to Federal Cocaine ChargeRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to a federal drug charge.
Hector Gomez, 38, pleaded guilty to one count of attempting to possess with intent to distribute cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 20, 2018. In December 2016, Gomez was arrested and charged along with five co-defendants: Juan Ulfany Mateo Soto; Angel Torres Leon; Maximo Rodriguez; Angel Figueras; and Wallington Garcia.
On Oct. 27, 2016, officers observed a cocaine transaction between Mateo Soto and Torres Leon. The officers followed the car in which Mateo Soto was transporting the cocaine after the transaction, stopped him, and towed the car because Mateo Soto did not have a valid driver’s license. The officers then found and seized six kilograms of cocaine from a backpack in the car.
Each of the remaining defendants, including Gomez, attempted to retrieve the cocaine that the officers seized. Specifically, Gomez conducted surveillance on the tow truck to identify law enforcement vehicles that might be in the vicinity and reported back to Mateo Soto. Gomez and another defendant then went to the tow yard in an attempt to retrieve the car and the drugs contained in a backpack to return to Mateo Soto.
Both Torres Leon and Figueras are scheduled to be sentenced on Dec. 14, 2017, after pleading guilty in June and July, respectively. Mateo Soto pleaded guilty in October and is scheduled to be sentenced Jan. 31, 2018.
The charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and a maximum of a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Laconia Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Timothy Raxter, 53, of Laconia, New Hampshire, pleaded guilty in federal court today to possessing methamphetamine with intent to distribute and being a felon in possession of a firearm.
Court filings and statements made in court established that on January 23, 2017, Laconia Police executed a search warrant on Raxter’s vehicle, seizing a .40 caliber pistol and approximately 10 grams of “ice” methamphetamine. As a previously convicted felon, Raxter is prohibited from possessing firearms.
A sentencing hearing has been scheduled for February 15, 2018.
The case was investigated by the Police Departments of Gilford and Laconia in conjunction with the FBI New Hampshire Safe Streets Gang Task Force. The Task Force is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Kaplan man pleads guilty to possessing firearms, ammunition after felony convictionsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Kaplan pleaded guilty last week to possessing firearms and ammunition.
Micah J. Guillot, 33, of Kaplan, La., pleaded guilty Thursday before U.S. Magistrate Judge Patrick Hanna to one count of possession of a firearm by a convicted felon. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, a Lafayette police officer conducted a traffic stop of a vehicle being driven erratically on South Bertrand Drive on March 28, 2015. Guillot exited the vehicle wearing a ballistics vest. The officer later found ammunition in the vest. The officer also searched Guillot’s vehicle and found a .10 gauge shotgun, a .380 caliber handgun, .380 caliber ammunition, .22 caliber ammunition and .10 gauge shotgun ammunition. Guillot pleaded guilty September 18, 2014 to felony possession of controlled substances and September 20, 2012 to felony unauthorized use of an access card.
Guillot faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court did not set a sentencing date.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Jury Convicts Connecticut Woman of Bank Fraud, False Statement in a Passport Application, and Aggravated Identity TheftRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on November 7, 2017, a Burlington jury convicted Alison Yi Gu of Cheshire, Connecticut of three charges relating to her use of false identities. Specifically, the jury convicted Gu, who also went by the names Alison Ling, Yijing Gu, Ally Koo, Ai J. Chen, Ai Jen Chen, and Jing Shao, of (1) bank fraud, (2) making a false statement in an application for a U.S. Passport, and (3) aggravated identity theft involving the use of the Social Security Number and date of birth of another person. The verdict was returned following a one-week trial. Chief United States District Judge Christina Reiss presided over the trial.
According to the Superseding Indictment, between 2013 and September 2015, Gu devised and executed a scheme to defraud Bank of Bennington, First National Bank of America, Prime Lending, Discover Home Loans, and Emigrant Mortgage Company to obtain funds by submitting mortgage loan applications containing false information. The Indictment specified that the false information included misrepresenting Gu's identity, and altering bank statements. The Indictment further charged Gu with making a false statement in a passport application at the United States Passport Office in St. Albans, Vermont in March 2015, as well as using the identity of another person in the commission of that crime. The jury returned guilty verdicts on all three counts.
Following the jury's verdict, Chief Judge Reiss ordered Gu remanded to the custody of the United States Marshals Service.
Gu's sentencing is expected to occur in approximately four months, but is not yet scheduled. She faces a minimum sentence of two years, and a maximum term of thirty years' incarceration.
The conviction of Gu was the culmination of an investigation by the United States State Department, Diplomatic Security Service, working with the assistance of the Danbury, Connecticut Police Department.
Gu is represented by Lisa Shelkrot and Manisha Munshi of Burlington. The case was prosecuted by Assistant United States Attorneys Kevin J. Doyle and Michael P. Drescher.
Jefferson City Man Pleads Guilty to Illegal Firearm Stolen During Home BurglariesRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to illegally possessing a firearm that he stole during a series of home burglaries.
Brandon Davide Wilkerson, 22, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being an unlawful user of a controlled substance in possession of a firearm.
From approximately September to December 2016, residents of Callaway, Cole, Miller, Moniteau and Cooper Counties reported numerous and related residential burglaries that multiple county sheriff and city police departments investigated. Wilkerson was identified as one of the persons involved.
Wilkerson told investigators that he used methamphetamine for the past two years, and recently he used it every other day. Wilkerson admitted that had sold a stolen firearm to his methamphetamine dealer for $100 worth of methamphetamine.
On Jan. 4, 2017, a Jefferson City police officer saw the person identified as Wilkerson’s source of methamphetamine and arrested him. The officer searched his vehicle and found a Ruger 9mm pistol, which he admitted he had obtained from Wilkerson in exchange for methamphetamine.
In a separate but related case, Stephan Alben Whelan, 22, of Jefferson City, also has pleaded guilty to being an illegal drug user in possession of firearms. Whelan told investigators that he and other individuals were involved in multiple burglaries in the mid-Missouri area. He stated he was involved in so many burglaries that he could not remember where specific items were taken from and when they were taken. He traded the stolen items for methamphetamine. Law enforcement officers executed search warrants and recovered numerous stolen items, including several firearms that had been reported stolen.
Whelan admitted that he stole a Browning 12-gauge shotgun and a Henry Repeating Arms 30-30 caliber rifle from a residence in Lohman, Mo. Whelan traded the firearms, which were eventually recovered by law enforcement, for a quarter-ounce of methamphetamine. Whelan also admitted that he stole a Marlin 30-30 caliber rifle from a residence in Moniteau County, Mo. Whelan told investigators that he was on methamphetamine during the burglary, and after the burglary threw the rifle out the window of a car. The firearm was later recovered.
Under federal statutes, Wilkerson and Whelan each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Jefferson City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department and the Eldon, Mo., Police Department.
Isleta Pueblo Man Sentenced for Federal Misdemeanor Assault ConvictionRead the Press Release
ALBUQUERQUE – Abel A. Orozco, 38, an enrolled member and resident of Isleta Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to a term of time already served (approximately eight months of imprisonment) for his misdemeanor assault conviction and one year of supervised release.
Orozco was arrested on March 20, 2017, on a criminal complaint charging him with assaulting an Isleta Pueblo man by pushing him into a wall, striking and punching him in the body, chest and head, and threatening him with a log in Oct. 2016, on the Isleta Pueblo. According to the complaint, the victim suffered a fractured rib, pain to the right side of his head and an injured left shoulder as the result of the assault.
Orozco was indicted on April 11, 2017, and was charged with assault resulting in serious bodily injury on Oct. 2, 2016, on Isleta Pueblo in Bernalillo County, N.M.
On Aug. 4, 2017, Orozco pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding. In entering the guilty plea, Orozco admitted that on Oct. 2, 2016, he assaulted the victim by striking and hitting him with his fists and elbows.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Michael D. Murphy.
Individual Taken into Custody After Committing Violent Crimes in Colorado SpringsRead the Press Release
DENVER – Miguel Lerma Cruz, age 37, aka Danny Ortega, has been formally charged by grand jury indictment with drug distribution and firearm related crimes following a violent carjacking and police chase, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. Cruz, who is in federal custody, has made his initial appearance, where he was read his rights as well as advised of the charges pending against him. A U.S. Magistrate Judge today ordered Cruz to be held without bond pending a resolution of his case.
Cruz was indicted by a federal grand jury in Denver on October 26, 2017. He appeared in U.S. District Court in Denver on November 2, 2017 and today, November 7, 2017.
According to court documents, on May 29, 2017, Colorado Springs Police Officers were dispatched following a report by a female of a disturbance at the El Ranchito Meat Market. The female stated that a male had threatened her and her husband inside the market. She was able to give authorities a description of the subject’s vehicle. When officers arrived they observed the suspect vehicle, a Dodge pickup truck, in the parking lot. When they went to contact the vehicle, the driver, later identified as Cruz, rammed into a marked police patrol vehicle, driving past other uniformed police officers and marked police vehicles while fleeing the scene. A high speed pursuit ensued.
During the pursuit, which occurred over a considerable distance through heavily populated areas of the city of Colorado Springs, Cruz refused to stop. The chase stopped when Cruz went through a red light hitting two vehicles, including a vehicle occupied by two elderly individuals, both of whom were injured and transported to the hospital. The Dodge pickup truck was disabled due to the crash. Cruz then exited the van with an assault type rifle and approached a woman in an Acura sedan. He ordered her out of the car at gun point, then fleeing the scene. Officers continued pursuit, but eventually could not locate Cruz.
Investigators learned Cruz had two vehicles in the El Ranchito Meat Market parking lot -- a silver Saturn sedan and the Dodge pickup truck. Both were searched by agents and officers. The stolen Acura was later located and searched after it was tied to Cruz by a palm print he left on the vehicle. A search of the Dodge yielded a 9 mm handgun stolen from a residence in Brattleboro, Vermont in 2013, approximately 289 grams of heroin, approximately 662 grams of methamphetamine, and up to $30,000 in cash. Inside the Saturn authorities found a Ruger mini-14 rifle, ammunition for a AK-47 as well as ammunition for a 12 gauge shotgun. They also found spent .40 shell casings that NIBIN hit to a shooting the month before.
Later Cruz was seen driving a white Camaro in Colorado Springs. He was surveilled at the 6800 block of Corporate Drive in Colorado Springs. The Colorado Springs Police Department Tactical Enforcement Unit went to the area and on June 1, 2017, took Cruz into custody. A search of the Camaro uncovered approximately $4,000 in cash and a AK-47 rifle. Cruz had prior convictions for Attempt to Distribute Heroin, Distribution of a Schedule 1 Controlled Substance, and assault, as well as three cases currently pending in state court for firearm and assault charges. Finally, the defendant had been convicted of Trafficking a Controlled Substance in Clark County, Nevada.
Cruz faces two counts of possession with intent to distribute a controlled substance, one count of use, carry and possess a firearm during a drug trafficking crime, one count of use, carry, possess and brandish a firearm during a drug trafficking crime carjacking, and possession of a firearm by a prohibited person. If convicted of all counts, the defendant faces a mandatory minimum of 32 years in federal prison.
The ATF and the Colorado Springs Police Department investigated this matter. The defendant is being prosecuted by Assistant U.S. Attorney Colleen Covell.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Illegal Alien Pleads Guilty to Firearm and Drug ChargesRead the Press Release
Anderson, South Carolina---- United States Attorney Beth Drake stated that Gabriel Espitia Escandon, age 43, of Mexico City, Mexico, entered a guilty plea in federal court in Anderson to Being an Illegal Alien in Possession of a Firearm, in violation of Title 18 U.S.C. § 922(g)(5), and Possession with Intent to Distribute Methamphetamine, in violation of Title 21 U.S.C. § 841. United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose the sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on August 28, 2016, a Simpsonville Police Department officer pulled over a white F-150 driven by Gabriel Escandon for speeding. When asked for his license and registration, Escandon stated he was not a legal citizen and did not have a license. The officer arrested Escandon and searched the vehicle, finding a KelTec P32 in the driver side door pocket. The gun was loaded with three hollow point rounds. Escandon previously applied for and was denied entry into the United States. Escandon is a citizen of Mexico and is illegally present in the United States, therefore it is a crime for him to possess a firearm.
On October 6, 2016, an officer of the Greer Police Department pulled over the same white F-150. Escandon was again driving without a license, and the officer observed what appeared to be drugs on the floorboard. The officer deployed a K-9 unit, which alerted to the presence of narcotics. The officer searched the vehicle and found 26.45 grams of methamphetamine in a sock in a cup in the center console.
Ms. Drake stated that the maximum penalty Escandon could receive is 20 years imprisonment and a fine of $1,000,000 dollars. The case was investigated by agents of ICE - Homeland Security Investigations, Simpsonville Police Department, and Greer Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Harrison County man indicted on health care fraud chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was indicted by a federal grand jury today on charges of health care fraud, United States Attorney William J. Powell announced.
Kenneth Boyles, age 52, was indicted on one count of “Health Care Fraud” and one count of “False Statement Related to Health Care Matter.” Boyles is accused of falsely reporting symptoms related to his service in the United States Army Reserves to the Veterans Health Administration in order to fraudulently collect more than $224,000 in benefits. The crime is alleged to have occurred from 2008 to 2017 in Harrison County.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Harrison County man indicted for drug distribution and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was indicted by a federal grand jury today on a charge of methamphetamine distribution and unlawful firearm possession, United States Attorney William J. Powell announced.
David Leon Turner, age 30, was indicted on one count of “Distribution of Methamphetamine” and one count of “Unlawful Possession of a Firearm.” Turner is accused of selling methamphetamine. Turner, having previously being convicted of three felonies, is also accused of possessing a 9mm caliber pistol. The crime is alleged to have occurred in Harrison County in May 2017.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grant County residents sentenced for heroin distributionRead the Press Release
ELKINS, WEST VIRGINIA – Two Mount Storm, West Virginia, residents were sentenced today for heroin distribution, United States Attorney William J. Powell announced.
Amanda Lynn Bow, age 22, was sentenced to 96 months incarceration. Bow pled guilty to a one count information, charging her with “Distribution of Heroin - Aiding and Abetting” in August 2017. Bow admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Cody Zane Stevenson, age 24, was sentenced to 96 months incarceration. Stevenson pled guilty to a one count information, charging him with “Distribution of Heroin - Aiding and Abetting” in August 2017. Stevenson admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the cases on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Grant County Man sentenced for meth trafficking and firearm chargesRead the Press Release
ELKINS, WEST VIRGINIA – A Petersburg, West Virginia, man was sentenced today to 60 months incarceration for methamphetamine distribution and illegal possession of a firearm, United States Attorney William J. Powell announced.
Joseph Nathaniel Hartman, age 33, pled guilty to one count of “Distribution of Methamphetamine” and one count of “Unlawful Possession of a Firearm” in June 2017. The crimes occurred in August 2015 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police Bureau of Criminal Investigation, and the Grant County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Former postal supervisor from Akron sentenced to three years in prison for stealing a kilo of methamphetamine out of the mailRead the Press Release
Two former U.S. Postal employees were sentenced to prison for stealing packages containing marijuana from the U.S. mail and then selling the drugs, said U.S. Attorney Justin E. Herdman.
Rabih Kairouz, 29, of Akron, was sentenced to 37 months in prison.
Scott Gay, Jr., 33, of Canton, was sentenced to six months incarceration followed by six months of
house arrest.
Corey Turnbull, 26, of Ravenna, was sentenced to probation.
Anton D. Easter, Jr., 27, of Akron is scheduled to be sentenced next month.
Kairouz, Gay and Turnbull worked for the U.S. Postal Service. Kairouz and Turnbull worked as a supervisor at the Five Points station in Akron while Gay was a manager at the North Hill station, according to court documents.
Together, intercepted suspected drug parcels at U.S. Post Offices in Akron, opened the parcels, removed marijuana contained inside, sold the marijuana to Easter and shared the profits. This took place between February and May 2017, according to court documents.
Kairouz also had a kilogram of methamphetamine that he stole from the mail, according to court documents.
The investigation preceding the indictment was conducted by the U.S. Postal Service Office of Inspector General, the U.S. Postal Inspection Service and the Akron Police Department. The case is being prosecuted by Assistant U.S. Attorneys Henry F. DeBaggis and Teresa L. Riley.
Former Springfield YMCA Employee Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Springfield YMCA employee pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Benjamin Goodwin, 28, of Springfield, pleaded guilty before U.S. Magistrate Judge James C. England to the charge contained in an Aug. 15, 2017, federal indictment. Goodwin has been in federal custody since his arrest and remains in federal custody pending his sentencing hearing.
Goodwin, an employee of the Springfield YMCA at the time of the offense, admitted that he received and distributed child pornography over the Internet between June 11, 2016, and Aug. 3, 2017.
According to court documents, Goodwin initially came to the attention of law enforcement after the administrators of Chatstep submitted a Cybertipline Report regarding his use of its services to post images depicting child pornography. During the course of another investigation, an individual told investigators that he and Goodwin had been trading images depicting child pornography.
On Aug. 3, 2017, investigators contacted Goodwin outside his place of employment, the Springfield YMCA. Goodwin admitted that he had sent approximately 25 images depicting child pornography to the other individual and had received approximately the same number in return.
Under federal statutes, Goodwin is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Secret Service Agent Sentenced in Scheme Related to Silk Road InvestigationRead the Press Release
A former U.S. Secret Service Special Agent, who had been a member of the Baltimore Silk Road Task Force, was sentenced to prison today on charges of money laundering, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI), and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division and Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General, Houston Field Office.
Shaun W. Bridges, 35, of Laurel, Maryland, was sentenced to 24 months in prison by U.S. District Judge Richard Seeborg in San Francisco following his earlier guilty plea to one count of money laundering. Judge Seeborg ordered that the sentence be served consecutively to the 71-month sentence that Bridges is currently serving related to his 2015 conviction for a similar theft. Bridges was also ordered to forfeit approximately 1,500 bitcoin and other fiat currency, which is currently valued at approximately $10.4 million.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Baltimore Task Force, including Ross Ulbricht, aka “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California.
Prior to reporting to prison to begin serving his sentence for the 2015 conviction, Bridges was arrested and taken into custody on new charges related to another theft of approximately 1,600 bitcoin from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
The case is being investigated by the FBI’s San Francisco Division, IRS-CI’s Washington, D.C. Field Office Cyber Crimes Unit and the Department of Homeland Security Office of the Inspector General in Washington D.C. The case is being prosecuted by Assistant U.S. Attorney William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section. Assistant U.S. Attorney David Countryman handled the asset forfeiture aspects of the case.
Former Secret Service Agent Sentenced in Scheme Related to Silk Road InvestigationRead the Press Release
SAN FRANCISCO – A former U.S. Secret Service Special Agent, who had been a member of the Baltimore Silk Road Task Force, was sentenced to prison today on charges of money laundering, announced U.S. Attorney Brian J. Stretch, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI), Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division, and Special Agent in Charge of the Department of Homeland Security Office of the Inspector General Houston Field Office David Green.
Shaun W. Bridges, 35, of Laurel, Md., was sentenced to 24 months in prison by U.S. District Judge Richard Seeborg in San Francisco following his earlier guilty plea to one count of money laundering. Judge Seeborg ordered that the sentence be served consecutively to a previous sentence that Bridges is currently serving. Bridges was also ordered to forfeit approximately 1,500 bitcoin and other fiat currency which has a current value of approximately $10.4 million.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Baltimore Task Force, including Ross Ulbricht, aka “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California. In 2015, Bridges was arrested and taken into custody on charges related to the theft of approximately 1,600 bitcoin from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
The case is being investigated by the FBI’s San Francisco Division, IRS-CI’s Washington, D.C. Field Office Cyber Crimes Unit, and the Department of Homeland Security Office of the Inspector General in Washington D.C. The case is being prosecuted by Assistant U.S. Attorney William Frentzen and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section. Assistant U.S. Attorney David Countryman handled the asset forfeiture aspects of the case.
Former Newspaper Publisher, Mortgage Broker, Mortgage Lender and Real Estate Agent Convicted in $20 Million Mortgage Fraud SchemeRead the Press Release
A federal jury convicted a former Miami newspaper publisher, mortgage broker, mortgage lender and real estate agent after a three-week trial for leading a $20 million mortgage fraud scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Marco Laureti, 46, of Sunny Isles Beach, was convicted of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 and seven counts of wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1343 (Case No. 16-60340-CR-Bloom(s)(Cohn)). Senior U.S. District Judge James I. Cohn presided over the trial. The defendant’s sentencing hearing is scheduled for January 25, 2018 at 9:30 a.m. At sentencing, the defendant faces up to thirty years’ imprisonment on each count, a $250,000 fine as to each count and restitution.
Felix Mostelac, 45, of Miami, Michelle Cabrera, 49, of Miami Lakes, Pedro Melian, 40, of Hialeah, were also charged in the scheme. Cabrera and Melian previously pled guilty to conspiracy to commit wire fraud and will be sentenced on November 17, 2017 by U.S. District Judge William P. Dimitrouleas (Case No. 16-60354-CR-Dimitrouleas). Mostelac is a fugitive at large and is believed to be living outside the United States.
According to evidence presented at trial, defendants Laureti, Mostelac, Cabrera and Melian were involved in a $20 million mortgage fraud scheme. Laureti was a former newspaper publisher and owner of Laureti Publishing Company and multiple companies, including Northview Equities LLC, Northview Real Estate LLC, Northview Capital LLC, Laureti Holdings Company, Laureti Media Group, Inc., ReTrade, Inc., and M4 Management LLC, in addition to being a licensed Florida real estate agent and formerly licensed Florida mortgage broker. Mostelac was Laureti’s associate and also the owner of several companies, including Mostelac Enterprises, Inc. and American Holdings Group. Cabrera owned Florida Elite Title & Escrow and served as the closing agent for these transactions. Melian also owned several companies, including Melian’s Investment Group.
At trial, the Government presented evidence that the defendants engaged in a fraud scheme involving a condominium complex located at 45 Hendricks Isle in Fort Lauderdale. Defendants Laureti, Mostelac, Melian and other co-conspirators made false and fraudulent statements to a financial institution on mortgage loan applications, including grossly inflating income and bank account balances. These defendants also made fraudulent representations on the closing statements for these multi-million dollar condominiums. Once these loans were approved, defendant Cabrera, at Laureti’s direction, diverted the loan proceeds to fund the cash the borrower was expected to bring to the property’s closing, as well as diverting additional monies from the loan proceeds to various companies owned by Laureti and Mostelac. The evidence showed Cabrera was paid $10,000 for each fraudulent transaction initiated by Laureti and Mostelac. Furthermore, Laureti and Mostelac utilized the same scheme on the mortgage loan applications and closing statements to purchase their own multi-million dollar residential properties in Miami Beach, including Laureti’s $6.9 million home and Mostelac’s $6.5 million dollar condominium. The defendants’ scheme defrauded the financial institution of approximately $20 million in disbursed mortgage loans.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Randy Katz and Karen O. Stewart.
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.