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6 November 2017
12-Time Felon Pleads Guilty to Cocaine and Firearms CrimesRead the Press Release
NEWPORT NEWS, Va. – A man who has been convicted of a dozen prior felonies pleaded guilty today to cocaine and firearms offenses in Newport News.
According to court documents, Clarence L. Lyons, 44, of Newport News, distributed cocaine, cocaine base, and heroin during February 2017. As law enforcement investigated Lyons, they received information that he was usually in possession of a firearm when engaged in narcotics distribution. On Feb. 24, 2017, law enforcement conducted surveillance of Lyons’s hotel room in Newport News, and arrested Lyons as he came out of the hotel room. At the time of his arrest, he was carrying a loaded firearm, marijuana, cocaine, cocaine base, and heroin. Law enforcement searched his hotel room, where they located a syringe and a marijuana smoking device.
Lyons pleaded guilty to possession with intent to distribute cocaine, and carrying a firearm in furtherance of a drug trafficking crime. He faces a mandatory minimum of five years and a maximum of life for possession of a firearm in furtherance of a drug trafficking, consecutive to a maximum penalty of 20 years for possession with intent to distribute cocaine. Lyons is scheduled to be sentenced on Feb. 20, 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, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) 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-87.
3 November 2017
‘Serial Fraudster’ Sentenced to 61 Months in Prison for Latest Round of Scams Aimed at Internet and Shipping BusinessesRead the Press Release
A Seattle man sentenced for mail fraud and wire fraud in 2009, changed his name and committed a new round of frauds resulting today in a 61 month federal prison sentence, three years of supervised release and restitution in the amount of $349,164, announced U.S. Attorney Annette L. Hayes. EDWARD BUI, 48, aka Micah Buitron pleaded guilty in August 2017 to mail fraud, wire fraud, and aggravated identity theft. BUI defrauded shipping and internet payment companies of $349,164. U.S. District Judge Richard A. Jones noted at the sentencing hearing that he had previously sentenced BUI to two years in prison for his 2009 conviction. At today’s hearing Judge Jones said that Bui “shows complete disregard of the Court, the law and the criminal justice system . . . and callous disregard of damage to businesses and individuals. (He) essentially had the mantra ‘catch me if you can.’”
According to records filed in the case, less than a year after his release from federal custody, BUI began putting pieces of his most recent fraud together. He created a company, Operture, Inc., that was at the center of his mail and wire fraud schemes. BUI created multiple accounts with UPS and online payment processing companies using false names, email addresses, physical addresses and bank accounts. He mailed multiple packages using his UPS accounts to addresses in Nevada and then filed more than 260 claims alleging damage to the packages. He was able to defraud UPS of $31,200.
BUI defrauded online payment processing companies by posing as both the buyer and seller of goods and then claiming refunds. When the payment processor tried to get the ‘refunded’ money back from the supposed seller, the account had been drained leaving the payment processor with a loss. BUI engaged in what is essentially a check kiting scheme using online payment processers. With this scheme he defrauded Google Wallet, Stripe and buy.com of nearly $318,000.
BUI used the identity of a person he knew to conduct some of the fraud. For that conduct, he pled guilty to aggravated identity theft which carries a two year sentence that runs consecutive to any other sentence imposed for the other charges.
BUI used the proceeds of his scheme to invest in real estate in Las Vegas. Some of his investments took advantage of a loophole in Nevada law which allowed him to purchase properties for the outstanding homeowners association payments. In this way BUI was able to buy and flip properties as the real estate market recovered, and ultimately purchased a property worth more than $1 million. The property will be forfeited to the government and its sale will be used to pay off BUI’s victims from this fraud case as well as the fraud case from 2009.
In the 2009 case, BUI fraudulently used the credit card and personal information of more than 60 people and defrauded some 68 businesses. BUI used some 20 aliases to purchase everything from remodeling supplies to expensive home furnishings. BUI used some of the materials to remodel the four properties he owned. Some of the items he resold through his businesses or on other web sites. In all, the fraud or attempted fraud totaled $350,000. BUI also double and triple billed some of his customers for items they purchased from his web site, filed false damage claims with shippers and false claims with his own credit card company.
The case was investigated by the U.S. Secret Service and the Seattle Police Department.
The case was prosecuted by Assistant United States Attorney Matthew Diggs.
Worcester Man Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for his role in a heroin and cocaine trafficking conspiracy that operated throughout Worcester County.
Osvaldo Vasquez, 49, was sentenced by U.S. District Court Judge Timothy S. Hillman to 125 months in prison and four years of supervised release. In May 2017, Vasquez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 100 grams or more of heroin; one count of distribution and possession with the intent to distribute heroin; one count of distribution and possession with the intent to distribute 100 grams or more of heroin; one count of possession with the intent to distribute 500 grams or more of cocaine and 100 grams or more of heroin; and one count of possession of a firearm in furtherance of a narcotics trafficking offense. Vasquez is the final of five co-defendants to be sentenced in connection with the conspiracy.
In the late summer of 2014, federal agents began investigating narcotics trafficking activities by Osvaldo Vasquez and his associates, Jose Federico Vasquez, Felix Melendez, Elvis Genao and Hugo Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During a court-authorized wiretap, Vasquez and his co-defendants were heard discussing the purchase and sale of multiple kilograms of narcotics and demonstrated an awareness of the potential deadly consequences of the narcotics they were distributing. On May 7, 2016, Osvaldo Vasquez, Melendez, and Federico Vasquez were intercepted discussing how the high number of heroin overdose deaths occurring at the time were cutting into their sales.
A search of Osvaldo Vasquez’s home in Worcester resulted in 679 grams of heroin, 723 grams of cocaine and a Taurus PT .380 semi-automatic handgun being recovered. The telephone that was the subject of the wiretap, cutting agents, and over $7,000 in cash were also recovered in the home. At the residence of Santana-Dones in Leominster, 224 grams of heroin, 110 grams of cocaine, and 8.9 grams of cocaine base (crack cocaine), along with cutting agents, a hydraulic kilogram press, over $1,300 in cash and two phones that had been intercepted on the wiretap were recovered. At the residence of Melendez, who was on parole for state firearm and narcotics charges at the time, 3.1 grams of cocaine, a digital scale, over $1,000 in cash and a phone that had been intercepted on the wiretap were recovered. At the residence of Jose Federico Vasquez in Providence, agents recovered 3.4 grams of cocaine.
Santana-Dones, Melendez, Federico Vasquez, and Genao each pleaded guilty to their roles in the conspiracy and were sentenced to 80 months in prison, 70 months in prison, five years in prison, and 37 months in prison, respectively.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office prosecuted the cases.
Woman Sentenced for $6 Million “Mystery Shopper” Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Houston, Texas, woman was sentenced today to nearly 15 years in prison for her role in a $6 million fraud scheme involving “Mystery Shoppers.”
Timeiki Hedspeth, 39, was found guilty of nine charges by a federal jury on June 30, 2017. According to court documents, in 2012 federal law enforcement began an investigation into an extensive scheme that operated nationally and internationally, stemming from Nigeria. The investigation determined that participants in the scheme, including Hedspeth, recruited individuals throughout the United States via email to serve as “Mystery Shoppers,” in which the individuals would receive financial instruments, such as a cashier’s check or Postal money order, to evaluate the services of certain money transmission services, including Western Union and Money Gram. Once a recruited individual, or “Mystery Shopper,” responded to the email solicitation with interest, the conspirators would obtain personal identification information from the Mystery Shopper, which was then placed on the counterfeit cashier’s check or Postal money order. The conspirators would then mail the Mystery Shoppers a counterfeit cashier’s check or Postal money order for the Mystery Shopper to negotiate at their own bank, keeping a portion of the payment for their services. The Mystery Shopper would then wire the majority of the funds to conspirators or other recruited individuals who retrieved the transmitted funds and engaged in further distribution of the fraudulent proceeds. From 2010 - 2016, Hedspeth had millions of dollars worth of counterfeit checks and money orders emailed or shipped to her for distribution to Mystery Shoppers, and retrieved and forwarded hundreds of thousands of dollars in proceeds from money transmission services.
Hedspeth was sentenced today to 175 months in prison. Several co-conspirators have also been sentenced, including: Toheeb Odoffin (90 months), Zoelithia Williams (100 months), Hafeez Odoffin (110 months), Habeeb Odoffin (120 months), and Christie Easter (130 months).
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and George Purefoy, Resident Agent in Charge of the Norfolk Resident Office, U.S. Secret Service, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-49.
Woman Sentenced for $246,000 Government Benefits FraudRead the Press Release
RICHMOND, Va. – A Fredericksburg woman was sentenced today to two years in prison for a $246,000 healthcare fraud.
According to court documents, Raven M. Zaal, 39, is the mother of a Medicaid eligible disabled child who was entitled to receive home health care services from attendants. From October 2011 through October 2014, Zaal and the attendants submitted timesheets to Medicaid for 11 home health attendants, claiming that the aides provided 15,645 hours of services and resulting in at least $217,519 in Medicaid payments for the care of the child. However, the attendants did not provide care to Zaal’s daughter. In actuality, the attendants worked as childcare providers for other children in Zaal’s daycare center, Raven’s Childcare Connections, while being paid with Medicaid money intended for the benefit of Zaal’s child.
Zaal also applied for and received Supplemental Security Income (SSI) on behalf of her disabled child. SSI is a needs based program that requires disclosure of all assets and income. In 2011 and 2012, Zaal failed to accurately report her income, her marriage, or her joint bank account with her husband to the Social Security Administration, resulting in her receiving $14,655 in SSI benefits to which she was not entitled.
Zaal also applied for and received money from the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. SNAP benefits are administered by the Virginia Department of Social Services but the money provided is from federal funds. SNAP is also a needs based program that requires recipients to fill out forms listing all assets, monetary income and household members. From 2011 through 2015, Zaal failed to report her income from Raven’s Childcare Connections and other sources and failed to report her marriage or the joint bank account with her husband. Based on this fraud, Zaal received $14,784 in SNAP benefits to which she was not entitled.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Mark R. Herring, Virginia Attorney General, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney David T. Maguire and Special Assistant U.S. Attorney David W. Tooker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-157.
Wilkes-Barre Man Sentenced to Seven Years’ Imprisonment on Firearms ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shakur Brownstein, age 20, of Wilkes-Barre, Pennsylvania, was sentenced by U.S. District Court Judge James M. Munley to a term of 84 months’ imprisonment for brandishing firearms in relation to a drug trafficking crime.
According to United States Attorney Bruce D. Brandler, on June 27, 2017, Brownstein brandished a Smith & Wesson revolver and a stolen Smithfield semi-automatic handgun during an argument at his apartment in Wilkes-Barre, and while in possession of 1,234 baggies of heroin meant for distribution. Police heard Brownstein state that “I will shoot you,” and upon entering the apartment saw Brownstein with a firearm in each hand pointing the guns at a juvenile male who was attempting to leave the apartment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Wilkes-Barre Police. Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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West Springfield Man Pleads Guilty to 19 Counts of Child ExploitationRead the Press Release
BOSTON – A West Springfield man pleaded guilty today in federal court in Springfield to various charges of sexual exploitation of children, including producing child pornography by video recording and photographing himself sexually abusing a five-year-old girl.
Justin Germaine, 27, pleaded guilty to five counts of sexual exploitation of a child, eight counts of distribution of child pornography, five counts of receipt of child pornography, and one count of possession of child pornography.
U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 8, 2018. If the plea agreement reached by the parties is accepted by the Court, Germaine will be sentenced to 30 years in prison and 20 years of supervised release. Germaine has been in custody since he was arrested in July 2016.
On various occasions between November 2015 and June 2016, Germaine took sexually explicit photos of a five-year-old girl and documented himself sexually abusing the child. Between March 2016 and July 2016, Germaine traded the photo files he created over the internet in exchange for other images and videos of child pornography. Germaine also exchanged emails with an individual in New Hampshire, in which the two discussed having sex with children and trading child pornography. Attached to these emails were pictures of children, many between the ages of three and six-years-old, being sexually abused and exploited by men.
The charge of sexual exploitation of children provides for a sentence of no greater than 30 years in prison, a lifetime of supervised release and a fine of $250,000. The charges of receipt and distribution of child pornography each provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office is prosecuting the case.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
West Palm Beach Man Sentenced for Conspiring with his brother, a United States Postal Service Letter Carrier, to Commit Access Device Fraud and Aggravated Identity TheftRead the Press Release
A West Palm Beach man was sentenced to 54 months in prison for conspiring with his brother, a United States Postal Service letter carrier, to commit access device fraud and aggravated identity theft.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Chris Cave, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Cissy Proctor, Executive Director, Florida Department of Economic Opportunity (DEO), made the announcement.
Mikel Clotaire, of West Palm Beach, was convicted in July 2017, following a three-day federal jury trial in West Palm Beach, Florida of conspiring to commit access device fraud, access device fraud, and five counts of aggravated identity theft. Clotaire was sentenced before U.S. District Judge Donald M. Middlebrooks to 54 months in prison, followed by three years of supervised release, and restitution in the amount of $114,743.00 payable to DEO.
According to the court record, including evidence introduced at trial, Clotaire engaged in a scheme to obtain fraudulent re-employment benefits from DEO. Clotaire’s brother was working at the time as a letter carrier for the U.S. Postal Service in Palm Beach Gardens, Florida. At least eight fraudulent unemployment applications, using stolen identities, were then submitted to DEO and resulted in the issuance of Florida Visa debit cards. The debit cards were mailed through interstate commerce to the residential addresses on the postal route. The cards were ultimately transferred to Clotaire and at least two other co-conspirators and used to make withdrawals from ATMs. As a result of the fraudulent scheme, the State of Florida sustained approximately $114,743.00 in financial losses.
Mr. Greenberg commended the investigative efforts of the DOL-OIG, USPS-OIG, USPIS and DEO. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael.
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.
Waynesville N.C. Man Sentenced to More Than Nine Years on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced yesterday a Waynesville, N.C. man to 114 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Travis Lindsey Mehaffey, 39, was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Sheriff Greg Christopher of the Haywood County Sheriff’s Office; and Chief Bill Hollingsed of the Waynesville Police Department join U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on January 6, 2017, a Walmart shopper in Waynesville found an SD card near a checkout lane. The shopper turned the SD card over to law enforcement, after finding that it contained images and videos of children engaging in sexually explicit conduct. Law enforcement determined that the SD card belonged to Mehaffey. According to court records, forensic analyses of the SD card and other devices that belonged to Mehaffey revealed that the defendant possessed more than 114 videos and 754 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other lewd and lascivious conduct.
Mehaffey pleaded guilty on June 14, 2017, to one count of receipt of child pornography and was released on bond pending sentencing. On September 27, 2017, Mehaffey was arrested for violating the condition of his release that prohibits him from using, purchasing, possessing or otherwise obtaining any computer or electronic device capable of accessing the Internet. According to court records, during a search of Mehaffey’s residence, a United States Probation officer found an unreported cellphone hidden under the defendant’s mattress. Court records indicate that Mehaffey admitted to using the cellphone to view child pornography on the Internet.
Mehaffey is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked the FBI, the Haywood County Sheriff’s Office and the Waynesville Police Department for their investigation of this case.
Special Assistant United States Attorney (SAUSA) Christopher Hess prosecuted the case. Mr. Hess is a state prosecutor with the office of the 30th Prosecutorial District assigned as SAUSA to the U.S. Attorney’s Office in Asheville. Mr. Hess is duly sworn in both state and federal courts, and prosecutes in federal court cases that impact the counties within the 30th Prosecutorial District.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Waldorf Man Indicted for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury returned a ten-count indictment on October 30, 2017, charging the Carlos DeAngelo Bell, 30, of Waldorf, Maryland with Sexual Exploitation of Minors for the Purpose of Producing Child Pornography.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore.
According to the indictment, from the period of January 1, 2014 to December 22, 2016, Bell did knowingly employ, use, persuade, entice, and coerce a minor to engage in any sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and the visual depiction was produced using materials that had been mailed, shipped, and transported in and affecting interstate and foreign commerce by any means, including by computer. Bell is charged with committing this offense against ten minors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. An initial appearance and arraignment are scheduled in United States District Court for November 7, 2017 at 2:15 p.m.
Acting United States Attorney Stephen M. Schenning thanked the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, the Maryland State Police, and HSI. Mr. Schenning also commended Assistant United States Attorneys Timothy F. Hagan and Joseph R. Baldwin of the United States Attorney’s Office for the District of Maryland, who are prosecuting this case.
Vero Beach Orthopedic Surgeon Charged in Drug Conspiracy Resulting in DeathRead the Press Release
An orthopedic surgeon practicing in Vero Beach, Florida, was charged with conspiracy to possess with intent to distribute a controlled substance which resulted in death, aiding and abetting the distribution of a controlled substance which resulted in death, and attempted possession with intent to distribute a controlled substance.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI), Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Bruce Colton, State Attorney for the 19th Judicial Circuit, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and Renee Purden, Chief, Orlando Melbourne Airport Police Department, made the announcement.
On October 31, 2017, Johnny Clyde Benjamin, Jr., M.D., an orthopedic surgeon practicing in Vero Beach, Florida, was indicted by a federal grand jury sitting in West Palm Beach, Florida, on federal felony charges of conspiracy to possess with intent to distribute a controlled substance (resulting in death), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846; aiding and abetting the distribution of a controlled substance which resulted in death, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and Title 18, United States Code, Section 2; and, attempted possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846.
These charges were brought as a result of an opioid and furanylfentanyl (FUF) investigation that began in September 2016, in connection with the overdose death of a young woman who resided in Wellington, Florida. The PBSO PBNTF suspected the overdose death of decedent as having resulted from counterfeit oxycodone pills which were found in decedent’s possession following her overdose. Forensic analysis of those pills determined they had been illicitly manufactured as copies of oxycodone pills -- using FUF, an extremely powerful synthetic opioid many times more powerful than street level heroin or oxycodone – as the active ingredient.
Toxicology analysis conducted by the Office of the District Medical Examiner of Palm Beach County attributed the cause of decedent’s death to the fentanyl analog FUF in its autopsy report. Ultimately, an extensive investigation led to Dr. Benjamin as the source of the FUF pills responsible for decedent’s death. Investigators also uncovered a distribution network implicating Dr. Benjamin in the manufacture and distribution of counterfeit oxycodone pills outside the South Florida area.
If convicted, Dr. Benjamin faces a mandatory minimum of 20 years’ imprisonment to a maximum life term of imprisonment for conspiracy to possess with intent to distribute a controlled substance (resulting in death) and distribution of a controlled substance (resulting in death); and, a maximum of 20 years’ imprisonment for attempted possession with intent to distribute controlled substances.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Greenberg commended the investigative efforts of DEA, ATF, ICE-HSI, FDA-OCI, PBSO, Indian River County Sheriff’s Office, and Orlando Melbourne Airport Police Department. Mr. Greenberg also thanked the Palm Beach County State Attorney’s Office and State Attorney’s Office for the 19th Judicial Circuit for their assistance. This case is being prosecuted by Assistant U.S. Attorney John McMillian.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Real Estate Brokers Plead Guilty to Defrauding Banks in $3.5 Million ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – Two New York men today admitted their roles in a $3.5 million scheme to use false information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” Acting U.S. Attorney William E. Fitzpatrick announced.
Simon Curanaj, 62, of Yonkers, New York, and Michael Arroyo, 59, of Bronx, New York, each pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to separate informations charging them with conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
From 2012 through January 2014, Curanaj, Arroyo, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on residential properties in New Jersey and New York, including a residential property on Havermeyer Avenue in the Bronx. In 2013, Curanaj, Arroyo, and others transferred ownership of the property to an individual living at the property and his family friend.
Curanaj, Arroyo, and others then applied, in the family friend’s name, for two HELOCs from two banks using the Havermeyer Avenue property as collateral. They hid from the lenders the fact that the property was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also falsely inflated the family friend’s income without his knowledge. In addition, the equity in the property was far less than the amount of the HELOC loans Curanaj, Arroyo, and others applied for.
The victim banks eventually issued loans to the family friend in excess of $500,000. After the victim banks deposited money into the family friend’s bank accounts, portions of the funds were disbursed to Curanaj, Arroyo, and others. Eventually, the family friend defaulted on the two HELOC loans.
The overall scheme resulted in $3.5 million in losses to the victim banks.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing for Curanaj and Arroyo is scheduled for Feb. 27, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.Defense counsel:
Curanaj: Anthony Iacullo Esq.
Arroyo: Telesforo Del Valle Esq.Two Oklahoma City Metro Men Plead Guilty to Interstate-Theft CrimesRead the Press Release
Oklahoma City, Oklahoma – DENNIS LEE, 44, of Nichols Hills, pled guilty today to possession of stolen property that crossed a state boundary and to being a felon in possession of a firearm, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. U.S. Attorney Yancey also announced that KENNETH DALE SMITH, 53, of Oklahoma City, has pled guilty to misprision of a felony in connection with interstate theft.
According to Count 1 of a five-count indictment filed on June 20, 2017, Lee and Smith were members of a conspiracy that stole motor vehicles and other items from Texas, Kansas, Missouri, and Nebraska. Conspirators transported the stolen property to the Oklahoma City area, where they "fenced" it for profit. The indictment alleges that some of the property was stored at Richardson Homes, LLC, on South Portland Avenue in Oklahoma City. Counts 2 through 4 charge Lee with possession of particular stolen vehicles during the summer of 2016. Smith is also charged in Count 4 with possessing a stolen vehicle. According to the indictment, the stolen property was worth a total of approximately $325,000.
Lee is charged in Count 5 with being a felon in possession of a firearm. It also alleges that Lee had been convicted of a crime punishable by one year or more in prison, which made it a federal felony for him to possess a firearm.
Today Lee pled guilty to one of the possession-of-stolen-property counts and to the firearms count. At sentencing, he could receive on each count up to 10 years in prison, 3 years of supervised release, and a $250,000 fine. He will forfeit 16 firearms that were in his possession on November 10, 2016, in McClain County. The remaining charges against Lee will be dismissed at sentencing.
Smith pled guilty today to misprision of a felony, charged in a separate filing on November 2, 2017. He admitted in court that in June 2016, he concealed the offense of possessing stolen property that had crossed a state boundary when he instructed someone by text message not to disclose the circumstances under which he had acquired stolen property. This offense carries a maximum punishment of 3 years in prison and a fine of up to $250,000. The United States has agreed to dismiss other charges against Smith at sentencing. Both defendants will be sentenced in approximately 90 days.
Four others have already pled guilty in this investigation. On March 8, 2017, Amanda Czermak pled guilty to the interstate-theft conspiracy. On August 21, 2017, Auston Slater pled guilty to the same conspiracy, and Dakota Epperly and Dakotah Henderson pled guilty to possessing stolen property that had crossed a state boundary. All four of these defendants are awaiting sentencing.
This case is the result of an investigation by the FBI Major Theft Task Force, the Oklahoma Department of Agriculture, Food & Forestry Investigative Service ("ODAFF"), and the Oklahoma City Police Department. The Major Theft Task Force consists of the FBI, ODAFF, the Oklahoma State Bureau of Investigation, and the Garvin County Sheriff’s Office. Assistant U.S. Attorneys Edward J. Kumiega, Mark R. Stoneman, and Ashley L. Altshuler are prosecuting the case. Reference is made to court records for further information.
Two Men Plead Guilty to Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- Calvin Benjamin, 50, of St. Thomas and Stephen Bernier, 53 of St. Croix have pleaded guilty in federal court to one count of conspiracy to possess with the intent to distribute marijuana, Acting United States Attorney Joycelyn Hewlett announced.
According to the plea agreement filed with the court, Benjamin and Bernier admitted that from January 10, 2016 to March 8, 2017, they conspired with others to possess and distribute approximately 140 kilograms of marijuana through the United States Postal Service
Benjamin and Bernier each face a maximum sentence of five years in prison, a three-year term of supervised release, and a $250,000 fine. Sentencing is set for March 1, 2018 for Benjamin and March 8, 2018 for Bernier.
The case was investigated by the United States Postal Inspection Service and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Two DMV Employees Plead Guilty to Conspiring to Commit Bribery and Identity Fraud as Part of Ongoing Investigation of Commercial Licenses Issued to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Kari Scattaglia, 39, of Newhall, and Lisa Terraciano, 51, of North Hollywood, pleaded guilty today to their roles in a conspiracy to sell Class A commercial driver’s licenses without the buyer having to take or pass the required tests, U.S. Attorney Phillip A. Talbert announced.
On October 18, 2017, Scattaglia and Terraciano were charged with conspiracy to commit bribery, identity fraud, and unauthorized access of a computer.
“The United States Attorney’s Office, together with its partners at the California Department of Motor Vehicles, the FBI, and ICE’s Homeland Security Investigations, is committed to investigating and prosecuting crimes such as these that violate the public trust and pose a risk to public safety,” stated U.S. Attorney Talbert.
“Homeland Security Investigations will continue to work with our partners to prevent document and benefit fraud schemes, especially when these schemes threaten the welfare of innocent people. The safety of the citizens of California is our paramount concern,” said Ryan L. Spradlin, Special Agent in Charge of U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), San Francisco.
According to court documents, since April 2007, Scattaglia worked as a manager, assistant manager, and a Licensing-Registration Examiner (LRE) at the Arleta DMV and the Granada Hills Driver License Processing Center. Terraciano worked for the DMV since June 2005 and was a Motor Vehicle Representative (MVR) in the Winnetka DMV office from 2014 through 2017. Among other things, Scattaglia and Terraciano were responsible for processing applications for California commercial driver’s licenses (CDLs). A CDL is required to operate tractor-trailer trucks on California and interstate highways, including, in some cases, transporting hazardous materials.
In exchange for the payment of money, Scattaglia and Terraciano each accessed the DMV’s database in Sacramento to alter the records of applicants to fraudulently show that the applicants had passed the required written tests when, in truth, the applicants had not passed the tests or, at times, even taken the written tests. In so doing, this caused the DMV to issue permits to those drivers as well as issue completed CDLs upon the applicants’ passing the behind-the-wheel driving tests. In addition, Scattaglia also accessed the DMV database to fraudulently alter applicants’ records to show that the applicants had passed the driving tests despite the applicants not having taken or passed those tests.
Based upon evidence obtained through the investigation, it was determined that Terraciano caused no less than 148 fraudulent CDLs, including permits, to be issued and that Scattaglia caused no less than 68 fraudulent CDLs, including permits, to be issued.
This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the case.
This case is related to the charges in United States v. Klem, 2:15-cr-139 GEB, United States v. Singh, 2:15-cr-146 GEB, and United States v. Kimura, et al., 2:15-cr-161 GEB. Defendants Emma Klem and Kulwinder Dosangh Singh have pleaded guilty and await sentencing. Defendant Andrew Kimura pleaded guilty and was sentenced to three years and 10 months in prison. The remaining defendants in 2:15-cr-161 GEB are set for trial in April 2018; the charges against them are only allegations, and they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Scattaglia and Terraciano face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three Rockford Residents Arrested on Federal Heroin Conspiracy Charges and A Fourth Resident Arrested on A Federal Gun Charge; Authorities Announce Seizures of A Kilogram of Heroin and More Than A Quarter Million DollarsRead the Press Release
ROCKFORD — Three Rockford residents were arrested yesterday by federal and local law enforcement officers on charges of conspiracy to distribute heroin.
Arrested on charges of conspiracy to distribute heroin were TYSHON T. WATSON, 22; TERVARIE T. LOTTIE, 29; and JOHNIA WILSON, 39, all of Rockford. Law enforcement yesterday also executed court-authorized search warrants at multiple locations in Rockford. During the searches, authorities recovered more than a kilogram of heroin, more than $250,000 in cash, six cars, and four handguns.
Indictments returned this week in federal court in Rockford charged Watson, Lottie and Wilson with conspiracy to distribute heroin from May 2017 through October 2017. Watson and Lottie were also charged with four individual counts of distributing heroin. The charges also accuse Lottie of conspiring to distribute heroin during a separate three-month period from February 2017 through April 2017.
A fourth defendant, JASMINE N. BRADLEY, 26, of Rockford, was also indicted on three counts of distributing heroin. Bradley is currently being held in the Winnebago County jail on unrelated state charges.
In a separate but related case, DANIEL DAVENPORT, 38, of Rockford, was charged by a federal criminal complaint and arrested yesterday on the charge of being a felon in possession of a firearm. In separate cases, WILLIAM EVANS, 67, of Rockford, was charged in state court with firearm and drug charges, and LATRESE LOTTIE, 44, was charged in state court for possession and manufacture/delivery of cocaine.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; John P. Selleck, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Dan O’Shea, Rockford Police Chief; Gary Caruana, Winnebago County Sheriff; and Joseph Bruscato, Winnebago County State’s Attorney. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The government is represented by Assistant U.S. Attorney Talia Bucci.
“The charges announced today are the result of extraordinary cooperation between federal, state and local authorities, who worked together to dismantle a significant heroin distribution conspiracy,” said Acting U.S. Attorney Levin. “We are grateful for the tremendous effort and support from our law enforcement partners as we work to stop the flow of illegal narcotics into Rockford and Winnebago County.”
"These arrests are just another example of law enforcement partners working together, pooling their resources, to further protect the citizens of Rockford from criminals who make their neighborhoods unsafe," said FBI Assistant Special Agent in Charge Jay Greenberg. "Federal and local law enforcement will continue their efforts to rid the Rockford area of crime and that is what the public should expect; law enforcement on every level targeting those who break the law."
Winnebago County States Attorney Bruscato stated, “Collaboration, enhanced by technology and intelligence driven models are resulting in unprecedented enforcement and arrests. It’s just the beginning of what this community can expect to see and should send a message to other criminals that threaten our community.”
The public is reminded that a complaint or an indictment contains only charges and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of conspiracy to distribute heroin and of distributing heroin carries a maximum sentence of 20 years in prison, and illegally possessing a firearm as a convicted felon carries a maximum sentence of 10 years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Defendants Watson, Lottie, Wilson, and Davenport appeared before U.S. Magistrate Judge Iain D. Johnston in federal court in Rockford on Nov. 2, 2017. Each defendant pled not guilty and remains in custody pending detention hearings scheduled for Monday and Tuesday of next week. Bradley is scheduled for arraignment on Tuesday, Nov. 7, 2017, at 11:00 a.m. in federal court before U.S. Magistrate Judge Johnston.
Lottie Watson Wilson Indictment.pdf Lottie Bradley Indictment.pdfThree Real Estate Investors Indicted for Bid Rigging in Florida Online Foreclosure AuctionsRead the Press Release
A federal grand jury in West Palm Beach returned an indictment yesterday against three high-volume Florida real estate investors for conspiring to rig bids submitted through the online property foreclosure auction process, the Department of Justice announced.
The indictment, filed in the U.S. District Court for the Southern District of Florida, charges Avi Stern, Christopher Graeve, and Stuart Hankin with conspiring to rig bids during online auctions in Palm Beach County, Florida in order to obtain foreclosed properties at suppressed prices. The indictment alleges that the conduct took place from at least January 2012 until June 2015.
These are the first indictments related to bid rigging in foreclosure auctions filed in Florida by the Justice Department’s Antitrust Division. The Antitrust Division previously has prosecuted similar bid rigging conduct in Alabama, California, Georgia and North Carolina, resulting in more than 100 guilty pleas and convictions in those states.
“These charges demonstrate that the Antitrust Division will uncover and prosecute collusion by real estate investors, regardless of whether their conduct is carried out in person, or in texts, online chats or through other electronic means,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division will continue to work closely with our law enforcement colleagues to prosecute those responsible for taking money that would otherwise have gone to mortgage holders, Palm Beach County, and in some cases, to the owners of foreclosed homes.”
“Real estate investors who think they can swindle the system to line their pockets with ill-gotten gains beware,” said Assistant Special Agent in Charge Paul Keenan of the FBI Miami’s Field Office. “The FBI and our law enforcement partners will vigorously investigate such schemes.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Miami Division – West Palm Beach Resident Agency. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal I Section of the Antitrust Division at 202-307-6694 or www.justice.gov/atr/contact/newcase.html.
Tennessee-Based Life Care Center of Hickory Woods to Pay $12,000 to Resolve Americans with Disabilities Act ComplaintRead the Press Release
The Antioch, Tennessee-based company that owns and does business as Life Care Center of Hickory Woods agreed to pay $12,000 and to adopt a written service animal policy to resolve an Americans with Disabilities Act complaint, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee. Cleveland, Tennessee-based Life Care Centers of America, Inc. also agreed to adopt a service animal policy at all of the facilities that it owns or operates nationwide, said Cochran.
Life Care Center of Hickory Woods in Antioch provides inpatient and outpatient rehabilitation with 24-hour skilled nursing care. Its parent company, Life Care Centers of America, operates or manages more than 200 skilled nursing and rehabilitation centers in 28 states, including over 35 centers in Tennessee.
This settlement arose from a complaint filed by an individual from Smyrna, Tennessee with the Department of Justice about Life Care Center of Hickory Woods. She alleged that the facility had denied equal access to its physical therapy services for people with disabilities who use service animals. She further alleged that Life Care Center of Hickory Woods failed to modify its policies to permit individuals with disabilities to receive physical therapy while accompanied by a service animal.
According to the complainant, she uses a service dog for assistance in the event of a seizure. While undergoing a ten-week course of physical therapy at Life Care Center of Hickory Woods from November 2014 through March 2015, she alleged that several employees confronted her about her service dog, insisted that she provide its vaccination records and discouraged her from bringing her dog to subsequent appointments. As a result of this treatment, the complainant alleged that she felt compelled to stop bringing her service dog to many of her physical therapy appointments.
Life Care Centers of America has agreed to distribute to, and maintain a new written service animal policy at all of the 200 plus long-term care facilities that it operates in the United States. Under this new policy, Life Care agrees to make reasonable modifications in its policies to permit the use of service animals by persons with disabilities and to welcome service animals into Life Care facilities.
Life Care Center of Hickory Woods also adopted a new written service animal policy, in which it agreed to make reasonable modifications in its policies to permit the use of service animals. Life Care Center of Hickory Woods further agreed to train its employees on the new service animal policy and about their obligations under the Americans with Disabilities Act. The Hickory Woods facility will also post a sign at its facility indicating, “Service Animals Welcome.” Of the $12,000 that Life Care Center of Hickory Woods will pay to resolve this complaint, $7,000 will be paid to the complainant and $5,000 will be paid to the United States as a civil penalty.
Assistant United States Attorney Ellen Bowden McIntyre handled the matter on behalf of the United States.
Taunton Man Sentenced for Role in Heroin and Fentanyl SchemeRead the Press Release
BOSTON – A Taunton man was sentenced yesterday in federal court in Boston for dealing heroin and fentanyl.
Xavier Ramos, 28, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 64 months in prison and four years of supervised release. In July 2017, Ramos pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl.
In October 2015, Ramos was arrested and charged along with 24 others in connection with a heroin trafficking ring led by Dedwin Cruz-Rivera in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton and surrounding communities.
Ramos assisted co-defendant Dedwin Cruz-Rivera by acting as a Spanish to English translator and brokered deals between Cruz-Rivera and another individual. Ramos also purchased small amounts of heroin, some of which he distributed to others to support his own heroin habit.
Acting United States Attorney William D. Weinreb and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Tan Co. Owner and Three Other Plead Guilty to Federal Kidnapping ChargesRead the Press Release
St. Louis, MO – Todd Beckman, owner of Tan Co., pled guilty on Thursday to federal kidnapping charges on a Maplewood man. Beckman appeared before United States District Judge Audrey G. Fleissig, who set sentencing for Friday, February 9, 2018 at 10:00AM.
According to court documents, on November 21, 2016, brothers Blake and Caleb Laubinger entered the victim’s residence and, when he arrived home, attacked and confined him with zip ties, threatening to kill him if he screamed. They transported the victim in a rental truck to Blake Laubinger’s residence, and held him in the basement in zip ties, handcuffs and duct tape. Todd Beckman and Kerry Roades arrived at the residence. Beckman and Roades beat the victim and pressed the barrel of a handgun to his head. They accused him stealing from Blake Laubinger and demanded money. The next day, the Laubinger brothers told the victim if they did not get ransom money from his parents in Florida they would kill him. The victim was repeatedly beaten, tased, and assaulted by the kidnappers. The kidnappers made ransom calls to the victim’s parents demanding money in exchange for his life. On the night of November 21, Zachary Smith arrived at the residence and observed the victim secured in the basement but failed to notify the authorities.
On November 22, Blake and Caleb Laubinger, and Todd Beckman, transported the victim in the rental truck to Todd Beckman’s property and confined him in a shipping container. Beckman put a handgun to the victim’s head and threatened to kill him.
On November 23, the victim’s parents paid approximately $27,000 in ransom to Todd Beckman. Shortly after, the kidnappers removed the victim from the shipping container and threatened to kill him if he said anything to anyone. The kidnappers took the victim in a “St. Louis Tan Co.” van to Gravois Bluffs shopping center, where they released him.
“The crime was brutal and protracted. For almost three days, the victim was secured to a pole in a basement, physically assaulted and told of a plan to wrap him in plastic wrap, shoot him and deliver his body to California. In the end, the kidnappers released the victim in exchange for $27,000 ransom money supplied by his parents,” said John T Davis, Assistant United States Attorney.
Todd Beckman, 53 of Fenton, pled guilty on November 2; Co-defendants Caleb Laubinger, 27, of Pacific, pled guilty on November 1; Blake Laubinger, 25, of Pacific, pled guilty today; and Kerry Roades, 56, of Fenton, pled guilty today – each to one felony count of conspiracy to commit kidnapping; Zachary Smith, 25, of Eureka, pled guilty in May to misprision of a felony (helping conceal a crime) and is scheduled to be sentenced on November 20.
Conspiracy to commit kidnapping carries a maximum penalty of life in prison and/or fines up to $250,000. In addition, each of the defendants agreed to forfeit multiple pieces of real property, several vehicles, and numerous firearms all connected with this offense.
This case was investigated the Drug Enforcement Administration, the Maplewood Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney's Office.
Shreveport resident to serve 24 months in prison for driving while intoxicated for the fifth timeRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport man was sentenced Wednesday to 10 years in prison with eight years suspended for driving while intoxicated on Barksdale Air Force Base.
Jesus J. Maldonado, 30, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of driving while intoxicated, fifth offense. He was also sentenced to five years of supervised release and was ordered to pay a $5,000 fine. According to the July 25, 2017 guilty plea, a Barksdale security officer pulled over Maldonado’s vehicle on April 13, 2017 after it was seen driving erratically and showing signs of being in a wreck. He was found to have been driving under the influence of alcohol. He was also found to have been convicted on four previous occasions of driving while under the influence on October 20, 2007 in Bossier City, La.; on June 21, 2009 in Los Angeles, Calif.; on March 8, 2013 in Shreveport; and on May 16, 2013 in Shreveport.
The FBI and U.S. Air Force Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath and Special Assistant U.S. Attorney John Odom prosecuted the case.
Sherwood Woman Sentenced to 45 Months in Prison for Wire Fraud, Money Laundering, and Tax FraudRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Tracey D. Montaño, Internal Revenue Service (IRS) Special Agent in Charge, announced today that United States District Judge Kristine G. Baker sentenced Lynn Alisa Espejo, 53, of Sherwood, to 45 months in federal prison for her role in a scheme in which she stole more than $600,000 from her employers.
On February 8, 2017, after a seven-day trial, a federal jury found Espejo guilty on 4 counts of filing false tax returns, 15 counts of wire fraud, and 6 counts of money laundering. On Friday, Judge Baker, in addition to the prison time, imposed three years of supervised release and $2,500 in special assessment penalties. Restitution in this type of case is mandatory, and Judge Baker announced that she will determine the amount of restitution Espejo must pay the IRS and issue an order at a later time.
“Today’s sentence reflects the seriousness of Ms. Espejo’s crimes,” Hiland said. “She stole hundreds of thousands of dollars from people who trusted her, and then repeatedly lied about it. These financial and tax-related crimes hurt not just the actual victims Ms. Espejo stole from, but also all citizens who are honest and pay their taxes as they should.”
From 2007-2010, Espejo served as office manager for Practice Management Services, Inc. (PMSI) and Blanford Medical Services, Inc. (BMSI), corporations that administered business expenses for doctors in Little Rock. Espejo was responsible for managing PMSI's general financial ledger. During her employment, Espejo stole approximately $611,099 by wire transfer from PMSI and BMSI to her personal bank accounts. Espejo misrepresented these transactions in the accounting software Quickbooks and concealed the wire transfers from the doctors and their accountant. Espejo used stolen money for personal expenses such as making payments toward a vehicle, a pool, and construction expenses on a new house.
In addition to the money stolen by wire transfer, Espejo obtained a PMSI debit card and used it for personal purchases from Wal-Mart, including grocery items such as snow crab, bacon, and popcorn balls, video gaming devices, school supplies, and a trampoline.
During this same time period, Espejo filed false tax returns with the IRS in which she failed to report the stolen money as income on her tax returns. These returns resulted in a tax loss of approximately $207,941 for tax years 2007 through 2010.
“Ms. Espejo’s employers entrusted her to ethically and responsibly manage their business’ financial affairs, but instead she decided to divert funds for her personal benefit,” Montaño said. “IRS Criminal Investigation Special Agents are experts in unraveling complex tax fraud and money laundering schemes utilizing our forensic accounting skills. These specialized skills coupled with our partnership with the U.S. Attorney’s Office are key to the identification, investigation, and prosecution of these types of white collar crimes.”
This case was investigated by the IRS Criminal Investigation. Assistant United States Attorneys Stephanie Mazzanti and Jamie Dempsey prosecuted the case for the United States.
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Sex Trafficker Sentenced to 20 Years in Federal Prison for Interstate ProstitutionRead the Press Release
Tampa, Florida – Chief U.S. District Judge Steven D. Merryday yesterday sentenced Gary Paul Moorman (35, Cincinnati, Ohio) to 20 years in federal prison, the statutory maximum penalty, for inducement to travel to engage in criminal sexual activity. He pleaded guilty on July 21, 2017.
According to court documents, Moorman systematically and violently abused multiple victims and induced them, against their wills, to travel between Florida, Ohio, and elsewhere to engage in criminal sexual activity. Specifically, he induced the victims to commit acts of prostitution for his own financial gain. In furtherance of his criminal activity, Moorman took provocative photos of the victims and posted prostitution advertisements on the Internet. After the victims were forced to provide the sex acts, Moorman demanded and took all of the proceeds for himself.
This case was investigated by the Federal Bureau of Investigation (FBI) - Tampa Division (Pinellas Resident Agency), with support from St. Petersburg Police Department and the Clearwater Police Department. Substantial assistance was provided by the FBI’s Cincinnati Field Office and the Cincinnati Police Department. The case was prosecuted by Assistant United States Attorneys Stacie B. Harris and Kristen A. Fiore.
Sabine Parish resident sentenced to 3 years in prison for not updating sex offender statusRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Florien man was sentenced Wednesday to 36 months in prison for not complying with sex offender registration requirements after he did not inform authorities he had moved back to Louisiana.
Christopher Shane Lewing, 37, of Florien, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of failure to register as a sex offender. He was also sentenced to five years of supervised release. According to the July 10, 2017 guilty plea, law enforcement agents arrested Lewing on January 25, 2017 in Sabine Parish on a warrant from Tennessee for a probation violation. He was living in Tennessee but had moved back to Louisiana in July of 2016 without informing law enforcement. Lewing told U.S. Marshals he knew he was required to update his sex offender registry but had not.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Rochester Woman Pleads Guilty to Bank Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Maria A. English, 28, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit bank fraud. The charge carries a maximum penalty of 30 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between November 2012 and September 2013, English and co-conspirator, Michael Debardlabon, using the names, social security numbers and dates of birth of two different Florida residents, obtained financing to purchase used automobiles, including an Infinity, a Lexus and a BMW. The funding was obtained through financial institutions such as ESL and Ally Financial. The Florida residents never authorized the financial transactions to occur. In addition, on one occasion, the personal information of a third Florida resident was used to open an American Express card and charge air fare for English.
Michael Debardlabon was convicted and sentenced.
The plea was the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Special Agent-in-Charge Shelly Binkowski, Boston Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for February 26, 2018, before Judge Wolford.
Rochester Man Pleads Guilty to Robbery and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Johnny Blackshell, Jr., 23, Rochester, NY, pleaded guilty to Hobbs Act Robbery and brandishing a firearm in furtherance of a crime of violence before U.S. District Judge Charles J. Siragusa. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorneys Douglas E. Gregory and Brett Harvey, who are handling the case, stated that on August 10, 2015, at approximately 3:20 a.m., Blackshell and co-defendant Joseph Lowry entered the 7-Eleven convenience store located on Lake Avenue in Rochester intending to rob both cash and goods. After entering the store, the defendant and Lowry jumped over the service desk and ordered the employees to the ground. Blackshell then pointed a silver handgun at the victim’s head and instructed the victim to open the cash register. Lowry took $80 in United States currency from the cash register. In addition to the money, Blachshell and Lowry took an unknown quantity of Newport Cigarettes, tobacco, chewing gum, and numerous rolls of New York State scratch-off lottery tickets. The two then left the store and ran eastbound towards Lake Avenue. Several of the stolen lottery tickets were later redeemed, and attempted to be redeemed, as winners. Blackshell received monies for the winning lottery tickets.Blackshell was previously sentenced in state court to life in prison without parole for the murders of Johnny Johnson, Raekwon Manigault, and Jonah Barley during a mass shooting outside the Boys & Girls Club of Rochester on August 19, 2015.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent–in-Charge Adam S. Cohen, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Joseph Lowry was previously convicted and sentenced to 128 months in prison.
Sentencing is scheduled for February 6, 2018, at 10:00 a.m. before Judge Siragusa.
Rochester Man Convicted of Possessing A Defaced GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Brian Patterson, 25, of Rochester, NY, was convicted after a jury trial of possession of a firearm with a defaced serial number. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles E. Moynihan, who handled the prosecution of the case, stated that on September 7, 2015, Rochester Police Department officers were in the area of Dewey Avenue and Emerson Street investigating multiple calls regarding a fight. An officer saw the defendant standing in front of a corner store speaking with other people wearing khaki pants, and carrying a backpack but he was not wearing a shirt. The officer received information that a person fitting this description may have been involved in the fight. The defendant crossed the intersection of Dewey Avenue and Emerson Street and walked quickly into the building at 513 Dewey Avenue after turning and looking in the direction of police officers. Officers followed the defendant inside and found him at the top of a set of stairs but he was not wearing the backpack. Rather, Patterson had discarded the backpack out of sight from the officers by placing it around the corner on a landing leading to another flight of stairs.
Officers looked in the backpack and found a loaded .22 caliber semiautomatic rifle, along with a sweatshirt, a t-shirt and a belt. The serial number on the rifle was defaced by a deep scratch. Further, the barrel had been sawed off and the rifle stock was removed.
The trial verdict is the result of an investigation by Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent- in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for January 10, 2018, at 3:00 PM before Judge David G. Larimer, who presided over the trial of the case.
Randolph County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On November 1, 2017, Brian A. Mudd, 59, Ruma, pled guilty to a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The offense occurred between June 2016 and December 8, 2016, in Randolph County. The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine. Mudd is currently being held without bond pending a February 13, 2018, sentencing hearing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Chester Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office also assisted in the investigation. The case is assigned to Assistant United States Attorneys Amanda A. Robertson and Adam E. Hanna for prosecution.
Portland Man Sentenced to Seven Years for Drug TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Mustafa Hassan, 34, of Portland was sentenced on November 1 in U.S. District Court by Judge Jon D. Levy to seven years in prison and four years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine and 28 grams or more of cocaine base, commonly known as crack. The defendant was convicted following a jury trial on March 16, 2017.
Court records and trial evidence revealed that between January and March 2016, Hassan, Carlos Manuel Perez-Crisostomo a/k/a “Nelson Calderon,” and others trafficked in cocaine and crack in southern Maine. The two men were arrested on March 6, 2016, as law enforcement interrupted a pending drug transaction. A subsequent search warrant at Perez-Crisostomo’s residence revealed about 160 grams of crack and about 460 grams of cocaine.
On November 21, 2016, Perez-Crisostomo entered a guilty plea to the drug conspiracy charge. On September 7, 2017, he was sentenced to 121 months in prison.
The investigation was conducted by the Federal Bureau of Investigation (“FBI”) and the U.S Drug Enforcement Administration (“DEA”) in conjunction with the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the DEA; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
Patrick County Man Pleads Guilty to Theft of Government MoneyRead the Press Release
Danville, VIRGINIA – A Patrick County, Virginia man, who stole more than $230,000 from the Social Security Administration and the Department of Health and Human Services in disability benefits to which he was not entitled, pleaded guilty yesterday in the United States District Court for the Western District of Virginia in Danville, Acting United States Attorney Rick A. Mountcastle announced.
Mark S. Huffman, 46, waived his right to be indicted and pleaded guilty yesterday to a one-count Information charging him with theft of government monies. As part of his plea agreement, Huffman agreed to pay restitution for $234,134 to the Social Security Administration and the Department of Health and Human Services. In addition, the defendant faces a maximum term of incarceration of up to 10 years.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney’s Charlene R. Day, Huffman collected $234,134 in disability benefits from the government while also earning money working a full-time job, which he failed to report to the Social Security Administration or the Department of Health and Human Service, as required by law.
The investigation of the case was conducted by Department of Health and Human Services and the Social Security Administration. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Oklahoma City Man Pleads Guilty to Millions of Dollars of Gift-Card FraudRead the Press Release
Oklahoma City, Oklahoma – LEONARD RAY FOSTER, of Oklahoma City, has pled guilty to fraud and money laundering in connection with a scheme to defraud retailers of millions of dollars through gift cards, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to charges filed earlier this week, Foster owned and operated Acquisitions Unlimited, LLC, also known as A-to-Z Giftcards. This business bought unused or partially used retail gift cards, also known as store value cards, for a fraction of the cards’ face value. With Foster’s personal involvement, the business then sold the value on the cards to Giftcard Zen, an online retail gift card exchange based in Phoenix, Arizona.
According to the charges, from May 2015 to March 2017, individuals affiliated with Foster or his business shoplifted large quantities of high-dollar items from retail stores, including Walmart, Lowe’s, Target, and Home Depot. They then returned these stolen items, without a receipt, to the retailer for a store value card in the amount of the returned merchandise. Each day, Foster purchased multiple cards from these individuals for a small fraction of the cards’ face values. He knew the cards had been obtained through fraud. Indeed, Foster sometimes directed the shoplifters himself. Through A-to-Z Giftcards, he then sold the face value on the cards to Giftcard Zen, in violation of terms of service that prohibited selling store value cards obtained through fraud.
Foster is charged in two separate counts. First, he is charged with wire fraud in connection with a particular wire during the scheme: a $59,035.38 transfer on December 9, 2015, from Giftcard Zen’s out-of-state bank to an account of Acquisitions Unlimited at Bank of America in Oklahoma. Second, he is charged with money laundering, based on a December 10, 2015, withdrawal from Bank of America in the amount of $18,000. The charges also include forfeiture allegations that seek a 1969 Ford Mustang, currency seized from accounts at First Fidelity Bank, and proceeds of the offenses generally.
Today Foster pled guilty to both wire fraud and money laundering. In a plea agreement, he has acknowledged that the losses associated with his scheme are between $3.5 million and $9.5 million. At sentencing, he could receive up to 20 years in prison and 3 years of supervised release on Count 1. On Count 2, he could receive up to 10 years in prison, followed by 3 years of supervised release. He will also be subject to mandatory restitution in an amount to be determined by the court and fines of up to $250,000 per count.
This case is the result of an investigation by the Internal Revenue Service–Criminal Investigations, the United States Postal Inspection Service, and the Oklahoma City Police Department. It is being prosecuted by Assistant U.S. Attorneys Julia E. Barry, Ashley L. Altshuler, and Wilson McGarry. Reference is made to court records for further information.
Oakland Resident Sentenced to Ten Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Marcus Jones was sentenced to ten years in prison and a $100,000 fine today after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Jon S. Tigar, United States District Judge.
On August 11, 2017, Jones, 33, of Oakland, pleaded guilty without a written agreement to being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). As part of the guilty plea, Jones admitted to possessing a firearm and ammunition after sustaining a felony conviction. During the sentencing hearing, Judge Tigar accepted the fact that Jones was arrested after he left Oakland International Airport and exited his vehicle near his residence. The judge found that when Jones was arrested, he possessed in his waistband a black .40 caliber fully loaded semi-automatic Glock handgun with a 22 round extended magazine. Jones also possessed a bulletproof vest, $19,478.00 in cash on his person, and an additional $14,980 in his luggage. Judge Tigar also found that additional items retrieved from Jones’s residence belonged to him; the additional items include an AK-47 assault rifle, 1,268 grams of marijuana, $240,280.00 in cash, and evidence of credit card fraud including credit-card-making devices. Judge Tigar concluded that all these items, including the Glock handgun found in defendant’s waistband during his arrest, were used to facilitate a drug trafficking operation. During the sentencing hearing, Judge Tigar stated:
Defendant’s attempt this morning to explain his possession of a firearm and a bulletproof vest because people are constantly shooting at him were unpersuasive. And the idea that he has no idea why it is that people in various locations in the United States are shooting at him is simply incredible. It defies belief. . . . When I include the relevant conduct, the nature and severity of the offense is greater than any felon in possession case that I have seen. . . . [The defendant] is a danger to the community.”
A federal grand jury indicted Jones on April 6, 2017, charging him with a single count of being a felon in possession of a firearm. Pursuant to his plea, defendant pleaded guilty to the charge.
In addition to the prison term and the $100,000 fine, Judge Tigar also sentenced Jones to a three-year period of supervised release, to commence after Jones completes his prison sentence. Jones has been in custody since his arrest and will begin serving his sentence immediately.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with assistance from Noble Hughes, Julissa Rey, and Katie Turner. The prosecution is the result of an investigation by the San Leandro Police Department and the FBI.
Norwalk man indicted for sex trafficking, sexual exploitation of minors and fraudRead the Press Release
A Norwalk man was indicted on multiple charges after fraudulently inducing teen girls into engaging in sexually explicit conduct and recording the conduct under the false promise that he was producing a pornographic film, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Charles Thomas Barbarotta, 32, was indicted on two counts of sex trafficking of a minor, two counts of sexual exploitation of a minor and one count of wire fraud.
Barbarotta used fraud to cause two minors to engage in commercial sex acts in December 2016. He also induced two minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, according to the indictment.
Barbarotta also used a scheme to induce the two minor victims into performing sex acts with him for what he fraudulently purported would be a pornographic film he would produce or direct, according to the indictment.
Barbarotta is suspected of engaging in similar conduct with other victims. Anyone with information about him is encouraged to call the FBI at 419-243-6122.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation and the Ottawa, Huron and Erie County Sheriff’s Offices. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Northern Colorado Bank Robber Indicted and Then ArrestedRead the Press Release
DENVER – A bank robber allegedly responsible for two bank robberies in Northern Colorado has been indicted by a federal grand jury in Denver. James Wilbert Gray, age 25, of Mount Juliet, Tennessee, was arrested in Texas after first being charged with bank robbery in Kentucky. He was later indicted for two bank robberies in Colorado.
Gray faces two counts of bank robbery, Acting U.S. Attorney Bob Troyer and Denver Division of the FBI Special Agent in Charge Calvin Shivers announced. Gray has made his initial appearance in U.S. District Court in Texas, where he was advised of the charges pending against him. He is currently in custody in Kentucky where he is also facing bank robbery charges. He is being held without bond, and will be transferred to Colorado after the matter in Kentucky is resolved.
According to the Denver federal grand jury indictment, which was returned on September 26, 2017, Gray on July 24, 2017 robbed the TCB Bank, located in Keenesburg, Colorado. Also, on July 27, 2017, he robbed the Bank of the West in Lyons, Colorado. Both bank robberies carry a penalty of not more than 20 years in federal prison, up to a $250,000 fine, and restitution.
The investigation was handled by the FBI with substantial assistance from the Lochbuie Police Department and the Boulder County Sheriff's Office.
The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
The charges are allegations, and the defendant is presumed innocent unless and until proven guilty.
Member of the “Felony Lane Gang” Sentenced in $1 Million Bank Fraud ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On November 2, 2017, United States District Judge Marvin J. Garbis sentenced Tara Kathleen Whyte, age 30, of Hollywood, Florida, and Gambrills, Maryland to 54 months in federal prison followed by 3 years supervised release for bank fraud conspiracy and aggravated identity theft stemming from a banking scheme involving over $1 million in losses. Judge Garbis also ordered Whyte pay restitution in the amount of $77,422.06.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Christopher Caruso of the United States Secret Service - Baltimore Field Office; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; Acting Chief Stanley Johnson of the Maryland National Capital Park Police, Prince George’s County Division; Chief Gary L. Gardner of the Howard County Police Department; Chief Terrance B. Sheridan of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
Whyte was one of 13 members of a nationwide group of fraudsters known as the “Felony Lane Gang.” These individuals traveled from Florida to Maryland and other states, broke into vehicles parked at recreation areas, sports fields, gyms, fitness centers, and other locations, and stole wallets, purses and other items left in the vehicles. The defendants then used the victims’ stolen checks, credit cards and identifications to conduct fraudulent financial transactions. Traveling groups generally consisted of two to four managers and one to six “faces” (sometimes called “sliders” or “workers”) or persons who passed the fraudulent and stolen checks. They traveled in rental cars and stayed in hotels sometimes using victims’ identities and credit cards.
Eight other defendants have pleaded guilty and have been sentenced as follows.
Courtney B. Walker, age 29, of Ft. Lauderdale, Florida – sentenced to 54 months;
James J. Blakey, age 30, of Ft. Lauderdale – sentenced to 57 months;
Vincent Lee Sands, age 27, of Lauderhill – sentenced to 42 months;
Tracy Lee Whyte, age 36, also of Hollywood, and Gambrills– sentenced 54 months;
Shannon Elise Isley, age 31, of Sunrise, Florida – sentenced to 48 months;
Lauren Anne Bole, age 30, of Miramar, Florida – sentenced to 26 months;
Felicia Kaye Waybright, age 28, of Daytona Beach, Florida – sentenced to 31months; and
Amie Nicole Carter, age 33, of Casselberry, Florida – sentenced to time served (7 months).
The remaining defendants pled guilty but have not yet been sentenced.
According to the 27-count indictment, from September 2012 through July 2015, the defendants used the checks, credit cards, identifications, and other items they stole from breaking into unattended vehicles to pose as the victims or to access the financial accounts of the victims. The defendants recruited prostitutes, drug addicts, and other vulnerable individuals to travel with them to conduct financial transactions using the stolen checks, driver’s licenses, and other materials, and paid them with drugs, food, and small amounts of cash amounting to a fraction of the total value of the checks they cashed. The conspirators often wore wigs and glasses to more closely resemble the victims whose stolen driver’s licenses they used to conduct the transactions.
Over the course of the scheme the defendants fraudulently obtained and attempted to obtain over $1 million from more than a dozen financial institutions using the identification of hundreds of individual victims.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the U.S. Secret Service, Maryland National Capital Park Police - Montgomery and Prince George’s County Divisions, and the Howard County, Baltimore County and Anne Arundel County Police Departments for their work in the Maryland portion of this multi-state, multi-agency investigation. Mr. Schenning thanked Assistant U.S. Attorney Tamera L. Fine and Ayn B. Ducao, who prosecuted the case.
Medford Woman Indicted for Social Security, Medicare, MassHealth, and Food Stamp FraudRead the Press Release
BOSTON – A Medford woman was arrested today and charged in federal court in Boston with fraudulently receiving Social Security disability benefits, Medicare, MassHealth and Food Stamps.
Stephanie DiPierro, 37, was charged with three counts of theft of public funds, two counts of making false statements, and one count of falsely representing a Social Security number. She will appear in federal court in Boston today at 3:45 p.m.
According to the indictment that was unsealed today, from October 2007 through May 2017, DiPierro stole $73,288 in Social Security benefits, $8,455 in Medicare benefits, $8,615 in MassHealth benefits and $17,929 in Food Stamps. In September 2015, she falsely informed the Massachusetts Department of Transitional Assistance that she did not have any income other than her Social Security benefits when, in fact, she was receiving income as a result of her work as a personal care attendant. DiPierro falsely told Social Security in March 2016, while she was working as a personal care attendant, that she did not take care of any other individual. DiPierro also falsely represented her Social Security number on a time sheet submitted in connection with her work as a personal care attendant.
The charges of theft of public funds provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making false statements provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Man Sentenced to Six Years for Distributing CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Adam Williams, a/k/a “Pacman,” 37, of Worcester, Massachusetts was sentenced yesterday in U.S. District Court by Judge John A. Woodcock Jr. to six years in prison to be followed by three years of supervised release for distributing cocaine base, commonly known as crack. Williams pleaded guilty to the offense on April 6, 2017.
According to court records, on April 10, 2015, in Bangor, Williams sold crack to an individual working with law enforcement.
In imposing the sentence, Judge Woodcock noted that the defendant had three prior felony convictions in Massachusetts involving the distribution of controlled substances and that his conduct pending sentencing was “reprehensible.”
The investigation was conducted by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.
Massachusetts Man Pleads Guilty ToMailing Threatening CommunicationsRead the Press Release
CONCORD, N.H. - Michael Dube, 48, of Tewksbury, Massachusetts, pleaded guilty in federal court on Thursday to three counts of mailing threatening communications, Acting United States Attorney John J. Farley of the District of New Hampshire announced today.
According to court documents and statements made in court, between March 2, 2016, and June 2, 2016, Dube sent three letters to victims located in New Hampshire, which contained threats to break the addressee’s legs, sexually assault his daughter, and to kill his son. The letters were postmarked in Boston and delivered to a residence in Sandown, New Hampshire.
Dube is scheduled to be sentenced on February 16, 2018.
This Sandown Police Department investigated the case. The Federal Bureau of Investigation assisted in the investigation. The Derry Police Department, the Salem Police Department, the Raymond Police Department, and the Tewksbury Police Department also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorney Donald Feith.
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Man Sentenced to 40 Years for Armed RobberiesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 40 years in prison for conspiracy to interfere with commerce by robbery, and two counts of brandishing a firearm in furtherance of a crime of violence.
According to court documents, Craig Alexander Brodie, 29, from October 2016 to September 2017, conspired and carried out a plan to rob prostitutes in Newport News and Williamsburg. During the course of the conspiracy, Brodie identified potential victims over the internet, then set up meetings in person. His co-defendant, Kimberly Lannytte Gardner, acted as a driver for him. Once he was at the victims' rooms, he brandished a firearm and robbed the victims. In multiple cases, he forced the women at gunpoint to strip naked and then fondled or attempted to fondle the victim's breasts. During the robberies, Brodie said to his victims, “you don't understand, you're about to die,” and “next time it will be worse,” and “the only reason I'm not killing you is because you have kids.” Brodie also bragged about being in the Army and said he was “trained for this sort of thing.” As an additional intimidation tactic, Brodie took pictures of multiple women's drivers’ licenses during the robberies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-41.
Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Steven Vernon Roland, 44, formerly of Sacramento, pleaded guilty today to receipt of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, between December 28, 2013 and March 19, 2014, Roland knowingly received over 28,000 images and 50 videos depicting child pornography. Roland was identified by law enforcement during an undercover investigation targeting use of peer-to-peer file sharing networks.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.
Roland is scheduled to be sentenced by Judge Garland E. Burrell, Jr. on January 19, 2018. Roland faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety.
Maine Fisherman Sentenced for Illegally Trafficking American EelsRead the Press Release
Tommy Water Zhou was sentenced to 18 months’ imprisonment today for trafficking juvenile American eels (also called “elvers” or “glass eels”) in violation of the Lacey Act, following a hearing in federal district court in Norfolk, Virginia. The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and United States Attorney Dana J. Boente for the Eastern District of Virginia.
In April 2017, Zhou pleaded guilty to violating the Lacey Act by purchasing elvers in interstate commerce that had been harvested illegally in Virginia. Court documents indicate that Zhou trafficked at least 105 pounds of elvers, which is approximately 210,000 individual eels, and worth more than $105,000. Zhou subsequently sold these elvers to international buyers and exported them from the United States.
“Illegal harvesting and trafficking of wildlife represents a dire threat to our critical ecosystems,” said U.S. Attorney Boente. “This case reaffirms our commitment to protecting Virginia’s natural resources for future generations.”
“Wildlife trafficking is a transnational crime which devastates species both at home and abroad,” said Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service Ed Grace. “In this case, the defendant chose to illegally harvest American eels – the only species of freshwater eel found in North America. This animal plays a critical role in native ecosystems and is negatively impacted by the illegal wildlife trade. We will continue to work with the Department of Justice and others to protect this species and bring those who choose profit over preservation to justice.”
Eels are highly valued in East Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in these populations. As a result, harvesters have turned to the American eel to fill the void.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver, and grow to adulthood in fresh water. Elvers are exported for aquaculture in East Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to East Asia for more than $2,000 per pound.
Because of the threat of overfishing, Atlantic Coast states have cooperatively prohibited elver harvesting in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Other Atlantic coast states, including Virginia, have commercial fisheries for adult or “yellow” eels.
This case was the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for 18 individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.
“In this operation, we are actively partnering with state and federal law enforcement agencies in order to protect our nation's marine resources from further exploitation.” said Acting Assistant Attorney General Wood.
Operation Broken Glass was conducted by the U.S. Fish and Wildlife Service and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller, and Assistant United States Attorney Joseph Kosky.
Louisville Man Sentenced to 121 Months in Prison for Sex Trafficking of A MinorRead the Press Release
27 year-old man used 14-year-old girl for commercial sex acts
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing this week in United States District Court, before Senior Judge Charles R. Simpson III, of a Louisville man, to 121 months in prison for sex trafficking of a minor.
Keith L. Napier, Jr., 27, admitted that beginning in March of 2016, in Jefferson County, Kentucky, he asked Jane Doe, a 14-year-old female, if she could help him earn money to pay off debts by performing commercial sex acts. Napier had a reasonable opportunity to observe Jane Doe, and also knew her real age. From March 2016 to May 2016, Napier transported Jane Doe to and from appointments with clients for commercial sex. The commercial sex acts frequently took place at hotels, frequented by out-of-state visitors. Napier advertised the commercial sex acts on the internet website, Backpage.com.
The investigation was opened during a prostitution sting coinciding with the Kentucky Derby when Louisville Metro Police Department (LMPD) officers found a listing on Backpage.com advertising prostitution. A LMPD Detective arranged a meeting and encountered a 14-year-old female. Napier had transported the minor to the Jefferson County hotel to perform a commercial sex act.
The case was prosecuted by Assistant United States Attorney Amanda E. Gregory of the Western District of Kentucky. The case was investigated by LMPD and the FBI’s Louisville Division.
Latin Kings Member Sentenced to Prison for Drug DealingRead the Press Release
BOSTON – A member of the Latin Kings street gang was sentenced yesterday in federal court in Boston for distributing drugs in New Bedford.
Virgilio Adorno, a/k/a “Trigga,” a/k/a “Goyo,” 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years in prison and three years of supervised release. In August 2017, Adorno pleaded guilty to distribution of cocaine base, also known as crack cocaine.
In March 2017, Adorno and others were charged following a long-term investigation into drug trafficking in the New Bedford area. Among other things, the investigation revealed that the Bonneau Court area of New Bedford had been overwhelmed by drug dealing and violent crime. Latin Kings gang members and associates were observed regularly using a section of Bonneau Court known as “The Pit” as a site for drug trafficking and other illegal activity. As part of the investigation, Adorno was caught selling crack cocaine to a cooperating witness in the Bonneau Court area. A subsequent search warrant executed at Adorno’s residence resulted in the seizure of additional crack cocaine.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; New Bedford Police Chief Joseph C. Cordeiro; and Bristol County District Attorney Thomas Quinn made the announcement. Assistant U.S. Attorney Glenn A. MacKinlay, Chief of Weinreb’s Organized Crime and Gang Unit, and Assistant U.S. Attorney Kunal Pasricha, also of the Organized Crime and Gang Unit, are prosecuting the cases.
Keene Man Sentenced for Possession of Child PornographyRead the Press Release
CONCORD, N.H. - Andrew Beezub, 34, of Keene, was sentenced on Thursday to 37 months in federal prison for possessing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, the national Center for Missing and Exploited Children became aware in February 2016 that images and videos of suspected child pornography had been uploaded to a Dropbox account. Additional investigation by the Keene Police Department determined that the account was associated with the defendant. A search warrant in April 2016 resulted in the seizure of the defendant’s computer and telephone. A forensic analysis of the defendant’s telephone established its link to the Dropbox account where videos of child pornography were stored.
Beezub pleaded guilty on May 1, 2017, to one count of possessing child pornography. After servicing his sentence, he will be on supervised release for five years.
The U.S. Immigration and Custom Enforcement’s Homeland Security Investigations and the Keene Police Department investigated the case. Assistance was also provided by the New Hampshire Internet Crimes Against Children Task Force, the Hinsdale Police Department, and the Hampton Police Department. The case was prosecuted by Assistant United States Attorney Donald Feith.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Jury Convicts Joplin Man of Large-Scale Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man has been convicted by a federal trial jury of his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Santiago Soto-Garcia, 24, of Joplin, was found guilty on Thursday, Nov. 2, 2017, of one count of participating in a conspiracy to distribute methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime. Soto-Garcia was also convicted of a forfeiture allegation that requires him to forfeit to the government $7,000 that was seized by law enforcement officers and was derived from the proceeds of the conspiracy.
Co-defendants Destiny O’Brien, also known as “Destiny Smith,” 21, of Joplin, and Michael L. Gonzalez, also known as “Chavez,” 24, of Texas, have pleaded guilty to their roles in the drug-trafficking conspiracy and to possessing firearms in furtherance of the conspiracy.
Evidence introduced during the trial proved to the jury that Soto-Garcia and O’Brien, assisted by Gonzalez, were multiple-pound distributors of methamphetamine in the Joplin area from late 2014 to August 2015.
After an investigation that began in February of 2015, Soto-Garcia, O’Brien, and Gonzalez were arrested on Aug. 11, 2015, following a traffic stop by a Joplin Police Officer. Soto-Garcia was the driver of a silver 2006 BMW, with O’Brien a passenger in the front seat and Gonzalez in the rear driver’s side passenger seat. When Gonzalez rolled down his window, the officer saw two pistols on the floorboard by Gonzalez’s feet and all three defendants were instructed to get out of the vehicle. The Hi-Point .40-caliber firearm and the Kel-Tec .223-caliber firearm, along with loaded magazines, were removed from the vehicle.
After the occupants and the firearms were removed from the vehicle, a K-9 alerted to the presence of narcotics inside the BMW from outside of the vehicle. When the officer attempted to open the door of the vehicle to conduct an interior search, he found the doors were locked.
The officer determined that Soto-Garcia had locked the doors with the key fob for the BMW and asked Soto-Garcia for the key fob. Instead of handing the fob to the officer, Soto-Garcia took the fob out of his pocket and threw it under the patrol vehicle. As Soto-Garcia began struggling with the officers, O’Brien ran over to the patrol vehicle and obtained the key fob. O’Brien then resisted officers as well. After obtaining the fob and arresting O’Brien and Soto-Garcia, officers searched the vehicle. Joplin police officers found a package that contained approximately a pound of methamphetamine and then arrested Gonzalez as well.
That same day, investigators searched Soto-Garcia’s residence and found a Smith & Wesson .40-caliber handgun, a Tanfoglio .40-caliber handgun, a Sig Sauer 9mm handgun, a North American Arms 22-caliber magnum revolver, ammunition, a bullet-proof vest, a money counter, and approximately five grams of methamphetamine. Investigators then searched another residence being used as a stash house by Soto-Garcia and found a Phoenix Arms .22-caliber handgun and approximately 852.3 grams of methamphetamine hidden in an air vent.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated less than two hours before returning the guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Oct. 30, 2017.
Under federal statutes, Soto-Garcia is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life 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 Special Assistant U.S. Attorney Jody Larison, Assistant U.S. Attorney Timothy A. Garrison, and Supervisory Assistant United States Attorney Randy Eggert. It was investigated by the Drug Enforcement Administration, the FBI, ATF, the Missouri State Highway Patrol, the Joplin Police Department, and the Ozark Drug Enforcement Team.
Jamestown Man Sentenced on Pornography ChargesRead the Press Release
FARGO – U.S. Attorney Christopher C. Myers announced that on November 3, 2017, Alexander Robert McManus, age 56, of Jamestown, ND, was sentenced before Judge Ralph R. Erickson following a guilty plea to one count of Receiving Materials Containing Child Pornography and two counts of Possession of Materials Containing Child Pornography. Judge Erickson sentenced McManus to serve 22 years in federal prison, to be followed by lifetime supervised release. McManus was further ordered to pay $300 to the Crime Victims’ Fund, as well as $2,500 in restitution to the victim.
This case came to the attention of law enforcement after a child reported that McManus had been sexually abusing her since a young age. The Jamestown Police Department initiated an investigation after which defendant’s wife reported finding a cell phone containing child pornography that was concealed behind the refrigerator in their residence. Law enforcement subsequently searched McManus’ residence during which time they recovered additional media that contained child pornography. Defendant later admitted to receiving and possessing child pornography that he concealed in his residence. This case was investigated by the Department of Homeland Security – Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, and the Jamestown Police Department.
Assistant United States Attorney Jennifer Klemetsrud Puhl prosecuted the case.
Inland Empire Pimp Sentenced to 15 Years in Federal Prison for Sex Trafficking Twenty Women and Girls as ProstitutesRead the Press Release
SANTA ANA – A pimp, known by the moniker “Classified,” who recruited approximately 20 women and girls through a social media website and advertised their services as prostitutes in an online publication, was sentenced yesterday to 15 years in prison for sex trafficking of a child by force, fraud or coercion.
Lawrence T. Gunn, Jr., 33, of Woodland Hills, who was previously convicted for similar conduct, was sentenced by United States District Judge David O. Carter.
According to court documents, Gunn forced his victims into prostitution through physical and verbal abuse and tattooed his moniker “Classified” on their bodies including on the faces of some of his victims who he recruited on Facebook. He branded his victims with the tattoo to permanently mark his sex workers as his own. Gunn admitted that he used force, threats of force, fraud and/or coercion to cause the victims to engage in commercial sex acts between May 2015 and late February 2016. He then took all of the money the victims collected from customers.
Gunn physically struck the women if they attempted to keep any of the money or if they tried to leave, breaking a young victim’s nose on one occasion. Gunn also admitted that he threatened to kill one 16-year-old victim, who he had tattooed “Classified” over her right eye, if she tried to leave him.
The Riverside County Anti-Human Trafficking investigation in late 2016 found that advertisement’s for commercial sex acts were placed on various social media sites including Backpage.com and that Gunn had about a dozen women and girls working for him. One of the victims had posted hundreds of ads for sex services in states as far away as Alaska and Minnesota, according to court documents. Several victims told law enforcement authorities that Gunn took all of the money they collected from customers, including more than $17,000 that Gunn caused the victim to wire to him over the course of three months.
Once he completes his 15-year prison term, Gunn will be required to register as a sex offender.
This case was investigated by the Riverside County Anti-Human Trafficking Task Force, which includes representatives from the Riverside County Sheriff’s Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Moreno Valley Police Department, the San Bernardino County Sherriff’s Office, the Los Angeles County Sheriff’s Department and the Los Angeles Police Department assisted in the investigation.
This case was prosecuted by Assistant United States Attorney Tritia L. Yuen of the Riverside Branch Office.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on November 1, 2017 and entering pleas of Not Guilty were:
- STEVEN MARSHALL MELCHER, a 34-year-old resident of Billings, appeared on charges of felon in possession of firearm and ammunition. If convicted of the charge contained in the indictment, MELCHER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-119
Appearing before U.S. Magistrate Cavan in Billings on October 23, 2017 and entering pleas of Not Guilty were:
- DAVID DORROW ROUNDY, a 41-year-old resident of Laurel, appeared on charges of prohibited person in possession of a firearm, and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, ROUNDY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-112
Appearing before U.S. Magistrate Johnston in Great Falls on October 23, 2017 and entering pleas of Not Guilty were:
- BRANDON CORDELL BENNETT, a 43-year-old resident of Great Falls, appeared on charges of sexual exploitation of a child and receipt of child pornography. If convicted of the most serious charge contained in the indictment, BENNETT faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Homeland Security Investigations and Great Falls Police Department. PACER Case Reference. 17-68
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Woman Sentenced to Prison for Conspiring to File Fraudulent Tax Returns Using Stolen IdentitiesRead the Press Release
A Chicago, Illinois, woman was sentenced to 30 months in prison today for conspiring to file fraudulent tax returns using stolen identities, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Acting U.S. Attorney Joel R. Levin of the Northern District of Illinois.
According to documents filed with the court, from 2012 to 2015 Dominique King, 27, conspired with Roxann Gist, 45, and another co-conspirator to file at least 858 fraudulent income tax returns, using stolen names and social security numbers. Those fraudulent returns sought more than $2.7 million in refunds. As part of the scheme, Gist and King acquired the personal identification information of thousands of unsuspecting individuals and directed others to receive and collect fraudulent income tax refund checks and to open up bank accounts to access direct deposits of such refunds.
In addition to the term of imprisonment imposed, King was ordered to serve two years of supervised release and to pay $1,332,935 in restitution to the IRS. King also pleaded guilty in February to conspiracy to steal public money and aggravated identity theft. In September Gist was sentenced to 36 months in prison. She previously pleaded guilty in February to conspiracy to steal public money, theft of public money, and aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg commended the Special Agents of IRS Criminal Investigation who conducted the investigation, and Trial Attorney Timothy M. Russo of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
ISIS Supporter Pleads Guilty to Firearms OffenseRead the Press Release
RICHMOND, Va. – A Richmond man, who is a previously convicted felon and supporter of the Islamic State of Iraq and al-Sham (ISIS), pleaded guilty today to acquiring a firearm three weeks after he was released from state prison.
According to court documents, Casey Charles Spain, 28, was in prison for over seven years after being convicted in 2010 for abduction with intent to defile. While in prison, Spain became radicalized and expressed a desire to engage in acts of violence. Additionally, the FBI received information that Spain swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also obtained a tattoo of the ISIS flag on his back.
After Spain was released from the Virginia Department of Corrections on August 11, he took up residence in the Richmond area. Due to his activity while in prison, the FBI began conducting surveillance of Spain immediately upon his release, including making covert contact with Spain with FBI undercover employees (UCE), as well as the use of a Confidential Human Source (CHS). Spain spoke on multiple occasions to the CHS about his strong desire to obtain a handgun. On August 30, the CHS and a UCE met with Spain and Spain described to the CHS his intention to purchase a semi-automatic handgun with a 50-round barrel canister, and that he had made arrangements to buy the handgun from an individual online. Given Spain’s criminal history, his desire to obtain a firearm, and the impatience he exhibited with regard to obtaining one, the CHS—as part of a controlled FBI undercover operation—offered to provide Spain with what the CHS described as his own personal weapon. In reality, the firearm, which was a 9mm Glock semi-automatic handgun, was the property of the FBI that had been rendered inert for safety reasons.
On August 31, as part of the undercover operation, the CHS and UCE met Spain outside of his residence. The CHS provided Spain the above-described firearm, at which point members of the FBI Richmond SWAT team moved in to arrest Spain. Spain initially attempted to flee and escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued Spain on foot and quickly apprehended him, and also recovered a mobile phone discarded by Spain during the chase and the above-described firearm.
Spain pleaded guilty to being a being a felon in possession of a firearm and faces a maximum penalty of 10 years in prison when sentenced on Feb. 12, 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, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney Brian Hood and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section are 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. 3:17-cr-123.