Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 November 2017
Police and Prosecutors Join Students at the Bay County Youth Crime Prevention SummitRead the Press Release
PANAMA CITY, FLORIDA – The United States Attorney’s Office for the Northern District of Florida will join the LEAD Coalition of Bay County and the following agencies to present a youth summit on Friday to approximately 220 high school and middle school students.
Participating agencies include:
- LEAD Coalition of Bay County
- U.S. Attorney’s Office, Northern District of Florida
- Florida Highway Patrol
- Bay County Sheriff’s Office
- Federal Bureau of Investigation
- Drug Enforcement Administration
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Panama City Police Department
- U.S. Secret Service
- U.S. Immigration and Customs Enforcement Homeland Security Investigations
- U.S. Department of Veterans Affairs, Office of Inspector General
Participating schools include: (Students with media permissions will be identified.)
- Bay High School
- Rosenwald High School
- Rutherford High School
- Everitt Middle School
- Jinks Middle School
- AMIkids, Panama City Marine Institute
- C.C. Washington Academy
Event: 3rd Annual Bay County Youth Crime Prevention Summit
BLAST Program (for 100 high school students)
“Chasing the Dragon” film screening (for 120 middle school students)Host: LEAD Coalition of Bay County
Location:
Gulf Coast State College
Student Union East, 2nd Floor
5230 West Highway 98
Panama City, FL 32401
Date: Friday, November 3, 2017
Time:
9:30 a.m. CDT Opening Remarks. Please note Central Time.
10:15 a.m. – 12:15 p.m. CDT Breakout Sessions
Press:
To RSVP for the event, to coordinate interviews, and for BLAST Program-specific questions:
Amy Alexander
850-491-0367(cell)
For questions related to Chasing the Dragon:
Amanda Videll
FBI Public Affairs Specialist
904-349-7750 (cell)
For questions about the Bay County Youth Crime Prevention Summit or the LEAD Coalition:
Janice Lucas
850-913-3263
BLAST Program
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with officers in a familiar setting. Officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate and role play with law enforcement officers.
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media and public, and videography and photography is permitted.
- Domestic Violence: Students will participate in a scenario in which police respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to the police.
This session is open to the media and public, and videography and photography is permitted.
- Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media and public, and videography and photography is permitted.
- Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Chasing the Dragon
The Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) co-produced a 45-minute documentary titled Chasing the Dragon: The Life of an Opiate Addict. The film features several stark, first-hand accounts of the dangers of opiate addiction. A free download of the film is available online, along with a teacher discussion guide.
Over the past year, law enforcement agencies, including the FBI, DEA, and U.S. Attorney’s Office, have hosted screenings of the film to educate students on the dangers of opiate abuse and to discuss how the issue could impact their lives and future careers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pittsburgh Man Sentenced to 9 Years in Federal Prison for Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 108 months’ imprisonment on his conviction of conspiracy to possess with intent to distribute and distribute 100 grams or more of heroin, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Ronnie McGill, age 35, of Pittsburgh, PA.
According to information presented to the court, from April through August 2016, McGill was intercepted over a DEA wiretap conspiring with others to possess with intent to distribute and distribute 100 to 400 grams of heroin.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of McGill. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Felon Sentenced for Illegally Possessing FirearmRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of one day imprisonment, to be followed by three years of supervised release, with the first six months to be served on home detention, on his conviction of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Eric Wesley Triplett, 24, of Pittsburgh, Pennsylvania.
According to the information presented to the court, City of Pittsburgh Police Officers conducted a traffic stop on a vehicle in which the defendant was a passenger. Triplett ran from the vehicle and discarded a loaded firearm, which officers recovered. Based on a prior conviction, the defendant is not permitted to possess a firearm.
Prior to imposing sentence, Judge Conti stated that the defendant’s possession of a loaded firearm was a very serious and dangerous offense.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Bureau of Alcohol, Tobacco and Firearms and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Triplett.
Philadelphia Parking Authority to Address ADA Compliance in Three Parking GaragesRead the Press Release
PHILADELPHIA – The Philadelphia Parking Authority has voluntarily addressed accessibility issues with parking at three of its Philadelphia garages in collaboration with the U.S. Attorney’s Office.
The Americans with Disabilities Act and its accompanying regulations require certain properties, including parking facilities, to have accessibility features. The U.S. Attorney’s Office conducted a review of several Philadelphia Parking Authority garages and identified concerns regarding accessibility at the Autopark at Independence Mall at 5th and Market Streets, the Autopark at Olde City at 2nd and Sansom Streets, and the Philadelphia Gateway Parking Garage at 1540 Vine Street. Once it became aware of the concerns, the Philadelphia Parking Authority cooperated with the U.S. Attorney’s Office to identify the issues, develop a plan to address them, and remediate promptly.
“Enforcing the Americans with Disabilities Act is an important priority of this office,” said Acting United States Attorney Louis D. Lappen. “Ensuring public access to parking facilities so that visitors to Center City can enjoy Philadelphia is a benefit to us all. We were pleased that the PPA agreed with these priorities, and our mutual goal of ensuring access for all was accomplished.”
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
The case was handled by Assistant U.S. Attorneys Paul W. Kaufman and Anthony D. Scicchitano in conjunction with the Department of Justice’s Civil Rights Division.
Pensacola Armed Career Criminal Sentenced to 224 Months in Federal PrisonRead the Press Release
PENSACOLA, FLORIDA – Donald Santoriello, 60, of Pensacola, was sentenced today to 224 months in prison. He received 200 months as the result of his guilty plea on August 10, 2017, to possession of a firearm by a convicted felon, and 24 months consecutive for violating his federal supervised release. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2017, Santoriello was under the supervision of the United States Probation Office for being convicted of possessing a firearm as a convicted felon. The Probation Office received information that Santoriello was in possession of a firearm, and subsequently law enforcement agents found a firearm in his residence. Santoriello previously had been convicted of crimes dating back to 1987, including first degree robbery, grand theft auto, aggravated assault, and second degree murder.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Alicia H. Forbes prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Operator of Horse Rescue Group Gets Prison Time for Fraud, Filing a False Tax ReturnRead the Press Release
PITTSBURGH - A Butler County resident was sentenced today to five months in prison, followed by three years of supervised release, and was ordered to pay $20,000 in restitution on her conviction of mail fraud and filing a false tax return related to a non-profit organization, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Pamela A. Vivirito, 47, of Mars, Pa. Vivirito pleaded guilty in April to one count of mail fraud charged in a second superseding indictment and one count of filing a false tax return charged in an information.
According to information provided to the Court, Vivirito operated a not-for-profit charity called Equine Angels Rescue, Inc. (EAR) which solicited contributions to rescue and rehabilitate horses. Vivirito fraudulently solicited donations and used them for personal expenses. Additionally, Vivirito caused the filing of a fraudulent and false Return of Organization Exempt from Income Tax wherein it was reported her compensation was $46,877, when in actuality, Vivirito received compensation in the amount of $93,606.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Vivirito.
Meigs County Banker Sentenced for Stealing More Than $300,000 from Bank ATMRead the Press Release
COLUMBUS, Ohio – Bobbie A. Holter, 53, of Racine, Ohio, was sentenced in U.S. District Court to 12 months in prison and six months of home confinement for theft by a bank employee.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Holter was an employee of The Citizens Bank of Logan in Athens, Ohio for approximately 10 years until her termination in February 2014. Holter served as Branch Manager and Teller Supervisor at the Walmart and Stimson Avenue branches.
A surprise audit was performed at the Walmart branch after a discrepancy in the ATM was discovered by a bank operations specialist. The audit showed that reports filed by Holter in the normal course of her duties prior to the audit did not match the amount of $20 bills dispensed by the ATM for various days.
Security footage for those days depicted Holter coming into the bank alone before the branch opened, removing the cash cassette from the ATM and then replacing it. Surveillance showed Holter conducting at least 24 such exchanges – each time alone, in the dark and before bank hours.
In total, a more thorough audit discovered 60 cash shortages totaling $318,400.
When she was interviewed by bank officials, Holter initially denied taking any money, but eventually said she was threatened and coerced into taking the money by a former supervisor who had sexually harassed and choked her. Further investigation by the FBI found no evidence to support this claim.
One week after being interviewed, Holter contacted bank officials and told them she found a bag of money at the end of her driveway. She met with the officials and turned over a bag containing $81,360 in $20 bills.
FBI forensic accountants conducted a financial analysis of Holter’s finances, taking into account all known sources of funds and known use of funds and determined her spending exceeded her income by nearly $150,000 for the period of time they examined.
Holter used money orders totaling nearly $43,000 to pay off her mortgage and deposited money orders into her bank accounts reportedly from the sale of puppies to individuals around the country. Research on the addresses of 15 of the puppy sales money orders revealed that 14 contained fictional addresses.
Holter pleaded guilty to one count of theft by a bank officer in April 2017. As part of her plea agreement, she has agreed to pay full restitution.
U.S. Attorney Glassman commended the investigation of this case by the bank officers and the FBI, as well as Assistant United States Attorney Jonathan J.C. Grey, who is representing the United States in this case.
# # #
Massachusetts Man Sentenced to 15 Years in Prison on Drug ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Alberto Guerrero Marte, 34, of Lawrence, Massachusetts, was sentenced yesterday to serve 15 years in federal prison for participating in a drug trafficking conspiracy.
According to court documents and statements made in court, Guerrero Marte ran a heroin trafficking organization that distributed heroin to customers from New Hampshire and Massachusetts through residences owned or occupied by individuals cooperating with the drug trafficking organization. Day-to-day customer orders for heroin were taken by a member of the conspiracy who would pass that information on to Guerrero Marte. The information was relayed to a delivery person who would deliver the heroin to a customer and pick up payment for the heroin.
Guerrero Marte previously pleaded guilty to participating in a conspiracy to distribute, and possess with intent to distribute, heroin. He is expected to be deported to the Dominican Republic after serving his sentence.
“This defendant was responsible for the distribution of large quantities of heroin to customers in Massachusetts and New Hampshire and deserves the lengthy sentence that was imposed by the Court,” said Acting U.S. Attorney Farley. “While we recognize the importance of providing access to treatment for those suffering from addiction, we will continue to work closely with all of our law enforcement partners to investigate and prosecute those who are profiting from the sales of heroin and other deadly drugs. I commend the hard work of the law enforcement officers whose efforts led to the successful prosecution of this significant drug trafficker.”
“Opioid abuse is at epidemic levels in New Hampshire and across the North East,” said DEA Special Agent in Charge Michael J. Ferguson. “Heroin is causing deaths in record numbers and DEA is committed to aggressively pursue Drug Trafficking Organizations who distribute this poison in order to profit and destroy people’s lives and wreak havoc in our communities. This investigation would not have been a success without the continued commitment of our local, state and federal law enforcement partners.”
The case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Donald Feith.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
###
Martinsburg men admit to drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Martinsburg, West Virginia men have admitted to drug distribution charges, United States Attorney William J. Powell announced.
Christopher Deshaun Walker, age 28, pled guilty to one count of “Distribution of Heroin.” Walker admitted to selling heroin in October 2015 in Berkeley County, West Virginia.
Henry Aaron Shepherd, age 36, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin.” Shepherd admitted to aiding another in selling heroin in November 2015 in Berkeley County.
Walker and Shepherd each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government. The Eastern Panhandle Drugs & Violent Crime Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marion County man sentenced for mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man was sentenced today to 37 months incarceration for mail fraud, United States Attorney William J. Powell announced.
Martin Stoneking, age 25, pled guilty to one count of “Mail Fraud” in May 2017. Stoneking admitted to participating in a staged vehicle accident, faking injuries from said accident, and filing false insurance claims resulting in a $41,000 settlement. The crime happened between May 2013 and October 2013 in Marion County.
Stoneking was also ordered to pay $152,603.64 in restitution,
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Manager Charged with Defrauding Two Celebrity Clients in Relation to OXYwater CaseRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Kevin R. Foster, 42, of Montclair, N.J. with charges related to a fraud scheme in a superseding indictment returned here today.
Foster was charged in an original, seven-count indictment in July 2016. This superseding indictment contains 10 counts – including additional wire fraud, money laundering and bankruptcy fraud charges – as well as a second victim.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the new charges.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who raised approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater.” The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.
The charges against Foster allege that he, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations.
Foster served as an officer or controller of Imperial Integrative Health Research & Development, LLC in Westerville, Ohio with Jackson and Harrison. Foster did not disclose that he served as a controller for the company or that he would earn commission based on investments.
Unbeknownst to Smith, Foster allegedly invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature. It is alleged that Foster received approximately $250,000 in finder’s fees based on Smith’s investments into OXYwater and that Foster received additional money as a result of the unauthorized investments.
The superseding indictment also alleges that Foster defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.
“McKnight agreed to invest in the company, not knowing that Foster served as an officer/controller of Imperial,” U.S. Attorney Glassman said. “Foster allegedly withdrew more money from McKnight’s account than he had authorized, and failed to invest any of the money, but rather transferred it to one of Imperial’s business associates in order to help keep the business afloat.”
Foster also allegedly lied about disclosing the kickbacks during a deposition in Bankruptcy Court.
Foster was charged in the superseding indictment with four counts of wire fraud, five counts of money laundering and one count of bankruptcy fraud. Wire fraud is punishable by up to 20 years in prison, money laundering is punishable by up to 10 years in prison and bankruptcy fraud is punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim and Department of Justice Tax Division Trial Attorney Jason M. Scheff, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #
Man Sentenced to 27 Years for Cocaine Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 27 years in prison for his role in a large-scale cocaine trafficking conspiracy.
According to court documents, Marvin O’Neal Carter, 50, along with Michael Stephen Kuna, 42, of Canada, and brothers Hilario Rodriguez, 50, and Daniel Rodriguez, 49, both of California, were charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises.
According to court documents, agents observed the arrival of a tractor trailer at a garage leased by Carter. With the assistance of Michael Kuna, who stopped traffic and directed the driver, the trailer was off-loaded next to the garage. Agents observed Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The men then worked together to unload cocaine from a hidden compartment located underneath the trailer. A short time later, Kuna left and returned with two large duffel bags which were taken underneath the trailer. Kuna left the location after loading the now-empty duffel bags into a vehicle. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which smelled of bulk currency. As Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks, totaling nearly $1 million, were recovered. The search of the garage also led to the recovery of a firearm, a quantity of heroin and more cocaine, in addition to approximately $49,000 in cash from a safe.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Michael C. Grinstead, Acting Chief of Newport News Police, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross 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-76.
Man Sentenced to 15 Years for Hampton Roads RobberiesRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 15 years in prison for a series of armed robberies.
According to court documents, from August 2016 through January 2017, Zakee Hawkins, 25, conspired with two others to conduct a series of armed robberies of various commercial establishments. They robbed a Metro PCS, 7-Eleven, Boost Mobile, Tinee Giant, Fast Auto Loan and Quick N Save stores and various gas stations located in Norfolk, Chesapeake, Virginia Beach and Hampton. In each of these robberies, Hawkins and a co-conspirator would enter the store brandishing firearms and demand that employees turn over all the money. They would then flee the scene in a get-a-way vehicle. After the 15th robbery, an employees picked Hawkins out of a photo lineup as the person who robbed the store. Afterwards, Hawkins was arrested, but his co-conspirators continued the armed robbery spree by robbing 16 additional stores and gas stations before they were arrested. In total, they conducted 31 armed robberies of various locations, with over 50 employees as victims of their crimes.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William D. Muhr 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. 2:17-cr-51.
Man Sentenced to Five Years in Prison for Failure to Register as A Sex OffenderRead the Press Release
LAS VEGAS, Nev. – A convicted sex offender who failed to register as a sex offender when he moved to the Las Vegas area was sentenced to 60 months in prison today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Charles Elmer Roush, 79, pleaded guilty to one count of violation of the Sex Offender Registration and Notification Act (SORNA). In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced Roush to lifetime of supervised release.
According to the plea agreement, Roush admitted that he failed to register with the Las Vegas Metropolitan Police Department or any local jurisdiction when he relocated to the Las Vegas area. In 1985, Roush was convicted in El Paso County, Colo., of inducing a minor to engage in sexually explicit conduct and mailing visual depiction of minors engaged in sexually explicit conduct. As a result of the conviction, Roush was required under SORNA to register and to update his registration in each jurisdiction he resides and is employed.
The case was investigated by the Nevada Parole and Probation and U.S. Marshals Service. Assistant U.S. Attorney Elham Roohani prosecuted the case.
To report a non-compliant or unregistered sex offender, contact the U.S. Marshals Service National Sex Offender Targeting Center at [email protected].
###
Lower Brule Man Charged with First Degree Burglary and AssaultsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, two counts of Assault with a Dangerous Weapon, and two counts of Assault Resulting in Serious Bodily Injury.
Jaron Grassrope, a/k/a Jaron Grass Rope, age 18, was indicted on October 17, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 1, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 35 years in custody and/or a $250,000 fine, up to 6 years of supervised release, and $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 2, 2017, Grassrope and his co-defendant unlawfully entered and remained in an occupied structure with the intent to commit the crime of larceny. The Indictment also alleges that both defendants stabbed two male victims, causing serious bodily injuries to both of them.
The charges are merely accusations and Grassrope is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Grassrope was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for January 3, 2018.
London Man Pleads Guilty to Assaulting and Attempting to Rob Man in Georgetown in January 2017Read the Press Release
WASHINGTON – Paolo Aldorasi, 34, of London, pled guilty today to assaulting and attempting to rob a man who he forced into his sport utility vehicle in the Georgetown area of Washington, D.C., announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department.
Aldorasi pled guilty to assault with intent to commit robbery, a District of Columbia offense. The plea took place in the U.S. District Court for the District of Columbia. As part of the plea agreement, the government agreed to dismiss a federal kidnapping charge. The Honorable Richard J. Leon scheduled sentencing for Jan. 30, 2018. Aldorasi faces a statutory minimum sentence of two years in prison and a statutory maximum of 15 years of incarceration.
According to a factual proffer submitted at the plea hearing, on Jan. 26, 2017, at about 3:20 p.m., Aldorasi saw the victim walking eastbound in the 3400 block of O Street NW. Aldorasi, who was operating a sport utility vehicle, pulled alongside the victim and asked for directions to Washington Dulles International Airport. The victim, who spoke limited English, said he did not know the location. As the conversation continued, Aldorasi grabbed the victim and ordered him into the SUV. He then drove off with the victim, taking him to four ATMs in the District of Columbia, in unsuccessful attempts to withdraw money, as well as to two retail establishments in unsuccessful attempts to make purchases. After the last failed attempt, at a retail store in the 4500 block of Wisconsin Avenue NW, he finally let the victim go.
Aldorasi was arrested by the FBI’s Seattle Field Office on Feb. 24, 2017, in SeaTac, Washington, and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They expressed appreciation for the assistance provided by the FBI’s Seattle Field Office and the U.S. Attorney’s Office for the Western District of Washington. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz, Catherine O’Neal and Teesha Tobias; Legal Assistants Peter Gaboton and Holly Crouse, and Assistant U.S. Attorneys Emory V. Cole and Kamilah O. House, who prosecuted the matter.
Local Man Sentenced for Participation in Used Textbook ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Tomasik, 34, of Hamburg, N.Y., who was convicted of mail fraud, was sentenced to two years probation by Chief U.S. District Judge Frank P. Geraci Jr. As part of his sentence, the judge also ordered the defendant to donate 200 books to a school in need in the City of buffalo.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendant ran a used textbook scheme. Tomasik rented textbooks from Amazon and other companies and then sold the textbooks on eBay. When the rental contract on the textbooks expired, the defendant ignored collection notices. Tomasik also made it difficult for the companies to find him by using aliases. The defendant used at least 20 online accounts with different email addresses to perpetrate the fraud.
The defendant also entered into a sizeable contract to sell used textbooks to victims in California. After receiving an approximately $50,000 down payment on the contract via PayPal, Tomasik allegedly sent a single textbook and removed his bank information from his PayPal account so that the victims could not recoup their money.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Local Businessman Convicted of Credit Card Fraud and ID TheftRead the Press Release
CORPUS CHRISTI, Texas – The owner of American Auto Pros in Corpus Christi has admitted he used numerous credit card accounts belonging to others in order to obtain things of value without authorization, announced Acting United States Attorney Abe Martinez. Antonio Arteaga, 38, of Corpus Christi, pleaded guilty to one count of credit card fraud and one count of aggravated identity theft.
Arteaga was arrested Aug. 18, 2017, following an investigation into a series of fraudulent ATM withdrawals in Corpus Christi and surrounding areas. Many of the victims had been customers at Arteaga’s business, American Auto Pros. Authorities executed a search warrant at the business which led to the discovery of a credit card processing pad that was connected to a laptop computer in the office. This allowed Arteaga to illegally capture the account information and PIN numbers of credit and debit cards used there.
During a subsequent search of Arteaga’s home, law enforcement found a magnetic strip encoder that had been used to replace the information on the magnetic strip of gift cards with the compromised credit and debit card numbers. Agents also found numerous altered gift cards with the encoder at Arteaga’s house and additional gift cards illegally re-encoded with victim’s credit card information in Arteaga’s vehicle and wallet.
Agents determined that between Dec. 10, 2016, and Aug. 18, 2017, Arteaga unlawfully used the credit and debit card information of dozens of American Auto Pros customers to withdraw tens of thousands of dollars from his victims’ accounts.
U.S. District Judge Nelva Gonzales Ramos has set sentencing for Jan. 30, 2018. At that time, Arteaga faces up to 10 years in federal prison for the credit card fraud. For the aggravated identity theft, he will also be subject to a mandatory two years which must be served consecutively to any other prison term imposed. All charges also carry the potential of a $250,000 maximum fine
He was permitted to remain on bond pending that hearing.
The Secret Service conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Lima man indicted for selling fentanyl, fentanyl analogues, heroin and cocaine, including fentanyl analogue that resulted in overdoseRead the Press Release
A Lima man was indicted for selling fentanyl, fentanyl analogues, heroin and cocaine, including a fentanyl analogue that resulted in an overdose, law enforcement officials said.
Lloyd T. Turks, Jr., 23, was named in five-count federal indictment. He was indicted on one count of distribution of fentanyl, methylfentanyl, heroin and cocaine; one count of distribution of methylfentanyl; one count of distribution of cocaine and two counts of distribution of U47700, a fentanyl analogue.
One of the distribution of U47700 counts carries a sentencing enhancement for causing serious physical harm, which could result in a mandatory minimum sentence of 20 years in prison. That charge alleges that on Aug. 23, Turks sold U47700 in Lima that resulted in someone overdosing.
The indictment further alleges that Turks sold drugs on several occasions between February and August 2017.
"The opioid epidemic has ravaged every corner of our state, and we will continue to pursue comprehensive solutions to turning the tide," U.S. Attorney Justin E. Herdman said. "One tool we will use is the aggressive prosecution of those who sell the opioids that kill or injure our neighbors, friends and relatives."
"This is another example of an individual willing to distribute deadly drugs into our neighborhoods," said FBI Special Agent in Charge Stephen D. Anthony. "Law enforcement will continue to partner with the community in an effort to bring those that deal poison to justice."
"With Ohio being at the epicenter of the heroin epidemic killing thousands, it is only by working together that a difference can be made," said West Central Ohio Crime Task Force Commander Kevin Litsley. "The West Central Ohio Crime Task Force works closely with its counterparts at the local, state and federal levels. It is this collaboration that sends a strong message to drug dealers, who continue to illegally traffic the substances that ruin people's lives across the nation."
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 West Central Ohio Crime Task Force. 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
Lee's Summit Man Convicted of Illegally Possessing Street Sweeper ShotgunRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was convicted in a federal bench trial today of illegally possessing a Street Sweeper shotgun.
Ronald F. White, Jr., also known as “Ron Ron,” 35, of Lee’s Summit, was found guilty of one count of possessing an unregistered Street Sweeper 12-gauge shotgun by U.S. District Judge Roseann Ketchmark at the conclusion of a bench trial that began Tuesday, Oct. 31, 2017.Law enforcement officers discovered numerous firearms when they executed a search warrant at the residence of White’s father and step-mother, where he occasionally stayed, on Oct. 31, 2013. The loaded Street Sweeper drum-fed 12-gauge shotgun was found in a duffel bag in the bedroom used by White when he stayed at the residence.
Located in the same duffel bag were a loaded Smith and Wesson .357-caliber revolver, a loaded Romarm Drako 7.62 x 39mm semi-automatic pistol, a loaded Bushmaster semi-automatic carbine, a loaded Stag Arms 5.56-caliber semi-automatic rifle, and 30-round and 90-round-capacity drum magazines for use with either the Bushmaster or Stag Arms rifles.
White has multiple felony convictions in Missouri and one felony conviction in Kansas. However, all of White’s Missouri state court felony convictions resulted in suspended imposition of sentences, and that type of felony conviction cannot be used to support a prosecution for being a felon in possession of a firearm. His Kansas state court felony conviction was expunged so that conviction likewise cannot be used to support a prosecution for being a felon in possession of a firearm.
Under federal statutes, White is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Deputy U.S. Attorney Gene Porter. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Leader of Multi-Million Bank Fraud Scheme SentencedRead the Press Release
HOUSTON – A 44-year old resident of Houston has been ordered to federal prison for perpetrating a scheme that caused a loss of more than $4 million to several local banks, announced Acting U.S. Attorney Abe Martinez. Andre Chenier pleaded guilty Jan. 29, 2016.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Chenier a 48-month sentence to be immediately followed by three years of supervised release. At the hearing, Chenier was further ordered to pay $4,581,942 in restitution.
From 2004 to 2012, Chenier obtained multi-million dollar commercial loans from several Houston-area banks by submitting false and fraudulent documents, including Bank of Texas and Third Coast Bank. The loan applications included falsified financial statements and fake income tax returns and were obtained using the Social Security numbers of identity theft victims. Chenier ultimately defaulted on both of these loans and others, resulting in a loss of $4,581,942. Chenier represented to banks that he owned various technology companies, when in fact the companies were fictitious and Chenier was merely living off loan proceeds.
Chenier was assisted in his fraud scheme by co-defendant Jason F. Meadors, 45, of Houston, who was Chenier’s loan officer at Bank of Texas and Third Coast Bank. Another co-defendant - Gregory Roberson, 65, of Missouri City - prepared falsified income tax forms and other documents to help Chenier obtain millions in commercial loans. Meadors and Roberson have also pleaded guilty for their roles in the scheme and are scheduled to be sentenced Jan. 12, 2018.
Chenier will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Federal Deposit Insurance Corporation – Office of Inspector General and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Lancaster Man Charged with Production of Child PornographyRead the Press Release
Orlando Rivera, 29, of Lancaster, Pennsylvania, was charged by Indictment with enticing a minor to engage in sexually explicit conduct, production of child pornography, and transfer of obscene material to a minor, announced Acting United States Attorney Louis D. Lappen.
These charges carry a 15 year mandatory minimum term of imprisonment, and a maximum penalty of life imprisonment.
The case was investigated by the Lancaster Police Department, the Federal Bureau of Investigation and the Capital City Crimes Against Children Task Force. It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jury Convicts KC Man of Illegal Firearm Used in ShootingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today for illegally possessing the firearm he used to shoot another person.
Rico V. Gilliam, 34, of Kansas City, was found guilty of two counts of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Gilliam was in possession of a Glock .40-caliber semi-automatic handgun on Oct. 17, 2014, and again on Nov. 6, 2014. Gilliam also possessed ammunition on Oct. 17, 2014.
Kansas City police officers responded to a residence at about 9:15 a.m. on Oct. 17, 2014, to investigate a shooting. The victim told officers that Gilliam had fired two shots at him during an argument that occurred about 3 a.m. the same day, and one shot had struck him in the leg. He also said Gilliam pointed the gun at him and threatened to shoot him in the face. The victim and his girlfriend then walked to a nearby car lot. They jumped a fence and hid inside a Jeep until they called the police later that morning. Investigators interviewed several witnesses who confirmed the victim’s account.
On Nov. 6, 2014, officers located Gilliam inside a Kansas City, Mo., apartment. The apartment’s resident and several guests left the building while officers attempted to contact Gilliam. Another apartment also was evacuated. A tactical squad negotiated with Gilliam through a loudspeaker to come out of the residence. After approximately 30 minutes, Gilliam left the residence and was arrested. Officers searched the apartment and found the Glock handgun in the attic.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gilliam has two prior felony convictions for armed criminal action and prior felony convictions for unlawful use of a weapon, burglary, attempted robbery and robbery.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about five hours before returning the guilty verdicts to U.S. District Judge Beth Phillips, ending a trial that began Tuesday, Oct. 31, 2017.
Under federal statutes, Gilliam is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes and Special Assistant U.S. Attorney Kim Moore. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jacksonville Man Sentenced to 15 Years for Manufacturing Child PornographyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court yesterday, Senior United States District Judge W. Earl Britt, sentenced GARRETT RITSON YOUNG, 36, of Jacksonville to 180 months of imprisonment followed by 20 years of supervised release.
YOUNG was named in a fourteen-count Superseding Indictment filed on May 10, 2017. On July 18, 2017, YOUNG pled guilty to one count of Manufacturing Child Pornography.
On January 4, 2016, the Craven County Sheriff’s Office (CCSO) responded to a residence in Vanceboro, North Carolina, after a concerned parent called 911 and stated a man, later identified as YOUNG, was naked in bed with their 15-year-old son. During an interview with the son, investigators learned he met YOUNG via online social media. According to the son, he and YOUNG engaged in sexual activity numerous times between November 1, 2015, and January 4, 2016, and they also exchanged nude photos and videos of each other during the that time frame.
As a result, YOUNG was arrested for Contributing to the Delinquency of a Minor and Indecent Liberties with a Minor. YOUNG was interviewed by the CCSO on January 11, 2016, and admitted having an ongoing sexual relationship with the victim. On January 12, 2016, the CCSO executed a search warrant at YOUNG’S residence in Jacksonville. During the search, a ScanDisk memory card and a cellphone were seized and forwarded to the Federal Bureau of Investigation for a forensic examination, which revealed 291 images and 201 videos of child exploitation material (CEM).
Further forensic examination of YOUNG’S computer hardware revealed CEM that involved prepubescent minors and minors who had not attained the age of 12. Additionally, the CEM included sadistic and/or masochistic conduct, as depicted in an image of a young male who was blindfolded with a gag in his mouth, a chain wrapped around his neck, and his hands and feet bound behind him.
Investigators interviewed YOUNG again on January 13, 2016, at which time he admitted making the videos of himself having sex with a 14-year old female, and he acknowledged collecting CEM since he was 14 years old. YOUNG also admitted making a video of himself having sex with another minor female, who is the daughter of YOUNG’S former employer.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Craven County Sheriff’s Office and the Federal Bureau of Investigation conducted the criminal investigation of this case. Assistant United States Attorney Peggah B. Wilson handled the prosecution of this case for the government.
Illegal Alien Facing State Charges for Fatal Shooting Sentenced to Federal Prison for Illegal Possession of Firearms and Violation of Criminal Immigration LawRead the Press Release
Acting United States Attorney Corey R. Amundson announced that United States District Court Judge Shelly D, Dick sentenced OCTAVIO BRINGAS-POSADAS, age 50, of Baton Rouge, Louisiana, to twenty-four (24) months in federal prison as a result of his possession of several firearms and illegal re-entry into the United States by a removed alien.
On June 7, 2017, BRINGAS-POSADAS pled guilty to possession of several firearms by a prohibited person, in violation of Title 18, United States Code, Section 922(g)(5)(A), and illegal re-entry into the United States by a removed alien, in violation of Title 8, United States Code, Section 1326(a). He acknowledged in court during his guilty plea that he illegally possessed three (3) firearms—two (2) revolvers and one (1) pistol—as well as three (3) different types of ammunition. BRINGAS-POSADAS further acknowledged that he was illegally in the United States and was previously deported from the United States in 2012.
This investigation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; the Louisiana State Police; the East Baton Rouge Sheriff’s Office; the U. S. Department of Homeland Security, Immigration and Customs Enforcement; and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. This matter is being prosecuted by Assistant U.S. Attorney Kevin R. Sanchez and Jessica M.P. Thornhill.
Idaho Fugitive Found in Hardeman County Sentenced to 240 months on Machine Gun and Drug ChargesRead the Press Release
Jackson, TN – Henry McGuire was sentenced to a total of 240 months in federal prison for being a felon in possession of a machine gun and seven other firearms in Tennessee; and for possession of methamphetamine with intent to distribute and possessing a firearm during a drug trafficking offense in Idaho. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on February 6, 2016, members of the Boise Police Department in Idaho encountered Henry McGuire after he committed a traffic violation. During the stop, a K9 officer alerted to the presence of narcotics inside the vehicle and officers observed a semi-automatic pistol, tucked between the driver seat and center console. Upon searching the car, officers located a plastic bin containing marijuana, a digital scale, clear plastic bags, methamphetamine, heroin, bullets and several large wads of cash. Upon search of McGuire’s person, officers located a glass pipe containing white residue, methamphetamine, heroin, and over $1,500 in cash. McGuire admitting that he sold approximately one-half pound of methamphetamine every couple of days during the preceding year. The Boise Police Department seized approximately $16,851 cash and a Chevrolet Impala. McGuire was arrested and released on bail in Idaho and was later indicted federally in the District of Idaho.
On April 5, 2016, the United States Marshals Service was notified that Henry McGuire was an Alcohol, Tobacco and Firearms (AFT) fugitive from Idaho. McGuire was located by the U.S. Marshals and deputies with the Hardeman County Sheriff’s Office on Covington Loop in Saulsberry, TN. When officers arrived, they observed two vehicles and a "fifth wheel" travel trailer. After checking the travel trailer for safety, officers observed a rifle laying on the couch. Officers recovered over $5,000 cash from McGuire and obtained a search warrant to search the rest of the property.
After executing the search warrant, agents found eight firearms including:
• a STEN, 9mm, fully loaded automatic machine gun,
• a Remington 28-shotgun,
• a Browning 12 gauge shotgun,
• Ruger rifle,
• a Bersa Mini Firestorm 9mm pistol,
• a Norinco .223 caliber rifle,
• a Ruger .22 caliber pistol, and
• a Ruger .22 caliber rifle.
U.S. Attorney D. Michael Dunavant said, "This case is a great example of law enforcement partners collaborating throughout the country to bring to justice those individuals who break our gun and drug laws. You will be caught. We are unrelenting in our pursuit of justice."
Further investigation revealed three of the firearms, including the Bersa pistol, Ruger pistol, and Ruger rifle, had previously been reported as stolen. McGuire had previous felony convictions for Eluding Police Officers out of Boise, Idaho.
On November 1, 2017, the Honorable J. Daniel Breen, U.S. District Court Judge, sentenced McGuire to 240 months incarceration and 8 years supervised release to begin after his incarceration to resolve both the Idaho and Tennessee cases.
McGuire received 120 months for possession of the machine gun and other firearms in Tennessee, to be run concurrent with a 180-month sentence for possession of methamphetamine in Idaho. McGuire was also sentenced to 5 years consecutively to the methamphetamine charge for a total effective sentence of 240 months confinement.
Steve Gerido, ATF Special Agent in Charge commented, "The proactive relationships of law enforcement nationwide proved once again that individuals focusing on illegal firearms and narcotics activities will be brought to justice."
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise (Idaho) Police Department; Hardeman County Sheriff’s Office; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated these cases.
Assistant U.S. Attorneys Taylor Eskridge and Bryce B. Ellsworth prosecuted these cases on the government’s behalf.
Houston Man Sentenced for Beaumont Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 27-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Cody Edward Drawhorn pleaded guilty on Mar. 20, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Dec. 28, 2015, Drawhorn was pulled over for a traffic violation in Beaumont, Texas with three passengers in his vehicle. Drawhorn provided officers consent to search the vehicle and during the search they discovered approximately 6.5 ounces of methamphetamine packaged in 20 individually packaged baggies. Drawhorn was indicted by a federal grand jury on Sep. 7, 2016 and charged with drug trafficking violations.
This case was investigated by U.S. Drug Enforcement Administration, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Houston Financial Planner Sentenced for Federal Violations in Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 67-year-old Houston man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Lawrence Allen DeShetler pleaded guilty on June 8, 2017, to mail fraud and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia A. Crone. DeShetler was also ordered to pay restitution in the amount of $926,809.18.
According to information presented in court, DeShetler has been a certified financial planner (CFP) and investment advisor since 1994, and has been president of DeShetler & Company, Inc. since 1988. In his capacity as a CFP and investment advisor, DeShetler would advise clients on investment strategies and act as a broker for financial products, such as annuities and insurance policies. However, beginning in 2014, DeShetler began soliciting funds from clients by convincing them they could see higher returns on their money if they allowed him to invest it. Based on DeShetler’s advice, the clients then withdrew money from their existing investment accounts and gave him the proceeds. DeShetler then deposited the funds in bank accounts in his name and under his exclusive control, and then used the money for his personal benefit. In total, DeShetler fraudulently obtained $1,907,003.71 from five clients, including two from the Jefferson/Orange county area of the Eastern District of Texas.
“Consumers must have confidence that financial advisors are looking out for the interest of their clients,” said Acting U.S. Attorney Brit Featherston. “When this breach of trust occurs, not only do the victims lose, but the public also suffers through concern and worry that their money is not being reasonably safeguarded by these professionals. This community has fine trustworthy professionals to call upon for financial assistance. But DeShetler is not one of them, and he will be justly punished for his greed.”
“The resolution of this case speaks volumes about the commitment of the U.S Attorney’s Office to the prosecution of criminals who attempt to quickly abscond with money investors have earned over a lifetime of hard work,” said Texas Securities Commissioner Travis J. Iles.
This case was investigated by the Federal Bureau of Investigation; Orange County Sheriff’s Office, Texas Department of Public Safety, Texas State Securities Board, Jefferson County District Attorney’s Office, and Montgomery County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
####
Hazleton Man Sentenced to 27 Months’ Imprisonment for Selling Heroin Near SchoolRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Israel Calcano-Garcia, age 46, a citizen of the Dominican Republic who resided in Hazleton at the time of his arrest, was sentenced on November 1, 2017, to 27 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for distributing heroin within a thousand feet of a school.
According to United States Attorney Bruce D. Brandler, Calcano-Garcia previously admitted to selling heroin numerous times between January and August 2015, near a school in Hazleton. Calcano-Garcia distributed between 80 and 100 grams of heroin, which is approximately equal to between 3,000 and 4,000 retail bags of heroin.
Judge Mariani also ordered Calcano-Garcia to serve six years on supervised release following his prison sentence. Calcano-Garcia also faces deportation for committing a drug trafficking felony.
Calcano-Garcia was indicted by a federal grand jury in September 2015, as a result of an investigation by the Drug Enforcement Administration and the Hazleton Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was 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.
# # #
Hartford Man Sentenced to 2 Years in Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAMAL JOHNSON, 30, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by five years of supervised release, for distributing crack.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
Sixteen individuals were charged as a result of the investigation.
In November 2016, JOHNSON was intercepted over a wiretap ordering distribution quantities of crack cocaine.
At time of this offense, JOHNSON was on state probation for possession of a controlled substance. He previously has served significant prison sentences for sale of narcotics, carrying a pistol without a permit, escape, and robbery in the first degree.
JOHNSON has been detained since his arrest on March 28, 2017. On July 13, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hartford Man Involved in Cocaine Trafficking Ring Sentenced to 30 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LONNIE ARNOLD, 37, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his role in a cocaine distribution ring.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to individuals who converted much of it into crack cocaine, and distributed both forms of the drug in the area of Barbour Street in Hartford.
Gil-Grande secreted cash generated from his drug trafficking in resealed coffee cans and then shipped the cans back to Puerto Rico. He also drove large amounts of cash to New York City where it would be sent to Puerto Rico. On January 6, 2016, Gil_Grande was stopped as he drove to New York. A subsequent search of his vehicle revealed approximately $92,000.
Twenty individuals were charged and convicted as a result of the investigation.
ARNOLD was intercepted on a court-authorized wiretap arranging narcotics transactions with Gil-Grande and discussing money he owed to Gil-Grande.
ARNOLD has been detained since his arrest on February 24, 2016. On May 8, 2017, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.ARNOLD’s criminal history spans approximately 20 years and includes seven drug-related felony convictions, periods of incarceration, and multiple probation and parole violations.
Gil-Grande pleaded guilty to related charges and, on January 31, 2017, was sentenced to 70 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Guatemalan Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Gerardo Froilan Lopez Velazquez, age 51, and a citizen of Guatemala, was sentenced today to time served (56 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office for Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Lopez Velazquez admitted that he is a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala on April 9, 2014. Lopez Velazquez had also been removed from the United States on January 30, 2014.
On September 7, 2017, Lopez Velazquez was arrested by an ICE officer in Middleburgh, New York.
Following his sentencing, Lopez Velazquez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Grand Jury Indicts McKees Rocks Drug Rehab Operator on Heroin Possession ChargeRead the Press Release
PITTSBURGH - A resident of McKees Rocks, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of possession with intent to distribute heroin, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on November 1, named David Francis, age 65, of McKees Rocks, PA. A previously filed criminal complaint described Francis as operator of Next Step Recovery Housing in McKees Rocks, Pa.
According to the indictment, on or about October 6, 2017, Francis possessed with intent to distribute a quantity of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Island Man Charged with Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Weber, 35, of Grand Island, NY, was arrested and charged by criminal complaint with enticement of a minor. The charge carries a minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Jonathan Cantil, who is handling the case, stated that according to the complaint, in April 2017, a 15 year-old girl (Victim) began communicating with the defendant via Facebook. The Victim responded to an advertisement seeking workers for a week-long cleanup effort that would pay $10.00/hour. Over the course of two days, the Victim and Weber discussed the Victim possibly working for the defendant over the summer and Victim advised she was still in high school.
In subsequent conversations, Weber offered the victim alcohol, marijuana, and crack cocaine. At one point, Weber advised the Victim that he wanted to "try u or 1 of ur friends." The Victim replied "wdym" (what do you mean), and the defendant wrote, "If need some lovin." The Victim replied that she just wanted some drugs and did not want to have sex. Weber replied “that’s no good.”
In September of 2017, the City of Tonawanda Police filed a report and alerted the FBI Child Exploitation Task Force (CETF). On September 20, 2017, the CETF searched the Victim's phone with her and her mother's consent. CETF officers also assumed the Victim's online identity and began communicating with Weber who asked multiple times for pictures of the Victim. On October 11, 2017, the two agreed to meet at the 7-Eleven store on Hinds Street in Tonawanda. Later that day, the defendant, driving a car also occupied by his minor son (in the back seat), approached an individual he believed to be the Victim. Weber was taken into custody a short time later.
The defendant made an initial appearance U.S. Magistrate Judge Michael J. Roemer and was released on bond.
The criminal complaint is the result of an investigation by the City of Tonawanda Police, under the direction of Chief William Strassburg, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Georgia Man Sentenced to Ten Years for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Tony Lee Stanfield, 53 of Villa Rica, Georgia, to 120 months in prison and five years of supervised release for possession with intent to distribute methamphetamine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Chris Francis of the Rutherford County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and court proceedings, law enforcement became aware that on January 20, 2017, Stanfield would be delivering methamphetamine from Georgia to Rutherford County to an individual who was cooperating with law enforcement. When Stanfield arrived at the agreed upon location he was arrested by law enforcement. Court records show that law enforcement found in Stanfield’s vehicle more than 440 grams of methamphetamine, scales, smoking paraphernalia, and knives. According to court records, Stanfield told law enforcement that his supplier of methamphetamine was his co-defendant, Roger Darryl Brooks. Stanfield also told law enforcement that that Brooks would pay him $500 for transporting the methamphetamine to someone in Rutherford County.
Stanfield pleaded guilty to one count of possession with intent to distribute methamphetamine. Brooks is currently detained and. charged with one count of conspiracy to possess with intent to distribute methamphetamine.
* * *
In a separate case, Judge Reidinger also sentenced today Kevin Christopher Makerson, 44, of Rutherfordton, N.C., to 46 months and three years of supervised release after he pleaded guilty to one count of possession with intent to distribute crack cocaine. According to court documents, law enforcement arrested Makerson after other drug distributors identified him as their source of supply of crack cocaine. According to court records, at the time of his arrest, Makerson was on supervised release for a previous cocaine trafficking offense. He is serving 30 months for violating the terms of that supervised release, after which he will begin serving the 46 months imposed in this case.
ATF and the Rutherford County Sheriff’s Office led both investigations. Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
Four charged with illegally reentering the U.S.Read the Press Release
Four people were indicted for illegally reentering the United States, said U.S. Attorney Justin E. Herdman.
Perfecto Tehuacatl-Cuaquehua, 29, of Mexico, illegally reentered the U.S. on October 17, 2017, according to the indictment.
Alberto Orlando Hinojosa-Anguiano, 23, of Mexico, illegally reentered the U.S. on Oct. 5, 2017, according to the indictment
Bernabel Basurto-Anastacio, 28, of Mexico, illegally reentered the U.S. on October 20, 2017, according to the indictment.
Emilio Rivera-Portillo, 32, of Honduras, illegally reentered the U.S. following a previous deportation in 2003, according to the indictment.
The cases were investigated by U.S. Department of Homeland Security, Immigration and Customs Enforcement and U.S. Customs and Border Protection. The cases are being prosecuted by Assistant U.S. Attorneyd Thomas P. Weldon, Michael J. Freeman, Noah P. Hood and Alissa M. Sterling.
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.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four MS-13 Members Indicted in Maryland on Charges of Attempted MurderRead the Press Release
A federal grand jury has indicted four MS-13 members today on charges in connection with their MS-13 gang activities, including violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Office; Police Chief Tim Altomare of the Anne Arundel Police Department; State Attorney Wes Adams of the Anne Arundel State’s Attorney Office and Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office.
Charged in the three-count indictment is Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 19; Moises Alexis Reyes-Canales, aka “Sicopita,” 19; and Marlon Cruz-Flores, 22, all of Annapolis, Maryland.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, on Oct. 23, 2016, the defendants conspired to and attempted to murder two victims in Annapolis, Maryland, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
All of the defendants are currently detained on related state criminal charges. Initial appearances have not yet been scheduled.
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.
The investigation was conducted by HSI Baltimore, ATF Baltimore, Anne Arundel Police Department, Anne Arundel State’s Attorney Office, and the FBI. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Seema Mittal, as well as Special Assistant U.S. Attorney Samantha Mildenberg are prosecuting this case.
Four MS-13 Members Indicted on Charges of Attempted MurderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted four MS-13 members today on charges in connection with their MS-13 gang activities, including violent crimes in aid of racketeering, use, carry and possession of a firearm during and in relation to a crime of violence, and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Office; Police Chief Tim Altomare of the Anne Arundel Police Department; States Attorney Wes Adams of the Anne Arundel State’s Attorney Office; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Charged in the three-count indictment is Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 19; Moises Alexis Reyes-Canales, aka “Sicopita,” 19; and Marlon Cruz-Flores, 22, all of Annapolis, Maryland.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to indictment, on October 23, 2016 for the purpose of gaining entrance to and maintaining and increasing position in MS-13 the defendants conspired to and attempted to murder two victims in Annapolis, Maryland.
All of the defendants are currently detained on related state criminal charges.
The defendants face a maximum sentence of life in prison. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting U.S. Attorney Schenning and Acting Assistant Attorney General Blanco commended HSI Baltimore, ATF Baltimore, Anne Arundel Police Department, Anne Arundel State’s Attorney Office and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Seema Mittal, Trial Attorney Matthew Hoff of the Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg are prosecuting this case.
Former union official in Findlay charged with embezzling from United SteelworkersRead the Press Release
The former financial secretary of United Steelworkers Local 207-L in Findlay was indicted for embezzling more than $30,000 from the union, said U.S. Attorney Justin E. Herdman.
Ronald G. Coldren, 55, of Findlay, was indicted on one count of embezzlement from a labor organization.
Coldren served as financial secretary for the union from 2006 through 2016. Coldren embezzled approxmimately $30,639 from the union between 2012 and 2016, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Department of Labor, Office of Labor Management Standards. The case is being handled by Assistant United States Attorney Thomas P. Weldon
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.
Former University of Iowa Student Appears on Computer Fraud ChargesRead the Press Release
DAVENPORT, Iowa – On November 2, 2017, Trevor Graves, 19, a former University of Iowa student, appeared in federal court in front of United States Magistrate Judge Stephen B. Jackson, Jr., on a complaint charging from March of 2015 to November of 2016, Graves exceeded authorized access, knowingly caused the transmission of a code and command, and intentionally caused damage and loss that exceeded $5,000 to a University of Iowa protected computer, announced United States Attorney Marc Krickbaum.
The complaint alleges that while an Iowa student, Graves exceeded his authorized access to the University of Iowa computer network, changed grades, and obtained copies of exams for himself and others. Graves was released on conditions of pretrial release pending further proceedings.
This investigation is being conducted by the Federal Bureau of Investigation and the University of Iowa’s Department of Public Safety. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
The public is reminded that the charges are an accusation, and individuals are presumed innocent unless and until proven guilty.
-END-
Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Former Soldier Sentenced for Firearm Straw Purchasing SchemeRead the Press Release
In San Antonio, a federal judge sentenced 37-year-old former U.S. Army Sergeant Julian Prezas of San Antonio, to 200 months in federal prison for his role in a straw purchasing scheme that involved firearms going to the Gulf Cartel announced United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Prezas pay a $600 special assessment and be placed on supervised release for a period of 3 years after completing his prison term.
On December 12, 2016, Prezas pleaded guilty to five counts of making a false statement during the purchase of firearms and one count of attempting to export into Mexico defense articles on the U.S. Munitions List without obtaining a license or written authorization. By pleading guilty, Prezas admitted to conspiring with others from April 2015 to August 2015 to illegally purchase over 40 assault rifles. According to court records, Prezas was the actual purchaser of the firearms even though his co-defendants, other former U.S. Army soldiers, falsely indicated on their ATF form 4473 that they were buying the firearms at the time of purchase. Furthermore, Prezas, at times while in uniform and in a government vehicle, admittedly delivered the firearms to multiple individuals, one of whom was delivering them to members of the Gulf Cartel in Mexico.
Earlier this year, Judge Garcia sentenced Prezas’ co-defendants--33-year-old Thomas John Zamudio, 47-year-old Ricardo Esparza Salazar, and 32-year-old Christopher Brown--to two years probation after they pleaded guilty to making a false statement during the acquisition of a firearm.
“It is deeply troubling that a member of the United States military flagrantly violated federal firearms laws, and engaged three other servicemen in a straw purchasing scheme. This defendant was keenly aware that the firearms were destined for the Gulf Cartel in Mexico. While this may be rare, the sentencing sends a clear message that no one is exempt from obeying the law,” said ATF Special Agent in Charge Fred Milanowski.
“Stopping the flow of weapons illegally exported into Mexico is a top priority for HSI,” said Special Agent in Charge Shane Folden, HSI San Antonio. “These weapons often contribute to fueling the violence committed by drug cartels, which drastically affects communities both in Mexico and in the United States. This sentence sends a strong message to weapons traffickers that law enforcement will work aggressively with our federal law enforcement partners to combat this egregious and dangerous criminal activity.”
ATF agents and HSI agents, together with Army Criminal Investigation Command agents, investigated this case. Assistant United States Attorney Joseph Blackwell prosecuted this case on behalf of the government.
Former Resident of Las Vegas, N.M., Pleads Guilty to Synthetic Cannabinoid Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Ray L. Smith, 51, a former resident of Las Vegas, N.M., who now resides in Kingman, Ariz., pled guilty today in federal court in Albuquerque, N.M., to drug trafficking and money laundering charges. Smith entered the guilty plea under a plea agreement that recommends a prison sentence within the range of 12 to 57 months followed by a term of supervised release to be determined by the court.
The DEA arrested Smith and co-defendant Tamara Phillips, 47, also of Kingman, on Feb. 19, 2016, who were charged in a four-count indictment that was filed in the U.S. District Court for the District of New Mexico on Feb. 9, 2016. The indictment subsequently was superseded on May 24, 2017, to charge Smith and Phillips with conspiring to distribute synthetic cannabinoids, maintaining premises for the purpose of distributing synthetic cannabinoids, and participating in a conspiracy to launder drug proceeds. According to the superseding indictment, between Feb. 2010 and Feb. 2016, Smith and Phillips participated in a conspiracy to distribute synthetic cannabinoids from three businesses in New Mexico and Arizona owned by Smith that were jointly managed by Smith and Phillips
The superseding indictment alleged that Smith and Phillips used the three businesses – “Smokin Body Jewelry” stores located in Las Vegas, Raton and Kingman – to sell synthetic cannabinoids. Employees at the stores allegedly sold synthetic cannabinoids to customers while acting at the direction of Smith and Phillips. The superseding indictment included information about two alleged drug transactions occurring on Sept. 29, 2015; the first involved the sale of $1,687.46 of synthetic cannabinoids by an employee at the Raton store, and the second involved the sale of $1,556.91 of synthetic cannabinoids by an employee at the Las Vegas store. The superseding indictment included forfeiture allegations seeking forfeiture of property and other assets constituting the proceeds of the drug trafficking offenses charged in the superseding indictment or that were used to facilitate those crimes including seven parcels of real property located in New Mexico and Arizona, funds in 20 bank accounts, a safety deposit box, and four vehicles.
During law enforcement operations executed on Feb. 18, 2016, law enforcement agents and officers seized 18 bank accounts, a safety deposit box and the eight parcels of real property identified in the indictment. They also executed six search warrants, including search warrants for each of the three stores, a second commercial property in Kingman, and two residences in Kingman. The estimated aggregate value of the real property, currency and other assets seized on Feb. 18, 2016, exceeded $2.3 million, including approximately $220,000 in cash. The agents and officers also seized approximately 11 kilograms (24.2 pounds) of precursor chemicals allegedly shipped from China in the primary residence of Smith and Phillips. In addition, approximately 25 kilograms (55 pounds) of suspected synthetic cannabinoids with a street value of $250,000 were seized from the three stores and the residence of Smith and Phillips.
During today’s proceedings, Smith pled guilty to four counts of the superseding indictment charging him with conspiracy to distribute synthetic cannabinoids, two counts of maintaining a drug-involved premises, and conspiracy to commit money laundering. In entering the guilty plea, Smith acknowledged that from Feb. 2010 through Feb. 2016, he was the founder, owner and proprietor of “Smokin’ Body Jewelry,” which operated at various times from 2010 through 2016 in New Mexico and Arizona. Smith admitted that during that timeframe, he conspired to sell large quantities of synthetic cannabinoids to the general public.
Smith further admitted that synthetic cannabinoids were “Smokin Body Jewelry’s” best-selling item, and that he engaged in the routine practice of mixing, transferring and spreading deposits throughout personal and business bank accounts in order to conceal the source of his revenue as primarily derived from the unlawful sale of synthetic cannabinoids. Smith admitted he used revenue from the sale of synthetic cannabinoids to pay for his personal salary and the salaries of store employees, and to purchase several parcels of land, property and vehicles.
A sentencing hearing for Smith has yet to be scheduled.
Phillips has entered a plea of not guilty to the charges in the superseding indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA’s offices in Albuquerque, N.M., and Flagstaff, Lake Havasu and Yuma, Ariz., with assistance from the Raton Police Department and the Mohave Area General Narcotics Enforcement Team. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case.
The synthetic cannabinoids charged in the indictment are commonly referred to as “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Former Investment Adviser Sentenced to More than 13 Years in Federal Prison for $8 Million Investment Fraud SchemeRead the Press Release
Acting United States Attorney Corey Amundson announced that Senior U.S. District Judge James J. Brady sentenced BRYAN LEE ADDINGTON, age 56, of Ethel, Louisiana, to serve 159 months in federal prison for fraudulently obtaining over $8 million from victim investors in an investment fraud scheme. The Court also ordered ADDINGTON to make restitution payments to his victims in the amount of $5,393,346.63. ADDINGTON will be required to serve a three-year term of supervised release upon his release from prison.
Earlier this year, ADDINGTON pled guilty to mail fraud and aggravated identity theft after admitting that he executed a multi-million dollar investment fraud scheme from January 2010 through April 2016. As he acknowledged in court during his guilty plea, throughout the scheme, ADDINGTON failed to invest victim funds as promised and instead spent the funds on personal expenses. ADDINGTON sent his victim investors false account statements—often addressed from non-existent post office boxes—and issued his victim investors promissory notes which he had no intention of honoring.
ADDINGTON previously was registered as a broker with the Financial Industry Regulatory Authority (“FINRA”), a Washington, D.C.-based organization dedicated to market integrity and investor protection. In March 2011, following an investigation into allegations that ADDINGTON misappropriated client funds, FINRA barred ADDINGTON from acting as a broker or otherwise associating with firms that sell securities to the public. In June 2015, after finding that ADDINGTON had forged documents and misappropriated client funds, the Louisiana Department of Insurance revoked ADDINGTON’s insurance producer license. ADDINGTON continued his scheme, however. In all, through his investment fraud scheme, ADDINGTON fraudulently obtained $8.2 million from more than 30 different victim investors.
Acting U.S. Attorney Amundson stated, “For years, the defendant stole from dozens of victims who had placed their trust in him and lied to the victims to conceal his fraudulent scheme. We are pleased that he has finally been brought to justice, and we hope that today’s sentence will send a strong message to other corrupt financial advisers whose unchecked greed may tempt them to defraud their clients. I sincerely appreciate the hard work of the federal and state agencies, and the prosecutors from this office, who worked as a team to bring this defendant’s sophisticated and long-running scheme to an end.”
FBI Special Agent-in-Charge Jeffrey Sallet stated, “The FBI will continue to aggressively investigate complex financial crimes in cooperation with our federal, state, and local partners. Investment fraud is particularly concerning in that these fraudsters often entice our fellow citizens to entrust their entire life savings to them.”
Special Agent-in-Charge, Jerome R. McDuffie, IRS-Criminal Investigation, stated, “Bryan Addington lived a life filled with excess and luxury while he robbed his victims of their security, savings, and peace of mind. Now, he will have to serve time for his criminal actions. To those individuals who are looking to grow their wealth by defrauding others, know that the special agents of IRS-Criminal Investigation are policing the financial industries. We stand ready to assist our federal, state, and local law enforcement partners in their efforts to hold fraudsters such as Addington accountable for their victimization of the innocent.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance’s Division of Insurance Fraud and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.
Former Hospital Worker Sentenced in Attack at Fort LeavenworthRead the Press Release
KANSAS CITY, KAN. – A former civilian hospital employee was sentenced today to the statutory maximum of 20 years in federal prison plus 3 years of supervised release for attacking a woman whom he set on fire, U.S. Attorney Tom Beall said. In addition the Defendant was ordered to pay restitution in the amount of $3,464,965.80 to the victim, Lieutenant Katie Ann Blanchard.
In August, a jury found Clifford Currie, 55, Leavenworth, Kan., guilty of one count of assault with intent to commit murder.
During trial, prosecutors presented evidence that on Sept. 7, 2016, Currie threw gasoline or some other inflammable liquid on his supervisor, Katie Ann Blanchard, lit her on fire and assaulted her with a straight edge razor and scissors. A co-worker came to Blanchard’s aid when she heard screams and saw Blanchard on fire from the chest up. Currie was subdued by hospital employees and then arrested
Beall commended the FBI, the U.S. Army Military Police, Assistant U.S. Attorney Kim Flannigan and Special Assistant U.S. Attorney James Ward for their work on the case.
Former Employee Pleads Guilty to Using Credit Card Issued to Company Founder’s WifeRead the Press Release
CORPUS CHRISTI, Texas - A 46-year-old resident of Corpus Christi has entered a guilty plea to credit card fraud, announced Acting U.S. Attorney Abe Martinez.
Adrianne Cantu Hewes was the office manager for Wisznia Associates in Corpus Christi. Following her termination, the company discovered multiple American Express credit cards issued in the name of the company founder’s wife had been paid with company funds. The cards were mailed to the Wisznia Associate’s offices in Corpus Christi with the victim having no knowledge of their existence.
An FBI investigation confirmed many of the purchases directly benefited Hewes. Agents were able to document Hewes actual possession and use of the cards on several occasions.
At today’s hearing before U.S. District Judge Nelva Gonzales Ramos, Hewes admitted she had knowingly used an American Express credit card issued in the name of the company founder’s wife, without permission, to obtain things of value worth between $40,000 and $95,000.
Judge Ramos set sentencing for Jan. 31, 2018. At that time, Hewes faces up to 10 years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
The FBI investigated. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Former Dallas Businessman Sentenced for Nearly $2 Million Bank FraudRead the Press Release
DALLAS — James Edward McIntire, 54, of Dallas, was sentenced today before Chief U.S. District Judge Barbara M.G. Lynn to 27 months in federal prison and ordered to pay $1,997,215 in restitution for bank fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
McIntire pleaded guilty in March 2016 to one count of a bank fraud scheme to defraud Opportunity Bank. Judge Lynn ordered him to surrender to the Bureau of Prisons on January 2, 2018.
According to documents filed in the case, McIntire founded the business, McIntire and Associates (MA). To support ongoing operations, MA often needed to obtain loans and/or lines of credit from banks or from some other funding source. MA would often provide security for the line or line of credit by using MA’s accounts receivable as collateral for the loan.
From approximately March 2008 through September 2009, McIntire ran a scheme to deceive and fraud Opportunity Bank of Richardson, Texas, in order to fraudulently obtain approval of a $2 million line of credit from the bank, using MA’s accounts receivables as security. When MA initially applied for the line of credit, McIntire falsely represented and fraudulently inflated the total amount of MA accounts receivable submitted to Opportunity Bank in order to mislead and deceive the bank about the collateral’s true value.
In court filed documents, McIntire admitted that as part of the scheme to defraud, he fraudulently inflated the value of MA’s accounts receivables in order to have access to a higher line of credit than what Opportunity Bank would have approved had he disclosed the true value of MA’s accounts receivables. In addition to submitting a large number of false and fraudulent weekly and monthly accounts receivable schedules to Opportunity Bank, McIntire also created fictitious packing slips and invoices for MA products that were not actually shipped to the customer, which caused the dollar value of the MA accounts receivable to be falsely inflated. As part of the scheme to defraud, McIntire repeatedly submitted falsely inflated accounts receivable figures to Opportunity Bank over an 18 month period in order to continue to make draws on the line of credit.
McIntire failed to repay the line of credit to Opportunity Bank, causing the bank to suffer a loss of $1,997,215.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #
Former Chief Financial Officer of Osiris Therapeutics, Inc., Pleads Guilty to Lying to AuditorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that PHILIP JACOBY, the former chief financial officer of Osiris Therapeutics, Inc. (“Osiris”), a developer and producer of regenerative medicine products, was charged by criminal information (the “Information”) and pled guilty today to lying to Osiris’s auditors in connection with the auditors’ review of Osiris’s 2014 10-K and Third Quarter 2015 10-Q filings. JACOBY pled guilty before U.S. District Judge Denise Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Philip Jacoby, the former CFO of a pharmaceutical company, admitted today to lying to auditors conducting an examination of the financial well-being of his company. Jacoby fabricated documents, made false statements, and asked others to backdate critical transactions in furtherance of his scheme to mislead auditors. For his criminal conduct, which ultimately misled those looking to invest in his publicly traded company, Jacoby faces time in federal prison.”
Inspector-in-Charge Philip R. Bartlett said: “In a misguided effort to avoid a restatement of Osiris’s fourth quarter revenue numbers, Philip Jacoby lied about the conversion of $1.1 million dollars of consignment inventory to a final sale. He wasn’t so clever when he left a paper trail of evidence Postal Inspectors followed right back to him.”
According to allegations contained in the Information and statements made in public Court proceedings:
Osiris, headquartered in Columbia, Maryland, is a publicly traded company specializing in the research, development, and marketing of regenerative medicine products. Osiris sold its products either through its direct sales force, or, more typically, through numerous distributors. Osiris’s securities traded under the symbol “OSIR” on the NASDAQ stock exchange.
From in or about 2008 up to and including in or about September 2015, JACOBY held the position of chief financial officer (“CFO”) of Osiris. From in or about September 2015 through in or about January 2016, JACOBY held the position of principal accounting officer. During the period that JACOBY was the CFO of Osiris, he signed Osiris’s quarterly and yearly financial reports. These reports were required to be filed with the United States Securities and Exchange Commission (“SEC”) and provided the investing public with information regarding Osiris’s financial performance.
Although Osiris was initially a research and development company, by at least in or about 2014, Osiris’s management was focused on the company’s “top line,” or gross revenue growth. Osiris was especially focused on being able to demonstrate quarter-over-quarter revenue growth, that is, reporting revenue for each quarter that was greater than the previous quarter’s. For example, a former CEO of Osiris (the “CEO”) regularly prepared internal presentations emphasizing the company’s historical quarter-over-quarter revenue growth and emphasizing the need to achieve future growth. Similarly, in public earnings calls run by the CEO and in its earnings press releases, Osiris touted its revenue performance and quarter-over-quarter revenue growth.
Improper Accounting at Osiris With Respect to Distributor-1
Between approximately 2010 and approximately 2015, Distributor-1 was a distributor for Osiris’s Ovation product, among other products. Distributor-1 was owned in its entirety by a sole principal (“Owner-1”).
In or about September 2013, the Food and Drug Administration (“FDA”) informed Osiris that Ovation failed to meet certain regulatory requirements and thus required pre-marketing approval from the FDA, which Ovation did not have. Thereafter, Osiris agreed with the FDA that it would not sell Ovation after December 31, 2014.
In order to maintain access to Ovation following December 31, 2014, Distributor-1 agreed to take possession of a significant quantity of Ovation prior to December 31, 2014, and by December 2014 was in possession of approximately $1.8 million worth of Ovation. Because Distributor-1 lacked the ability to pay for such a large purchase, the Ovation was shipped to Distributor-1 on consignment. Because the product was on consignment, under governing accounting rules Osiris could not properly recognize revenue until Distributor-1 had sold the product to an end user or Distributor-1 otherwise agreed to purchase the product.
In or about December 2014, JACOBY requested that Owner-1 convert some or all of the consigned inventory to inventory owned by Distributor-1 by December 31, 2014. To the extent other revenue recognition criteria were satisfied, completion of the actual sale of the inventory to Distributor-1 by December 31, 2014, would have allowed Osiris to recognize revenue for that product in 2014 and reference that revenue in the 2014 10-K it would subsequently file.
Notwithstanding internal pressure to make sales, however, JACOBY and Owner-1 did not reach a final agreement regarding the conversion of the consigned inventory until at least in or about January 2015. Despite the fact that no agreement was reached in 2014, Osiris, at the direction of JACOBY, booked approximately $1.1 million in revenue related to the conversion of consignment product in the fourth quarter of 2014 (the “Distributor-1 Transaction”).
Jacoby Conveys False Information to Auditors After Improper Accounting Is Questioned
In or about October 2015, the Company’s auditors (the “Auditors”), in connection with an inspection by the Public Company Accounting Oversight Board (the “PCAOB”), requested additional documentation and information supporting Osiris’s recognition of revenue in December 2014 relating to the Distributor-1 Transaction. In an effort to deceive the Auditors and the PCAOB, JACOBY provided or caused to be provided false, inaccurate, and misleading information to the Auditors.
For example, in or about October 2015, JACOBY and others prepared a memorandum from Osiris to its Auditors attempting to justify the recognition of $1.1 million of revenue from the Distributor-1 Transaction in the fourth quarter of 2014. In the memorandum, JACOBY falsely represented that on December 31, 2014, JACOBY had “discussed the sale terms with [Owner-1] via a conference call, and [Owner-1] agreed to purchase 933 units of Ovation for $1,072,950.” As JACOBY well knew, no telephone call had taken place on December 31, 2014.
Similarly, on or about November 5, 2015, JACOBY created a letter, backdated to December 29, 2014, purporting to memorialize an agreement between Osiris and Distributor-1 (the “Backdated Letter”). That same day, JACOBY used his personal email account to send the Backdated Letter by email to Owner-1 stating:
“attached is something that I think you should find and send to me in an email saying you had this in your file from late last year, and just came across it – and that it does memorialize our several phone conversations . . . . . Call me if necessary, but write a wonderfully warm and convincing email, please – send it to my Osiris email.”
Owner-1 complied and sent the Backdated Letter to Jacoby’s Osiris email account. JACOBY then forwarded Owner-1’s email containing the fraudulent Backdated Letter to the CEO and the then-CFO of Osiris, who forwarded the document to the Auditors.
* * *
PHILIP JACOBY, 65, pled guilty to one count of making fraudulent statements to Osiris’s auditors, which carries a maximum sentence of 20 years in prison. The defendant also faces a maximum fine of $5 million. Sentencing before Judge Cote has been scheduled for February 2, 2018, at 11:00 a.m.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the investigative work of the United States Postal Inspection Service and also thanked the SEC, which filed a parallel civil case today.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brendan F. Quigley, and Daniel B. Tehrani are in charge of the prosecution.
Forest City Man Pleads Guilty to Making Fake MoneyRead the Press Release
A man who manufactured counterfeit twenty dollar bills pled guilty today in federal court in Cedar Rapids.
Victor Ineson, Jr., age 42, from Forest City, Iowa, was convicted of one count of manufacturing counterfeit currency. Two additional charges, relating to the possession and passing of counterfeit currency, were dismissed as part of a plea agreement.
At the plea hearing, Ineson admitted that, from April 2017 through mid-May 2017, he had counterfeited and altered multiple $20 bills at his residence in Forest City, Iowa. In a plea agreement, Ineson admitted that he would use chemicals to wash the print off of lower denomination bills and reprint each side of the bill so that it appeared to be a $20 bill. Ineson used some of these counterfeit bills to pay for merchandise at area businesses. Law enforcement executed a search warrant at Ineson’s residence on May 18, 2017, and discovered at least $335 in counterfeit currency.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Ineson has been placed on home detention pending sentencing. He faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment. He also agreed to pay restitution to all businesses that received the counterfeit currency.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Forest City Police Department, the Britt Police Department, the Mason City Police Department, and the Clear Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3042.
Follow us on Twitter @USAO_NDIA.
Final Defendants Sentenced in Synthetic Drug Distribution ConspiracyRead the Press Release
TYLER, Texas – A mother and son have been sentenced to federal prison for their roles in a synthetic drug conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Sharjeel Jeff Ali, 29, and his mother, Nadia Farishta, 54, both of Dallas, pleaded guilty in June 2017 to conspiracy to distribute and possession with intent to distribute Schedule I controlled substances, conspiracy to distribute and possession with intent to distribute controlled substance analogues, and engaging in monetary transactions. Ali was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield. Farishta was sentenced to 47 months in federal prison today.
Earlier this year, Farishta's ex-husband, Saleem Jiwani, of Tyler, was sentenced to 60 months in federal prison; her daughter, Nimrose Khan, of Carrollton, was sentenced to 24 months in federal prison; and her son-in-law, Adeel Khan, of Carrollton, was sentenced to 30 months in federal prison; for similar charges.
The defendants will forfeit over $250,000 in seized United States currency and bank accounts, approximately 55 pounds of synthetic drugs, and drug paraphernalia. The United States will also take money judgments in the amount of $500,000 against Jiwani and Farishta.
The family members were indicted by a federal grand jury on Aug. 3, 2016. According to the indictment, synthetic drugs were distributed by the co-conspirators from the Ashes Smoke Shop located in downtown Plano, Texas, and by Jiwani at the Minute Stop convenience store located in Tyler, Texas. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances; conspiracy to distribute and possess with intent to distribute controlled substance analogues; conspiracy to commit offenses against the United States; conspiracy to sell and offer for sale drug paraphernalia; engaging in monetary transactions in property derived from specified unlawful activity and aiding and abetting; and maintaining a place for the distribution of a controlled substance or controlled substance analogue and aiding and abetting.
“The scourge of illegal drug use in our community is as great now as ever before” said Acting U.S. Attorney Featherston. “In this case, the selling of chemically laced leaves and other substances to be sold as fake marijuana to young people is reckless. No one has any idea what exactly was sprayed onto the “K-2” substance, yet these synthetic drugs were sold for lots of money. It’s crazy to me that people will ingest these so called “synthetic” drugs with nothing more than a guess as to what high or harm it will do to them. The investigators and prosecutors did a great job in putting this case together.”
On Aug. 4, 2016, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Plano, Carrollton, Dallas, and Tyler, Texas as a result of a joint investigation by the U.S. Drug Enforcement Administration; Plano Police Department; Internal Revenue Service-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives Asset Forfeiture and Seized Property Division; and Smith County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Federal Prisoner in Beaumont Sentenced for Attempting to File Bogus Liens Against Former U.S. AttorneyRead the Press Release
In Beaumont this morning, 40-year-old Isaac Mireles of Houston was sentenced to 78 months in federal prison for attempting to file fraudulent liens against a former United States Attorney for the Eastern District of Texas announced United States Attorney Richard L. Durbin, Jr., Western District of Texas, and Federal Bureau of Investigation Special Agent in Charge Perrye K. Turner, Houston Division.
In addition to the prison term, United States District Judge Marcia A. Crone ordered that Mireles be placed on supervised release for a period of three years after completing his prison term. Judge Crone also ordered that the 78-month prison term run consecutive to a 57-month federal prison term Mireles is currently serving.
On June 21, 2017, following a two-day trial, a federal jury convicted Mireles of two counts of retaliation against a federal officer or employee by false claim. Testimony during trial revealed that Mireles, while in the custody of the Bureau of Prisons in Beaumont, knowingly mailed documents in an attempt to file two false liens—one on January 14, 2016, in Brazoria County; the other, on February 17, 2016, in Harris County. Both retaliatory liens claimed the former U.S. Attorney, whose official duty was to oversee the prosecution of the defendant in a prior federal drug case, owed Mireles $5 million.
On June 17, 2014, Mireles pleaded guilty to two federal conspiracy charges involving the possession with intent to distribute cocaine and marijuana. On February 4, 2015, United States District Judge Thad Heartfield sentenced Mireles to 57 months incarceration for those offenses.
“Mireles’ sole purpose was to harass this public servant for doing his job. Such malicious harassment of public officials is unacceptable and will not be tolerated,” stated United States Attorney Richard L. Durbin, Jr.
Agents with the FBI investigated this case. Assistant United States Attorney Sarah Wannarka of the Western District of Texas prosecuted this case on behalf of the government. The United States Attorney’s Office for the Eastern District of Texas was recused in this matter.