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Friday 15 September 2017
Lubbock Man Sentenced in Fentanyl Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Brian Landon Brown, 32, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 240 months in federal prison for his role in a fentanyl distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Brown pleaded guilty in June 2017 to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He has been in custody since his arrest in May 2017.
“Fentanyl and its analogues are extremely potent synthetic opioids that can be 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine,” said U.S. Attorney Parker. “As sadly proved to be the case here, it is also extremely deadly and failure to stop those who sell it is simply not an option.”
According to plea documents filed in the case, in the Summer of 2016, the Drug Enforcement Administration (DEA) and the Lubbock Police Department began receiving information about a large-scale drug ring distributing Fentanyl and Fentanyl analogues in the Lubbock area. Law enforcement learned that Brown was one of the largest distributors for the group, selling up to 10 grams of Furanyl Fentanyl per day.
On October 6, 2016, at 2:30 p.m. Brown met a 26-year-old male and sold Furanyl Fentanyl to that individual. Around 4:15 - 4:30 a.m. on October 7, 2016, that same individual was discovered unconscious at his residence. At approximately 5:05 a.m. that same day, the individual was pronounced dead. The Lubbock County Medical Examiner (LCME) did an autopsy and determined that the cause of death was drug toxicity from Furanyl Fentanyl. An investigation into the cause of death led law enforcement to Brown, who when confronted by law enforcement, admitted to selling Furanyl Fentanyl to the 26-year-old male the night of his death.
On October 17, 2016, Brown was arrested in Lubbock, Texas, on an unrelated arrest warrant. At the time of his arrest, Brown possessed a vial of .291 net grams of Furanyl Fentanyl. Brown admitted that he typically sold several grams of Furanyl Fentanyl per day.
Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance. A lethal dose of furanyl fentanyl is the equivalent of a single grain of salt.
The case was investigated by the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorneys Jeffrey Haag and Russell Lorfing prosecuted.
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Long Island Investment Fund Manager Sentenced to 12 Years’ Imprisonment for $96 Million Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Senior United States District Judge Arthur D. Spatt sentenced Brian R. Callahan to 12 years’ imprisonment and three years’ supervised release, and ordered that he pay approximately $67.6 million in restitution following his April 29, 2014 guilty plea to securities fraud and wire fraud.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For years, Brian Callahan peddled lies to unsuspecting investors, causing some to lose their life savings, and to delay their retirements,” stated Acting United States Attorney Rohde. “Callahan has now been held to account for his deceit and the harm he caused.” Ms. Rohde expressed her grateful appreciation to the Internal Revenue Service, Securities and Exchange Commission, and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation and prosecution of this case.
“Callahan not only stole money from his investors, but their trust as well,” stated FBI Assistant Director-in-Charge Sweeney. “It’s disheartening to think there are people out there who would deliberately take from others for their own personal gain, but today’s sentence reminds us how this game plays out in the end. May it be a message to other crooks that this type of behavior won’t be tolerated.”
According to court filings and statements made in court, between December 2006 and February 2012, Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed. He had assured those investors that their money would be invested in mutual funds, hedge funds, and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. Among other things, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, that he owned with his brother-in-law and co-defendant, Adam Manson. He also commingled the money from the various investment funds and used it to pay tens of millions of dollars in partial redemptions to his victim investors to keep the Ponzi scheme afloat. He paid himself approximately $6 million, which he used to purchase luxury homes in Old Westbury and Westhampton, New York, and luxury cars, including a Range Rover and a BMW, and to pay large credit card bills and dues associated with his golf club. To avoid detection and continue the scheme, Callahan sent fake account statements to investors that falsely showed that their funds were invested and performing well, and he repeatedly lied to his investors about both the nature and status of their investments.
In December 2015, Judge Spatt entered a decree ordering the forfeiture of approximately $40 million in net proceeds from the sale of the Montauk property.
This prosecution was the result of efforts by the Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone, Brian D. Morris and Karin K. Orenstein are in charge of the prosecution.
The Defendant:
BRIAN R. CALLAHAN
Age: 48
Old Westbury, New York
E.D.N.Y. Docket No. 13-CR-453
Lockport Man Charged with Heroin DeathRead 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 a federal grand jury has returned and indictment charging Pablo Lugo III, 22, of Lockport, NY, with distribution of fentanyl causing death. The charge carries a mandatory minimum penalty of 20 years in prison and a maximum of life.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on March 28, 2015, the defendant provided heroin to a 22-year-old female victim, which resulted in her death.
Acting U.S. Attorney Kennedy noted that, “[e]arlier this week, Attorney General Sessions stated that, ‘The first and most important job of any government is to protect the safety and the rights of its citizens. The first civil right is to be alive.’" Kennedy continued, “[s]adly, the consumption of opioids is robbing many individuals of that first and most important civil right—the right to live—at an alarming rate. Today’s indictment is a reminder that this Office will continue to do all that it can to protect the lives and rights of all of our citizens, including those that struggle with addiction.”
DEA Special Agent-in-Charge James Hunt stated, “This arrest sends a warning to both the drug dealer and drug users. Drug traffickers are reminded that enhanced charging penalties apply if an overdose death results from their illegal drug sales. And users are forewarned that today’s heroin harbors highly potent opioids that can cause instantaneous death.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Voutour; and the Lockport Police Department, under the direction of Chief Michael Niethe.
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.
Lawyer Pleads Guilty to Distributing Videos of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C., lawyer pleaded guilty today to distributing videos of child sexual abuse.
According to court documents, Jason Mark Sims, 35, replied to an advertisement placed by an undercover FBI agent on Craigslist. Sims and the undercover agent discussed meeting so that Sims could sexually abuse the undercover agent’s purported 10-year-old daughter. Although Sims ultimately declined to meet the undercover in person, he did provide the undercover with links to videos depicting the sexual abuse of girls as young as 4 years old.
Sims pleaded guilty to distribution of child pornography and faces a mandatory minimum sentence of five years and a maximum of 20 years in prison when sentenced on December 1, 2017. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorneys Laura Fong and Kellen S. Dwyer are prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
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. 1:17-cr-191.
La Familia Michoacán Drug Cartel Leader Pleads Guilty to Drug Distribution and Money Laundering ChargesRead the Press Release
DALLAS — Arnoldo Rueda-Medina, aka “La Minsa,” 47, appeared before U.S. Magistrate Judge Irma C. Ramirez today and pleaded guilty to federal offenses in connection with his leadership roles in the “La Familia Michoacán” Mexican drug cartel, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Rueda-Medina pleaded guilty to one count of conspiracy to possess with the intent to distribute a Schedule II controlled substance and one count of conspiracy to launder monetary instruments. He faces a statutory sentence of not less than 10 years and up to life in federal prison and up to a $4 million fine on the drug conspiracy count. The money laundering conspiracy count has a maximum statutory sentence of 20 years in federal prison and a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater. Rueda-Medina will remain in custody pending sentencing.
“The cartel leadership in Mexico is not immune from our reach,” said U.S. Attorney Parker. “It may take time, but we’ll take whatever time is necessary to bring justice to those who export their drug-related misery and death to our north Texas communities.”
“High ranking Cartel figures operating in the North Texas area will not be tolerated,” said the DEA Dallas Field Division’s Special Agent in Charge Clyde E. Shelley, Jr. “The DEA and The US Attorney’s Office are working around the clock to combat the loss of life due to Medina and the continuing threat posed to our communities by the remnants of the La Familia Michoacán.”
On February 25, 2010, the U.S. Department of the Treasury sanctioned Rueda-Medina under the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for his involvement in drug trafficking. The Kingpin Act blocks all property and interests in property, subject to U.S. jurisdiction, owned or controlled by significant foreign narcotics traffickers, as identified by the President. The act also prohibits U.S. citizens and companies from doing any kind of business activity with Rueda-Medina, and it virtually froze all of his assets in the United States. Rueda-Medina was arrested in Michoacán, Mexico on July 11, 2009, and was extradited to the United States on January 27, 2017.
According to plea documents, from September 2007 through October 21, 2009, Rueda-Medina held a leadership position within the La Familia Michoacán (LFM), a Mexican drug cartel and organized crime syndicate based in the Mexican state of Michoacán. LFM was responsible for trafficking thousands of kilograms of methamphetamine into the United States through border checkpoints near Laredo, Texas and Tijuana, Mexico and delivered to stash locations in the Northern District of Texas and elsewhere.
LFM used a sophisticated network of individuals in Mexico and the United States, according to plea documents, to distribute the methamphetamine in the Dallas-Fort Worth area and to collect proceeds from the methamphetamine sales. The drug proceeds that were collected were delivered to cartel members or associates in Mexico either by way of bulk cash smuggling in vehicles utilized by LFM couriers or through money remitters such as Western Union.
The case was investigated by the Drug Enforcement Administration, the Dallas Police Department and the Garland Police Department; the U.S. Marshals Service, U.S. Customs and Border Protection and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) provided special assistance. Department of Justice’s Office of International Affairs also provided assistance in bringing the defendant to the United States to face charges. The Government of Mexico also provided assistance in the investigation and in securing the extradition of Rueda-Medina to the United States.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney George Leal are in charge of the prosecution.
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Jury Convicts Man of Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was convicted by a jury Thursday for receipt of child pornography found on his laptop computer, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Office, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department.
According to the indictment, in May 2013, Frankie Allen Peraza, 39, received videos that depicted minors engaged in sexually explicit conduct. United States District Judge Andrew P. Gordon presided over the four-day jury trial. Sentencing is set for December 21, 2017. At the time of sentencing, Peraza faces the maximum statutory penalty of 20 years in prison and a $250,000 fine. In addition, he faces a term of supervised release and would be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Elham Roohani and Alexandra Michael.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Jury Convicts Lawrence Man of Illegally Possessing a FirearmRead the Press Release
BOSTON – A Lawrence man was found guilty yesterday by a federal jury in Boston of unlawful possession of a firearm.
Benito Rivera, 45, was convicted of one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 9, 2017.
On August 7, 2016, a law enforcement officer stopped Rivera on Route 1 in Lynnfield for operating a motor vehicle with a revoked registration. After being ordered to exit the vehicle, Rivera fled the scene on foot. The foot chase ended when the officer tackled Rivera and the two men rolled onto Route 1. While fleeing, two civilian witnesses saw Rivera throw an object into a nearby backyard. A search of the yard resulted in the seizure of a Hi-Point, Model C9, 9mm pistol and seven rounds of 9mm ammunition. Previously, Rivera had been convicted in a Massachusetts State Court of armed robbery.
The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorneys Anne Paruti, David G. Tobin, and Nicholas Soivilien of Weinreb’s Major Crimes Unit are prosecuting the case.
Joshua Alan Belcher Sentenced to 151 Months in Prison for Distributing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn.- On September 14, 2017, Joshua Alan Belcher, 23, of Madisonville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 151 months in prison for distributing and possessing child pornography. Following his release from prison, Belcher will be supervised by the U.S. Probation Office for 20 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Belcher pleaded guilty in January 2017 to federal charges stemming from his use of a peer-to-peer file sharing software to make child pornography available for downloading by others via the Internet. A search of his residence resulted in the seizure of evidence confirming that he had been distributing child pornography that he had accessed, downloaded, and stored on his computer.
This investigation was conducted by Knoxville Police Department’s Internet Crime Against Children Task Force and the U.S. Department of Homeland Security Department. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Jamaican National Sentenced to Prison in Connection with Lottery Fraud Scheme Based in JamaicaRead the Press Release
A Jamaican citizen charged in connection with the operation of a Jamaica-based fraudulent lottery scheme was sentenced to two years in prison by the federal court in Charlotte, North Carolina, the Department of Justice announced today.
Shashana Stacyann Smith, 34, was sentenced to serve 24 months in prison by U.S. District Court Judge Robert J. Conrad Jr. Smith was also ordered to pay $167,532.95 in restitution.
Smith pleaded guilty on March 31, to one count of conspiracy to commit mail and wire fraud in the Western District of North Carolina. As part of her guilty plea, Smith acknowledged that from in or about early 2015 through at least in or about August 2016, she was a member of a lottery fraud conspiracy that targeted victims in the United States.
“Today’s sentencing demonstrates the Justice Department’s commitment to combatting foreign-based lottery fraud schemes targeting individuals in the United States,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Financial schemes designed to defraud unsuspecting victims will be prosecuted to the fullest extent of the law.”
Smith was arrested in Florida on Dec. 14, 2016 after being indicted by a grand jury in Charlotte, North Carolina. As part of her guilty plea, Smith acknowledged that victims of the scheme received a telephone call stating that they had won money in a sweepstakes or lottery. Victims were instructed to send money for fees or other expenses in order to release their purported lottery winnings. The victims of the scheme sent hundreds of thousands of dollars to Smith, who then sent, transported, or facilitated payment of a portion of the money to Jamaica. Smith acknowledged there was no lottery, that there were no winnings, and that she kept some the victims’ money for her own benefit.
“Engaging in a fraud scheme targeting Americans carries serious consequences, including time in prison,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “Particularly insidious are those who target victims in the sanctity of their home and those who unfortunately do not quite understand the consequences of providing information to these fraudsters. We consider today's sentence a win for all Americans who are weary of these phone call scammers.”
“The Postal Inspection Service is dedicated to investigating and combating fraud on American citizens, many of whom are older,” said Inspector in Charge Daniel Brubaker of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “Today’s sentencing demonstrates our efforts to catch criminals who use the U.S. mail to commit their criminal activity.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens.
Acting Assistant Attorney General Readler and U.S. Attorney Rose commended the investigative efforts of the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation. The case was prosecuted by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Kelli H. Ferry of the Western District of North Carolina.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit its website at https://www.justice.gov/usao-wdnc.
Indictment Unsealed Today Charging Stockton Man with Possessing Stolen Interstate Shipments and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — On July 6, 2017, a federal grand jury returned a five-count indictment against Raeef Ohan Ohan, 58, of Stockton, charging him with possession of goods stolen from interstate shipments and engaging in monetary transactions in criminally derived property, U.S. Attorney Phillip A. Talbert announced.
Ohan was arraigned today and entered a plea of not guilty. He is scheduled to appear before U.S. District Judge Morrison C. England Jr. on October 26, 2017.
According to court documents, Ohan was found in possession of thousands of dollars’ worth of stolen goods, which had been embezzled or stolen from truck trailers, vehicles or warehouses while the goods were being shipped and transported interstate. The stolen goods included pet food, nutrition drinks, and concrete, and were stolen over the course of several years beginning in at least 2012.
This case is the product of an investigation by the TRaCE (Tax Recovery and Criminal Enforcement) Task Force. The TRaCE Task Force joins existing state and federal resources to collaboratively combat illegal business activities that rob California of public funds and its citizens of public services. The TRaCE Task Force is composed of investigators and special agents from multiple agencies working together to investigate, prosecute and recover revenue lost to the underground economy. These agencies include the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service Criminal Investigation; California Department of Justice - Bureau of Investigation, Office of the Attorney General; California Department of Tax and Fee Administration; California Franchise Tax Board; California Employment Development Department; and California Department of Motor Vehicles. Assistant United States Attorneys Jared C. Dolan and Amy Schuller Hitchcock are prosecuting the case.
If convicted, Ohan faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Hudson man indicted for claiming false tax credits for undocumented workers from offices in Canton and AkronRead the Press Release
A Hudson man was indicted on 30 counts of aiding and abetting in filing false tax returns, said U.S. Attorney Justin E. Herdman and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Sergio Gardea, 43, operated a tax preparation business, the Centro San Jose, from an office in Canton. He opened a second location in Akron in 2013. He prepared taxes mainly for Spanish-speaking workers and undocumented immigrants from Guatemala and Mexico who worked on farms or in farm-related factories in Stark County, according to the indictment.
Gardea obtained individual tax identification numbers for undocumented immigrants in order to file taxes on their behalf. These are numbers used by people unable to obtain a Social Security number but are still required to file U.S. tax returns, according to the indictment.
Gardea also obtained individual tax identification numbers for dependents who lived outside of the U.S. Taxpayers are allowed to claim the child tax credit, but only if their dependents live in the U.S. for the entire year or much of the year, according to the indictment.
Gardea filed tax returns for clients in which he claimed child tax credits when those dependents lived outside the U.S., according to the indictment.
“This defendant fraudulently claimed hundreds of thousands of dollars in refunds,” Herdman said. “He will be held accountable for his actions.”
“Based on the allegations in the indictment, it is unfortunate to see that so many fraudulent tax returns were filed by Gardea, especially when filing a tax return is one of the biggest financial transactions a taxpayer makes each year,” Korner said.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant United States Attorney Teresa L. Riley following an investigation by the IRS.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Houston Man Gets Massive Sentence for Sex Trafficking of Minors for Commercial SexRead the Press Release
HOUSTON – A 22-year-old Houston man has been handed a significant federal prison sentence following his convictions of trafficking two children under the age of 18 for commercial sex, announced Acting U.S. Attorney Abe Martinez. Antonio Rasheed Benjamin aka “Papi P” pleaded guilty March 24, 2017.
Today, U.S. District Judge Melinda Harmon ordered Benjamin to prison for 360 months. Following that 30-year-sentence, Benjamin will serve 10 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Benjamin began after a woman he had assaulted contacted authorities in March 2016.
Benjamin knew the girls were minors and groomed them to engage in commercial sex by promising them riches and a lavish lifestyle. He arranged for girls to work as strippers and prostitute for him. He regularly transported women to and from strip clubs, rented hotel rooms for the purpose of commercial sex acts and posted ads on backpage.com advertising the girls. Benjamin took all of the money the minors earned.
One of the victims said she felt obligated to live with Benjamin and was forced to prostitute for him. He would site next to her and instruct her on what to say to customers on the phone. She indicated that while she was with him, she worked every day and averaged two or more customers per night. Another victim stated that girls who stripped in clubs for him had to make $100 a night or “there were consequences.”
On more than one occasion, Benjamin left one of the victims stranded in unknown locations. Another victim recounted an incident in which Benjamin had punched her in the chest and it hurt for days.
Benjamin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses. In 2016, the Human Trafficking Rescue Alliance received $1.5 million in federal funds from the Bureau of Justice Assistance and the Office for Victims of Crime through the Enhanced Collaborative Model Anti-Human Trafficking Task Force Program, which provides funding to investigate and prosecute cases of human trafficking and provide services to victims.
Assistant U.S. Attorney Sherri L. Zack is prosecuting this case.
Homer man sentenced to 10 years in prison for methamphetamine distributionRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Homer was sentenced Thursday to 120 months in prison for possessing with intent to distribute methamphetamine after a bag containing the drug was found in a relative’s clothes dryer.
Vincent McDaniel, 44, of Homer, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute methamphetamine. He was also sentenced to 10 years of supervised release. According to the March 9, 2017 guilty plea, a relative of the defendant contacted law enforcement on November 12, 2015 to report that she had found something suspicious in a bag, which was left in the clothes dryer at her home in Homer. After examining and testing the contents of the bag, law enforcement determined it was 526.7 grams of methamphetamine. McDaniel had asked for access to the home while the relative was away, and after his arrest, had asked other relatives to retrieve the bag for him before law enforcement could obtain it.
The DEA and the Homer Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles prosecuted the case.
Hinds County Man Sentenced to 87 Months in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss – Michael Evans, 34, from Jackson, was sentenced today by U.S. District Judge Henry T. Wingate to 87 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze. Evans was also ordered to pay a $1500 fine.
Evans pled guilty on June 9, 2017, to possessing a firearm at a time in which he was already a convicted felon. On March 29, 2017, an auto theft took place and Jackson Police Department officers were able to track the vehicle. They pursued the vehicle which ultimately crashed into another vehicle. Officers discovered a firearm on the defendant once they approached the wrecked vehicle.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorney Abe McGlothin.
Heroin Traffickers Sentenced to Federal Prison for Roles in Multi-State ConspiracyRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced that Chief U.S. District Judge Brian A. Jackson has sentenced four defendants - two from Baton Rouge and two from California - to federal prison terms for their roles in a drug-trafficking conspiracy involving shipments of heroin from California to Baton Rouge. Six other defendants were previously sentenced in this matter.
The defendants sentenced yesterday (listed below) had been convicted of conspiring to distribute significant amounts of heroin that had been pressed to resemble oxycodone pills. The heroin had been pressed into pills while in California and then shipped into the Baton Rouge area for distribution. By disguising heroin as oxycodone, the traffickers sought the higher street price paid for oxycodone.
This heroin-trafficking operation was identified as part of a substantial heroin-trafficking and money laundering conspiracy investigated by the U.S. Drug Enforcement Agency’s Tactical Diversion Squad and Internal Revenue Service Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department.
The following defendants were sentenced yesterday for their individual roles in this heroin-trafficking conspiracy:
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Logan Brannon, age 32, of Newport Beach, California, pled guilty to conspiring to distribute heroin, distributing heroin, and conspiracy to commit money laundering. His sentence included a period of imprisonment of 10 years and forfeiture of no less than $174,700.
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Aaron Lambert, age 34, of Baton Rouge, Louisiana, pled guilty to conspiring to distribute heroin and money laundering. His sentence included a period of imprisonment of 6 years and forfeiture of $125,700.
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Justin Scott, age 34, of Baton Rouge, Louisiana, pled guilty to conspiring to distribute heroin. His sentence included a period of imprisonment of 71 months years and forfeiture of $8,304.
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Efrain Barajas, age 28, of Hesperia, California, pled guilty to conspiring to distribute heroin. His sentence included a period of imprisonment of 55 months and forfeiture of $9,000.
Acting U.S. Attorney Amundson stated, “Our nation’s opioid crisis demands a strong response on all fronts and from all angles. Aggressively investigating and prosecuting heroin traffickers is one such front. The United States Attorney’s Office will continue to work with the DEA, IRS-CI, and our many other excellent federal, state, and local partners to take the fight to the traffickers using every legal tool at our disposal. Dismantling this group is an important step, and I commend the hard work and dedication by the prosecutors and law enforcement agents who handled this matter.”
“With the sentencing of these individuals, DEA and its federal, state, and local law enforcement partners have taken down an organization responsible for distributing large quantities of heroin purported to be prescription drugs in the Middle District of Louisiana. Heroin is a destructive poison that threatens the health and safety of our communities. We will continue to work together to target criminal organizations to ensure that drug traffickers are held responsible for the harm they cause,” said DEA Assistant Special Agent-in-Charge Brad L. Byerley.
Jerome R. McDuffie, Special Agent-in-Charge, IRS – Criminal Investigation, stated, “Tracing the complex monetary transactions involved in the trafficking of illegal drugs is the highly specialized work of our IRS Special Agents. The evidence of the financial investigation supports the money laundering violations, and, perhaps most importantly, serves to document the criminal intent of those individuals charged. The financials also support the forfeiture of significant assets as well as the subsequent dismantling of these criminal organizations. We are committed to serving the citizens of our communities and our federal partners, and will continue to strengthen our role in these investigations.”
This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, and the Internal Revenue Service’s Criminal Investigation Division. The case was prosecuted by Assistant United States Attorneys Paul L. Pugliese and Frederick A. Menner, Jr.
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Hardy County man admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Wardensville, West Virginia man pled guilty today to a methamphetamine charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Grant Sager, age 26, pled guilty to one count of “Possession of Material used in the Manufacture of Methamphetamine.” The crime occurred on June 21, 2016 in Hardy County.
Sager faces up to 10 years incarceration and a fine of up to $250,000. 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 Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hardy County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Charged with Illegal Reentry after DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with a federal immigration crime.
Danny Fuentes-Monzon, 31, was indicted on one count of unlawful reentry of a deported alien. Fuentes-Monzon was previously deported on Aug. 19, 2005. On Aug. 18, 2017, Fuentes-Monzon was encountered by law enforcement in Lynn and determined to be illegally present in the United States.
Fuentes-Monzon faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this case.
Fourth Individual Convicted in Scheme to Smuggle Contraband into Lexington Federal PrisonRead the Press Release
LEXINGTON, Ky. – A federal inmate pleaded guilty today, to bribing a corrections officer at the Federal Medical Center in Lexington, Kentucky (“FMC Lexington”) to smuggle prohibited items into the prison.
Keith Griffith, a 35-year-old federal inmate, pleaded guilty to conspiracy to introduce prohibited objects into a federal correctional facility and bribing a public official, making him the fourth individual convicted on charges relating to this scheme. On June 15, 2017, James Carrington of Winchester, Ky., a former corrections officer at FMC Lexington, pleaded guilty to bribery of a public official. That same day, another federal inmate, Amai Rawls, pleaded guilty to conspiracy to introduce prohibited objects into a federal correctional facility. On June 30, 2017, Stephanie Dukes of Louisville, Ky., pleaded guilty to bribing a public official. All four now await sentencing.
Between May 2015 and August 2016, Dukes purchased various items that federal inmates were not permitted to possess, at Griffith’s direction, and then paid Carrington to smuggle those items into FMC Lexington, where Griffith and Rawls were already serving sentences for federal offenses. Carrington would deliver the prohibited items to specific locations in FMC Lexington, where Griffith and Rawls would retrieve the items and personally use or consume the items or distribute them to other inmates. The prohibited items smuggled into FMC Lexington include MP3 players, cell phones, tobacco, dietary supplements, and synthetic marijuana.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; John F. Oleskowicz, Special Agent in Charge of the Chicago Field Office for the U.S. Department of Justice Office of the Inspector General; and Amy Hess, Special Agent in Charge of the Louisville Field Office for the Federal Bureau of Investigation, jointly announce the convictions.
Griffith will appear for sentencing on January 10, 2018 at 11:30 am. He faces a maximum of 15 years in prison. James Carrington and Amai Rawls will be sentenced on September 29, 2017. Carrington faces a maximum of 15 years in prison and Rawls faces a maximum of 1 year. Stephanie Dukes will be sentenced on October 4, 2017, and she faces a maximum of 15 years in prison. The Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Four Men Sentenced for Engaging in Child Exploitation EnterpriseRead the Press Release
The last four men in a six-defendant conspiracy were sentenced yesterday for their role in a child exploitation enterprise, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan.
Justin Fuller, 37, of Modesto, California, was sentenced to 35 years. On April 13, a jury found Fuller guilty of one count of engaging in a child exploitation enterprise; one count of conspiracy to produce child pornography; five counts of production of child pornography; one count of conspiracy to receive child pornography; one count of conspiracy to access with intent to view child pornography; and five counts of enticement of a minor to engage in illegal sexual activity.
According to trial evidence, between Nov. 16, 2013 and March 10, 2016, Fuller and his five co-conspirators located in different states worked together to lure juvenile girls to a video chat website in order to get them to engage in sexually explicit conduct. The group members predominantly targeted prepubescent girls and would, unbeknownst to the girls, record the lured young girls performing the sexually explicit conduct. The group was active for approximately two years and communicated with each other through “base” chatrooms that were password-protected. In the base chat rooms, Fuller and co-conspirators strategized how to convince minor females to produce child pornography, including pretending to be teenage boys or girls to help convince the minor females to engage in sexual activity.
Three other co-conspirators were also sentenced today. Virgil Napier, 54, of Waterford, Michigan, pleaded guilty on June 21, 2016, and was sentenced to 20 years. John Garrison, 52, of Glenarm, Illinois, pleaded guilty on July 11, 2016, and was sentenced to 35 years. Thomas Dougherty, 54, of Vallejo, California, pleaded guilty on February 24, and was sentenced to 26 years.
Additionally, on Sept. 23, 2016, Dantly Nicart, 39, a citizen of the Philippines residing in Las Vegas, pleaded guilty, and, on March 2, was sentenced to 20 years imprisonment followed by five years of supervised release and was ordered to pay $150,000 in restitution. On June 21, 2016, Brandon Henneberg, 31, of Diller, Nebraska, pleaded guilty in the District of Nebraska, and, on Sept. 14, 2016, he was sentenced to 35 years imprisonment, followed by a lifetime term of supervised release and order to pay $60,000 in restitution.
Trial Attorney Austin M. Berry of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division and Assistant U.S. Attorney April N. Russo of the Eastern District of Michigan are prosecuting the case. The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes task force investigated the case with assistance from CEOS’s High Technology Investigative Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc
Former Utah CEO Pleads Guilty to Tax EvasionRead the Press Release
A former CEO of a Salt Lake City, Utah company pleaded guilty yesterday to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents filed with the court, Peter Nordberg, 61, of Alameda, California, was the Chief Executive Officer of Max International, a company that produces and markets nutritional supplements directly and through independent associates and distributors. As an employee of Max International, Nordberg earned a salary and commissions equal to a percentage of sales. Nordberg caused Max International to pay his bonus income to a nominee entity he established, and used a bank account in the name of the nominee entity to pay personal expenses. Nordberg concealed the bonus income and nominee entity from his return preparer and filed false tax returns with the Internal Revenue Service (IRS) that underreported his income. He admitted to causing a tax loss of approximately $275,000.
Sentencing is scheduled for Nov. 30 before U.S. District Court Judge Benson. Nordberg faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Matthew Hoffman and Assistant U.S. Attorney Ruth Hackford-Peer, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Police Officer Convicted on Corruption ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former 17 year veteran police officer with the Fairview Township Police Department, Tyson Baker, age 43, of Etters, York, Pennsylvania, was convicted on September 14, 2017, on charges stemming from the theft of seized money that was evidence in two separate drug cases. The four-day trial was held before United States District Court Judge Sylvia H. Rambo in Harrisburg.
According to United States Attorney Bruce D. Brandler, the jury returned the guilty verdict after approximately three hours of deliberation. Baker was convicted of two counts of theft of drug money that was subject to seizure and forfeiture, one count of falsifying or altering records to impede, obstruct or influence a federal drug investigation regarding the first incident, one count of theft of federal property, and one count of presenting a false police report to the FBI. He was found not guilty of one count of falsifying or altering records to impede regarding the second incident.
The evidence presented during the trial showed the Federal Bureau of Investigation (FBI) in Harrisburg received information that Baker might be stealing money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. At the time another officer with the Fairview Township Police Department cooperating with the FBI, recorded conversations with Baker regarding the theft in which Baker discussed how the officer should steal drug proceeds from drug traffickers during traffic stops.
On December 16, 2015, the FBI, with the full cooperation of the Fairview Township Police Department, arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker searching the vehicle without a warrant. On December 18, 2015, Baker was arrested by the FBI and confessed to both incidents.
Fairview Township Police Department cooperated fully with the FBI and state law enforcement in the investigation.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law is 45 years. There is also a term of supervised release following imprisonment, and $1,250,000 in fines. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department. Assistant United States Attorneys William A. Behe and Michael Consiglio prosecuted the case.
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Former Mobile Phone Industry Employee Sentenced in Manhattan Federal Court to 33 Months in Prison for Role in Multimillion-Dollar Consumer Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FRANCIS ASSIFUAH, a/k/a “Francis Assif,” was sentenced today to 33 months in prison for participating in a massive scheme to defraud consumers by placing unauthorized charges for text messaging services on their cell phone bills, through a practice known as “auto-subscribing.” Through their fraudulent scheme, ASSIFUAH and his co-conspirators charged millions of mobile phone customers $9.99 a month for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent. The fraud resulted in the theft of over $100 million from consumers throughout the United States. ASSIFUAH pled guilty to his role in the fraud on February 7, 2017, and was sentenced today in Manhattan federal court by the Honorable Katherine B. Forrest.
To date, four additional defendants, Andrew Bachman, Lin Miao, Michael Pajackowski, and Erdolo Eromo, have pled guilty in connection with their participation in the fraud, and one additional defendant, Fraser Thompson, was convicted by a jury on September 5, 2017, following a three-week trial.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Francis Assifuah and his co-conspirators charged millions of cell phone customers for text message services they never signed up for, ultimately reaping more than $100 million from their scheme. Together with our law enforcement partners, we are committed to uncovering and prosecuting schemes that defraud consumers.”
According to the Indictment filed in Manhattan federal court, other court documents, and statements made in connection with ASSIFUAH’S guilty plea and sentencing:
ASSIFUAH is a former employee of Mobile Messenger, a mobile “aggregator” that compiled, or “aggregated,” charges for premium services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills. In the auto-subscribing scheme, Mobile Messenger worked with multiple different “content provider” companies, which sent consumers the unwanted text messages that ultimately resulted in the consumers being charged for services they had not authorized. Those content providers included a company called Tatto Media, which was operated by Miao; companies called CF Enterprises and DigiMobi, which were operated by Eugeni Tsvetnenko, a/k/a “Zhenya”; and a company called Bleam Technology, which was operated by ASSIFUAH.
While he was working at Mobile Messenger, ASSIFUAH worked with and befriended Eromo. In early 2012, Eromo approached Pajackowski, a fellow Mobile Messenger employee, and asked to participate more actively in the auto-subscribing activities that Pajackowski and others were engaging in with Tatto Media. After Pajackowski told Eromo there was no room for him in the Tatto Media auto-subscription, Pajackowski suggested that they recruit another content provider with technical expertise to help them expand the scheme. Eromo then met with ASSIFUAH at a trade show in Las Vegas and presented him with the plan to auto-subscribe, using Bleam Technology as the content provider. By the time Eromo returned from the Las Vegas trade show, ASSIFUAH had agreed to become involved in auto-subscribing. Shortly thereafter, Eromo, Pajackowski, and ASSIFUAH began to auto-subscribe consumers through Bleam Technology, using Mobile Messenger as the mobile aggregator.
The auto-subscription scheme, through all of the content providers that it involved, affected millions of consumers and generated over $100 million in criminal proceeds.
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In addition to the prison sentence, ASSIFUAH, 44, of Las Vegas, Nevada, was sentenced to two years of supervised release.
Mr. Kim praised the investigative work of the Internal Revenue Service - Criminal Investigation, and the Federal Bureau of Investigation, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul, Richard Cooper, and Jennifer L. Beidel are in charge of the prosecution.
Former Brooklyn School Teacher Charged with Possessing Child PornographyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of CRAIG ROFFMAN stemming from his possession of child pornography. ROFFMAN, who previously worked as a school teacher in Brooklyn, was arrested yesterday and presented before United States Magistrate Judge James C. Francis IV in Manhattan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Craig Roffman, a former teacher, was arrested yesterday in possession of thousands of electronic files containing child pornography. Together with the FBI, we are committed to protecting children by prosecuting those who sexually exploit them.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “How anyone can view a toddler or a baby in a sexual manner boggles the mind. Speaking as a parent to all other parents, we are the first line of defense for children who are barely able to feed themselves, let alone speak up when an adult abuses them in such grotesque ways. If you believe your child came into contact with this subject, please call the FBI immediately at 212-384-5000.”
According to the Complaint[1] unsealed yesterday in federal court:
On September 14, 2017, law enforcement agents executing a search warrant searched ROFFMAN’s apartment and recovered electronic and hard copies of child pornography, including but not limited to two thumb drives containing approximately 3,000 files of child pornography. The child pornography recovered from ROFFMAN’s residence includes images involving infants and numerous depictions of prepubescent children engaged in sexual activity with adults.
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CRAIG ROFFMAN, 41, of Manhattan, New York, is charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning CRAIG ROFFMAN that may be relevant to the investigation should contact the United States Attorney’s Office through its toll-free hotline at 212-637-0650.
Mr. Kim praised the FBI for its outstanding investigative work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jessica Greenwood is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Federal Jury Convicts Chad Allen Dorton in Large-Scale Drug Trafficking ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Following a three-day trial in U.S. District Court, on September 14, 2017, Chad Allen Dorton, 35, of Kingsport, Tennessee, was convicted of conspiracy to distribute, and to possess with the intent to distribute, 1000 kilograms or more of marijuana.
Sentencing is set for 1:30 p.m., December 4, 2017, before the Honorable Pamela L. Reeves, U.S. District Court Judge. Dorton faces a mandatory minimum of 10 year in prison up to life.
From July 2013 through November 2016, Dorton conspired with nine charged co-defendants and others, to distribute, and possess with the intent to distribute, 1000 kilograms or more of marijuana. During this period, Dorton transported over $1 million in cash to O’Brien and Cave Junction, Oregon to purchase high-grade marijuana. He then smuggled 700 – 800 lbs. of the marijuana, with a street value of over $3.3 million, back to east Tennessee, concealed in diesel tanks with false compartments, in tires, and in spare tires. Overall, the evidence presented at trial showed the conspirators purchased, transported, and distributed 2500 to 3700 lbs. of marijuana during the conspiracy period, with a street value of $12 - $18 million. All of the drugs were distributed in Kingsport, Tennessee, and the surrounding areas. Nine of Dorton’s co-conspirators pleaded guilty prior to his trial and have not yet been sentenced.
This long-term investigation was the product of a partnership between the Tennessee Bureau of Investigation, Second Judicial Drug Task Force, Sullivan County Sheriff’s Office, Internal Revenue Service-Criminal Investigation, Kingsport Police Department, Rogue Area Drug Enforcement (RADE) of Josephine County, Oregon, and the Drug Enforcement Administration, with the assistance of the Second Judicial District Attorney’s Office. Assistant U.S. Attorney Wayne Taylor led the prosecution team, while Assistant U.S. Attorneys David L. Gunn and T.J. Harker represented the United States at trial.
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Federal Inmate Sentenced to More Than 6 Additional Years in Prison for Assaulting Fellow Inmate in Federal Prison in Lassen CountyRead the Press Release
SACRAMENTO, Calif. — Willie James McNeal, 60, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six years and five months in prison for an assault on another inmate that resulted in serious bodily injury, U.S. Attorney Phillip A. Talbert announced. McNeal was also ordered to pay more than $39,000 in restitution, which includes restitution to the victim of the assault to cover resulting medical costs.
According to court documents, on May 25, 2015, McNeal, attacked another inmate at the Federal Correctional Institution at Herlong, causing multiple fractures of the bones in his face. The victim required two surgeries and experienced extreme pain, as well as disfigurement and impairment of his nasal and breathing functions. Two surveillance videos documented the assault. The videos showed that McNeal, after speaking briefly with the victim, punched him near his right eye. McNeal continued to punch the victim multiple times in the forehead before tossing the inmate onto the concrete floor.
On April 20, 2017, a federal jury in Sacramento found McNeal guilty of the assault.
This case was the product of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorneys Owen Roth and Amanda H. Beck prosecuted the case.
Etna Man Sentenced to a Year and a Day for Firearms ConspiracyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Hayri Berberoglu, 30, of Etna, formerly of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to a year and a day in prison and a year of supervised release for conspiring to violate federal firearms laws. The defendant pleaded guilty on December 28, 2016.
According to courts records, while employed at a Brewer pawn shop between July 2011 and October 2012, the defendant facilitated the straw purchase of 16 firearms. He falsified records of firearm sales to make it appear that a network of local straw purchasers bought the firearms, when, in fact, the actual buyers were from New Haven, Connecticut. At sentencing, Judge Woodcock noted that the actual buyers were members of the Red Side Guerilla Brims, a violent street gang affiliated with the national Bloods street gang. Gang members gave straw purchasers money to purchase particular firearms. The straw purchasers falsely claimed to be the actual buyers on the required federal transaction record. The defendant completed the sales knowing that the straw purchasers were not the actual buyers of the firearms.
The case was investigated by the Maine and the New Haven, Connecticut Offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine Drug Enforcement Agency; the City of New Haven Department of Police Services; with assistance provided by the Brewer Police Department.
District Woman Sentenced to 6 ½ Years in Prison for Beating, Maltreating and Abusing 4-Year-Old BoyRead the Press Release
WASHINGTON –Suzette Nicole Allen, 45, of Washington, D.C., was sentenced today to a prison term of six and one half years for beating and maltreating a four-year-old boy who was in her care last summer, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Allen’s son, Timothy Allen, 20, was sentenced in July 2017 to six years and eight months in prison for his role in the crimes. Both defendants pled guilty in April 2017, in the Superior Court of the District of Columbia, to a charge of first-degree cruelty to children. The pleas, which were contingent upon the Court’s approval, called for prison sentences of 18 months to seven years. The Honorable Lynn Leibovitz accepted Suzette Allen’s guilty plea today and sentenced her accordingly. Following completion of her prison term, she will be placed on three years of supervised release; during that time, she is to have no contact with children under 18.
Timothy Allen also will be placed on three years of supervised release following his prison term; during that time, he is to have no contact with children under the age of 18.
According to the government’s evidence, the child’s mother put the boy and his older brother in the care of the Allen family, who she knew, during the summer of 2016. Over the summer, the Allens beat the child with their hands and with drumsticks. The child’s health deteriorated as a result of these beatings, and by early August, he was having trouble walking. Over the next couple of weeks, the boy grew lethargic and his balance faltered. In text messages, the defendants discussed what was happening. Yet they never sought medical attention.
The boy’s mother received the children back from the Allen family on Aug. 16, 2016, immediately recognized that something was wrong, and rushed him to Children’s National Medical Center. He was found to be suffering from multiple brain contusions, two lacerations to his liver, a hemorrhage in his abdominal cavity, two rib fractures, a fractured finger, a missing tooth, patterned scars to his spine, abdomen, chest and inner thighs, and healing injuries to his forehead, eye, nose, jaw, and chest. The boy was kept at the hospital for 17 days and then spent another 55 days in rehabilitation at another facility.
The Metropolitan Police Department (MPD) was alerted by medical professionals and began an investigation that led to the defendants’ arrests last fall. Timothy Allen has been in custody since his arrest. Until today, Suzette Nicole Allen had been free on personal recognizance, with a condition that she have no contact with children under age 18.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialist Tracy Owusu, Victim/Witness Advocate Veronica Vaughn, and Paralegal Specialist T.J. McPhail. Finally, they commended the work of Assistant U.S. Attorneys Louis Manzo and Melissa Price, who investigated and prosecuted the case.
District Man Sentenced to 26 ½ Years in Prison for Sexually Abusing 17-Year-Old Victim and Committing Two Separate RobberiesRead the Press Release
WASHINGTON – Dominick Simons, 26, of Washington, D.C., was sentenced today to 26 ½ years in prison for three separate crimes against victims he accosted at or near Metro stations within a two-day span, announced U.S. Attorney Channing D. Phillips, Ron Pavlik, Chief of the Metro Transit Police, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Simons pled guilty in March 2017, in the Superior Court of the District of Columbia, to charges of first-degree sexual abuse, robbery, and attempted robbery. The plea, which was contingent upon the Court’s approval, called for a sentence within the range of 22 to 30 years in prison. The Honorable Judith Bartnoff accepted the plea today and sentenced Simons accordingly. Following his prison term, Simons will be placed on 15 years of supervised release. He also must register as a sex offender for the remainder of his life.
According to the government’s evidence, Simons approached a 26-year-old male victim on May 21, 2016, at approximately 4:40 p.m., while both were exiting the L’Enfant Metro station in Southwest Washington. As they approached the 400 block of 7th Street SW, Simons asked the victim whether he knew of anyone interested in buying a gun that the defendant currently had in his possession. The victim answered, “No.” Simons then told the victim that he needed money and did not want to have to shoot the victim. Simons took his right hand and placed it inside of his sweatshirt to suggest that he was reaching for a firearm. The victim said that he did not have any money. Simons then directed the victim to walk to the nearest ATM, which was at a CVS store on 4th Street SW. There, the victim withdrew $100 and gave it to the defendant. Simons also took the victim’s cell phone before separating from the victim.
Two days later, at approximately 3 p.m. on May 23, 2016, Simons approached a 17-year-old male victim while walking into the Bethesda Metro station in Montgomery County, Maryland. As they approached the mezzanine level of the station, Simons asked the victim if he could use the victim’s cellular telephone. The victim said, “Yes.” The victim then gave his phone to the defendant to use, at which point Simons immediately began to walk away.
The victim followed Simons and told him to return the phone. Simons turned towards the victim and told him he was keeping the phone, that he had a “.38,” and that if the victim made any “noise” about the phone, the defendant would “blow [his] [expletive] brains out over the Metro station.” Simons opened his sweatshirt and brandished an object that the victim perceived to be the butt of a handgun. Simons then returned the phone to the victim after learning that the victim was only 17 years old. Simons, however, ordered the minor to board a train traveling to the District. He and the victim exited the train at Friendship Heights and entered the Chevy Chase Pavilion in Northwest Washington. Simons then ordered the victim to enter a bathroom and stand against the wall of a stall, at which point the defendant sexually assaulted him.
After a few moments, the victim told Simons, “No, I have to go. Let me go.” The victim pushed Simons to get out of the stall, at which point the victim patted the area of his jacket where the victim had seen the butt of a handgun. The victim said, “No. I’m done. I have to go. Let me leave.” Simons directed the victim to keep his voice down, but the minor replied, “I’ll scream if you don’t let me go now.” Simons allowed the victim to exit the bathroom.
Simons eventually walked back to the Friendship Heights Metro station, where he boarded a train towards downtown Washington. He exited the train at the Van Ness station. At approximately 5:20 p.m., he approached a 14-year-old boy in the mezzanine level of the train station and told the victim, “I have a gun on me. I don’t want to have to use it. Do you have any money or jewelry on you?” Simons then took his right hand and placed it inside of his sweatshirt to suggest that he was reaching for a firearm. The victim responded, “No.” Simons then asked the victim if he was in possession of a cellular telephone and a fare card. The victim removed his phone and fare card from his pocket and handed it to the defendant. Simons used the card to open the fare gates and left the victim behind. After the victim lost sight of Simons, he went to the station kiosk and reported the incident to a manager.
Simons was ultimately arrested at approximately 7 p.m., at the Gallery Place Metro station, where he admitted that he had the child’s phone in his pocket.
In announcing the sentence, U.S. Attorney Phillips, Chief Pavlik, and Chief Newsham commended the work performed by those who investigated the case from the Metro Transit Police Department’s Criminal Investigations Division and Metropolitan Police Department’s First District. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Angelina Slagle and Victim/Witness Advocate Veronica Vaughan. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Danny Nguyen and L’Shauntee Robertson, who investigated and prosecuted the matter.
Diplomatic Security Services Arrests Individual for Impersonating a Federal Officer at the International Luis Muñoz Marin AirportRead the Press Release
On Thursday, The U.S. Attorney’s Office for the District of Puerto Rico announced the formation of a Task Force that will be working against fraud related to Hurricane Irma recovery efforts and the following day they announced what appears to be the first case in the District of Puerto Rico related to Hurricane Irma’s relief efforts.
U.S. Magistrate Judge Camille Vélez-Rivé authorized a criminal complaint against Philip Freed, charging him with impersonation of a federal law enforcement officer, entering an airport in violation of security requirements and false statements. The U.S. State Department, Diplomatic Security Services (DSS), with the collaboration of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Health and Human Services are in charge of the investigation.
According to the criminal complaint, on Sept. 12, Philip Freed falsely pretended to be a law enforcement officer acting under the authority of the United States. Freed gained access to a federally restricted area of the Puerto Rico Airport and made materially false, fictitious, or fraudulent statements or representations to DSS special agents during the course of the investigation, all while portraying to be a federal law enforcement officer helping with Hurricane Irma’s relief efforts.
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office to investigate this crime,” said Resident Agent in Charge Richard Hays of the DSS San Juan Resident Office. “Impersonating a federal law enforcement officer while our nation reels from the recent natural disasters is especially concerning. Our special agents – many of whom still do not have power in their homes – showed exceptional professionalism and dedication as they pursued this case.”
If convicted, Freed faces up to three years of in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty. Assistant U.S. Attorney Marc S. Chattah has been assigned to prosecute this case.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud.
Diplomatic Security Services Arrests Individual for Impersonating A Federal Officer at the International Luis Muñoz Marin AirportRead the Press Release
SAN JUAN, Puerto Rico – “Yesterday we announced the Task Force that will be working against the fraud related to Hurricane Irma recovery efforts, and today we are announcing what appears to be the first case in the District of Puerto Rico related to Hurricane Irma’s relief efforts,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.
United States Magistrate Judge Camille Vélez-Rivé authorized a criminal complaint against Philip Freed, charging him with impersonation of a federal law enforcement officer, entering an airport in violation of security requirements, and false statements. The U.S. State Department, Diplomatic Security Services (DSS), with the collaboration of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Health and Human Services are in charge of the investigation.
According to the criminal complaint, on September 12, 2017, Philip Freed falsely pretended to be a law enforcement officer acting under the authority of the United States. Freed gained access to a federally restricted area of the Airport and made materially false, fictitious, or fraudulent statements or representations to DSS special agents during the course of the investigation, all while portraying to be a federal law enforcement officer helping with Hurricane Irma’s relief efforts.
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office to investigate this crime,” said Richard Hays, Resident Agent in Charge of the DSS San Juan Resident Office. “Impersonating a federal law enforcement officer while our nation reels from the recent natural disasters is especially concerning. Our special agents – many of whom still do not have power in their homes – showed exceptional professionalism and dedication as they pursued this case.”
If convicted defendant faces up to 3 years of imprisonment. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty. Assistant U.S. Attorney Marc S. Chattah has been assigned to prosecute this case.
Again, members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims.
Department of Justice Announces Changes to the Collaborative Reform InitiativeRead the Press Release
The Department of Justice today announced significant changes to the Office of Community Oriented Policing Services (COPS Office) Collaborative Reform Initiative for Technical Assistance to better align the program with the principles outlined by the Attorney General in support of local law enforcement and the original intent of the authorizing statute. The changes are effective immediately and will provide targeted assistance directly to local law enforcement based on their identified needs and requests.
“Changes to this program will fulfill my commitment to respect local control and accountability, while still delivering important tailored resources to local law enforcement to fight violent crime,” said Attorney General Jeff Sessions. “This is a course correction to ensure that resources go to agencies that require assistance rather than expensive wide-ranging investigative assessments that go beyond the scope of technical assistance and support.”
Earlier this year, the Attorney General released a memorandum stating that all Department of Justice activities would be reviewed by Department of Justice leadership to ensure that they fully and effectively promote the principles outlined in the memo. Today’s announcement is the conclusion of that review for the Collaborative Reform Initiative. These changes will return control to the public safety personnel sworn to protect their communities and focus on providing real-time technical assistance to best address the identified needs of requesting agencies to reduce violent crime.
The COPS Office is a federal agency responsible for advancing community policing nationwide: www.cops.usdoj.gov.Dauphin County Man Sentenced to over 10 Years’ Imprisonment for Drug Trafficking and Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Khalid Fahide Carter, a/k/a “Friend,” age 23, of Harrisburg, Pennsylvania, was sentenced on September 13, 2017, to 123 months’ imprisonment by Chief United States District Court Judge Christopher C. Conner, following a guilty verdict by a federal jury on December 15, 2016, for distribution of crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
According to United States Attorney Bruce D. Brandler, on January 12, 2016, Carter distributed cocaine base, also known as crack cocaine to a confidential informant. As officers moved in to arrest Carter, he exited his vehicle and fled on foot. After a brief foot chase, he was apprehended and arrested. Recovered on the ground where Carter was arrested was the prerecorded buy money used in the drug transaction. Located on a nearby roof was the loaded Taurus PT840 semi-automatic .40 caliber pistol Carter was carrying. A search of the vehicle Carter was riding in yielded an electronic scale, two .40 caliber pistol magazines, and a holster. Found in a jacket pocket inside the van was a second electronic scale with cocaine residue. The jury found that in addition to distributing crack cocaine, Carter possessed a Taurus PT840 .40 caliber semi-automatic handgun in furtherance of a drug trafficking crime.
This case was investigated by the Federal Bureau of Investigation Capital City Safe Streets Task Force, the Harrisburg Bureau of Police, and the Pennsylvania Office of the Attorney General. Assistant United States Attorneys Daryl F. Bloom and Chelsea Schinnour prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Dallas Man Sentenced in Connection with Denton County Highway Expansion FraudRead the Press Release
SHERMAN, Texas – A 34-year-old Dallas man has been sentenced to federal prison in connection with a Denton County highway expansion project in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Wade Wylie Blackburn, pleaded guilty on Apr. 19, 2017, to conspiracy to commit mail fraud and was sentenced to 12 months and one day in federal prison on Sep. 14, 2017, by U.S. District Judge Marcia A. Crone. Blackburn was also ordered to pay restitution in the amount of $1 million to the Texas Department of Transportation.
According to information presented in court, from 2008 to 2011, Blackburn conspired with Kevin James Bollman to defraud the Texas Department of Transportation (TXDOT.) Blackburn and Bollman raised investment money and purchased Right-of-Way (ROW) along Interstate Highway 35 East in Denton County with the intent of quickly re-selling the ROW land tracts to TXDOT.
TXDOT acquired ROW through one of three methods: (1) Condemnation (normal acquisition); (2) Early Acquisition (EAQ); and (3) Advanced Acquisition (AAQ) through option contracts. The first two methods required environmental clearances before TXDOT was permitted to acquire the ROW and pay the landowner. The timing on these acquisitions, including the timing of the environmental clearance issued by the federal government, is unpredictable and often takes years to accomplish. The third method – the AAQ method through option contracts – permitted TXDOT to execute an option contract before environmental clearances were obtained, then pay the landowners a significant up-front option fee designed to keep the landowner from transferring or developing the property on the ROW that would later result in TXDOT likely having to pay more for the ROW. The landowner agreed not to develop the property in exchange for the up-front option fee, then closed on the sale and received the remainder of the purchase money after the environmental clearances were obtained.
As part of the scheme, Blackburn and Bollman intentionally caused false material information to be submitted to the TXDOT appraiser regarding, among other things, their development plans for the various properties. Blackburn and Bollman made these representations to the TXDOT appraiser even though they knew they had no intent to develop any of the properties. Blackburn also wrote a letter with material false statements to individuals at TXDOT. It claimed they were being forced to forego imminent development plans for the tracts, had been unable to successfully secure building permits, and were experiencing financial hardships as a result. Blackburn and Bollman also made false material oral misrepresentations to officials of TXDOT when they told them that they were experiencing financial hardships as a result of not being able to proceed with immediate development of the tracts, and that TXDOT should use the AAQ method to immediately purchase the tracts. Blackburn and Bollman made the material misrepresentations to TXDOT so they could ultimately benefit from the up-front option fee rather than wait for TXDOT acquisition by their usual course of condemnation. TXDOT used option contracts to purchase the tracts for higher prices than what Blackburn and Bollman paid for the tracts. Blackburn was indicted by a federal grand jury in April 2016.
According the general counsel for TXDOT, this is the first time a developer has been ordered to pay restitution for providing false information. Bollman is scheduled to be sentenced on Oct. 30, 2017.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
Collin County Man Sentenced for Possessing Child PornographyRead the Press Release
PLANO, Texas — A 41-year-old Plano, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Ryan Curry pleaded guilty on Apr. 27, 2017 to possession of child pornography and was sentenced to 108 months in federal prison on Sep. 14, 2017, by U.S. District Judge Marcia Crone.
According to information presented in court, in November 2016, law enforcement officers executed a federal search warrant at the residence where Curry was residing in Plano. A computer user at the residence had been identified by law enforcement during an undercover operation into individuals trading child pornography on the Internet. Curry admitted to possessing more than 3,000 images and videos of child pornography on a cell phone. Those images included depictions of prepubescent minors and sadistic and masochistic conduct.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Charlotte Man Sentenced to More than 13 Years for Carjacking and Firearms ChargesRead the Press Release
CHARLOTTE, N.C. – Cedric Lamar Turner, 31, of Charlotte, was sentenced today to 164 months in prison on carjacking charges and related firearms violations, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also ordered Turner to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, on August 8, 2016, Turner approached the male victim who was exiting a BB&T Bank branch, and, while brandishing a black pistol, he carjacked the victim’s 1999 Toyota Camry. Court records show that Turner also stole the victim’s wallet, checkbook and cellular phone. Shortly after the carjacking, law enforcement located Turner driving the stolen vehicle and attempted to conduct a traffic stop. Turner did not stop, and, after crashing the stolen car into a power pole, he exited the vehicle and fled on foot. According to court records, law enforcement arrested Turner shortly thereafter. At the time of the arrest, Turner had the victim’s wallet in the pocket of his pants. Law enforcement also found nearby a Haskell, model JHP, .45 caliber pistol.
According to court records, Turner told law enforcement that he had been “caught red handed.” Turner also admitted that he had been at a convenience store next to the bank branch, watching the bank in order to target someone to rob. As reflected in court documents, Turner admitted that he saw the victim go into the bank, and, thinking the victim would have money when he exited the bank, Turner approached the victim at his vehicle, pointed his gun at the victim and demanded the victim’s money and car. According to court records, while driving in the stolen vehicle, Turner threw the victim’s cellular phone out of the car because he believed that he could be tracked by the phone. Over the course of the investigation, law enforcement also determined that the firearm Turner brandished during the carjacking was stolen.
Turner pleaded guilty in February 2017 to one count of carjacking; one count of using, carrying and brandishing a firearm in relation to a crime of violence; and one count of possession of a firearm by a convicted felon. Turner is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the ATF and CMPD. Assistant U.S. Attorney Robert Gleason, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Cape Cod Gang Leader Sentenced to 28.5 Years in PrisonRead the Press Release
BOSTON – A leader of the Nauti Block gang was sentenced in federal court in Boston today to 28.5 years in prison for trafficking multiple kilograms of heroin and fentanyl throughout Cape Cod. An associate of the gang was also sentenced today for her role in the drug trafficking conspiracy.
Denzel Chisholm, 26, of West Yarmouth, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 342 months in prison and 10 years of supervised release; and Molly London, 33, of Hyannis, was sentenced to 20 months in prison and three years of supervised release. In June 2017, Chisholm and London were convicted of various drug charges related to their roles in a heroin and fentanyl trafficking operation on Cape Cod. Chisholm was convicted of one count of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin, nine counts of possession of heroin with the intent to distribute, and one count of conspiracy to distribute suboxone, which was intended to be trafficked into MCI-Norfolk prison. London was convicted of aiding and abetting Chisholm and maintaining a residence for drug purposes.
On April 5, 2016, following a nearly eight-month long investigation, 13 members of the Cape Cod-based Nauti-Block gang were arrested on federal drug trafficking and firearms charges. Two subsequent superseding indictments brought the total number of defendants charged in the case to 19.
Chisholm distributed massive quantities of heroin throughout lower Cape Cod. He used other individuals, including London, to store and deliver the heroin, then sold it to numerous co-conspirators. During a search of London’s home, 77 grams of heroin were found in a Starbucks cup and a 55-pound package of mannitol (a heroin cutting agent) was found by her bed. Previously intercepted text messages and phone calls indicated that London made her home available to Chisholm just before Chisholm engaged in heroin transactions.
Fifteen of Chisholm and London’s co-conspirators have pleaded guilty to various drug distribution and conspiracy charges and seven have been sentenced.
Chisholm and co-defendant Tyrone Gomes also face state charges for the 2015 murder of Christine Ferreira at a rest stop on Route 6 on Cape Cod.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
California Man Convicted for Role in the Illegal Sale of Black Rhinoceros HornsRead the Press Release
Edward N. Levine was convicted yesterday for conspiracy to violate the Lacey and Endangered Species Acts and to a violation of the Lacey Act by knowingly selling black rhinoceros horns to an undercover agent from the United States Fish and Wildlife Service (USFWS), announced the Justice Department. Sentencing has been set for December 15. Levine’s co-defendant, Lumsden Quan, was sentenced in December 2015.
Levine was arrested in March 2014 for his role in a conspiracy to knowingly sell black rhinoceros horns across state lines. Levine worked with Quan to transport two horns from California to Nevada, where the men sold them to an undercover agent from Colorado for a sum of $55,000.
This case is part of “Operation Crash,” a nationwide crackdown by federal, state and local law enforcement agencies against those who engage in illegal trafficking of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of November 2015, Operation Crash has resulted in the prosecution and sentencing of nearly 32 subjects and recovery of approximately $5.6 million through forfeiture and restitution.
Since 1976, trade in rhinoceros horns has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. All species of rhinoceros are protected under the federal Endangered Species Act.
The investigation was handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada, and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorney Ryan Connors, Assistant U.S. Attorney Kathryn Newman, Paralegal Christopher Kopf, and Paralegal Amanda Backer.
California Man Convicted for Role in the Illegal Sale of Black Rhinoceros HornsRead the Press Release
LAS VEGAS, Nev. – Edward N. Levine, 64, of Novato, Calif., was convicted Thursday for conspiracy to violate the Lacey and Endangered Species Acts and to a violation of the Lacey Act by knowingly selling black rhinoceros horns to an undercover agent from the United States Fish and Wildlife Service (USFWS), announced the Justice Department. Sentencing has been set for December 15. Levine’s co-defendant, Lumsden Quan, was sentenced in December 2015.
Levine was arrested in March 2014 for his role in a conspiracy to knowingly sell black rhinoceros horns across state lines. Levine worked with Quan to transport two horns from California to Nevada, where the men sold them to an undercover agent from Colorado for a sum of $55,000.
This case is part of “Operation Crash,” a nationwide crackdown by federal, state and local law enforcement agencies against those who engage in illegal trafficking of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of August 2017, Operation Crash has resulted in the prosecution and sentencing of more than 30 subjects and recovery of approximately $5.6 million through forfeiture and restitution.
Since 1976, trade in rhinoceros horns has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. All species of rhinoceros are protected under the federal Endangered Species Act.
The investigation was handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada, and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorney Ryan Connors, Assistant U.S. Attorney Kathryn Newman, Paralegal Christopher Kopf, and Paralegal Amanda Backer.
To report a wildlife crime such as the illegal trafficking and trade of species, call 1-844-FWS-TIPS (1-844-397-8477) or visit https://www.fws.gov.
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Businessman Pleads Guilty to Conspiracy to Forge A Federal Judge’s SignatureRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Michael Greco, the United States Marshal for the Southern District of New York (“USMS”), announced that MICHAEL ARNSTEIN pled guilty today before U.S. District Judge Andrew L. Carter Jr. to one count of conspiracy to forge a federal judge’s signature. ARNSTEIN is scheduled to be sentenced by Judge Carter on January 16, 2018.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted today, Michael Arnstein exploited the authority of the federal judiciary in a blatantly criminal scheme. By forging court orders and the signature of a U.S. District Judge, Arnstein was able to effectively erase websites critical of Arnstein’s business from its search results. Now Arnstein awaits sentencing in the same court he impersonated.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Arnstein’s attempts to remove any trace of unfavorable information about his business posted online sent him down a slippery slope. Not only did he commit a federal crime by forging a judge’s signature in furtherance of his scheme, but he now finds himself back on the Internet. This time, however, it’s a story no search engine can erase.”
U.S. Marshal Michael Greco said: “The outstanding combination of investigative efforts by the FBI and U.S. Marshals Service enabled deputies and special agents to expose an egregious attempt at forgery and deception by Michael Arnstein. The Deputy U.S. Marshals assigned to the Southern District of New York’s Protective Intelligence Unit work tirelessly to investigate any and all forms of inappropriate communications in order to thwart such schemes. As always, the U.S. Marshals Service is committed to protecting the safety, security and integrity of our federal judiciary and court family.”
According to the allegations contained in the Complaint, the felony Information to which ARNSTEIN pled guilty, and statements made during the plea proceeding and other court proceedings:
Between February 2014 and February 2017, ARNSTEIN engaged in a brazen scheme to submit counterfeit federal court orders to Google, Inc. (“Google”) in an effort to get websites containing unfavorable postings about ARNSTEIN’s business de-indexed from Google’s internet search results. In furtherance of this scheme, ARNSTEIN and others forged the signature of a United States District Judge for the Southern District of New York on over ten counterfeit court orders. These counterfeit orders listed the websites containing purportedly defamatory information about ARNSTEIN’s business and ordered the removal of such information from the websites. ARNSTEIN then submitted the counterfeit orders, which appeared to be valid on their face, to Google and requested that Google de-index the websites containing the purportedly defamatory information. ARNSTEIN often succeeded in getting the websites de-indexed using the counterfeit court orders.
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ARNSTEIN, 40, of Kailua, Hawaii, pled guilty to one count of conspiracy to forge a judicial signature, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Marshals Service. Mr. Kim also thanked Google for its helpful assistance in this investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sheb Swett and Daniel S. Noble are in charge of the prosecution.
Brookings Man Receives Federal Prison Sentence for Manufacturing Hash Oil and Endangering Human LifeRead the Press Release
MEDFORD, Ore. – On Thursday, September 14, 2017, United States District Court Judge Michael J. McShane sentenced Troy Allen Wyatt, 44, to 18 months in prison after he pleaded guilty to manufacturing hash oil and endangering human life. Wyatt currently resides in Brookings, Oregon.
According to court documents, Wyatt accidentally started a fire in January 2016 while making hash oil at his home in Medford. The fire started when propane gas ignited during the manufacturing process and resulted in $12,798 in property damage. Wyatt’s 13-year-old daughter was in the home during the fire but was not injured.
Wyatt will remain out of custody pending a voluntary surrender date to be determined by the court. He was ordered to pay restitution to the property owner and an insurance company.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Medford Police Department, and was prosecuted by William "Bud" Fitzgerald, Assistant United States Attorney for the District of Oregon.
Bangor Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Robert Goguen, 43, of Bangor pleaded guilty today in U.S. District Court to possession of child pornography.
According to court records, on November 10, 2015, U.S. probation officers went to Goguen’s apartment in Bangor and seized a laptop computer. A search of the computer revealed images and videos of child pornography that Goguen had downloaded and saved.
Goguen faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Probation Office, U.S. Immigration & Customs Enforcement’s Homeland Security Investigations and the Bangor Police Department. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Atlanta Man Sentenced to Three Years for $2.7 Million Bank FraudRead the Press Release
ALEXANDRIA, Va. – An Atlanta, Georgia man was sentenced today to three years in prison, followed by five years of supervised release, for his role in a bank fraud scheme that resulted in losses of approximately $2.7 million.
Thomas Scott Brown, 47, pleaded guilty to bank fraud and false statements to a financial institution on June 9. According to court documents, from approximately 2006 through 2007, Brown purchased properties for buyers with his own money and then directed those individuals to apply for home equity loans with Navy Federal Credit Union, claiming that they owned the properties free and clear of any liens when, in fact, they still owed Brown for the properties. In applying for these home equity loans, Brown instructed the buyers to submit false documentation to the bank, including fraudulent Housing and Urban Development Settlement Statements and false membership applications. Brown further ordered these individuals to pay him from the proceeds of the home equity loans.
In most instances, the homes went into foreclosure after the bank approved the loans. In total, 51 properties Brown sold eventually went into foreclosure, causing Navy Federal Credit Union losses of $2.7 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jamar K. Walker 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. 1:17-cr-104.
Annapolis Brothers Indicted on Federal Drug Conspiracy ChargesRead 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 Calum Thomas, age 20, and Christian Thomas, age 21, both of Annapolis, Maryland, on charges related to a scheme to Distribute and Possess with Intent to Distribute Controlled Substances and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The indictment was returned on September 7, 2017, and was unsealed on September 14, 2017.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Timothy J. Altomare of the Anne Arundel County Police; and Anne Arundel County State’s Attorney Wes Adams.
According to the three-count indictment, the defendants allegedly distributed heroin, cocaine, and marijuana in and around Annapolis, Maryland. In addition, it is alleged that they robbed and attempted to rob other drug traffickers and their customers of drugs and drug proceeds, as well as burglarized residences to steal drugs.
The federal charge include overt acts to further the drug trafficking operation, to include the homicide of a 55-year-old man that occurred on January 2, 2017 in Annapolis, Maryland. The defendants allegedly utilized a Hermann Weihrauch, .357 caliber Magnum, model EA/R, six-shot revolver. The victim had no ties to illegal activity.
The defendants face a maximum sentence of 20 years in prison for the conspiracy. Christian Thomas faces a mandatory minimum sentence of seven years imprisonment, up to life, for possessing and brandishing a firearm in furtherance of a drug trafficking crime. Calum Thomas faces a mandatory minimum sentence of five years imprisonment, up to life, for possessing a firearm in furtherance of a drug trafficking crime. Detention hearings will be held today at 2 p.m. in U.S. District Court in Baltimore. Both defendants remain detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the ATF, Anne Arundel County Police and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Daniel C. Gardner and Special Assistant U.S. Attorney Christine Goo who are prosecuting the case.
Accountant Arrested for Fraud Scheme, Tax Evasion and Money LaunderingRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old former Corpus Christi man has taken into custody following the return of an indictment alleging a scheme to defraud his former employer of more than $160,000, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned 20-count indictment against Brian Perez on Aug. 23,2017. He was taken into custody today in San Antonio where he will make his initial appearance before U.S. Magistrate Judge Henry Bemporad. He is expected to then appear in Corpus Christi in the near future.
Perez is a certified public accountant and is charged with 18 counts of wire fraud and one count each of tax evasion and money laundering.
While working as a bookkeeper, Perez allegedly devised a scheme to defraud his employer by unlawfully transferring funds using the Electronic Federal Tax Payments System from the company’s bank account to his personal taxpayer withholding account at the IRS. The indictment alleges Perez then filed his U.S. Income Tax Return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,775 between March 9, 2015, and Aug. 7, 2015, according to the charges.
In May 2015, Perez allegedly laundered approximately $59,000 by using a financial institution to engage in a monetary transaction when he transferred criminally-derived funds from his personal checking account to an investment account. The indictment also charges Perez with tax evasion for filing a tax return knowing he had received significantly more income than the amount stated in the return.
Each conviction of wire fraud carries a potential 20-year maximum prison sentence. If convicted of the wire fraud or tax evasion charges, he also faces up to an additional 10-years and three years, respectively, in federal prison. All charges also carry a possible $250,000 fine.
IRS-Criminal Investigation and the FBI investigated. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
A Message from Attorney General Jeff Sessions to Those Impacted by Hurricanes Irma and HarveyRead the Press Release
https://www.justice.gov/opa/video/department-justice-s-response-hurricanes-harvey-and-irmaRemarks of Attorney General Sessions regarding the Department of Justice response to Hurricanes Harvey and Irma
Hello. This is Attorney General Jeff Sessions.On behalf of President Trump and the entire Department of Justice, I want to offer my prayers and support to those devastated by Hurricanes Irma and Harvey. Having personally lived through hurricanes and their aftermath on the Alabama Gulf Coast, I can understand the challenges you face.
The Justice Department is the lead coordinating agency for federal law enforcement supporting FEMA relief operations in hurricane-impacted areas. More than 600 Department of Justice law enforcement officers from throughout the country are already involved in relief efforts, helping local first responders provide medical assistance, aiding in urban search and rescue operations throughout Florida and the Caribbean, assistance with law enforcement duties and offering support however else they can.
Sadly, I must warn that experience tells us that while thousands come forward to help selflessly, there are a few who use the disaster to enrich themselves or promise expertise but lack competence to do professional work. Be careful. And be sure any contributions you make are only going to reputable aid organizations that have proven to be honest and effective.
In the wake of these disasters, the Justice Department is here with ways to avoid becoming a victim of fraud. Since 2005, the Justice Department’s National Center for Disaster Fraud has processed over 70,000 complaints. It operates 24 hours a day, 7 days a week to take disaster fraud complaints. We’ve already received hundreds of complaints in the last month related to Harvey and Irma and they come from all over the country.
We have also worked with the Federal Trade Commission to release antitrust guidance for businesses that want to rebuild their communities. This guidance will ensure that these businesses can work together to rebuild affected communities without violating the antitrust laws.
Finally, I encourage anyone with information about fraud or other illegal behavior to call the Disaster Fraud Hotline at 1-866-720-5721. With your help, we can make sure that the people hurt most by these tragedies are saved from hurting any more.
Stay safe and God bless.
Thursday 14 September 2017
“Dino the Casino” Sentenced to 2 Years in Prison for Operating Illegal Gambling Business from Bakersfield to SacramentoRead the Press Release
SACRAMENTO, Calif. — Nive Hagay, 31, of Los Angeles, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years in prison to be followed by three years of supervised release for conducting an illegal gambling business and distributing cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2008 and November 2016, Hagay, who also went by the name “Dino the Casino,” placed video slot machines in small businesses from Bakersfield to Sacramento. Hagay then laundered the proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8.
On October 15, 2016, at a smoke shop in Sacramento, Hagay sold approximately one ounce of a mixture that tested positively for cocaine.
In addition to the sentence imposed, Hagay forfeited various assets acquired with cash from the illegal gambling business, including a 2010 Aston Martin Rapide, a 2016 Mercedes Benz AMG GT, several Ducati motorcycles, and hundreds of thousands of dollars seized from his home, the illegal slot machines, and various bank accounts.
This case was the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Justin L. Lee prosecuted the case. Assistant U.S. Attorney Kevin Khasigian handled the forfeiture.
Woodland Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Raul Gonzalez, 43, of Woodland, was sentenced by U.S. District Judge Morrison C. England Jr. to 30 years in prison for production of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, this case originated from a tip from the National Center for Missing and Exploited Children concerning an email address that was linked to an online photo-sharing site featuring images of minors engaged in sexually explicit conduct. The email address was registered to Gonzalez, and a search of his home uncovered a cellphone containing multiple images of child pornography.
Officers discovered that two of the minor victims portrayed in those images had been exploited and photographed by Gonzalez himself, and that one of the victims was his prepubescent relative. According to court documents, on October 13, 2013, Gonzalez caused his minor relative to engage in sexually explicit conduct, which he recorded with his cellphone camera. Gonzalez also sexually abused another minor who was less than 14 years old.
Gonzalez was convicted in Yolo Superior Court (case 14-3642) for the abuse of the two minors and sentenced to 30 years in prison. Judge England ordered that the sentence in this case be served concurrently with the 30‑year sentence imposed in Yolo County Superior Court case, and that the sentence be served in federal prison. Gonzalez pleaded guilty to the federal charge on June 1, 2017.
U.S. Attorney Talbert stated: “Today’s long sentence underscores the egregious nature of the defendant’s crime. Gonzalez preyed on and exploited two very young children, and compounded that abuse by recording it. My office is committed to working with our law enforcement partners to prosecute and incapacitate those who exploit the most vulnerable members of our society.”
Special Agent in Charge Sean Ragan of the Sacramento Field Office stated: “The production of child pornography is an assault against the most vulnerable members of our society. While Gonzales will serve a 30-year sentence for his crimes, his victims may suffer the effects of this crime for a lifetime. The FBI is committed to working with our law enforcement partners to identify and apprehend those who prey upon our nation's children.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children (ICAC) Task Force, a federally and state‑funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Winthrop Man Pleads Guilty to Unlawfully Possessing a FirearmRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jonathan Bowers, 29, of Winthrop, Maine pleaded guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on April 9, 2016, Bowers possessed a 9mm pistol while at a car repair shop in Chelsea, Maine. Bowers was prohibited from possessing firearms because of seven felony convictions for burglary and theft.
If Bowers is found to be an armed career criminal, he faces an enhanced sentence of between 15 years and life in prison, up to five years of supervised release, and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kennebec County Sheriff’s Office.
Virginia man admits to his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Berrysville, Virginia man has admitted to methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Kevin L. Navarro, 24, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting.” He admitted to conspiring with another person to distribute methamphetamine in Hardy County, West Virginia in October 2016.
Navarro faces 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 defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.Van Wert man indicted for child pornographyRead the Press Release
A Van Wert man was indicted for crimes involving child pornography, said U.S. Attorney Justin E. Herdman.
Roy Allen Nichols, 54, was charged with receipt and distribution of child pornography
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 case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI in Lima.
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.