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Monday 11 September 2017
Owner of O.C. Pet Products Company Pleads Guilty to Selling Pet Meds Without Prescriptions, Some of Which Were Not Approved for U.S. SaleRead the Press Release
LOS ANGELES – A Laguna Hills man pleaded guilty today to charges of selling misbranded veterinary medications without a prescription, some of which were not approved for use in the United States.
Sean Gerson, 49, the owner Vaccination Services, Inc. in Lake Forest, pleaded guilty in a scheme that netted him at least $2.5 million over the past 15 years.
Gerson pleaded guilty to smuggling, introduction into interstate commerce misbranded animal prescription drugs with the intent to defraud and mislead the United States Food and Drug Administration, and a misdemeanor charge of distribution and sale of an unregistered pesticide. Vaccination Services also pleaded guilty today to the same federal charges.
The misbranded drugs – meaning they were sold without a valid prescription from a veterinarian – were Comfortis, an anti-flea medication, and Ciprofloxacin, a powerful antibiotic commonly called “Cipro” that can be used in dogs and cats to treat skin, respiratory and urinary tract infections.
According to court documents, Gerson sold Comfortis that was designed for the South African market and was not approved for distribution in the United States. Federal law prohibits the importation and sale of veterinary medicines that have not been approved by the FDA and Environmental Protection Agency for use in this country.
Gerson used several websites – including fleastuff.com, mydoghasfleas.xyz and fleaandtickstuff.com – to market prescription animal products to buyers without valid prescriptions.
In a plea agreement filed in United States District Court, Gerson admitted that he “knowingly distributed, transported and sold the prescription animal drugs Comfortis and Ciprofloxacin in interstate commerce” to an undercover law enforcement officer in Missouri in August 2016. Gerson at the time knew that the drug had been smuggled into the United States “because the drugs were foreign-market branded and not approved by the U.S. FDA for entry into the United States.”
Gerson also admitted that he sold foreign market pesticides – animal flea and tick products not approved for sale and distribution in the United States – to an undercover law enforcement officer in Washington in June 2012.
Gerson pleaded guilty today before United States District Judge R. Gary Klausner, who is scheduled to sentence Gerson and his company on December 11.
In the plea agreement, prosecutors and Gerson have agreed that the appropriate sentence in this case is 30 months in federal prison and a fine of $200,000. The final sentence will be determined by Judge Klausner, and if the judge decides to deviate from the agreed-upon sentence both parties have the right to withdraw from the plea agreement and proceed to trial.
In addition to the prison sentence and criminal fine, Gerson has agreed to the entry of a $2.5 million forfeiture judgment which will require Gerson to forfeit the proceeds of his long-running scheme.
In its plea agreement, Vaccination Services has agreed to pay a $300,000 fine and to be placed on probation for a period of five years. This stipulated sentence is also subject to the approval of Judge Klausner.
Gerson was previously convicted of charges related to the illegal sale of pet medications and products. According to documents previously filed in the federal case in Los Angeles, Gerson pleaded guilty in Texas in 2014 to state charges of delivery of a dangerous drug, specifically a prescription drug called Clenbuterol.
In a related case, Judge Klausner in June ordered a South African veterinarian to pay a fine of $5,000 and forfeit to the United States $145,000 after pleading guilty to a charge of making false statements in relation to unapproved pet medications he shipped to Gerson. Craig Mostert sent the foreign-market drugs to Gerson, and significantly understated the value of the products in a series of shipments between 2008 and 2017.
The case against Gerson and Vaccination Services is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Food and Drug Administration’s Office of Criminal Investigations, and the Environmental Protection Agency.
This case is being prosecuted by Assistant United States Attorney Joseph O. Johns, Chief of the Environmental and Community Safety Crimes Section.
Orlean Man Charged with Bank FraudRead 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 Joseph Stevens, 53, of Olean, NY, was arrested and charged by criminal complaint with bank fraud. The charge carries a maximum penalty of 30 years in prison and a $1,000,000.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that according to the complaint, in August 2012, the defendant, a Certified Public Accountant (CPA), was hired by a business owner to handle all of the bookkeeping responsibilities for his business. Responsibilities included paying vendors, employee payroll, and personal and business tax return preparation. In order to perform the accounting duties, Stevens was given access to the business’ banking account information, which included the routing and account numbers for the business owner’s two business accounts at a Five Star Bank branch in Warsaw, NY.
Beginning in early 2016, the defendant began to notify the business owner that the business was not doing well financially. For instance, a $30,000.00 line of credit at Five Star Bank was maxed out without authorization. When questioned about the line of credit, Stevens told the business owner that the business was not generating enough revenue. Also, sometime in 2016, the business owner received a letter from the Internal Revenue Service stating that his 2015 taxes had not been paid. When the business owner questioned the defendant, Stevens again stated that the business was not generating enough revenue.
In September 2016, the business owner realized that monthly statements for the Five Star Bank accounts were no longer being received at the business owner’s office. On March 24, 2017, the business owner went to the bank branch to review the business accounts activity. The business owner discovered two recent checks, both made payable to "Joseph Stevens," with the business owner’s forged signature. The business owner informed the bank of the issue, and requested copies of all records related to the business accounts.
On April 4, 2017, the business owner received a telephone call from Five Star Bank and was told that someone was in the branch attempting to negotiate a $5,000.00 check drawn against the business owner's account. The business owner advised the bank that the $5,000.00 check was not authorized and to freeze the account. While still on the telephone with a bank representative, the business owner received a telephone call from the defendant stating that the business accounts were frozen.
According to the complaint, between September 2013, and April 2017, Stevens made approximately $470,000.00 in unauthorized withdrawals from the business owner’s accounts.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The criminal complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
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.
Omaha Man Indicted on Tax ChargesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Mark A. Harrell, age 34, of Omaha, Nebraska, was detained at his initial appearance today by Magistrate Judge Michael D. Nelson. Harrell was recently indicted by a federal grand jury on four counts of aiding and assisting in the preparation of false tax returns for the 2012 filing year. The penalty on each count is a maximum of 3 years’ imprisonment, a $250,000 fine, and three years of supervised release.
Harrell is charged with including fraudulent information as to the taxpayers’ wages, wage withholding and claims of American Opportunity Credit. It is alleged that by including the false information the taxpayers received a larger refund than they were entitled to receive.
The case was investigated by the Internal Revenue Service Criminal Investigation Unit.
New Cumberland Businessman Pleads Guilty to Filing False Tax ReturnRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Powers, age 53, of New Cumberland, Pennsylvania, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner to charges that he filed a false Federal Income Tax Return pertaining to tax year 2010.
According to United States Attorney Bruce D. Brandler, Powers who owns and operates Powers Auto Repair in New Cumberland, pleaded guilty to understating his true income by $238,381 on his 2010 income tax return. The tax owed on that unreported income amounted to $42,774. Under the terms of his plea agreement, Powers will make restitution to the Internal Revenue Service (IRS) in that amount plus another $26,198 for unpaid taxes owed on unreported income of $208,979 for tax year 2012. Thus, the total loss to the IRS as a result of Powers’ underreporting of income was $68,972.
The IRS investigation of Powers began after the IRS received a Form 1099-K indicating Powers Auto Repair had significantly more gross receipts than what Powers reported on his 2011 income tax return. A Form 1099-K is a reporting document filed by entities that process credit card payments on behalf of businesses.
As a result, the IRS obtained Powers’ bank records, which showed that Powers established two accounts - a business account and a personal account at the same bank. Powers deposited all of the cash and all of the checks he received from his customers into the business bank account, and all of his credit card income into his personal account. However, Powers only reported the income in his business account as income on his 2010 and 2012 tax returns.
The case was investigated by the Harrisburg Office of the Internal Revenue Service, Criminal Investigations. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is three years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Milford Man Sentenced for High Speed ChaseRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew Wojciechowski, age 26, of Milford, Pennsylvania, was sentenced on September 7, 2017, by United States District Court Judge Robert Mariani to two years’ probation for fleeing and eluding rangers at the Delaware Water Gap National Recreation Area.
According to United States Attorney Bruce D. Brander, Wojciechowski engaged in a high speed chase while operating a Black Kawasaki Ninja motorcycle within the National Recreation Area, willfully failed to stop, and attempted to elude a pursuing police officer causing danger to other officers and pedestrians.
The investigation was conducted by the National Park Service and was prosecuted by Assistant U.S. Attorney Evan Gotlob.
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Michigan man admits to heroin trafficking chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Detroit, Michigan man pled guilty today to a drug trafficking charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wali “Black” Murphy, age 25, pled guilty to one count of “Distribution of Heroin.” Murphy admitted to selling heroin in September 2016 in Monongalia County.
Murphy 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 Zelda E. Wesley prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Abel Cruz-Bautista, age 25, and a citizen of Mexico, was sentenced today to time served (48 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Cruz-Bautista admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on September 3, 2010.
On July 25, 2017, Cruz-Bautista was arrested by ICE officers in Richfield Springs, New York.
Following the sentencing, Cruz-Bautista was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
McKean-FCI Inmate Admits Assault on Federal OfficerRead the Press Release
ERIE, Pa. - A federal prisoner at McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty in federal court to a charge of assaulting a federal officer, Acting United States Attorney Soo C. Song announced today.
Rogelio Muniz-Valdez, 41, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on March 15, 2017, Muniz-Valdez assaulted a federal officer who was engaged in his official duties.
Judge Cercone scheduled sentencing for January 8, 2018 at 1:30 p.m. The law provides for a maximum total sentence of 8 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Office of the McKean Federal Correctional Institution conducted the investigation that led to the prosecution of Muniz-Valdez.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving Attempted Murder of Gang RivalRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea, Mass., pleaded guilty today in federal court in Boston to RICO conspiracy involving the attempted murder of a rival gang member.
Daniel Menjivar, a/k/a “Roca,” a/k/a “Sitiko,” 22, a Salvadoran national who resided in Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and admitted responsibility for the attempted murder of a rival 18th Street gang member in Chelsea in May 2014. Menjivar is the 16th defendant to plead guilty in this case.
U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 4, 2017. According to the plea agreement, at sentencing the government will argue that in addition to the attempted murder, Menjivar also participated in an April 2015 conspiracy to kill an MS-13 member that the gang believed (incorrectly) was cooperating with law enforcement authorities.
In court filings and at today’s plea hearing, Menjivar was identified as a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique in Chelsea. On May 29, 2014, Menjivar and another MS-13 member repeatedly stabbed and shot a rival 18th Street gang member on Washington Avenue in Chelsea. The victim survived the attack.
In addition, the government advised at today’s plea hearing that in April 2015, agents used a cooperating witness to secretly audio and video record Menjivar and two other MS-13 members as they plotted to murder an individual identified in the superseding indictment as Victim 22, an ECS “paro” or probationary member whom they believed was cooperating with law enforcement.
After a three-year investigation, Menjivar was one of 61 defendants named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. According to the terms of the plea agreement, the government will recommend that Menjivar be sentenced to 13 years in prison. Menjivar will also be subject to deportation upon the 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lubbock Man Sentenced to 151 Months in Federal Prison for Drug OffenseRead the Press Release
LUBBOCK, Texas — Dewitt Donnell Bailey, 33, was sentenced on Friday, September 8, 2017, by Senior U.S. District Judge Sam R. Cummings to a 151 months in federal prison following his guilty plea in May 2017 to one count of possession with intent to distribute 28 grams or more of cocaine base, announced U.S. Attorney John Parker of the Northern District of Texas.
Charlene Denise Davis, 47, Bailey’s half-sister, pleaded guilty in May 2017 to one count of possession with intent to distribute cocaine. Judge Cummings previously sentenced Davis to 41 months in federal prison. She is ordered to surrender to the Bureau of Prisons on October 6, 2017. Bailey has been in custody since the time of his arrest in March 2017.
According to documents filed in the case, on March 15, 2017—following an investigation that spanned several months—law enforcement executed three search warrants in Lubbock, Texas related to individuals involved in the distribution of cocaine and cocaine base. Bailey had access to, and control of, all three residences. Davis was a resident at one of the locations. Searches of the three residences revealed a total of approximately $10,000 in cash, approximately 160 grams of suspected cocaine base, and several digital scales.
The U.S. Immigrations and Customs (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Lubbock County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Sean Long prosecuted.
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Lewis County woman admits to her role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Makyna Kancso, of Crawford, West Virginia, pled guilty today to an oxycodone distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Kancso, age 22, pled guilty to one count of “Distribution of Oxycodone.” She admitted to distributing oxycodone in Upshur County in June 2015.
Kancso 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 Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Valley Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Letter by Attorney General Sessions and Director of National Intelligence Coats Urging Congress to Reauthorize Title VII of the Foreign Intelligence Surveillance ActRead the Press Release
Please see the attached letter signed by Attorney General Sessions and Director of National Intelligence Coats urging Congress to promptly reauthorize, in clean and permanent form, Title VII of the Foreign Intelligence Surveillance Act, which is set to sunset at the end of this year.
View the letter attached or below:
The Honorable Paul Ryan Speaker
U.S. House of Representatives
Washington, DC 20515
The Honorable Mitch McConnell Majority Leader
United States Senate
Washington, DC 20510
The Honorable Nancy Pelosi Minority Leader
U.S. House of Representatives
Washington, DC 20515
The Honorable Charles E. Schumer Minority Leader
United States Senate
Washington, DC 20510
Dear Speaker Ryan and Leaders McConnell, Pelosi and Schumer:
We are writing to urge that the Congress promptly reauthorize, in clean and permanent form, Title VII of the Foreign Intelligence Surveillance Act (FISA), enacted by the FISA Amendments Act of 2008 (FAA), which is set to sunset at the end of this year.
Title VII of FISA allows the Intelligence Community, under a robust regime of oversight by all three branches of Government, to collect vital information about international terrorists, cyber actors, individuals and entities engaged in the proliferation of weapons of mass destruction and other important foreign intelligence targets located outside the United States. Reauthorizing this critical authority is the top legislative priority of the Department of Justice and the Intelligence Community. As publicly reported by the Privacy and Civil Liberties Oversight Board, information collected under one particular section of FAA, Section 702, produces significant foreign intelligence that is vital to protect the nation against international terrorism and other threats.
Section 702 permits the Attorney General and the Director of National Intelligence, under procedures approved by the Foreign Intelligence Surveillance Court, to authorize the acquisition of foreign intelligence information by targeting non-U.S. persons located outside the United States when such persons possess or are likely to communicate foreign intelligence information. At the same time, Section 702 provides a comprehensive regime of oversight by all three branches of Government to protect the privacy and civil liberties of U.S. persons. Section 702 may not be used to intentionally target a U.S. person located anywhere in the world, nor may the law be used to intentionally target any person, regardless of nationality, who is known to be located in the United States. The law requires the Intelligence Community to follow court approved targeting and minimization procedures designed to ensure compliance with the law's targeting restrictions and the requirements of the Fourth Amendment. The procedures are designed to protect the privacy of U.S. persons whose nonpublic information may be incidentally acquired.
The Department of Justice and the Office of the Director of National Intelligence conduct extensive oversight reviews of Section 702 activities and Title VII requires us to report to Congress on implementation and compliance twice a year. In addition, as demonstrated in numerous declassified court opinions and other materials, the Foreign Intelligence Surveillance Court exercises rigorous independent oversight of activities conducted pursuant to Section 702 to ensure that incidents of non-compliance are addressed through appropriate remedial action.
As you are aware, we have conducted briefings outlining the utility and implementation of Section 702 for both Members and staff this year, and will continue to do so over the course of the next few months. We look forward to working with you to ensure the speedy enactment of legislation reauthorizing Title VII, without amendment beyond removing the sunset provision, to avoid any interruption in our use of these authorities to protect the American people.
Sincerely,
Jefferson B. Sessions III
Attorney General
Daniel R. Coats
Director of National Intelligencecc:
The Honorable Devin Nunes, Chairman, Permanent Select Committee on Intelligence
The Honorable Adam B. Schiff, Ranking Member, Permanent Select Committee on Intelligence
The Honorable Richard Burr, Chairman, Select Committee on Intelligence
The Honorable Mark Warner, Vice Chairman, Select Committee on Intelligence The Honorable Bob Goodlatte, Chairman, Judiciary Committee
The Honorable John Conyers, Jr., Ranking Member, Judiciary Committee
The Honorable Chuck Grassley, Chairman , Committee on the Judiciary
The Honorable Dianne Feinstein, Ranking Member, Committee on the JudiciaryLeader of International Narcotics Money Laundering Business Pleads Guilty in Manhattan Federal CourtRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JESUS RODRIGUEZ-JIMENEZ pled guilty in Manhattan federal court before United States District Judge Katherine B. Forrest to money laundering and conspiracy offenses in relation to RODRIGUEZ-JIMENEZ’s leadership of an international money laundering business working on behalf of drug cartels in Mexico and Central America. Through a web of front companies, shell bank accounts, and money couriers based in the United States and Europe, RODRIGUEZ-JIMENEZ successfully laundered in excess of $250 million in furtherance of those cartels’ narcotics trafficking activities.
Under RODRIGUEZ-JIMENEZ’s plea agreement with this Office, he faces a stipulated Guidelines sentence of 30 years in prison under the United States Sentencing Guidelines, which is also the maximum potential sentence. RODRIGUEZ-JIMENEZ is scheduled to be sentenced by Judge Forrest later this year.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in Manhattan federal court today, Jesus Rodriguez-Jimenez led an international money laundering operation that handled the proceeds of cocaine and heroin trafficking by Mexican and Central American cartels. Using front companies, sham bank accounts, and money drops in several U.S. cities, the Rodriguez-Jimenez organization laundered more than a quarter of a billion dollars in illegal drug trafficking proceeds. Thanks to the efforts of the DEA and IRS, Rodriguez-Jimenez now awaits sentencing for his crimes.”
According to the charging and other documents filed in the case, as well as statements made during RODRIGUEZ-JIMENEZ’s guilty plea proceeding:
Since July 2013, the U.S. Drug Enforcement Administration (“DEA”) has been investigating JESUS RODRIGUEZ-JIMENEZ’s international money laundering organization and its cartel clients, which together have been involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering narcotics proceeds through a variety of methods, including through one or more seemingly “legitimate” corporations under their control. RODRIGUEZ-JIMENEZ and his organization have ties to Panama, Mexico, Italy, Spain, and the United States, among other locations.
RODRIGUEZ-JIMENEZ, as the leader of a network of front companies created in Mexico and Las Vegas, Nevada, among other places, controlled numerous sham bank accounts opened under the names of those businesses. Using those fronts for cover, RODRIGUEZ-JIMENZ received large amounts of drug proceeds in the form of cash in the United States and elsewhere, deposited that cash into the sham bank accounts controlled by his organization, and transmitted that cash via a series of domestic and international wire transfers to members and associates of his cartel clients. As part of his involvement in this laundering activity, RODRIGUEZ-JIMENEZ orchestrated the delivery of narcotics proceeds to money launderers in the United States, including through the delivery of hundreds of thousands of dollars in single-day “money drops” in New York, Philadelphia, Atlanta, Chicago, and Las Vegas.
RODRIGUEZ-JIMENZ and multiple other members of his organization were included in two Indictments filed in June and November 2016 – 16 Cr. 644 (KBF) – now before Judge Forrest, in which all of the defendants were charged with money laundering conspiracy for participation in RODRIGUEZ-JIMENEZ’s organization, and various of the defendants were also charged with participation in narcotics trafficking.
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Acting U.S. Attorney Kim praised the outstanding work of the Las Vegas Division of the DEA and the Las Vegas Office of the Internal Revenue Service, Criminal Investigation, in the investigation of this case.
This case is being handled by this Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Andrew C. Adams and Noah Falk are in charge of the prosecution.
Knoxville Man Pleads Guilty to Conspiring to Defraud the FDARead the Press Release
Abingdon, VIRGINIA – A Tennessee man, who operated a business that created illegal drugs for the purpose of evading existing Food and Drug Administration laws, pleaded guilty last week in the United States District Court for the Western District of Virginia in Abingdon to a federal conspiracy charge, Acting United States Attorney Rick A. Mountcastle announced.
Billy K. Groce, 65, of Knoxville, waived his right to be indicted and pleaded guilty last week to a one count Information that charged him with conspiracy to defraud the United States by impeding, impairing obstructing and defeating the lawful functions of the Food and Drug Administration.
According to evidence presented by Assistant United States Attorney Randy Ramseyer, Groce operated a business that was created for the purpose of illegally circumventing the FDA’s regulation of the interstate shipment and labeling of veterinary drugs. Groce’s business illegally obtained, stored, sold and caused to be shipped, drugs from veterinary drug manufacturers and distributers. Groce’s business was not a licensed wholesale, a licensed pharmacy or a veterinary clinic.
Groce shipped drugs to co-conspirator Marlin Webb, who was the store manager at the Carroll County Cooperative. Webb then illegally sold the veterinary prescription drugs through the cooperative. Webb previously pleaded guilty to one count of conspiracy to defraud the FDA and was sentenced to one year of probation and paid $125,000 in forfeiture and other payments at the time of his guilty plea.
The investigation of the case was conducted by the U.S. Food and Drug Administration – Office of Criminal Investigations and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Kirksville Man Pleads Guilty to Stealing $380,000 from FraternityRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kirksville, Mo., man has pleaded guilty in federal court to embezzling more than $380,000 from the Sigma Alpha Epsilon fraternity in Columbia, Mo.
Burt Louis Beard, 62, of Kirksville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps on Thursday, Sept. 8, 2017, to a federal information that charges him with bank fraud.
By pleading guilty, Beard admitted that he defrauded the Sigma Alpha Epsilon (SAE) fraternity of $380,502 during the period between March 2008 and August 2014.
Beard was the volunteer treasurer from 2000 to 2014. During that time, Beard was responsible for all financial duties related to maintaining the house, paying various vendors and collecting rent checks.
Beard wrote himself in excess of 150 checks. Beard claimed the checks to himself were for reimbursement of personal loans to SAE for direct payments he made to venders. When asked for copies of his personal checks, Beard supplied copies of checks to fictitious vendors or existing vendors that did not have an account receivable for that amount or during that period. In cases where Beard supplied vendor invoices for his reimbursements, vendors said the invoices were not theirs.
SAE elected a new slate of officers for the fraternity in the fall of 2014. During the transition of financial responsibilities from Beard to the new treasurer, numerous red flags began to appear. SAE hired RGL Forensics, a forensic accounting company, to investigate Beard’s wrongdoing. Based on the documentation provided and reviewed, RGL calculated $380,502 as the entire loss from March 2008 through September 2014. The calculated loss consisted of $414,979 in checks issued to Beard from March 2008 through September 2014, less $34,477 in payments that Beard issued to or on behalf of SAE.
Under federal statutes, Beard is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI.
Kansas Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Kansas man was sentenced Monday to 75 months in federal prison for robbing a bank in Kansas City, Kan., U.S. Attorney Tom Beall said.
Andre U. Randle, 37, Kansas City, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Feb. 1, 2017, he robbed the U.S. Bank at 10959 Parallel Parkway, in Kansas City, Kan.
According to court documents, he gave a clerk a note saying, “I have 2 guns. Don’t make me use them,” before leaving the bank with stolen cash in a purple pillow case. Officers of the Kansas City, Kan., Police Department stopped his car in the 6900 block of Troop and arrested him.
Beall commended the Kansas City, Kan., Police Department, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Indiana Gospel Singer Sentenced to 60 Years for Sexual Exploitation of a Minor and Distribution of Child PornographyRead the Press Release
A Muncie, Indiana man was sentenced today to serve 60 years in prison for sexual exploitation of a minor and distribution of child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Shawn Shannon, 45, a traveling gospel singer, was sentenced today by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered Shannon to pay $1,387 in restitution to the victim and serve a lifetime of supervised release following his release from prison. Shannon was convicted on July 27, 2016, after a three-day jury trial of 19 counts of sexual exploitation of a minor and one count of distribution of child pornography.
According to evidence presented at trial, Shannon lured a 13-year-old boy to a hotel in Decatur, Illinois, and directed him to pose for a series of sexually explicit photos which Shannon took with his iPhone 5s. The evidence showed that Shannon attempted to delete evidence from his iPhone 5s including thousands of text messages and contacts after the victim’s mother learned of Shannon’s conduct and confronted him. Expert testimony presented at trial revealed that forensic examiners were able to recover these text messages which demonstrated Shannon’s nefarious intentions with the victim. Shannon also engaged in sexual contact with another minor boy and took similar photos, according to trial evidence.
Shannon was arrested on April 15, 2015, and was remanded to the custody of the U.S. Marshals Service pending trial.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Decatur Police Department investigated the case. This case is being prosecuted by Trial Attorney Elly M. Peirson of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division, and Maureen C. Cain, a former CEOS Trial Attorney who is now an Assistant United States Attorney at the U.S. Attorney’s Office for the Eastern District of Virginia.
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 www.justice.gov/psc.
Huntington felon pleads guilty to federal gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today a federal gun charge, announced United States Attorney Carol Casto. Jermaine D. Cathey, 36, entered his guilty plea to being a felon in possession of a firearm.
On January 2, 2017, officers from the Huntington Police Department observed Cathey walking and screaming in the middle of Veteran’s Memorial Boulevard in Huntington. When officers approached Cathey, they saw that he had a pistol in his right hand. Cathey was prohibited from possessing any firearm under federal law because of multiple felony convictions, including a 2013 conviction in Cabell County Circuit Court for being a felon in possession of a firearm.
Cathey faces up to 10 years in federal prison when he is sentenced on December 11, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Huntington drug dealer pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who sold heroin in June 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. George Holloway, 45, entered his guilty plea to distribution of heroin.
On June 7, 2016, a confidential informant working with the Huntington FBI Drug Task Force met Holloway at 833 26th Street in Huntington. The informant bought approximately 20.6 grams of heroin from Holloway. As part of the plea agreement, Holloway admitted to all the drug trafficking activity charged in the indictment, including that he distributed heroin in Huntington on four other occasions in 2015 and 2016.
Holloway faces up to 20 years in federal prison when he is sentenced on December 11, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Four Members of Philadelphia Identity Theft Ring Plead Guilty to Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
Four Philadelphia, Pennsylvania men pleaded guilty in the Eastern District of Pennsylvania to conspiring to file fraudulent tax refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to documents and information provided to the court, Philadelphia residents Ronald LaFortune, 40, Jean Celestin, 35, and Douge Francois, 26, conspired to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds to which they were not entitled. LaFortune opened a bank account at Citizens Bank in Philadelphia in the name of “Ronald Tax Service,” though he did not actually have a tax service. LaFortune and his co-conspirators directed the IRS to deposit some of the fraudulently obtained tax refunds into this bank account. He then withdrew money from the account to provide to Celestin, Francois and other co-conspirators. Celestin and Francois cashed checks they received from LaFortune and kept a portion of the proceeds. Celestin recruited other individuals to join the conspiracy, and he transported cash proceeds from the scheme from Philadelphia to Miami. The defendants agreed that they caused a tax loss of $118,000.
U.S. District Court Judge John R. Padova set sentencing dates as follows: LaFortune is scheduled to be sentenced on Dec. 18; Celestin is scheduled to be sentenced on Dec. 18; and Francois is scheduled to be sentenced on Dec. 19. All three defendants face a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
In a separate, but related scheme, according to documents and information provided to the court, Daniel Monville, 28, conspired with others to use stolen IDs to file tax returns with the IRS fraudulently seeking refunds to which he was not entitled. Despite not having a tax preparation business, Monville opened up a bank account in the name of “Daniel Tax Services” at Citizens Bank in Philadelphia to facilitate the crime. He admitted to causing a tax loss of $155,789.23.
Monville is scheduled to be sentenced on Dec. 13 also before Judge Padova. He faces a statutory maximum sentence of 10 years in prison on the conspiracy charge and five years in prison for aiding and abetting the filing of fraudulent tax refunds, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Four Members of Philadelphia Identify Theft Ring Plead Guilty to Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
WASHINGTON – Four Philadelphia, Pennsylvania men pleaded guilty in the Eastern District of Pennsylvania to conspiring to file fraudulent tax refund claims, announced Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, Philadelphia residents Ronald LaFortune, 40, Jean Celestin, 35, and Douge Francois, 26, conspired to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds to which they were not entitled. LaFortune opened a bank account at Citizens Bank in Philadelphia in the name of “Ronald Tax Service,” though he did not actually have a tax service. LaFortune and his co-conspirators directed the IRS to deposit some of the fraudulently obtained tax refunds into this bank account. He then withdrew money from the account to provide to Celestin, Francois and other co-conspirators. Celestin and Francois cashed checks they received from LaFortune and kept a portion of the proceeds. Celestin recruited other individuals to join the conspiracy, and he transported cash proceeds from the scheme from Philadelphia to Miami. The defendants caused a tax loss of $118,000.
District Court Judge John R. Padova set sentencing dates as follows: LaFortune is scheduled to be sentenced on Dec. 18; Celestin is scheduled to be sentenced on Dec.18; and Francois is scheduled to be sentenced on Dec. 19. All three defendants face a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
In a separate, but related scheme, according to documents and information provided to the court, Daniel Monville, 28, conspired with others to use stolen IDs to file tax returns with the IRS fraudulently seeking refunds to which he was not entitled. Despite not having a tax preparation business, Monville opened up a bank account in the name of “Daniel Tax Services” at Citizens Bank in Philadelphia to facilitate the crime. He admitted to causing a tax loss of $155,789.23.
Monville is scheduled to be sentenced on Dec. 13 also before Judge Padova. He faces a statutory maximum sentence of 10 years in prison on the conspiracy charge and five years in prison for aiding and abetting the filing of fraudulent tax refunds, as well as a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Fort Edward Man Arrested for Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK - James J. Mattison, age 46, of Fort Edward, New York, appeared today in federal court on charges that he sexually exploited a child.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
United States Magistrate Judge Daniel J. Stewart ordered Mattison detained pending further proceedings.
The complaint filed against Mattison alleges that in October 2016, he communicated with a 13-year-old boy using both text messages and the Live.me phone application. The complaint further alleges that Mattison pretended to be a teenage girl named Megan, and coerced the victim into taking and sending sexually explicit photographs of himself by threatening to commit suicide if the victim refused. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the charge in the complaint, Mattison faces at least 15 years and up to 30 years in prison, post-imprisonment supervised release of at least 5 years and up to life, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Joseph A. Giovannetti.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former Owner of Restaurant in Lenexa Sentenced for Bank FraudRead the Press Release
KANSAS CITY, KAN. - A former owner of a restaurant in Lenexa was sentenced Monday for bank fraud, U.S. Attorney Tom Beall said.
Charles R. Waits, 56, Lenexa, Kan., was sentenced to three years on supervised release and ordered to pay $10,000 within 90 days toward restitution. Waits pleaded guilty to one count of bank fraud. In his plea, he admitted the crime occurred while he was one of the owners of the Kansas City Sports Grille, which is now closed. Waits provided false financial information to Community America Credit Union when he applied for a loan. He listed assets including property he did not own and he significantly overvalued one of the properties he owned.
Beall commended the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Fifth Defendant Sentenced to Federal Prison for Credit Card Fraud and Identity Theft Related to Cyberattacks on 3 U.S. CompaniesRead the Press Release
LOS ANGELES – The fifth and final defendant charged with using credit and debit cards obtained from a series of cyberattacks on U.S. companies that resulted in an estimated $5 million in losses – and caused one victim company to go out of business – was sentenced today to 33 months in federal prison.
Dmitry Fedoseev, 34, a Russian national who resides in Koreatown, was sentenced after pleading guilty in March to possession of unauthorized access devices (credits cards and debit cards) and aggravated identity theft.
Fedoseev was sentenced today by United States District Judge Stephen V. Wilson.
Three other Russian nationals and another Eastern European immigrant who monetized the information obtained from the cyberattacks by making fraudulent purchases, selling the purchased goods and transferring money to others involved in the fraudulent scheme were previously sentenced to federal prison. They are:
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Siarhei Patapau, 26, of the Miracle Mile District of Los Angeles, a native of Belarus, who was sentenced to 30 months in prison;
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Timur Safin, 29, of Burbank, who was sentenced to three years;
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Kristina Gerasimova, 22, of the Miracle Mile District of Los Angeles, who was sentenced to one year and one day in prison; and
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Fedoseev’s ex-wife, Irina Fedoseeva, 33, who was sentenced to 14 months.
All five defendants admitted to helping make fraudulent purchases with credit and debit cards obtained as a result of cyberattacks on two healthcare administrators in December 2015 and February 2016. Due to their federal felony convictions, all five defendants have or will be deported from the United States.
According to court documents filed in two separate cases, the five defendants conspired with computer hackers, some of whom are believed to be in Russia. The hackers staged attacks that included:
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a July 2014 intrusion into an airline’s computer system in which the hackers fraudulently funded pre-paid credit cards in the amount of $900,000;
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a December 2015 hack into the system of a healthcare administrator that allowed the cybercriminals to reactivate a dormant dependent care account and order the production of numerous debit cards that were used to make approximately $550,000 in fraudulent purchases; and
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a February 2016 attack on another healthcare administrator that allowed the intruders to order the production of debit cards linked to reactivated accounts that were used to make approximately $3.5 million in fraudulent purchases.
The computer hackers directed the pilfered debit and credit cards to be sent to the five defendants charged in Los Angeles and other co-conspirators. Members of the conspiracy then used the unauthorized cards to make cash withdrawals, purchase money orders and make purchases at retail outlets such as Apple, Best Buy, Home Depot and Target.
For example, Safin admitted in court that he used a number of the pre-paid credit cards to withdraw approximately $5,074 at ATMs throughout Los Angeles County and to purchase money orders totaling $19,420. He used debit cards obtained from the healthcare administrators to make at least $225,000 in fraudulent purchases.
When they were arrested last year, Fedoseev and Fedoseeva possessed more than 519 unauthorized credit, debit and gift cards and $29,300 in cash. Patapau was found with approximately 525 credit and debit cards in other people’s names.
The investigation that led to the two cases filed in Los Angeles was conducted by the Federal Bureau of Investigation.
The two criminal cases are being prosecuted by Assistant United States Attorney Bryant Yang of the Organized Crime and Drug Enforcement Task Force.
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Federal Authorities Successfully Prosecute Convicted Felon for the Illegal Possession of Multiple FirearmsRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Chief United States District Court Judge Kristi K. DuBose sentenced Ernest Lamar Rogers on September 8, 2017 to serve a term of imprisonment of 12 months followed by 3 years of supervised release for illegally possessing multiple firearms. He possessed the firearms in Mobile, Alabama on February 11, 2017 in violation of 18 USC § 922(g)(1). The defendant entered a guilty plea before the Court on May 11, 2017.
On the date of incident, the Mobile County Sheriff’s Office Delta Patrol Squad attempted to initiate a traffic stop after they observed the defendant commit a traffic violation in his vehicle. However, the defendant did not comply and threw a Glock, .40-caliber pistol out of a window of the vehicle he was in at the time. Shortly thereafter, a dangerous car chase ensued.
Once the defendant was apprehended, the authorities located an additional firearm, a Smith and Wesson, .38-caliber revolver, on the floorboard of the same vehicle. During the investigation, the authorities learned that the defendant’s driver’s license had been suspended.
This case was investigated by the Federal Bureau of Investigation (FBI), and the Mobile County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Essex County, New Jersey, Man Sentenced to 173 Months in Prison for Summer 2016 Bank Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 173 months in prison for robbing four banks in August and September 2016 and for violating his supervised release from a previous offense, Acting U.S. Attorney William E. Fitzpatrick announced.
James Lockwood, 39, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with four counts of bank robbery. He was sentenced to 125 months in prison on the bank robbery counts, as well as an additional 48 months for violating supervised release. He was originally arrested by state authorities on Sept. 23, 2016, and has been in custody since that time. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, Lockwood robbed the following banks:
Bank
Location
Date
M & T Bank
Lyndhurst, New Jersey
Aug. 16, 2016
Schuyler Bank
Kearney, New Jersey
Aug. 25, 2016
Schuyler Bank
Kearney, New Jersey
Sept. 8, 2016
Capital One Bank
Clifton, New Jersey
Sept. 16, 2016
Lockwood admitted that during each of the above robberies, he threatened to use force while demanding money from the bank employees. He also robbed the same Schuyler Bank on Aug. 25, 2016, and Sept. 8, 2016.
In addition to the prison term, Judge Salas sentenced Lockwood to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the Hudson County Prosecutor’s Office, the Passaic County Prosecutor’s Office, and the Kearny and Clifton Police Departments for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Keith Hirschorn Esq., Hoboken, New Jersey
Erie Man Sentenced to 13 years in Jail for Sex Trafficking Two Minor VictimsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 13 years in jail and 10 years of supervised release on his conviction for sex trafficking of a child and conspiracy to commit sex trafficking, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Devonte Lamonte Lucas, 22.
According to the information presented to the court, from March 2015 to October 2015, Lucas and a co-defendant knowingly recruited, enticed, harbored, transported, provided, advertised and maintained two minor victims who engaged in commercial sex acts at the behest of Lucas and his co-defendant. Lucas’ illegal activity was ultimately stopped when members of the Millcreek Police Department observed Lucas transport a minor female to a Millcreek motel. The Millcreek officers, acting in an undercover capacity, had set up a meeting at the motel with one of the victims via an Internet advertisement that had been placed by Lucas’ co-defendant.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, and the Millcreek Police Department for the investigation leading to the successful prosecution of Lucas.
East Bay Developer Arraigned on Campaign Finance Fraud ChargesRead the Press Release
OAKLAND – James Tong, a prominent East Bay developer, was arraigned today on an indictment alleging that he made illegal campaign finance donations, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge John F. Bennett.
According to the indictment, Tong, 72, of Pleasanton, Calif., used “conduit contributors,” or straw donors, to make donations from his own funds to a political campaign in excess of the amounts allowed by one individual. The indictment alleges that in both 2012 and 2013, Tong made over $10,000 of these “straw” donations to the authorized political committee supporting the campaign of a candidate for federal elected office. Neither the committee nor the candidate are named in the indictment.
Court filings confirm that Tong is the same individual who was convicted last year of violating the Endangered Species Act, in United States v. James Tong, 15-512-JST.
Tong was arraigned and made his initial appearance in federal court in Oakland before U.S. Magistrate Judge Kandis A. Westmore. He was released on his own recognizance and required to surrender his passport. Tong’s next scheduled appearance is at 9:30 on September 29, 2017, before the Honorable Jon S. Tigar, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence on each of the counts alleged of 2 years, and a fine of $50,000 or 1000% of the amount involved in the violation, whichever is greater. There is also a minimum mandatory fine of at least 300% of the amount involved in the violation. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecution and National Security Unit of the U.S. Attorney’s Office and is the result of a year-long investigation by the Federal Bureau of Investigation.
District Man Pleads Guilty to Sexually Assaulting WomanRead the Press Release
WASHINGTON – Michael Williams, 24, of Washington, D.C., has pled guilty to a charge of third-degree sexual abuse for groping a stranger after knocking her to the sidewalk in downtown Washington, announced U.S. Attorney Channing D. Phillips.
The victim was eight months pregnant at the time. Fortunately, both the victim and her baby sustained no serious injuries.
Williams pled guilty on Sept. 8, 2017, in the Superior Court of the District of Columbia. The Honorable Zoe Bush scheduled sentencing for Nov. 17, 2017. Once released from prison, Williams will be placed on a period of supervised release. He also will be required to register as a sex offender for a 10-year period.
According to the government’s evidence, on May 5, 2017, at about 3:30 p.m., Williams approached the victim just outside the U.S. Tax Court in the 400 block of 3rd Street NW. He was stark naked. When the victim saw Williams approaching, she tried to flee, but Williams caught her, grabbed her, and tackled her to the sidewalk, where he groped her. A guard inside the Tax Court saw the assault and ran outside to try to intervene, but Williams fled. By happenstance, a homicide detective with the Metropolitan Police Department (MPD) was driving by and saw a naked man running up 3rd Street. He jumped out of his car, pursued, caught and arrested Williams. Williams has been in custody since his arrest.
In announcing the plea, U.S. Attorney Phillips praised the quick action of the homicide detective and the security officers at the U.S. Tax Court who helped pursue the defendant. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Connecticut Real Estate Developer Admits to Defrauding Investors and Lenders out of MillionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JOHN DiMENNA, 74, of Vero Beach, Florida, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to two counts of wire fraud stemming from an extensive real estate investment and financing scheme.
According to court documents and statements made in court, DiMENNA worked in the commercial real estate industry, arranging for the purchase and development of large commercial real estate projects in Fairfield County, including hotels or multi-tenant properties with hundreds of apartments. DiMENNA and his business partners operated through various entities including Seaboard Realty LLC, Seaboard Stamford Investment Group (SSIG), and Seaboard Properties Group LLC. To raise capital for real estate projects, DiMENNA and his partners sold membership interests to outside investors in each LLC that owned or was to purchase a designated commercial property. DiMENNA also sold interests to investors in other LLCs that did not own specific properties but were to have some involvement in certain projects. Various financial institutions and other entities provided millions of dollars in financing to purchase, renovate or construct DiMENNA’s commercial real estate projects. DiMENNA oversaw each project, including each entity’s profitability, its cash flow, operating cash needs and any additional funds needed for repairs or renovations.
Between approximately 2010 and March 2016, DiMENNA engaged in a scheme to defraud investors and financial institutions. Knowing that certain of his properties were not cash positive, and without disclosing this fact to investors and lenders, DiMENNA used funds from separate cash-positive entities to support capital improvements, construction, and operating expenditures in other LLCs that needed the cash. In addition, DiMENNA used funds from cash positive entities to continue to make required interest and preferred returns to investors of any entity that he managed, regardless of the true available cash that an entity might have to fund such payments.
As part of the scheme, DiMENNA prepared spreadsheets that inflated the projected cash flows of certain projects, and then shared the spreadsheets with his business partners knowing that they would be marketing the ventures to potential investors. DiMENNA also provided his business partners with false sales contracts, false lease commitments and other false documents concerning the status and prospect of the various real estate investments.
DiMENNA provided existing investors inaccurate financial information in order to induce investors not to withdraw an investment, and he provided prospective investors with false information about a project’s financial viability to induce them to invest. DiMENNA frequently received a template from his accounting manager that set forth actual financial figures relating to a property, and then changed the numbers to make the figures appear stronger. In certain instances, DiMENNA simply created his own template with his own false figures and then provided the summaries to current and potential investors.
DiMENNA also sold investors equity in certain entities at a time when he knew the entities were fully subscribed and thus not eligible for receiving investment monies.
During the scheme, DiMENNA provided lenders and appraisers with inaccurate financial data concerning the various real estate properties and other entities used to collateralize various loans, including providing lenders with overstated income figures, understated expense figures, false personal financial statements, false bank statements, and false tax returns relating to the properties. He also failed to disclose to potential lenders intercompany debt obligations and all unrecorded liens on particular properties, and he created false releases of liens and UCC filing documents.
DiMENNA often sought financing from various lenders without informing existing lenders of prior loans secured by the property at issue, entered loan agreements with lenders without recording such agreements, and forged the names of his two business partners on various documents without their knowledge to secure financing. At times, DiMENNA entered into financing agreements with lenders without the knowledge, consent or authorization of his two business partners.
The government contends that, through this scheme, victim investors lost approximately $28 million and victim lenders lost approximately $41 million, for a total combined loss of $69,617,685.38.
DiMENNA faces a maximum term of imprisonment of 50 years when he is sentenced by U.S. District Judge Victor A. Bolden in Bridgeport. A sentencing date is not scheduled.
DiMENNA is released on a $250,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Schmeisser.
Chief Executive Sent to Prison and Ordered to Pay Back Nearly Two Million Dollars to the IRS for Tax OffenseRead the Press Release
Defendant was formerly CEO of Michigan BioDiesel
GRAND RAPIDS, MICHIGAN — Defendant John Gerald Oakley, age 66, was sentenced to a year and a day in prison based on his guilty plea to two counts of federal tax evasion, Acting U.S. Attorney Andrew Birge announced today. Oakley, a resident of Dimondale, Michigan, was formerly the Chief Executive Officer of Michigan BioDiesel, a company based in Bangor, Michigan. Michigan Biodiesel claimed it was producing “an alternative fuel mixture,” which allegedly qualified as an excise tax-exempt fuel. Oakley was also ordered to pay back $1,923,443.50 to the Internal Revenue Service. The restitution money includes $1,867,122.50 of tax refunds improperly sent to Michigan BioDiesel and approximately $56,000 in personal federal taxes owed by Oakley.
Acting U.S. Attorney Birge emphasized that his office will zealously prosecute crimes against the United States Treasury. “Cheating on your taxes is stealing from your neighbors.”
A co-defendant, Tracy Darin Daniels, a 50-year-old resident of Mississippi, was sentenced to two years of probation based on his plea of guilty to misprision of a bankruptcy fraud. Daniels provided false documents to co-defendant Oakley, who then submitted them in a United States Bankruptcy Court case in the Western District of Michigan.
This matter was handled by Assistant U.S. Attorneys Michael A. MacDonald, Sally J. Berens, and Hagen W. Frank.
END
California Internet Sales Company President Sentenced to Prison for Embezzlement and False Tax ReturnsRead the Press Release
A Manhattan Beach, California resident was sentenced to nine months in prison for wire fraud and filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Alana W. Robinson for the Southern District of California.
According to the evidence presented at trial, James Miller, a California attorney, was the president and managing partner of MWRC Internet Sales LLC, an online sales company. As part of his duties, Miller had check signing authority for the company’s business bank account. From January 2009 through October 2012, Miller wrote unauthorized checks to himself from MWRC’s account, embezzling more than $300,000. Miller used this money to pay for personal expenses and did not report it on his individual tax returns for 2009 through 2012, causing a tax loss of approximately $58,000.
In addition to the term of prison imposed, U.S. District Judge George Wu ordered Miller to serve two years of supervised release and to pay $64,329 in restitution to the Internal Revenue Service (IRS).
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Robinson commended special agents of FBI and IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Rebecca Kanter and Trial Attorney Benjamin Weir of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Business Agent Pleads Guilty to $3.5 Million Tax FraudRead the Press Release
RICHMOND, Va. – Edward R. Prestes, 48, of Glen Allen, pleaded guilty today to conspiracy to defraud the IRS of over $3 million in employment and income taxes.
According to court documents, the purpose of the conspiracy was to evade the payment of income and employment taxes to the IRS for laborers working for various construction companies by paying the laborers “under the table.” From in or about 2011 through in or about 2013, Prestes was an agent for the following nominee corporations, incorporated in the Commonwealth of Virginia: Virginia American Contractors, LLC; Elson Contractors, LLC; Proactive Services, LLC; Positive Solutions, LLC; and Service Contractors, LLC, (“nominee corporations”). These nominee corporations all had the same address, a post office box in Glen Allen, but each nominee corporation had a separate bank account for which Prestes was an authorized signatory.
According to court documents, various construction companies made regular payments to the nominee corporations. Prestes then distributed the funds from the nominee corporations to the laborers. Prestes would make these payments to laborers by both cash and check. Prestes did not withhold any income or employment taxes, issue Forms W-2 or 1099 to the laborers, or file quarterly returns (Forms 941) or yearly income tax returns for the nominee corporations as required by law. At the end of each year, the construction companies issued IRS Forms 1099 to the nominee corporations and deducted the payments.
According to court documents, from in or about 2011 through in or about 2013, the construction companies paid over $9.2 million to the nominee corporations. Prestes then paid the laborers approximately $2.8 million in cash and $6.3 million in checks. Prestes kept as a commission approximately 2 1/2 to 3 1/2 percent of the funds he received from the construction companies. As a result of this conspiracy, the IRS lost over $3 million in employment and income taxes.
Prestes faces a maximum penalty of 5 years in prison when sentenced on December 12. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge of IRS-Criminal Investigations, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-CR-114.
Buffalo Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Orlando Rios, 45, a/k/a Fifo, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of one kilogram or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 10 years and a maximum of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between March 2014, and June 2015, the defendant conspired with Daniel Molina-Rios, Jose Andujar, Luis Montanez, and others, as part of a wide-scale drug trafficking organization that distributed heroin on the West Side of Buffalo. Rios headed the organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin or illegal use.
During the conspiracy, the defendant made at least six trips to the New York City area to obtain large quantities of heroin from a source of supply, purchasing at least 300 grams of heroin on each trip. In addition, during the time period of the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
The defendant also maintained a premise, located at 42 Potomac Avenue in Buffalo, for the purpose of distributing heroin. During the execution of a search warrant at that residence on June 18, 2015, law enforcement officers recovered a digital scale, glassine bags, rubber bands, one Cricket cellular telephone, one black Verizon phone, $4,510.00 in cash, and a Colt .380 pistol loaded with live automatic rounds in the magazine.
A total of 14 defendants have been indicted in connection with this case, and Rios is the ninth to be convicted. Charges are pending against the remaining defendants. 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.
The plea 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 New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for December 14, 2017, at 11:00 a.m. before Judge Geraci.
Attorney Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DONALD J. McCARTHY, 67, of East Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, for the tax years 1997 through 1999, 2001, 2003, and 2008 through 2011, McCARTHY, an attorney, filed federal personal income tax returns, but failed to pay the outstanding tax balances due and owing for those years, or failed to pay interest and penalties that had accrued on outstanding amounts. In addition, for the tax years 2012 through 2014, McCARTHY did not file personal income tax returns at all, and failed to pay taxes that were due and owing, as well as interest and penalties that had accrued on outstanding amounts.
The investigation revealed that McCARTHY attempted to evade the payment of income taxes by depositing his payroll checks into his personal bank account and then, shortly thereafter, withdrawing a substantial portion of the monies in cash and bank checks.
By June 2015, when he learned of the criminal investigation being conducted by the Internal Revenue Service, McCARTHY owed $1,437,037 in back taxes, interest and penalties.
Judge Underhill scheduled sentencing for December 4, 2017, at which time McCARTHY faces a maximum term of imprisonment of five years. McCARTHY also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
McCARTHY was released on a $50,000 bond pending sentencing.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Albuquerque Woman Sentenced to Twenty-Seven Years for Conviction on Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Bernalillo County Sheriff Manuel Gonzales, III, announced today that a federal judge has sentenced an Albuquerque-based methamphetamine trafficker with ties to the Sinaloa cartel to a 324-month term of imprisonment followed by five years of supervised release. Sandra Cook, 53, was sentenced based on her conviction by jury verdict on methamphetamine trafficking charges following a three-day trial in May 2017.
Cook was arrested on Feb. 24, 2016, on an indictment charging her with possessing methamphetamine with intent to distribute on June 30, 2015. The indictment was superseded on Feb. 28, 2017, to add another offense charging Cook with possessing methamphetamine with intent to distribute on Feb. 24, 2016. Cook’s trial on the two-count superseding indictment began on May 8, 2017, and concluded on May 11, 2017, when the jury returned a guilty verdict against Cook on both counts.
The trial testimony established that on June 30, 2015, officers of the Bernalillo County Sheriff’s Office (BCSO) seized multiple bundles of methamphetamine weighing approximately 3.2 kilograms (7.2 pounds) and over $22,000 in cash when they executed a search warrant at Cook’s residence. Following the filing of federal charges against Cook, she became a federal fugitive. In Feb. 2016, HSI used a court-authorized GPS tracker and data from Cook’s cell phone to locate Cook at a residence in Albuquerque. On Feb. 24, 2016, HSI and BSCO executed a search warrant at the residence where they located Cook standing near a kitchen table on which an open tool bag was sitting. The tool bag contained her driver’s license and a bag containing 441.6 grams of 100% pure methamphetamine.
This case was investigated by HSI and BCSO and was prosecuted by Assistant U.S. Attorneys Alexander M. Uballez and Peter J. Eicker.
Albuquerque Felon Sentenced to Four Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pilar Angel Lucero, 33, of Albuquerque, N.M., was sentenced today to 48 months in prison for violating federal firearms laws by unlawfully possessing a firearm and ammunition. Lucero will be on supervised release for three years after completing his prison sentence.
Lucero was charged by criminal complaint on July 7, 2016, with being a felon in possession of a firearm and ammunition on June 16, 2016, in Bernalillo County, N.M., following a routine traffic stop by the Albuquerque Police Department (APD). subsequently was indicted on the same charge on July 28, 2016. According to the indictment, was prohibited from possessing firearms or ammunition because of his previous felony convictions for shooting at a dwelling, shooting at or from a motor vehicle, drug trafficking, child abandonment/abuse, conspiracy to traffic in controlled substances, being a felon in possession of a firearm, and conspiracy to commit burglary of a house.
On May 2, 2017, Lucero pled guilty to the indictment and admitted that on June 16, 2016, APD officers found a handgun with 11 rounds of ammunition in his vehicle during a traffic stop. Lucero further admitted purchasing the handgun by using a fake New Mexico driver’s license while knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the FBI and the APD. Assistant U.S. Attorney Jennifer M. Rozzoni prosecuted the case.
Albuquerque Felon Facing Federal Commercial Robbery and Firearms Charges Arising Out of Aug. 29, 2017 Crime SpreeRead the Press Release
ALBUQUERQUE – Martin Garcia, 37, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws. The charges against Garcia arise out of an Aug. 29, 2017 crime spree, during which Garcia allegedly robbed two commercial businesses at gunpoint, attempted to run over an officer, and shot a firearm in the direction of an officer who was trying to apprehend him. Garcia remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for Sept. 12, 2017.
Garcia is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The criminal complaint alleges that on Aug. 29, 2017, Garcia robbed two employees of a wireless communications service provider in Albuquerque at gunpoint. Before departing from the store with cash from the cash registers, Garcia allegedly ordered the employees to the store’s back room and threatened to kill them if they left the room. Later that day, Garcia allegedly robbed two employees at a pizza restaurant in Albuquerque at gunpoint. As Garcia departed from the restaurant, he was followed by a third employee who provided information on Garcia’s path of travel to law enforcement authorities.
According to the criminal complaint, a high-speed pursuit occurred as officers attempted to apprehend Garcia. During the pursuit, Garcia allegedly rear-ended a civilian vehicle, attempted to run over an officer who was deploying a spike strip across the road, and fired a shot at an officer of the Albuquerque Police Department (APD) who was pursuing him. APD officers arrested Garcia in northeast Albuquerque after crashing his vehicle and running into an abandoned residence. Officers allegedly seized a loaded firearm from a closet in the abandoned residence, a shell casing on the floorboard of the vehicle Garcia had been driving, and a second shell casing on the ground near the driver’s side door of the vehicle.
Court records reflect that on Aug. 29, 2017, Garcia was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Garcia has been in state custody since his arrest on Aug. 29, 2017. The FBI arrested Garcia on the charges in the federal criminal complaint today after he was transferred to federal custody from state custody. The related state charges will be dismissed in favor of federal prosecution.
If convicted on the charges in the criminal complaint, Garcia faces a statutory maximum penalty of 20 years in prison on the Hobbs Act charge and ten years in prison on the felon in possession of a firearms charge. Garcia also faces up a mandatory minimum of ten years of imprisonment for discharging a firearm, which must be served consecutive to any sentence imposed on the other two charges. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Albuquerque Felon Facing Federal Charge After Allegedly Brandishing a Loaded Firearm at an OfficerRead the Press Release
ALBUQUERQUE –Jeremias Robertson, 26, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. Robertson remains in federal custody pending a preliminary hearing and detention hearing, both of which are scheduled for Sept. 12, 2017.
The criminal complaint alleges that the Albuquerque Police Department (APD) arrested Robertson on Aug. 18, 2017, after he allegedly brandished a loaded firearm at an APD officer. According to the criminal complaint, the officer had been dispatched to downtown Albuquerque in response to calls reporting that a man was pointing a firearm at people in the area. When the officer arrived in the area, he observed Robertson holding a firearm. When the officer ordered Robertson to drop the firearm, he allegedly pointed the firearm at the officer. After Robertson allegedly continued to disregard the officer’s commands and brandished the firearm at the officer, the officer shot Robertson. After Robertson was arrested, APD recovered the firearm, which allegedly was loaded with eight rounds of ammunition.
Robertson was prohibited from possessing firearms or ammunition on Aug. 18, 2017, because of his previous felony conviction for aggravated battery resulting in great bodily harm out of a state court in Wisconsin. If convicted of the charge in the criminal complaint, Robertson faces a statutory maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and is being prosecuted by Assistant U.S. Attorney Howard Thomas. The case is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Felon Charged with Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – This morning Morris Mora, 29, of Albuquerque, N.M., made his initial appearance before a U.S. Magistrate Judge on an indictment charging him with being a felon in possession of a firearm and ammunition. Mora remains in federal custody pending an arraignment hearing and detention hearing, both of which are scheduled for Sept. 12, 2017.
Mora is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The indictment against Mora alleges that Mora unlawfully possessed a firearm and ammunition in Bernalillo County, N.M., on March 8, 2017. At the time, Mora was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated assault with a deadly weapon, aggravated assault on a peach officer with a deadly weapon, and aggravated fleeing from a law enforcement officer.
Court records reflect that officers of the Albuquerque Police Department (APD) arrested Mora on state charges, including a related firearms charge, in the North Valley of Albuquerque on March 8, 2017. Mora was arrested on the federal charge in the indictment today after he was transferred to federal custody from state custody. The related state firearms charge will be dismissed in favor of federal prosecution.
If convicted on the charge in the federal charge in the indictment, Mora faces a statutory maximum penalty of ten years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
Akwesasne Resident Admits Illegal Transportation of AlienRead the Press Release
ALBANY, NEW YORK – Kanento Boots, age 63, of Akwesasne, Ontario, Canada, was sentenced today to time served (111 days in jail) and 1 year of supervised release for illegally transporting an alien within the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Boots pled guilty on August 15, 2017. He admitted that on May 23, 2017, on the Akwesasne reservation near Hogansburg, New York, he picked up a Hungarian man, Zsolt Mihaly, who had just crossed the border illegally from Canada. Boots drove Mihaly a short distance and Mihaly then got into the car of another driver, Constantin Chiriac. All three were arrested.
Mihaly pled guilty on June 6 to illegal entry into the United States, a misdemeanor, and was sentenced to 36 days in jail. Chirac pled guilty on July 17 to illegal transportation of an alien and is scheduled to be sentenced on September 18.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Friday 8 September 2017
United States Citizen Pleads Guilty to Providing Material Support to Al ShabaabRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Dana J. Boente, Acting Assistant Attorney General for National Security, announced that MAALIK ALIM JONES pled guilty today before U.S. District Judge Paul G. Gardephe to conspiring to provide material support to al Shabaab, a designated Foreign Terrorist Organization based in Somalia, conspiring to receive military training from al Shabaab, and carrying and using an AK-47 machine gun, rocket-propelled grenades, and other destructive devices in furtherance of his support for al Shabaab. In 2011, JONES, a United States citizen, traveled to Somalia, where he took up arms and provided military support to al Shabaab for approximately four years.
Acting U.S. Attorney Joon H. Kim said: “As he admitted in court today, Maalik Jones traveled to Somalia, was trained by al Shabaab in the use of an AK-47 and rocket-propelled grenades, and took up arms for four years as a terrorist fighter. For his allegiance to this lawless, terrorist organization that vows to destroy America and its values, Maalik Jones been held to account in an American court of law. All that is left is for him to be sentenced for his crimes.”
Acting Assistant Attorney General Dana J. Boente said: “Jones pleaded guilty to conspiring to provide material support to al Shabaab, by traveling abroad to join and fight on behalf of the foreign terrorist organization for four years. I want to thank the many prosecutors, agents, and analysts who made this result possible.”
According to the Complaint, the Indictment, the Superseding Information, and statements made in court proceedings, including today’s guilty plea:
In February 2008, the U.S. Department of State designated al Shabaab as a Foreign Terrorist Organization. Al Shabaab has used violent means – including targeted assassinations of civilians and journalists, and the use of improvised explosive devices, rockets, mortars, and automatic weapons – to, among other things, destabilize the government of Somalia, quell the Somali population, and force the withdrawal of foreign troops in Somalia. A former leader of al Shabaab, whose exhortations were echoed by the leadership of al Qaeda, called for foreign fighters to join al Shabaab in a “holy war” in Somalia. As a result of al Shabaab’s recruitment efforts, men from other countries – including the U.S. – have traveled to Somalia to engage in violent jihad.
Since al Shabaab’s designation as a Foreign Terrorist Organization in February 2008, it has made several public statements demonstrating its intent to harm U.S. interests. For example, in or about April 2008, al Shabaab released a statement declaring a campaign against the U.S. Similarly, after an al Shabaab member was killed in May 2008, al Shabaab leaders announced that the mujahideen would “hunt the U.S. government” and that governments supporting the U.S. and Ethiopia should keep their citizens out of Somalia. In April 2009, al Shabaab claimed responsibility for mortar attacks against a U.S. congressman who had been visiting Somalia, and in February 2012, the then-Emir of al Shabaab swore allegiance to Ayman al-Zawahiri, the Emir of al Qaeda, stating that al Shabaab “will hereby merge into al Qa’ida.”
Al Shabaab also maintains a specialized fighting force, known as Jaysh Ayman, that is responsible for carrying out commando-style attacks and cross-border raids in which fighters, among other things, travel across the land border between Somalia and Kenya to target individuals and conduct attacks against civilian and military targets in Kenya. Among the attacks executed by Jaysh Ayman fighters are: (i) a June 16, 2014, attack in which al Shabaab fighters opened fire in a hotel bar in Mpekatoni, Kenya, killing approximately 40 people; (ii) a July 2014 attack in Hindi, Kenya, in which approximately 12 al Shabaab fighters opened fire at a trading center and set fire to government buildings and a church, killing nine people; and (iii) a June 14, 2015, attack in which al Shabaab fighters ambushed a Kenyan Defense Force base in Lamu County, Kenya, using various weapons, including AK-47 rifles and rocket-propelled grenades and killing two Kenyan Defense Force soldiers (the “Lamu Attack”).
In or about July 2011, JONES left Baltimore, Maryland, with the intent to join al Shabaab in Somalia. JONES traveled to New York City, from where he flew via commercial aircraft to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, JONES traveled by land from Kenya to Somalia, which is a common travel route for foreign fighters traveling to Somalia to join al Shabaab.
In Somalia, JONES joined al Shabaab and was a member of the terrorist organization for approximately four years. During this time, JONES trained, worked, and fought with al Shabaab in Somalia. Among other things, JONES received three months of military training at an al Shabaab training camp, where he learned, among other things, how to operate an AK-47 assault rifle and rocket-propelled grenades. Upon completion of this training, JONES also was assigned to al Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
In particular, after joining Jaysh Ayman, JONES and his Jaysh Ayman unit participated in a battle in Afmadow, Somalia, against Kenyan government soldiers. JONES, armed with an AK-47 rifle, engaged in the fighting until he was injured by a missile and then hospitalized. After his release from the hospital, JONES returned to his service with al Shabaab and, in particular, Jaysh Ayman.
JONES has appeared with other al Shabaab fighters in videos that were recovered from an al Shabaab fighter who participated in and was killed during the aforementioned Lamu Attack. In one of the videos, JONES possessed a firearm, and is seen with several al Shabaab fighters. The al Shabaab fighters are depicted greeting each other, hugging each other, and carrying firearms.
On or about December 7, 2015, JONES was taken into custody by Somali authorities while he was attempting to procure a boat to depart Somalia for Yemen.
* * *
JONES, 32, a United States citizen who resided in Maryland until 2011, pled guilty to one count of conspiring to provide material support to al Shabaab; one count of conspiring to receive military training from a designated foreign terrorist organization; and one count of possessing, carrying, and using a machine gun and other destructive devices during and in relation to a crime of violence. The material support count carries a maximum sentence of 15 years in prison. The military training count carries a maximum sentence of five years in prison. The machine gun count carries a maximum sentence of life in prison, with a mandatory minimum sentence of 30 years in prison, which must run consecutively to any other sentence. The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court. JONES, who has been detained since his arrest in December 2015, will be sentenced by Judge Gardephe on January 25, 2018.
Mr. Kim praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. He also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Andrew J. DeFilippis and Shawn G. Crowley, and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section, are in charge of the prosecution.
U.S. Citizen Pleads Guilty to Providing Material Support to Al ShabaabRead the Press Release
Maalik Alim Jones, 32, a U.S. citizen who resided in Maryland until 2011, pleaded guilty to conspiring to provide material support to al Shabaab, a designated foreign terrorist organization based in Somalia, conspiring to receive military training from al Shabaab, and carrying and using an AK-47 machine gun, rocket-propelled grenades and other weapons in furtherance of his support for al Shabaab.
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Joon H. Kim for the Southern District of New York made the announcement. U.S. District Judge Paul G. Gardephe presided over the hearing.
“Jones pleaded guilty to conspiring to provide material support to al Shabaab, by traveling abroad to join and fight on behalf of the foreign terrorist organization for four years,” said Acting Assistant Attorney General Boente. “I want to thank the many prosecutors, agents, and analysts who made this result possible.”
“As he admitted in court today, Maalik Jones traveled to Somalia, was trained by al Shabaab in the use of an AK-47 and rocket-propelled grenades and took up arms for four years as a terrorist fighter,” said Acting U.S. Attorney Kim “For his allegiance to this lawless, terrorist organization that vows to destroy America and its values, Maalik Jones been held to account in an American court of law. All that is left is for him to be sentenced for his crimes.”
According to the Complaint, the Indictment, the Superseding Information, and statements made in court proceedings, including today’s guilty plea:
In 2011, Jones traveled via commercial aircraft from New York to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, Jones traveled by land from Kenya to Somalia where he trained, worked and fought with al Shabaab in Somalia. Among other things, Jones received military training at an al Shabaab training camp, where he learned to operate an AK-47 assault rifle and rocket-propelled grenades. Jones also became a member of al Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
In particular, after joining Jaysh Ayman, Jones and his Jaysh Ayman unit participated in a battle in Afmadow, Somalia, against Kenyan government soldiers. Jones, armed with an AK-47 rifle, engaged in the fighting until he was injured by a missile and then hospitalized. After his release from the hospital, Jones returned to his service with al Shabaab and, in particular, Jaysh Ayman.
The material support count carries a maximum sentence of 15 years in prison. The military training count carries a maximum sentence of 5 years in prison. The machinegun count carries a maximum sentence of life in prison, with a mandatory minimum sentence of 30 years in prison, which must run consecutively to any other sentence. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. Jones, who has been detained since his arrest in December 2015, will be sentenced by Judge Gardephe on Jan. 25, 2018.
Mr. Boente and Mr. Kim praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. He also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
Assistant U.S. Attorneys Andrew J. DeFilippis and Shawn G. Crowley of the Southern District of New York, and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section are prosecuting this case.
Two Drug Traffickers Sentenced for Cape Cod Heroin Trafficking ConspiracyRead the Press Release
BOSTON – Two men, formerly of Hyannis, were sentenced yesterday in federal court in Boston for their roles in a heroin trafficking operation on Cape Cod.
Anthony Hall, 31, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 30 months in prison and three years of supervised release. In January 2017, Hall pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute. Richard Serriello, 29, was sentenced by U.S. District Court Judge Mark L. Wolf to 30 months in prison and five years of supervised release during which time he is forbidden from living on Cape Cod. In September 2016, Serriello pleaded guilty to possession of heroin with the intent to distribute.
In October 2015, federal investigators determined that Nauti-Block leader Denzel Chisholm and his co-conspirators were responsible for a significant quantity of the heroin being distributed on Cape Cod. Serriello purchased large quantities of heroin from Chisholm. In May 2015, Serriello was arrested after a high-speed motorcycle pursuit, wherein police officers recovered nearly 400 grams of heroin from Serriello’s motorbike. Hall, in turn, stored heroin for co-conspirators Christopher Wilkins and Chisholm. Hall also sold heroin to his own customers, including a customer from Martha’s Vineyard. Investigators ultimately seized heroin from this customer, which led, in part, to Hall’s arrest.
In total, 19 members and affiliates of the Nauti-Block were charged with narcotics and firearms offenses as part of the federal investigation. Eighteen have been convicted, including Chisholm, who was convicted by a federal jury.
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, Boston 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.
Two Defendants Charged in Takedown of Trenton Drug Trafficking Organization Plead GuiltyRead the Press Release
TRENTON, N.J. – Two individuals from Trenton, New Jersey, who were arrested in connection with a Trenton-area drug trafficking organization today pleaded guilty to separate charges of unlawful firearms possession and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Prince Sarnoe, 30, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with unlawful possession of a firearm by a convicted felon. India Daniels, 24, pleaded guilty before Judge Wolfson to a separate information charging her with conspiracy to distribute and possess with intent to distribute heroin.
In December 2016, Sarnoe, Daniels, and eight other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Since then, eight of the 10 defendants, including Abdullah, Sarnoe and Daniels, have pleaded guilty.
According to documents filed in this case and statements made in court:
From May 2015 through December 2016, Abdullah and others participated in a drug trafficking organization that operated in the area of Spring and Passaic Streets in the City of Trenton. Abdullah was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and others.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. Additionally, multiple members of the organization, including Sarnoe – a previously convicted felon – possessed and maintained access to firearms.
While Abdullah was detained at the Mercer County Correction Center on outstanding warrants, Daniels coordinated and obtained, on Abdullah’s behalf, additional supplies of heroin from Torres-Mezquita. In furtherance of the conspiracy, Daniels then provided that heroin to Hunter for distribution to other members of the conspiracy and their customers.
The firearms charge to which Sarnoe pleaded guilty carries a maximum potential sentence of 10 years in prison and a $250,000 fine. The conspiracy charge to which Daniels pleaded guilty carries a maximum potential sentence of 20 years in prison and a $1 million fine. Sentencing for both defendants is set for Jan. 5, 2018.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Sarnoe: John S. Furlong Esq., Trenton
Daniels: Robert Rambadadt Esq., New York
Two Albuquerque Residents Sentenced and a Mexican National Pleads Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 75 of the 103 defendants charged as the result of this investigation have entered guilty pleas and 39 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Josue Duarte, 31, of Albuquerque, was sentenced in federal court in Santa Fe, N.M., on Aug. 31, 2017, to 24 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction. Robert Henry Lovato, 44, also of Albuquerque, was sentenced in federal court on Sept. 6, 2017, to 48 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Antonio Perez-Contreras, 30, a Mexican national, pled guilty in Albuquerque federal court on Sept. 7, 2017, to violating federal drug trafficking and firearms laws. Under the terms of his plea agreement, Perez-Contreras will be sentenced to 108 months in federal prison.
Duarte and co-defendant Johnny Flores, 23, were charged in a four-count indictment filed on Aug. 9, 2016, with conspiracy to distribute methamphetamine from July 18, 2016 through July 26, 2016, and distribution of methamphetamine on July 22, 2016; Flores with distribution of methamphetamine on July 18, 2016; and Duarte with distribution of methamphetamine on July 26, 2016. According to the indictment, the offenses took place in Bernalillo County. On March 16, 2017, Duarte pled guilty to a felony information charging him with distribution of methamphetamine. In entering the guilty plea, Duarte admitted that on July 26, 2016, he arranged the sale of and sold methamphetamine to an undercover law enforcement agent. Flores pled guilty in Dec. 2016, and was sentenced in June 2017.
Lovato was arrested on July 6, 2017, on an indictment charging him with distributing methamphetamine on April 19, 2016, in Bernalillo County. On Feb. 21, 2017, Lovato entered a guilty plea to a felony information charging him with distributing methamphetamine.
Perez-Contreras and codefendant Jesus Manuel Garcia, 43, of Albuquerque, were charged by indictment on June 30, 2016, with methamphetamine trafficking, firearms and illegal reentry offenses. The indictment was superseded on July 28, 2016, and again on Jan. 12, 2017. The ten-count second superseding indictment charged Perez-Contreras and Garcia with conspiring to distribute methamphetamine from May 3, 2016 through July 6, 2016, and distributing methamphetamine on May 18, 2016 and July 6, 2016. Perez-Contreras was charged individually with being an alien in possession of a firearm and ammunition and illegal reentry into the United States on May 18, 2016, and distribution of methamphetamine on June 9, 2016. Garcia was charged individually with being a felon in possession of a firearm and ammunition on May 17, 2016, May 18, 2016, June 7, 2016, and July 6, 2016. On Sept. 7, 2017, Perez-Contreras pled guilty to a felony information and admitted that on May 18, 2016, he distributed approximately 415.4 grams of methamphetamine to an undercover law enforcement agent. Perez-Contreras further admitted that he possessed a firearm and ammunition on May 18, 2016, and was prohibited from possessing firearms and ammunition because he was an alien unlawfully in the United States. Perez-Contreras remains in custody pending a sentencing hearing which has yet to be scheduled.
Twenty-five of the defendants who were charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. One defendant is a fugitive and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. Duarte was prosecuted by Assistant U.S. Attorney Paul H. Spiers. Lovato was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley. Perez-Contreras is being prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez and Raquel Ruiz-Velez.
Three Men Sentenced in Human Smuggling Extortion CaseRead the Press Release
ALEXANDRIA, Va. – Three men have been sentenced for illegally transporting a 17-year old girl from El Salvador within the United States and demanding additional money from her family for her release.
According to court documents, Daniel Lopez-Martinez, 27, of Mexico, Juan Tomas Nicolas, 25, of Guatemala, and Ernesto Solis, Jr., 29, of Mission, Texas, worked together to transport a 17-year old girl from El Salvador within the United States for money. Once she arrived in Houston, multiple calls were made by the men to the girl’s father in Loudoun County. In the calls, the men demanded an additional $4,700. The men agreed to turn the girl over to the father only upon receipt and counting the money. The girl was rescued after FBI Agents and Task Force Officers in Houston interceded in the scheduled transfer of funds.
Solis was sentenced to 2 years and 3 months in prison today. Lopez-Martinez was sentenced to 1 1/2 years in prison on July 28, and Nicolas was sentenced to 2 years in prison on August 14.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Gregory C. Brown, Chief of Leesburg Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Maureen Cain prosecuted the case.
The case was investigated by the FBI’s Washington Field Offices’ Child Exploitation and Human Trafficking Task Force, with assistance from the Leesburg Police Department, the FBI’s Houston Field Office, the FBI’s McAllen Resident Agency, the U.S. Border Patrol, and Homeland Security Investigations.
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-6.
Tennessee Case Protecting the Rights of Persons with Intellectual or Developmental Disabilities Reaches Successful ConclusionRead the Press Release
Today, in Nashville, Tennessee, Chief District Court Judge Waverly D. Crenshaw, Jr. granted the parties’ motion to dismiss a civil rights case after the State of Tennessee reshaped services for people with intellectual or developmental disabilities. People with intellectual or developmental disabilities are now eligible to receive services in community-integrated housing throughout the state. This case was filed under the Civil Rights of Institutionalized Persons Act.
“We applaud the State’s efforts—and the efforts of families, caregivers, and advocates throughout this case—to develop services that help assure safety and appropriate care for individuals with intellectual or developmental disabilities who were in the State’s care,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We also recognize and appreciate the continued collaboration of important stakeholders in resolving this case, including People First of Tennessee and the Parent Guardian Associations of Clover Bottom and Greene Valley Developmental Centers. Together, we have pursued this case to enforce the important rights of people with disabilities and to treat these individuals with dignity.”
“This case demonstrates the United States Attorney’s Office’s commitment to safeguard the civil rights of all Tennesseans, especially those of its most vulnerable citizens,” said United States Attorney Mark H. Wildasin. “Because of the concerted efforts of many, the State has fulfilled its obligation to train physicians and other professionals who care for individuals with developmental and intellectual disabilities, provided access to healthcare through the State’s Medicaid program, and moved its residents to community-based care facilities.”
United States originally brought this case, United States v. Tennessee, No. 3:95-1227 (E.D. Tenn.), to address conditions of care for residents of Clover Bottom Developmental Center, Greene Valley Developmental Center, and Nat. T. Winston Center and the right to receive care in integrated settings. The State and the United States, along with two intervenors, settled the case through an agreement that called for both improved conditions within the centers and the integration of residents into community settings. Shortly after the initiation of the suit, the State closed Nat T. Winston Center. The State closed Clover Bottom Center in November 2015 and Greene Valley Developmental Centers in May 2017. In 2015, the Court approved an Exit Plan designed to resolve this litigation by bringing to fruition planned community improvements in respite care, individual support planning, and other areas. The State has now completed that Exit Plan and thereby met its requirements to dismiss the case.
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt.
Ten Aliens Indicted on Various Charges Including Illegal Reentry, False Representation of a Social Security Account Number, False Claim of United States Citizenship with Intent to Engage Unlawfully in Employment, and Aggravated Identity TheftRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging JOSE ABURTO-MORALES, age 22, of Mexico, JOSE ANTONIO ARROYO-FIGUEROA, age 31, of Mexico, RIGOBERTO CALMO-GOMEZ, age 40, of Guatemala, JOSE CAMPUZANO-RAMIREZ, age 52, of Mexico, JORGE DIAZ-CASTRO, age 35, of Honduras, RAUL GAYTAN-RODRIGUEZ, age 32, of Mexico, MAURICIO MATIAS PRUDENTE-CISNEROS, age 22, of Mexico, ALVARO RAMOS-HUINIL, age 43, of Guatemala, and MARTIN TORRES-MEDINA, age 47, of Mexico, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging GUADALUPE CRUZ-ESQUIVEL, age 38, of Mexico, with False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, ABURTO-MORALES, found in Dare County, LOPEZ-DIAZ, found in New Hanover County, DIAZ-CASTRO, found in Johnston County, GAYTAN-RODRIGUEZ, found in New Hanover County, RAMOS-HUINIL, found in Johnston County, and TORRES-MEDINA, found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ARROYO-FIGUEROA, found in Wake County, and PRUDENTE-CISNEROS, found in Wake County, are alleged to have been previously deported subsequent to an aggravated felony conviction (assault with deadly weapon inflicting serious injury, and possession with intent to sell and deliver marijuana, respectively). Therefore, if convicted, they would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CALMO-GOMEZ, found in Sampson County, and CAMPUZANO-RAMIREZ, found in Johnston County, are alleged to have been previously deported subsequent to a felony conviction (illegal reentry of a removed alien, and visa fraud, respectively). Therefore, if convicted, they would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft, CRUZ-ESQUIVEL, found in Wayne County, would face maximum penalties of twelve years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations and Homeland Security Investigations
Taunton Man Pleads Guilty to Role in Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON – A Taunton man pleaded guilty today in federal court in Boston for his role in a heroin and fentanyl operation centered in Taunton.
Roger Longmire, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 4, 2017.
In February 2017, Longmire was arrested and charged along with nine others for his connection to Fernando Hernandez, 42, of Providence, R.I. who led a drug trafficking organization. An additional 12 defendants were charged with conspiring to distribute drugs for another organization led by Jose Antonio Lugo-Guerrero, 31, of Boston.
According to court documents, the organizations led by Lugo-Guerrero and Hernandez distributed heroin and fentanyl from the summer of 2016 until the time of their arrests. Hernandez’s heroin and fentanyl trafficking organization in Taunton allegedly sold heroin and fentanyl to customers including Longmire, who also re-distributed a portion of the drugs he obtained.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.