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23 October 2017
O.C. Man Sentenced to 63 Months in Prison in Scheme that Sought over $800,000 in Fraudulent Tax Refunds for Non-Existent EmployeesRead the Press Release
SANTA ANA, California – A Placentia man who participated in a scheme that filed fraudulent tax returns with the Internal Revenue Service and sought over $800,000 in refunds based on non-existent employees at two shell companies has been sentenced to over five years in federal prison.
Julien Jitt Noel, 37, was sentenced last Friday to 63 months in prison. United States District Judge Josephine L. Staton further ordered Noel to pay $605,294 in restitution to the IRS.
Following a five-day jury trial in March, Noel was found guilty of one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false and fraudulent tax returns.
The evidence presented at trial showed that Noel and two co-conspirators prepared and filed fraudulent tax returns, most of which were filed in the names of individuals whose identities had been stolen. The fraudulent tax returns stated that the taxpayers were employed by Picaso Fashions, which purportedly withheld excessive taxes from their paychecks. In fact, the evidence showed that Picaso Fashions was a shell company that did not actually have any employees, and the refunds claimed in the tax returns were fraudulent.
Members of the conspiracy fraudulently filed 69 individual federal tax returns during 2009 that claimed tax refunds totaling $621,589.
Noel established another bogus company – Above Average Allstars – to serve as a fraudulent employer. In relation to Above Average Allstars, Noel filed another 45 fraudulent tax returns in 2009 and 2010 that sought $195,344 in refunds.
In total, Noel conspired to file or directly filed a total of 114 fraudulent returns, and the IRS paid full or partial tax refunds on 100 of these returns, sustaining actual losses of $605,294.
Noel has been in federal custody since this case was indicted in the spring of 2015.
Co-conspirator Antonio Jerome Cook, 39, of Long Beach, was sentenced in March 2016 to four years in federal in prison and was ordered to pay restitution of $537,309 for his role in the scheme.
A third co-defendant was also convicted in relation to the scheme.
The investigation in this case was conducted by IRS Criminal Investigation.
This matter was prosecuted by Assistant United States Attorneys Aron Ketchel of the Violent and Organized Crime Section and Jamie A. Lang of the Organized Crime Drug Enforcement Task Force.
New York Men Sentenced for Identity TheftRead the Press Release
BOISE – Jason Morel, 22, and Kenith J. Quesada, 23, both of Bronx, New York, were sentenced last Thursday for aggravated identity theft, announced U.S. Attorney Bart M. Davis. Senior U.S. District Judge Edward J. Lodge sentenced Morel to 24 months and Quesada to 12 months in federal prison. Both men pleaded guilty on August 2, 2017. Co-conspirator Rafael Moran was sentenced on August 8, 2017, for aggravated identity theft.
According to the plea agreements, Morel, Quesada, and Moran traveled from New York to Idaho in April 2016 to perpetrate a fraud scheme at AT&T company stores and authorized dealers. The men impersonated real AT&T customers, presented fake driver’s licenses and credit cards, and purchased iPhones and iPads using those customers’ accounts. Law enforcement found dozens of fake driver’s licenses and credit cards in the vehicle that Morel, Quesada, and Moran used to travel through Idaho, as well as a stash of fraudulently-purchased electronics. Morel is believed to be the ringleader of the group, and his personal cell phone contained names, addresses, telephone numbers, and social security numbers belonging to the AT&T customers that he, Quesada, and Moran impersonated.
This case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
New Orleanian Sentenced for Nine Robberies in Louisiana, Mississippi, and AlabamaRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER SIMMS, age 32, of New Orleans, was sentenced last week after previously pleading guilty to a nine-count superseding Bill of Information for bank robbery and armed robbery and a one-count Indictment for bank robbery.
U.S. District Judge Eldon E. Fallon sentenced SIMMS to 221 months in prison, five years of supervised release, and a special assessment of $1,000.
According to the court documents, SIMMS robbed nine establishments between January 12, 2016 and February 8, 2016. SIMMS’s robberies included three McDonald’s Restaurant locations in New Orleans; a McDonald’s Restaurant in Kenner; a Dollar General store in Metairie; an Iberia Bank in Metairie; a Compass Bank in Mobile, Alabama; and a convenience store in Silver Creek Mississippi. SIMMS pled guilty to seven counts of Hobbs Act robbery, two counts of bank robbery, and one count of brandishing a firearm during a crime of violence.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Lawrence County, Mississippi Sheriff’s Office in investigating this matter. Assistant United States Attorney Maria M. Carboni was in charge of the prosecution.
New Bedford Man Pleads Guilty to Distributing FentanylRead the Press Release
BOSTON – A New Bedford man pleaded guilty today in federal court in Boston to distributing fentanyl, a deadly synthetic opioid.
Willy Baez, 24, pleaded guilty to one count of possession with intent to distribute fentanyl. U.S. Senior District Court Judge Douglas P. Woodlock deferred acceptance of the plea until the sentencing hearing, which he scheduled for Feb. 1, 2018.
On Dec. 21, 2015, law enforcement officers executed a search warrant at the apartment Baez shared with his girlfriend. The search resulted in the seizure of 49 grams of fentanyl and acetyl fentanyl, as well as various drug packaging paraphernalia.
Baez faces 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 up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Katharine Ferguson of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Naturalized U.S. Citizen Residing in Albuquerque Pleads Guilty to Federal Marriage Fraud ChargeRead the Press Release
ALBUQUERQUE – Yi Lee, 44, a naturalized U.S. citizen residing in Albuquerque, N.M., pled guilty today in federal court in Las Cruces, N.M., to a felony charge arising out of a scheme to obtain immigration status for foreign nationals through fraudulent marriages.
On April 19, 2017, Lee and his five co-defendants –Chia-Jung Chang, 39, Dan Zheng, 33, Lian Xiang Deng, 42, and Xiao-Yin Le, 50, all Chinese nationals illegally in the United States, and Santiago Aveles, 31, of Las Cruces – were indicted and charged with participating in a conspiracy to commit marriage fraud. The indictment also charged Aveles and Zheng with committing marriage fraud for the purpose of evading the federal immigration laws.
The indictment alleged that from June 2016 through March 2017, the six defendants conspired to obtain immigration status for foreign nationals by committing marriage fraud. The scheme involved having U.S. citizens enter into fraudulent marriages with foreign nationals in return for financial gain. Lee allegedly facilitated the conspiracy by arranging meetings between foreign nationals and U.S. citizens and assisting them in obtaining marriage licenses, working permits and green cards for the foreign nationals who paid Lee and the U.S. citizens. According to the indictment, Lee allegedly attempted to arrange fraudulent marriages between certain of his co-defendants and undercover law enforcement agents.
During today’s proceedings, Lee pled guilty to Count 1 of the indictment charging him with conspiracy to commit marriage fraud. In entering the guilty plea, Lee admitted that from Jan. 2016 through May 2017, he recruited United States citizens including Aveles and other individuals who unbeknownst to Lee were undercover law enforcement agents to enter into fraudulent marriages with foreign nationals for the purpose of evading immigration laws. According to the plea agreement, Lee told the sham marriage participants to document their respective relationships by taking photos together, exchanging messages, opening joint bank accounts, renting properties together and having bills put under both participants’ names. Lee further admitted that he assisted the participants with immigration paperwork and in passing off the fraudulent marriages as legitimate during interviews with United States Citizenship and Immigration Services.
In entering the guilty plea, Lee also admitted that he coordinated a payment schedule for the United States citizens participating in the fraudulent marriages, who were to receive payments after taking certain steps such as obtaining a marriage license, participating in a fraudulent marriage, submitting paperwork, and participating in interviews. Lee further admitted that each United States citizen participant was paid approximately $25,000, and Lee also received payment for his role in the conspiracy in return for citizenship for the foreign nationals.
On Aug. 4, 2017, Aveles pled guilty to a felony information charging him with conspiracy and marriage fraud. Zheng pled guilty and was sentenced on Aug. 28, 2017. Charges against Deng were dismissed on July 25, 2017.
At sentencing, Lee and Aveles each face a maximum penalty of five years in federal prison and a fine of up to $250,000. Sentencing hearings have yet to be scheduled.
Chang has entered a plea of not guilty to the indictment. Le has yet to be arrested and is considered a fugitive. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and is being prosecuted by Assistant U.S. Attorneys Dustin C. Segovia and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office.
Monongalia County man admits to his role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Pursglove, West Virginia man admitted today to his involvement in an oxycodone distribution operation, United States Attorney William J. Powell announced.
Jason Pancoast, age 23, pled guilty to one count of “Use of a Firearm During and in Relation to a Drug Offense.” Pancoast admitted to having and using a pistol in connection to a drug trafficking crime. The crime occurred in March 2017 in Monongalia County.
Pancoast faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Residents Convicted for Illegally Searching and Removing Native American ArtifactsRead the Press Release
OXFORD, Robert H. Norman, Acting United States Attorney for the Northern District of Mississippi, together with Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, and William “Wynne” Fuller, U.S. Army Corps of Engineers, Chief of Operations for the Mobile District, announces:
Matthew Glen Arnold, 33, of Booneville, Mississippi, Jackie Dale Arnold, 59, of Burnsville, Mississippi, Sandra Arnold, 62, of Burnsville, Mississippi, Tyler Wilemon, 22, of Booneville, Mississippi, Melinda Jean Arnold, 42, of Burnsville, Mississippi, and Robert Alan Aguirre, 29, of Corinth, Mississippi, were recently sentenced in the United States District Court for their roles in illegally searching for and removing Native American artifacts from government land. Matthew Arnold was sentenced on September 29, 2017, by United States District Judge Debra M. Brown of Greenville following a previous guilty plea to six felony counts of excavating and removing archeological resources located on designated historic public lands in violation of the Archeological Resources Protection Act. The investigation and subsequent charges arose out of the removal of Native American artifacts from United States Army Corps of Engineers property along the Tennessee-Tombigbee Waterway in Tishomingo County, Mississippi. Matthew Arnold was sentenced to a term of imprisonment of twenty (20) months for each count of conviction, to be served concurrently, followed by one (1) year of supervised release. He was also ordered to pay $41,551.49 in restitution to the U.S. Army Corps of Engineers for damage to the subject property.
Jackie Arnold and Melinda Arnold were sentenced on October 13, 2017, Tyler Wilemon was sentenced on September 28, 2017, and Sandra Arnold was sentenced on September 7, 2017, by Judge Brown following a previous guilty plea by each to one felony count of excavating and removing archeological resources located on designated historic public lands in violation of the Archeological Resources Protection Act. Jackie Arnold was sentenced to a term of imprisonment of fifteen (15) months and ordered to pay $24,357.77 in restitution. Sandra Arnold was sentenced to a term of imprisonment of twelve (12) months and one (1) day ordered to pay $18,626.53 in restitution. Wilemon was sentenced to a term of imprisonment of five (5) months and ordered to pay $7,164.05 in restitution. Each were sentenced to one (1) year of supervised release following their term of incarceration. Melinda Arnold was sentenced to five (5) years probation and ordered to pay $28,656.20 in restitution. All of the restitution set forth above has been joint and several, meaning each defendant has been ordered to pay in conjunction with the other defendants, up to the amount set for each defendant.
Aguirre was sentenced on October 19, 2017, by United States District Judge Glen H. Davidson of Aberdeen following a previous guilty plea to two felony counts of excavating and removing archeological resources located on designated historic public lands in violation of the Archeological Resources Protection Act. Aguirre was sentenced to two years probation and ordered to pay $2,865.62 in restitution.
Two other defendants have plead guilty to similar charges and are currently awaiting sentencing.
United States Fish and Wildlife Service Special Agent in Charge Santiago stated “We are committed to working with Mississippi, its citizens, the Choctaw and Chickasaw Nation and other federal and state agencies to conserve and protect Mississippi's archeological resources which are a non-renewable cultural resource of irreplaceable value, as well as sacred to descendant communities and Native Americans."
"The US Army Corps of Engineers is thoroughly committed to the preservation and protection of these irreplaceable cultural treasures, treasures that hold great meaning to Native Americans and belong to the American People. We will continue to invest the necessary resources to investigate and support the prosecution of such cases in the future,” said Fuller, Chief of Operations for the U.S. Army Corps of Engineers, Mobile District.
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement, and the United States Army Corps of Engineers.
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Mexican Alien Sentenced for Assaulting Agent During ArrestRead the Press Release
LAREDO, Texas – An undocumented Mexican national has been ordered to federal prison for assaulting and injuring the Border Patrol (BP) agent who arrested him, announced Acting U.S. Attorney Abe Martinez. Roman Sanchez-Rivera, 27, pleaded guilty Feb. 17, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a sentence of 51 months in federal prison. Not a U.S. Citizen, he is expected to face deportation proceedings following the prison term. He was also ordered to pay $21,610.14 in restitution to the U.S. Department of Labor.
On the morning of Dec. 1, 2016, BP agents encountered Sanchez-Rivera and other undocumented aliens in the brush near Encinal. The aliens ran from the agents but were soon apprehended. During the arrest, Sanchez-Rivera punched one of the agents in the face causing injuries. He also forced an intense physical struggle which resulted in serious injuries to one of the agent’s knees which required surgery.
Sanchez-Rivera has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and the FBI conducted the investigation. Assistant U.S. Attorney Jose Homero Ramirez prosecuted this case.
Mercer County, New Jersey, School Bus Driver Sentenced to 121 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Yardville, New Jersey, man was sentenced today to 121 months in prison for using his e-mail account to distribute images of child sexual abuse, Acting U.S. Attorney William. E Fitzpatrick announced.
Christopher Walsh, 32, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of receiving and distributing child pornography. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From June 15, 2014 through Jan. 10, 2016, Walsh’s email account either sent or received a total of 1,590 files that contained content constituting child pornography. Walsh, who was a school bus driver, admitted that on Aug. 2, 2015, he knowingly emailed a video depicting child sexual abuse to another individual.
In addition to the prison term, Judge Cooper sentenced Walsh to 10 years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New Jersey Field Office under the direction of Acting Special Agent in Charge Debra Parker, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
MS-13 Member Pleads Guilty to RICO ConspiracyRead the Press Release
BOSTON – An MS-13 member pleaded guilty on Friday, Oct. 20, 2017, in federal court in Boston to racketeering conspiracy.
Henry Santos Gomez, a/k/a “Renegado,” 32, a Salvadoran national who resided in Revere, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 16, 2018.
Santos Gomez was identified as a “homeboy,” or full member of MS-13’s Hollywood Loco Salvatrucha (HLS) clique. During the investigation, agents encountered Santos Gomez wearing MS-13 paraphernalia, secretly recorded conversations with Santos Gomez where he offered to provide protection to a cooperating witness who he believed was a drug dealer, and stopped Santos Gomez in the company of other MS-13 gang members.
After a three-year investigation, Santos Gomez was one of 61 persons named in a 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.
Santos Gomez is the 21st defendant to plead guilty in this case.
According to the terms of the plea agreement, the parties agreed to recommend a sentence of six years in prison. Santos Gomez will be subject to deportation at the conclusion of his sentence.
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 Turco 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. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Long Arm of the Law Catches up with Drug Trafficking FugitiveRead the Press Release
HOUSTON – After 14 years on the run, a 42-year-old Roma man has pleaded guilty to charges filed against him in 2002 for conspiring to possess and possession with intent to distribute more than 1000 kilograms of marijuana, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury indicted Romeo Eduardo Barrera in September 2002 for federal drug law violations. He was Initially released on bond, but failed to appear for a pretrial conference before U.S. District Judge Kenneth M. Hoyt in Houston in February 2003. A warrant issued for his arrest.
In late May 2017, Barrera was involved in an automobile accident in the Rio Grande Valley. Local law enforcement present at the scene of the accident arrested him upon discovering the outstanding warrant. Barrera made his initial appearance in the McAllen Division and was transferred to Houston to face the long-pending charges. He made his appearance before Judge Hoyt who revoked his previous bond and ordered he be detained pending further criminal proceedings.
Today, Barrera entered a guilty plea to each of two counts alleged in the indictment - conspiracy to possess with intent to distribute 1000 kilograms or more of marijuana and aiding and abetting the possession with intent to distribute marijuana.
The charges against Barrera arise from an investigation initiated in March 6, 2002. At that time, authorities located suspected narcotics traffickers from the Rio Grande Valley at a Houston-area Holiday Inn Express Hotel. Thereafter, law enforcement conducted surveillance during which time they observed Barrera arrive at the hotel and eventually leave with two others. Surveillance of that vehicle ultimately lead investigating officers to a residence on Northfield in Houston. There, investigating agents watched Barrera and seven other defendants entering and exiting the residence, using trash cans to remove large bales of marijuana and load them into a van parked nearby.
When officers approached, Barrera fled the scene along with all but one of the others. Authorities arrested Barrera shortly thereafter on a nearby street. During the chase, Barrera held 386.6 grams of marijuana wrapped in clear cellophane and a yellow sheet of paper with figures written on it.
In the Northfield residence, officers also found 31 cellophane-wrapped bales of marijuana weighing a total of approximately 1644 pounds along with an additional 154 grams of marijuana, 30 used and new duffle bags, two digital scales, wrapping materials, calculators, drug ledgers and three firearms.
In the parked van, investigating officers also found and seized 19 cellophane-wrapped bales of marijuana with an approximate total weight of 928.55 pounds.
At sentencing, Barrera faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine. Sentencing is set for Jan. 18, 2018. Barrera will remain in custody pending that hearing.
The Harris County Sheriff’s Office, Houston Police department and the FBI conducted the investigation. Assistant U.S. Attorney Nancy G. Herrera is prosecuting the case.
Lackawanna Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ramzi Shairi, 39, of Lackawanna, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 100 kilograms or more of marijuana before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between August 2012 and May 2013, the defendant conspired with others to distribute marijuana. During that time, Shairi, or another person at Shairi’s direction, rented vehicles in Western New York which were driven with large amounts of United States currency packed in the trunk to Denver, Colorado. In Denver, the money would be exchanged for quantities of marijuana, usually 50 or more pounds wrapped in one-pound vacuum-sealed bags which were placed in the vehicles to be driven back to Western New York. The marijuana would then be stored at a local apartment until the defendant, or others at the defendant’s direction, sold it.
On the morning of May 26, 2013, a gray Volkswagen bearing Illinois plates and a white Ford Fusion bearing New Jersey plates were travelling in tandem westbound on I-80, near Lincoln, Nebraska. A Nebraska state trooper conducted a traffic stop on the Volkswagen. A search of the trunk revealed three gift-wrapped packages containing $155,675 in U.S. currency. Meanwhile, the defendant, who was traveling in the Ford Fusion, continued driving. Vehicle rental records showed that an associate of the defendant rented the Ford Fusion on May 24, 2013, in Rochester, NY and turned it in on the evening of May 27, 2013, in Birmingham, Alabama.
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 with assistance provided by the Nebraska State Police.
Sentencing is scheduled for February 6, 2018, at 9:30 a.m. before Judge Vilardo.
Kanawha County felon pleads guilty to federal gun and drug crimesRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to a federal gun charge and a federal drug charge, announced United States Attorney Carol Casto. Eddie Wayne Chapman, Jr., 32, of Malden, entered his guilty plea to being a felon in possession of a firearm and possession with intent to distribute methamphetamine.
Chapman admitted that on September 21, 2016, he possessed a Ruger P89, 9mm semi-automatic pistol and a Maverick by Mossberg, Model 88, 12 gauge shotgun that had a modified barrel less than 18 inches in length. Chapman was prohibited from possessing any firearms under federal law because of a 2011 felony drug conviction in Kanawha County Circuit Court. Chapman further admitted to possessing with the intent to distribute over 20 grams of methamphetamine. Law enforcement found the methamphetamine in Chapman’s backpack, concealed in a canister containing a hidden compartment.
Chapman faces up to 30 years in federal prison when he is sentenced on January 17, 2018.
The investigation was conducted by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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. This case was also 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 illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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KC-Area Man Pleads Guilty to Four Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo.-area man pleaded guilty in federal court today to robbing four banks in Independence, Mo., Liberty, Mo., and Kansas City, Mo., over a span of five months.
Tam Henry Holmes, 57, of the Kansas City metropolitan area, pleaded guilty before U.S. District Judge Gary A. Fenner to all four counts contained in a May 2, 2017, federal indictment.
Holmes robbed Central Bank of Kansas City, 2301 Independence Ave., Kansas City, Mo., on Nov. 16, 2016. Holmes approached the teller counter and placed a note up against the bullet-proof glass and whispered “700.” The teller told investigators she could not read what was printed on the note, but Holmes continued to whisper “700” and she realized it was a robbery. The teller turned over $450 to Holmes, who then left the bank.
On April 1, 2017, Holmes robbed Bank of the West, 850 S. 291 Hwy., Liberty. When he entered the bank, Holmes held up a spiral notebook containing hand-written notations. The teller told investigators that she read the first couple of lines, which she recalled were, “this is a robbery, give me all your large bills.” The teller gathered money from her drawer and gave it to Holmes and he left the bank. The bank reported a loss of $8,300.
On April 3, 2017, Holmes robbed Greater Kansas City Public Safety Credit Union, 19341 E. US 40 Hwy., Independence. Holmes walked up to a teller counter and showed the teller two hand-written notes on two yellow Post-it notes. The notes said, “this is a robbery. Don’t pull any dye packs, bail or alarms. I know where you live.” The teller removed cash from her drawer and handed it to Holmes, and he left the bank. The credit union reported a loss of $12,205.
On April 15, 2017, Holmes robbed First Federal Bank of Kansas City, 3500 Noland Rd., Independence. Holmes held up a handwritten note that said, “give me all the money, hurry up, or I will hurt you.” The teller opened her drawer and handed Holmes $100 and $50 bills. She then stared at Holmes, who stated, “hurry up or I’ll do what the note says.” The teller then gave Holmes $20, $10 and $5 bills. Holmes took the money, put it in his pockets and walked out of the bank. The bank reported a loss of $4,050.
Under federal statutes, Holmes is subject to a sentence of up to 80 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the FBI.
Jefferson City Man Sentenced for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., was sentenced in federal court today for receiving and distributing child pornography.
Lucas Wayne Slusser, 35, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to seven years in federal prison without parole.Slusser, who pleaded guilty on May 15, 2017, admitted that he sent and received hundreds of videos and photos of child pornography over the Internet, including images of toddlers and infants. According to court documents, investigators examined Slusser’s computer and cell phones and found 1,507 files depicting infants and toddlers, 77 files depicting violent sexual acts against children and 49 child pornography videos that contained sexual acts with animals.
In May and June 2016, a federal agent observed Slusser distributing child pornography on the Kik Messenger platform. Slusser posted a video of child pornography and five images of child pornography on one occasion. Slusser later posted an image of a female child bound with rope around her legs and arms and additional videos of child pornography.
On Aug. 26, 2016, agents executed a search warrant at Slusser’s residence and seized numerous digital devices, including a desktop computer and multiple cell phones. Investigators examined the cell phones and digital devices and identified numerous suspected child pornography files, containing both video and images. The files depicted infants and toddlers, violent sexual acts against children, and videos depicting child pornography that contained sexual acts with animals. They also located child erotica and Internet history that indicated Slusser was seeking out and sharing child pornography.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Man Sentenced to 35 Years for Sex TraffickingRead the Press Release
HOUSTON – A 29-year-old Houston man has been ordered to federal prison following his conviction on two counts of sex trafficking by the use of force, fraud and coercion, announced Acting U.S. Attorney Abe Martinez. Roger Maldonado pleaded guilty Sept. 13, 2016.
Today, U.S. District Judge Nancy F. Atlas took into consideration Maldonado’s undue influence over the two minor victims as well as his criminal history of assaults and firearm possession which showed a pattern of violent behavior and handed him a total sentence of 420 months in federal prison. Additional information was also presented today, including a victim statement and letter. In handing down the sentence, Judge Atlas stated that Maldonado repeatedly engaged in conduct which hurt others. Maldonado was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children. He will also be ordered to register as a sex offender.
Maldonado came to the attention of law enforcement after law enforcement found a minor female at a hospital whom Maldonado had physically assaulted in August 2015. The victim had suffered a forehead laceration, upper and lower eyelid contusions, neck abrasions, a finger contusion and abdominal trauma. At that time, the female advised law enforcement that Maldonado was her boyfriend and that he had assaulted her.
In September 2015, law enforcement found a second minor female whom Maldonado had also assaulted. The investigation revealed that Maldonado had been trafficking these two victims on Backpage.com as well as at Pink Spa - a sexually-oriented business located in Houston known by law enforcement for prostitution activities.
Through their investigation, law enforcement discovered Maldonado had been taking photographs of these victims and posting advertisements in order to solicit business for these victims. Maldonado would set up the dates for the victims and transport the women in order for them to engage in commercial sex acts. The victims would then turn a portion of the money over to Maldonado. Ultimately, he used force, threats of force, fraud and coercion to have these victims perform commercial sex acts from which he benefited financially.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack are prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Honduran Citizen Charged with Attempting to Use an Explosive Device in Popular Miami MallRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, has been charged with attempting to use a weapon of mass destruction in a planned attack at a shopping mall in Miami.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Special Agent in Charge Timothy R. Langan of the FBI’s Miami Field Office made the announcement.
As described in the complaint, Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with a confidential human source and two FBI undercover employees. According to the complaint, Solano provided three videos to the source, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments.
Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public.
If convicted, the defendant faces a statutory maximum of life imprisonment and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
Solano is scheduled to have a pre-trial detention hearing on Thursday, Oct. 25, at 10:00 a.m. before U.S. Magistrate Judge Chris M. McAliley. The arraignment is scheduled for Monday, Nov. 6. Solano traveled to the U.S. on a tourist visa and was granted temporary legal status for humanitarian reasons in 2002.
A criminal complaint is only an accusation and the defendant is presumed innocent unless and until proven guilty.
Mr. Boente and Mr. Greenberg commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Karen Gilbert of the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
Head of Camden Nonprofit Sentenced to 70 Months in Prison for Defrauding Medicaid and Embezzling over $1.5 MillionRead the Press Release
CAMDEN, N.J. – The executive director of a nonprofit provider of mental health services to Camden’s poorest residents was sentenced today to 70 months in prison for defrauding New Jersey Medicaid by using unqualified people to treat Medicaid recipients and taking money from the nonprofit, Acting U.S. Attorney William E. Fitzpatrick announced.
Cesar Tavera, 53, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with conspiracy to commit health care fraud and embezzling from a health care benefit program. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Cesar Tavera was the Executive Director of Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community.
Most of Nueva Vida’s patients are on Medicaid, and Tavera controlled Nueva Vida’s billings to New Jersey Medicaid. He also supervised the people at Nueva Vida who treated Medicaid patients. New Jersey Medicaid rules require that people giving mental health therapy to Medicaid recipients must either be licensed or have a master’s degree in mental health. Tavera had several unlicensed, unqualified individuals treat Medicaid recipients and then billed Medicaid as if qualified therapists had treated the patients. Tavera himself treated Medicaid patients even though he was not qualified.
Under Tavera’s direction, Nueva Vida used several other fraudulent practices to obtain money from Medicaid. Nueva Vida billed Medicaid for therapy that never happened and billed group therapy as if each participant received individual therapy. If a mother received therapy without her child, Nueva Vida would bill Medicaid for a session with the mother and a separate session with the child. Nueva Vida billed Medicaid for short sessions as if they lasted for 45 minutes. To cover up his crimes, Tavera created false records to pass Medicaid audits.
He regularly embezzled money from the Nueva Vida bank account in addition to his salary and spent the money on himself and his family. He used the Nueva Vida bank account to pay for dental care, meals, travel in the United States and abroad, and the expenses of his daughter’s music career. Tavera paid no-show employees with cash and payroll checks from Nueva Vida’s bank account. He repeatedly withdrew cash at the Sugar House Casino in Philadelphia and used the money to gamble at the casino. Tavera embezzled more than $1.5 million from Nueva Vida.
In addition to the prison term, Judge Hillman sentenced Tavera to three years of supervised release and ordered to pay $2.5 million in restitution.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, for the investigation leading to the guilty pleas. He also thanked the Medicaid Fraud Division of the N.J. Office of the State Comptroller.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.
The U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.34 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national charged with a federal immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Enrique Gonzalez-Francisco, 47, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge F. Dennis Saylor IV sentenced Gonzalez-Francisco to four months in prison and two years of supervised release. Gonzalez-Francisco will face deportation proceedings after serving his sentence.
On April 21, 2017, law enforcement officers in Boston encountered Gonzalez-Francisco and determined him to be illegally present in the United States. Gonzalez-Francisco was previously deported on Dec. 19, 2008, and July 25, 1998.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Fritch Man Sentenced for Transporting Approximately 2,300 Images of Child PornographyRead the Press Release
AMARILLO, Texas — Kelly Neil Black, 24, of Fritch, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and was sentenced to 240 months in federal prison and 15 years supervised release on one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Black has been in custody since the time of indictment in March 2017.
According to documents filed in the case, on September 22, 2016, a search warrant was executed at Black’s residence in Fritch, Texas. Law enforcement located several items that contained child pornography. A forensic examination later revealed that the items seized by law enforcement contained approximately 2,300 images that had been previously identified as known images containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, Texas Rangers, Hutchinson County Sheriff’s Office and the Potter County Attorney’s Office investigated the case. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Fremont Roofer Indicted on Making False Statements on Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 19, 2017, a federal grand jury returned a two-count indictment against Samuel J. Smith (age 56) of Fremont, Wisconsin. The indictment alleges that Smith made false statements on his 2009 and 2011 Form 1040, U.S. Individual Income Tax Returns.
According to the Indictment, Smith falsely stated on his 2009 income tax return that his gross receipts from Fox Valley Roofing and Siding were $757,134 with a subsequent tax obligation of $2,534. Smith also stated that his 2011 receipts were $5,534,382 with a subsequent tax obligation of $425,931. In both years, the indictment alleges that Smith knew that his gross receipts and subsequent tax obligations for Fox Valley Roofing and Siding were substantially greater than the amounts on the returns.
If convicted of these charges, Smith faces up to 6 years in prison and fines of $500,000. The case was investigated by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Bridget J. Domaszek and Matthew L. Jacobs.
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For Additional Information Contact:
Public Information Officer Dean Puschnig - (414) 297-1700
Former VA Nurse Pleads Guilty to Stealing Pain MedicationRead 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 Dorothy Sellari, 61, of Williamsville, NY, pleaded guilty to theft of government property before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of one year in prison and a fine of up to $100,000.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on July 10, 2015, the defendant was employed as a licensed practical nurse (LPN) at the Veterans Affairs Medical Center in Buffalo. Sellari unlawfully took, for her own use, a dose of hydromorphone (Dilaudid) prescribed for a patient. A VA Inspector General’s investigation determined that the defendant had previously taken and used “waste” amounts of medication prescribed for VA patients.
The plea is the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves.
Sentencing is scheduled for February 5, 2018, at 9:00 a.m. before Judge Arcara.
Former Hedge Fund Manager Sentenced for $9.5 Million Investment FraudRead the Press Release
ALEXANDRIA, Va. – A Leesburg man was sentenced today to 10 years in prison for wire fraud in connection with his role in a $9.5 million investment fraud.
Tamer Moumen, 40, pleaded guilty on May 12. According to court documents, Moumen defrauded over 45 clients between 2012 and 2017. Moumen falsely told investors that he was a successful trader who consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners. Moumen encouraged dozens of clients, including many who were nearing retirement age, to liquidate their other investments and retirement accounts, and invest with him. Moumen did not tell investors that he actually had no experience managing a hedge fund, had a history of losing money in the securities market, and was relying on investor money to support his lifestyle and pay personal expenses. For example, Moumen used investor money to help finance the purchase of a $1 million personal residence in Leesburg, Virginia, a new Tesla, and to repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment, but would conceal those facts by providing statements that showed the investment as steadily growing.
According to the statement of facts filed with the plea agreement, beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. Moumen had sole control of the donated funds, some of which he transferred into accounts in his name, where the money was commingled with investor funds. Moumen used tens of thousands of dollars in these accounts to pay personal expenses.
In addition to his prison sentence, Moumen was also ordered to forfeit $9.5 million and pay $7.5 million in restitution to his victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Katherine L. Wong prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-77.
Former Global Head of HSBC's Foreign Exchange Cash-Trading Found Guilty of Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
The former head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), was found guilty today for his role in a scheme to defraud an HSBC client through a multimillion-dollar scheme commonly referred to as “front running.”
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
Mark Johnson, 51, a United Kingdom citizen with residences both in the U.K. and the United States, was found guilty after a four-week jury trial of one count of conspiracy to commit wire fraud and eight counts of wire fraud. Sentencing date has not been scheduled. U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York presided over the trial. Johnson was arrested on a criminal complaint in July 2016 and indicted in August 2016.
“This verdict makes clear that the defendant corruptly manipulated the foreign exchange market for the benefit of his bank and his bonus pool, to the detriment of the bank’s client,” said Acting Assistant Attorney General Blanco. “This case demonstrates the Criminal Division’s commitment to protecting the financial system from harm, and holding corporate executives, including at the world’s largest and most sophisticated financial institutions, responsible for their crimes.”
“The jury found that former HSBC banker Mark Johnson exploited confidential information provided by a client of the bank to execute trades that were intended to generate millions of dollars in profits for him and the bank at the expense of their client,” said Acting U.S. Attorney Rohde. “This Office, together with its law enforcement partners, will continue to vigorously investigate and prosecute those who would so abuse their client relationships and, more generally, undermine public confidence in the operation of the financial markets by engaging in fraudulent schemes.”
“This case involved a complex fraud scheme to ‘front run’ a foreign exchange transaction in order to generate millions of dollars in illicit profits for HSBC, which also indirectly benefited individual traders,” said Inspector General Lerner. “Such cases are challenging, but important, to bring against bank insiders who misuse their positions and undermine the integrity of a major international financial institution.”
“Mark Johnson misused confidential information to manipulate currency prices and defrauded a client out of more than $7 million,” said Assistant Director in Charge Vale. “The American people need to be assured that we are working vigorously to ensure integrity is upheld in financial services industries. We will continue to work with our law enforcement partners to investigate and prosecute those who engage in illegal business practices.”
According to the evidence presented at trial, in November and December 2011, Johnson cheated an HSBC client out of millions of dollars by misusing information provided to him by a client that hired HSBC to execute a foreign exchange transaction related to a planned sale of one of the client’s foreign subsidiaries. HSBC was selected to execute the foreign exchange transaction – which was going to require converting approximately $3.5 billion in sales proceeds into British Pound Sterling – in October 2011. HSBC’s agreement with the client required the bank to keep the details of the client’s planned transaction confidential. Instead, Johnson misused confidential information he received about the client’s transaction to cheat the client out of millions of dollars, the evidence showed.
Shortly before the transaction, which occurred in December 2011, Johnson and other traders acting under his direction purchased Pound Sterling for their own benefit in their HSBC “proprietary” accounts. Johnson then caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to “ramp,” or drive up, the price of the Pound Sterling, benefiting their proprietary positions and HSBC at the expense of their client.
As part of their scheme, Johnson and his co-conspirators made misrepresentations to the client about the transaction that concealed the self-serving nature of their actions. In total, Johnson and the traders he supervised generated HSBC profits of roughly $7.5 million from the execution of the FX transaction for the victim company.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. The Criminal Division’s Office of International Affairs provided significant support. Assistant Chiefs Carol Sipperly and Brian Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lauren Elbert of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies. Learn more about the Criminal Division’s Fraud Section at: https://www.justice.gov/criminal-fraud.
Former Global Head of HSBC’s Foreign Exchange Cash-Trading Found Guilty of Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
BROOKLYN, N.Y. – Mark Johnson, the former head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), was found guilty today for his role in a scheme to defraud an HSBC client through a multimillion-dollar scheme commonly referred to as “front running.”
Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC), and Assistant Director-in-Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
Johnson, a United Kingdom citizen with residences both in the U.K. and the United States, was found guilty after a four-week jury trial of one count of conspiracy to commit wire fraud and eight counts of wire fraud. A sentencing date has not been scheduled. United States District Judge Nicholas G. Garaufis of the Eastern District of New York presided over the trial. Johnson was arrested on a criminal complaint in July 2016 and indicted in August 2016.
“The jury found that former HSBC banker Mark Johnson exploited confidential information provided by a client of the bank to execute trades that were intended to generate millions of dollars in profits for him and the bank at the expense of their client,” said Acting U.S. Attorney Rohde. “This Office, together with its law enforcement partners, will continue to vigorously investigate and prosecute those who would so abuse their client relationships and, more generally, undermine public confidence in the operation of the financial markets by engaging in fraudulent schemes.”
“This verdict makes clear that the defendant corruptly manipulated the foreign exchange market for the benefit of his bank and his bonus pool, to the detriment of the bank’s client,” said Acting Assistant Attorney General Blanco. “This case demonstrates the Criminal Division’s commitment to protecting the financial system from harm, and holding corporate executives, including at the world’s largest and most sophisticated financial institutions, responsible for their crimes.”
“This case involved a complex fraud scheme to ‘front run’ a foreign exchange transaction in order to generate millions of dollars in illicit profits for HSBC, which also indirectly benefited individual traders,” said FDIC Inspector General Lerner. “Such cases are challenging, but important, to bring against bank insiders who misuse their positions and undermine the integrity of a major international financial institution,”
“Mark Johnson misused confidential information to manipulate currency prices and defrauded a client out of more than $7 million,” said FBI Assistant Director-in-Charge Vale. “The American people need to be assured that we are working vigorously to ensure integrity is upheld in financial services industries. We will continue to work with our law enforcement partners to investigate and prosecute those who engage in illegal business practices.”
As established by the evidence presented by the government at trial, HSBC was selected to execute a foreign exchange (FX) transaction related to a planned sale of one of a client’s foreign subsidiaries – which would require converting approximately $3.5 billion in sales proceeds into British Pounds Sterling. HSBC’s agreement with the client required the bank to keep the details of the planned transaction confidential. Instead, Johnson defrauded the client out of millions of dollars by misusing that confidential information.
Shortly before the transaction, which occurred in December 2011, Johnson and other traders acting under his direction purchased Pounds Sterling for their own benefit in their HSBC “proprietary” accounts. Johnson then caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to “ramp,” or drive up, the price of the Pounds Sterling, benefiting their proprietary positions and HSBC at the expense of their client.
As part of their scheme, Johnson and his co-conspirators made misrepresentations to the client about the transaction that concealed the self-serving nature of their actions. In total, Johnson and the traders he supervised generated HSBC profits of roughly $7.3 million from the execution of the FX transaction for the victim company.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Assistant Chiefs Carol Sipperly and Brian Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lauren Elbert of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The Defendant:
Mark Johnson
Age: 51
United Kingdom
E.D.N.Y. Docket No. 16-CR-457
Former Financial Advisor Charged in Scheme to Defraud ClientsRead the Press Release
PHILADELPHIA – An indictment, unsealed today, charges Jason C. Weigand, 47, of Denver, PA, in a scheme to defraud clients of his financial advising businesses, Nations First Financial Group (“Nations First”) and First Financial Princeton LLC (“First Princeton”), announced Acting United States Attorney Louis D. Lappen. Weigand is charged with (i) three counts of bank fraud; (ii) four counts of wire fraud; (iii) two counts of mail fraud; (iv) three counts of aggravated identity theft; (v) four counts of accessing a protected computer without authorization; and (vi) four counts of money laundering. According to the indictment, as a result of the alleged scheme, Weigand’s clients lost more than $290,000.
According to the indictment, Weigand was a registered investment advisor in Pennsylvania between 2009 and 2014 and in New Jersey between 2011 and 2014. During this period, Weigand held himself to clients as a knowledgeable and reputable source of investment advice, recommending investments in both securities and insurance products. However, notwithstanding his obligation to act primarily for the benefit of his clients and to observe high standards of commercial honor, the indictment alleges that he diverted the funds of his clients, using it for personal, business, and other purposes unrelated to the investment objective of those clients.
According to the indictment, AR met Weigand when he became the homeowners’ insurance agent for AR and her husband. In April, 2005, Weigand attended AR’s husband’s funeral and, around that time, suggested that he become AR’s investment advisor. Feeling vulnerable, AR agreed. She directed Weigand to keep her money safe for retirement and not to invest it in any high risk assets. Instead, however, Weigand used $60,000 of AR’s money to fund accounts in the name of another client and then Weigand withdrew that money for his own personal and business purposes. Further, according to the indictment, Weigand used forged documents to open a different account in AR’s name at a brokerage, and induced AR to fund that account with almost $200,000 of her own funds. Unbeknownst to AR, that account had check writing privileges, which Weigand used to write checks of at least $98,000 for his own benefit.
Later, according to the indictment, AR started to become suspicious of Weigand’s management of her funds. In an effort to cover up his own misconduct, the indictment alleges that Weigand hacked into AR’s email, used forged documents to open an account in AR’s name at another brokerage, and funded that account with money stolen from other clients. Weigand then impersonated that client in telephone calls and emails with that brokerage.
If convicted, Weigand faces a maximum statutory sentence of more than 20 years in prison, possible fines, a minimum sentence of 2 years, and up to three years of supervised release. Weigand would be required to pay a $2,000 special assessment. A notice of forfeiture for $290,000 is also attached.
The case was investigated by the United States Postal Inspection Service, the Pennsylvania Department of Banking and Securities, and the Pennsylvania Insurance Department, Enforcement Division and is being prosecuted by Assistant United States Attorney Paul Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Dallas County Probation Officer Indicted for Soliciting Payments from ProbationersRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas this month, and unsealed last week, charges Tim Jones, 46, of Dallas, Texas, with offenses related to a scheme to illegally solicit payments from probationers, announced John Parker, U.S. Attorney for the Northern District of Texas.
Specifically, Jones is charged with eight counts of use of interstate facility to commit travel act violation. Jones will remain on bond pending trial which is set for December 18, 2017.
The indictment alleges that from January 2015 through October 2015 Jones was employed by the Dallas County Community Supervision and Corrections Department as a court probation officer. Jones was responsible for defendants who have been referred from field probation offices to the court level. Court probation officers are expressly prohibited from accepting payment from probationers for probation fees and other sums owed.
The indictment alleges, during Jones’ employment as a court probation officer he concocted and executed a scheme whereby he solicited and received cash and money orders from probationers in exchange for granting permission to travel, granting early release from probation, withholding arrest warrants, dispensing of community service hours, waiving probation requirements, and reducing the balance of probation fees.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, Jones faces not more than 5 years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
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Former 22nd JDC District Attorney’s Office Investigator Charged with Solicitation and Receipt of BribesRead the Press Release
Acting United States Attorney Duane A. Evans announced that MICHAEL J. COTTON, age 68, of Bogalusa, was charged today in a one-count Bill of Information with soliciting sexual favors from a woman in exchange for obtaining a bond reduction for her boyfriend.
According to the Bill of Information, COTTON worked as an Investigator with the Office of the District Attorney for the 22nd Judicial District, which included St. Tammany and Washington Parishes. COTTON was responsible for investigating matters involving the issuance of bad checks, including initiating cases, reviewing records, interacting with victims, collecting fees and restitution from offenders, and obtaining warrants from municipal judges. COTTON also possessed and displayed a law enforcement badge and credentials, represented the DA’s Office in interactions with criminal defendants and witnesses in ongoing law enforcement investigations, and had access to sensitive case-related information. Furthermore, COTTON regularly corresponded with, had access to, and provided case-related recommendations to Assistant District Attorneys. On July 10, 2015, COTTON is alleged to have demanded sexual favors from a female identified as “Victim 1” in exchange for seeking a bond reduction for her boyfriend from $25,000 to a $30 signature bond.
“We are grateful for the joint efforts between our office and the U.S. Attorney's Office in Louisiana's Eastern District. Those efforts resulted in today's filing of a bill of information against Mr. Cotton,” said Louisiana State Attorney General Jeff Landry. “I am committed to ensuring the strong ongoing partnership between law enforcement partners on every level to investigate, arrest, and prosecute criminals.”
If convicted, COTTON faces a maximum term of imprisonment of ten years, followed by up to a lifetime of supervised release, and a $250,000 fine.
Acting United States Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Special thanks for the assistance provided by the Louisiana State Attorney General’s Office. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution
Florida Man Pleads Guilty to Mail Fraud and Tax EvasionRead 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 Michael Kornaker, 46, of Jacksonville, NY, pleaded guilty to mail fraud and tax evasion before U.S. District Judge Richard J. Arcara. The charges carry a maximum sentence of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that between June 2014 and April 9, 2016, the defendant devised a scheme to defraud companies which were holding unclaimed funds. The funds were advertised on a website belonging to the California State Controller’s Office.
Specifically, Kornaker sent documentation of entitlement to unclaimed funds to the victim companies using false and fraudulent identities, including the name “Vinnie Sciarrino,” and entities, including “Insurance Marketing Resources.” Any funds received from victim companies were deposited into bank accounts maintained by the defendant.
In addition, between June 11, 2015, and November 9, 2015, Kornaker made a claim for unclaimed property held by Jackson National Life Insurance Company using the names Vinnie Sciarrino and Insurance Marketing Resources.
As part of the scheme to defraud, the defendant identified at least 113 companies and submitted fraudulent documentation to change the entity’s mailing address to addresses under his control in the Western District of New York. As a result, the defendant was paid in excess of $415,000 in funds to which he was not entitled.
In addition, for the tax years 2014 and 2015, Kornaker filed forms which substantially understated the amount of income he received by $416,786.73. The defendant claimed that his taxable income for those years was the sum of $43,554, and that the amount of tax due was $8,532. Kornaker’s actual taxable income was $509,986 and the amount of tax due was $165,065.
The plea is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; and the New York State Department of Financial Services, Criminal Investigations Unit, under the direction of Superintendent Maria T. Vullo.
Sentencing is scheduled for February 7, 2018, at 12:30 p.m. before Judge Arcara.
Florida Federal Court Permanently Shuts Down Tax Return PreparersRead the Press Release
A federal court in West Palm Beach, Florida, has permanently barred defendants Fred Pickett Jr., Jalisa Steele, and Fred Pickett III, as well as Five Star Tax Agency LLC, Five Star Financial Services Inc., and Millenium Tax Professionals Inc. from owning, operating, or franchising a tax return preparation business and preparing tax returns for others. The defendants consented to the order, which also requires them to provide the government with a list identifying their tax preparation customers.
According to the complaint, Pickett Jr., with the assistance of Steele and Pickett III, created and maintained a tax return preparation business operating under Five Star Tax Agency LLC, Five Star Financial Services Inc., or Millenium Tax Professionals Inc. that prepared tax returns for their customers which understated tax liabilities and claimed bogus refunds. Their alleged scheme involved unlawfully (i) fabricating businesses and business-related profits or losses, (ii) manipulating, maximizing, or falsely claiming the Earned Income Tax Credit, (iii) claiming false education credits, (iv) claiming spurious fuel tax credits, (v) fabricating retirement account contributions and deductions, and (vi) failing to provide customers with complete copies of their tax returns. In August, the Court denied a motion to dismiss filed by the defendants and held that the allegations in the complaint “connect each defendant to a tax return preparation scheme that violates §§ 6694 and 6695 [of the Internal Revenue Code].”
Return preparer fraud is one of the Internal Revenue Service (IRS)’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Jury Convicts Ovid Man of Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Christopher Eberhardt, 34, of Ovid, NY, of distribution, receipt, and possession of child pornography. The charges carry a minimum sentence of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorneys Kyle Rossi and Craig Gestring, who handled the prosecution of the case, stated that Eberhardt was part of a network of more than 70 individuals engaged in the trade of child pornography. The network was first discovered by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) working in Hartford, Connecticut. Agents from the Buffalo, New York Field Office of HSI uncovered a digital trail, which led to the arrest the defendant. In total, Eberhardt was found to be in possession of more than 2,000 images and 132 videos of child pornography. He was also found to have distributed child pornography to other individuals.
The trial verdict is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major Richard Allen.
Sentencing is scheduled for January 23, 2017, at 2:15 p.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
Father-and-Son Executives of Tutoring Companies Sentenced to Federal Prison in Connection with $11 Million Fraud SchemeRead the Press Release
CHICAGO — The father-and-son executives of two suburban Chicago tutoring companies have been sentenced to federal prison for orchestrating an $11 million fraud scheme that bilked more than 100 school districts around the country, including Illinois.
From 2008 to 2012, JOWHAR SOULTANALI and his son, KABIR KASSAM, fraudulently obtained funds from the school districts by misrepresenting the nature of their companies’ tutoring services and falsely inflating invoices for tutoring work that was never performed. Soultanali and Kassam also paid bribes to school officials and teachers to make sure the fraud was not detected. The bribes included a Caribbean cruise for an assistant principal in Texas and an outing to a gentleman’s club for a state education official in New Mexico.
Soultanali, 62, of Morton Grove, Ill., and Kassam, 38, of Wheeling, Ill., each pleaded guilty last year to one count of mail fraud. U.S. District Judge Amy J. St. Eve on Friday sentenced Soultanali to six years in prison, and Kassam to five years and ten months in prison.
The sentencings were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; John P. Selleck, Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Thomas D. Utz Jr., Special Agent-in-Charge of the North Central Region of the U.S. Department of Education Office of Inspector General. The Chicago Public Schools Office of Inspector General assisted in the investigation.
“Defendants abused the trust that the Department of Education placed in them to carry out a massive fraud that was not merely extensive, but also egregious,” Assistant U.S. Attorneys Kruti Trivedi and Barry Jonas argued in the government’s sentencing memorandum. “The fraud in this case had a significant impact on both the failing school districts that allocated their federal funds to defendants and on the students at those school districts.”
Soultanali served as director of operations for BRILLIANCE ACADEMY INC. and its wholly owned subsidiary, BABBAGE NET SCHOOL INC., both based on Niles, Ill. Kassam was the president of both companies. The firms contracted with school districts to provide tutoring services to students on-site at schools and via laptop computers.
According to the charges, Soultanali and Kassam furnished the school districts with false applications and marketing materials that fraudulently inflated the companies’ services. The companies falsely stated that they provided pre-testing of enrolled students, created customized tutoring programs, provided ongoing progress reports to schools and parents, and compiled accurate student improvement results after the tutoring was completed. In total, Brilliance and Babbage received $33 million from more than 100 school districts and small schools throughout the country.
The fraud scheme also involved numerous bribes paid to some school officials, with the expectation that the officials would assist in procuring federal funds for the tutoring services.
In addition to Soultanali and Kassam, the investigation resulted in criminal charges against Brilliance and Babbage, as well as three school officials in Texas and one state education official in New Mexico who pocketed the bribes.
Erie Man Pleads Guilty in Two Fraud Schemes Targeting Auto Loan ProvidersRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit wire fraud and wire fraud in two separate cases, Acting United States Attorney Soo C. Song announced today.
Adam Brayton Coover, 35, pleaded guilty to eleven counts at Criminal No. 16-28 Erie and thirteen counts at Criminal No. 16-30 Erie before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around May 2015, to in and around March 2016, Coover and a co-defendant engaged in a scheme to defraud auto loan providers by using straw purchasers to buy cars from the co-defendant knowing that the vehicles would not actually be in the possession of the straw purchasers. Coover and a co-defendant also falsified the loan applications to make the straw purchasers appear more credit worthy.
In addition, from in and around May 2015, to in and around March 2016, Coover and two co-defendants engaged in a scheme to defraud auto loans providers by utilizing two straw purchasers to buy vehicles in their own names from Rick Weaver Buick GMC. The vehicles would then actually remain in Coover’s possession. The three facilitated the scheme by falsifying the loan applications to make the straw purchasers appear more credit worthy and by not revealing that the straw purchasers were buying multiple vehicles at the same time. The value of many of the vehicles was also inflated to increase the funds received by the co-conspirators.
Judge Cercone scheduled sentencing for March 19, 2018. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both for Criminal No. 16-28 Erie and a total sentence of 340 years in prison, a fine of $8.5 million or both for Criminal No. 16-30 Erie. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses 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.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department conducted the investigation that led to the prosecution of Coover.
Enid Resident Sentenced to 33 Months for Theft of Treasury Checks and Treats to Federal AgentRead the Press Release
OXFORD, Miss. – Robert H. Norman, Acting United States Attorney for the Northern District of Mississippi; Ruben Florez, Special Agent in Charge of the Treasury Inspector General for Tax Administration, Mid-States Field Division, and Jerome R. McDuffie, Supervisory Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, New Orleans Field Office, announce that:
Veronica Lloyd, 46 of Enid, Mississippi, was sentenced Thursday, October 19, 2017, by United States District Judge Glen H. Davidson, in Aberdeen, Mississippi. Lloyd was sentenced to serve a total of thirty-three (33) months in federal prison following by 3 years supervised release and was ordered to pay $52,341.67 in restitution to her victims.
On June 21, 2017, Lloyd pled guilty to converting to her own use a Treasury Check issued to another person, using threats of force to impede a Department of the Treasury Special Agent, and committing wire fraud.
The charges were the result of a joint investigation by the United States Attorney’s Office, the Department of the Treasury Inspector General for Tax Administration, and the Internal Revenue Service Criminal Investigation Division, into allegations that Enid, MS residents had monies from their yearly income tax refunds taken illegally and that subsequently they were contacted by a fictitious “IRS agent” and told not to contact the IRS about the issues. Lloyd also threatened to strike an agent of the Department of Treasure with a shovel, and later investigation revealed her use of interstate wire communication to commit fraud.
“It is the Treasury Inspector General for Tax Administration’s mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax Administration’s (TIGTA’s) Mid-States Field Division. “TIGTA and its law-enforcement partners will investigate individuals that attempt to assault its employees and interfere with the administration of the internal revenue laws through impersonation schemes, and will do everything within its power to ensure that those involved are prosecuted to the fullest extent of the law.”
Special Agent in Charge, Jerome R. McDuffie, stated, “Veronica Lloyd will serve time in prison for her victimization of Mississippi taxpayers. She stooped to means such as stealing the tax refunds of her identity theft victims, and impersonating an IRS employee in an effort to obstruct the efforts of federal law enforcement officers. Every day of her prison term is a well-deserved reward for her actions.”
This case was investigated jointly by the United States Attorney’s Office, the Department of the Treasury Inspector General for Tax Administration, and the Internal Revenue Service Criminal Investigation Division, and was prosecuted by Assistant United States Attorneys Jamiel Wiggins and Clay Joyner.
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Department of Justice Awards Nearly $9 Million to Advance Community Policing Efforts and Increase First Responder Safety through Active Shooter TrainingRead the Press Release
Attorney General Jeff Sessions today announced nearly $9 million in funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) to advance the practice of community policing in law enforcement and to provide critical training to help law enforcement officers prepare for active shooter situations. The announcement was made during the Attorney General’s remarks at the International Association of Chiefs of Police (IACP) conference in Philadelphia. The IACP will also be receiving over $200,000 for its Institute for Community and Police Relations.
"Community policing builds trust and mutual respect between communities and law enforcement, and that helps us reduce crime," Sessions said. "Over the last 23 years, the Department of Justice has invested more than $14 billion in community policing—and I have no doubt that it has saved lives across America. The investment the Department makes today builds on those efforts, and it underscores the Trump Administration’s commitment to support law enforcement. This investment will be put to good use: providing better training and safety for law enforcement officers and better relations with communities. That will benefit all of us. Under President Trump's strong leadership, this Department of Justice will continue to provide law enforcement officers with the resources and tools they need to make this country safe.”
Through the Community Policing Development (CPD) Program, the COPS Office will fund approximately $3.6 million to grantees that will provide training and technical assistance and develop innovative community policing strategies, applied research, guidebooks, and best practices. Grant awards were made in the following categories:- Field-Initiated Law Enforcement Microgrants;
- Officer Safety and Wellness Resources;
- Enhancing Officer Safety through Increased Respect for Law Enforcement; and
- Online Training Development.
A full list of grant awardees is available on the COPS Office website: http://www.cops.usdoj.gov/default.asp?Item=2895
Additionally, the COPS Office is awarding approximately $5.4 million in grant funding through the Preparing for Active Shooter Situations (PASS) Training Program to the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University. This funding is intended to increase law enforcement and public safety through scenario-based training that prepares officers and other first responders to safely and effectively handle active-shooter and other violent threats. Additional details on the PASS grant awardee are available on the COPS Office website: http://www.cops.usdoj.gov/default.asp?Item=2946Complaint Filed Against Granite City Man for RobberyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that a complaint has been filed in federal court charging a Granite City man with the robbery of Granite City Steel Credit Union on October 20, 2017.
The Complaint alleges that Torricelli A. Johnson walked into the Granite City Steel Credit Union in Granite City, Illinois and told the credit union teller, "this is a stick up" and demanded money in $100 bills. The robbery of a credit union carries up to a maximum of 20 years imprisonment, to be followed by up to three years of supervised release and a fine up to $250,000.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation is being conducted by the Federal Bureau of Investigation and the Granite City Police Department.
Columbia Man Sentenced to 23 Years for Producing Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for producing child pornography.
Sergio Antonio Dominguez-Gonzalez, 23, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to 23 years and four months in federal prison without parole.Dominguez-Gonzalez, who pleaded guilty on May 15, 2017, admitted that he sexually abused a 2-year-old child victim to produce child pornography, which he distributed over the Internet.
An undercover detective in Washington, D.C., posted numerous online bulletin messages on specific social media forums, which were Web sites frequented by individuals with a sexual interest in children and incest. The bulletin messages were intended to attract individuals with a sexual interest in children. On Feb. 21, 2017, Dominguez-Gonzalez sent an e-mail to the undercover detective.
During the course of their e-mail conversation and later instant messaging, Dominguez-Gonzalez stated that he had sexual contact with a 2-year-old victim for the first time “recently” and had made two videos of himself molesting the victim. Dominguez-Gonzalez admitted he sent one of the videos, as well as screen shots from the video, to the undercover detective. He also told the undercover detective that he showed images of adult pornography to the victim “so she knows that (sic) girls do.”
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Washington, D.C. Metropolitan Police Department and the Boone County Sheriff’s Department Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."California Man Admits Role in Cross-Country Cocaine and Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Los Angeles man today admitted his role in a conspiracy to traffic five kilograms of cocaine and four kilograms of heroin that were smuggled inside large pieces of hydraulic machinery, Acting U.S. Attorney William E. Fitzpatrick announced.
Eduardo Barragan Zuninga, 30, pleaded guilty before U.S. District Court Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiring to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
From March of 2015 through March of 2016, Zuninga, Fermin Nunez, 45, also of Los Angeles, and others engaged in a conspiracy to ship cocaine and heroin, and the proceeds from narcotics transactions, across the country hidden inside large pieces of hydraulic machinery.
Nunez arranged for the drugs to be shipped from California to the east coast for distribution by Zuninga and others in the New York metropolitan area. Nunez, with Zuninga’s assistance, similarly arranged for the shipment of the distribution proceeds back to California.
Execution of two search warrants at the conclusion of an investigation conducted by the FBI, in cooperation with local law enforcement partners in Los Angeles, resulted in the seizure of approximately five kilograms of cocaine and four kilograms of heroin from a warehouse in Pennsylvania, and over $260,000 in suspected narcotics proceeds from a piece of hydraulic machinery in a California storage facility.
The conspiracy charge to which Zuninga pleaded guilty today carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is scheduled for Jan. 29, 2018.
Nunez previously pleaded guilty to his role in the conspiracy and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT) and the Los Angeles Police Department, under the direction of Police Chief Charlie Beck, with the investigation.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Buffalo Man Sentenced on Heroin ChargeRead 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 Mark Gonzalez, 22, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin, was sentenced to time served (24 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between July 2014, and September 28, 2015, the defendant became active in a heroin distribution organization headed by Daniel Molina-Rios. Gonzalez handled a phone provided to him by the organization to sell heroin. On five occasions, the defendant sold 28 bags of heroin to undercover officers. On each occasion, the undercover officer and Gonzalez would make contact by telephone to arrange a controlled purchase of heroin. The defendant utilized the phone provided to him by the drug trafficking organization. Gonzalez was intercepted by law enforcement utilizing a phone to sell heroin to other individuals as well, during this time period.
The sentencing 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.
Brownwood Man Sentenced to 168 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — A 22-year-old Brownwood, Texas, man, Sebastian Contreras, who pleaded guilty in July 2017 to two counts of receipt of child pornography, was sentenced last week by Senior U.S. District Judge Sam R. Cummings to 168 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas. Contreras will begin serving his prison sentence on December 1, 2017.
According to documents filed in the case, in December 2016 and February 2017, Contreras used the Internet to download images of child pornography depicting female minors under the age of 18 years engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Brown County Sheriff’s Office, and the Brownwood Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Broward County Resident Sentenced to 292 Months in Prison for Sex Trafficking of a MinorRead the Press Release
Leon Roberts was sentenced by United States District Judge James I. Cohn to 292 months in prison, to be followed by 25 years of supervised release for sex trafficking a minor.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The trial evidence showed that the defendant Leon Roberts, 27, of Ft. Lauderdale, convinced a 14-year-old girl into staying with him and his girlfriend, C.A., at the Crosslands Hotel. Once in his hotel room, he pressured the 14-year-old to prostitute for him for a two month period. The minor (victim) claimed to be 19 years old, but C.A. believed that she was significantly younger.
On June 22, 2016, C.A. and the minor were fed up with Roberts and left the hotel to go stay with a friend for the night. Upon returning back to the hotel in the morning, Roberts was furious at C.A. for taking the minor away for the night. The disagreement escalated to the point where Roberts called the police to report his girlfriend was pimping out the minor. When the police arrived the minor disclosed that Roberts was her pimp. Roberts was arrested after the minor’s Backpage ads were found going back to his email address. The jury found Roberts guilty after three hours of deliberation.
Mr. Greenberg commended the investigative efforts of the FBI. This case was prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bakersfield Man Charged with Illegal Possession of FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment on October 19, 2017, against Luvell Ronell Blinks, age 34, of Bakersfield, charging him with being a previously convicted felon in possession of a firearm, United States Attorney Phillip A. Talbert announced.
According to court documents, on September 25, 2017, Bakersfield police officers attempted to stop the vehicle Blinks was driving when he took off at a high rate of speed. Following a vehicle pursuit and a subsequent foot chase, Blinks was apprehended and found in possession of a loaded .357 caliber Smith and Wesson Revolver.
This case was the product of an investigation by the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Attorney General Jeff Sessions Gives Key Department of Justice Task Force New Tools to Dismantle MS-13Read the Press Release
Taking another step toward fulfilling President Trump’s goal of stamping out the brutal transnational criminal organization MS-13, Attorney General Jeff Sessions today formally designated the gang as a priority for the Department of Justice’s Organized Crime Drug Enforcement Task Forces (“OCDETF”).
Addressing the International Association of Chiefs of Police, the Attorney General explained that the formal priority designation of MS-13 allows OCDETF to utilize an expanded toolkit in its efforts to dismantle the organization. This means that OCDETF should look to all laws in its investigative and prosecutorial efforts, including drug laws, gun laws, tax laws, RICO, and anything else that will cripple the gang. In his speech, the Attorney General said: “But this work is not finished. I am announcing today that I have designated MS-13 as a priority for our Organized Crime Drug Enforcement Task Forces. These task forces bring together a broad coalition of our federal prosecutors, DEA, FBI, ATF, ICE, HSI, the IRS, the Department of Labor Inspector General, the Postal Service Inspectors, the Secret Service, the Marshals Service, and the Coast Guard. And they all have one mission: to go after drug criminals and traffickers at the highest levels.
"Now they will go after MS-13 with a renewed vigor and a sharpened focus. I am announcing that I have authorized them to use every lawful tool to investigate MS-13—not just our drug laws, but everything from RICO to our tax laws to our firearms laws. Just like we took Al Capone off the streets with our tax laws, we will use whatever laws we have to get MS-13 off of our streets.”
For the Attorney General’s full speech click here.
To learn more about the mission of the Department of Justice’s Organized Crime Drug Enforcement Task Forces click here.Ardmore Woman Pleads Guilty to Embezzlement and Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DENISE TAYLOR, age 55, of Ardmore, Oklahoma, pled guilty to EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATION, in violation of Title 18, United States Code, Section 1163, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from on or about March 19, 2017, to on or about March 29, 2017, in the Eastern District of Oklahoma, the defendant, DENISE TAYLOR, did steal, embezzle and knowingly and willfully convert to her own use goods, assets, and other property, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Chickasaw Nation’s Ardmore Smoke Shop # 1, an Indian tribal organization.
The charge arose from an investigation by the Bureau of Indian Affairs.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
30 Members and Associates of the "Nine Trey Gangster Blood" Gang Federally IndictedRead the Press Release
Federal agents have arrested 17 members and associates of the Nine Trey Gangster Bloods criminal street gang on charges of RICO conspiracy and related charges stemming from an indictment returned by a federal grand jury in the Northern District of Georgia on Oct. 12, which was unsealed yesterday. A total of 30 gang members and associates were indicted.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia and Special Agent in Charge David J. LeValley of the FBI Atlanta Field Office made the announcement.
“This indictment continues the Department’s efforts to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Acting Assistant Attorney General Kenneth A. Blanco. “By charging those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters, we are making our neighborhoods and communities safer.”
“The alleged crimes relate to drug distribution in the Atlanta area and acts of violence perpetrated largely against the gang’s own members,” said U.S. Attorney Pak. “Shockingly, the Nine Trey Gangsters in this case appear willing to kill someone or to commit violence over the smallest perceived slight. Thanks to the hard work of federal and local law enforcement officials, these individuals will now face prosecution for their alleged crimes.”
“The federal grand jury indictment and the resulting arrests sweeps made by the FBI and its many law enforcement partners stem from an intensive and exhausting FBI led Safe Streets Gang Task Force effort to remove these violent gang members, collectively known as Nine Trey Gangsters, from our streets,” said Special Agent in Charge LeValley. “The FBI continues to provide significant investigative resources directed toward the dismantling of these types of organized and violent criminal enterprises that do so much harm to our communities and the joint law enforcement operation clearly illustrates this.”
According to the indictment, beginning at least in 2013, the defendants named in the RICO conspiracy charge committed murder, attempted murder, conspired to commit murder, robbery, extortion, firearm crimes, drug trafficking, obstruction of justice and other crimes in furtherance of the Nine Trey Gangsters.
The RICO conspiracy charge names the following alleged Nine Trey Gangster members as defendants:
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- Gordon Evans, aka QB, 36, of Atlanta;
- Patrick Caple, aka Zoe, 52, of Atlanta;
- Gary Sartor, aka G-Stacks, aka Stacks, 33, of Atlanta;
- Tyrone Clark, aka Tight-Eye, 36, of Marietta;
- Joseph Riley III, aka Joe Blow, 33, of Atlanta;
- Khajavius Mitchell, aka KJ, 23, of Atlanta;
- Tashied Reed, aka Row, aka Tykune, 24, of Atlanta;
- Michael Jackson, aka Self-Made, aka MJ, 23, of Clayton County, GA;
- Brandon Asberry, aka B5, 28, of Atlanta;
- Jimmy Rosser, aka Lil’ Jimmy, aka Baby Hazo, 25, of Atlanta;
- Kierra Maheia, aka Erra, 26, of Atlanta;
- Cetera Bowles-Griffin, aka Bella, 28, of Atlanta;
- Alfonzo Nalls, aka Offset, 29, of Atlanta; and
- Raekwon Williams, aka B-Ray, 20, of Atlanta.
In addition to the RICO conspiracy, the Indictment alleges multiple counts of attempted murder and conspiracy to commit murder in aid of racketeering against the following alleged Nine Trey Gangster members: Evans; Caple; Sartor; Clark; Riley; Mitchell; Tashied Reed; Jackson; Asberry; Rosser; Bowles-Griffin; Nalls; Williams; Westly Shivers, a/k/a “Owon,” 27, of Atlanta; and Wajzim Reed a/k/a “Wazi,” 23, of Atlanta.
Further, the Indictment alleges a drug trafficking conspiracy that includes trafficking in methamphetamine, marijuana, prescription medications and heroin, against the following alleged Nine Trey Gangster members and associates: Mitchell; Caple; Sartor; Clark; Riley, Tashied Reid; Jackson; Asberry; Rosser; Bowles-Griffin; Williams; Marcus Russell aka Double M, 26, of Jessup, Georgia; Calmetrius Dawkins, 22, of Atlanta; J’mon Hawkins, a/k/a “Monto Pronto,” 21, of Atlanta; Earl Smiley, 27, of Greeneville, South Carolina; Linnie Andrews, 34, of Atlanta; Adrian Ansley, 27, of Bethlehem, Georgia; Fred Arceneaux, 58, of Bonaire, Georgia; Erick Balcazar, 34, of Marietta; Sheena Brown, 32, of Marietta; Tremaine Garrison, aka Paperwork, 35, of Marietta; Cedrick Hill, aka Ced, 25, of Marietta; Monique Preston, 30, of Marietta; Demario Ridley, aka Lil Yo, 23, of Atlanta and Travis Todd aka T-Raw, 25, of Atlanta.
Maheia and Mitchell are charged with maintaining a drug premises that the gang used as a base to conduct their illegal activities. Mitchell and Williams are also charged with possessing firearms during their drug trafficking activities.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI Atlanta’s Safe Streets Gang Task Force, composed of members of the FBI, Atlanta Police Department (PD), Alpharetta PD, Clayton County PD, Cobb County PD, DeKalb PD, Georgia Department of Community Supervision, Georgia Department of Corrections, Gwinnett County PD, Marietta PD and U.S. Postal Inspection Service. Investigative assistance was also proved by the Georgia State Patrol, Covington PD, Clayton County District Attorney’s Office and Gwinnett County District Attorney’s Office. The case is being prosecuted by Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Northern District of Georgia.
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20 October 2017
Wilkes-Barre Couple Charged with Renting Room in Their Home for Methamphetamine ProductionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Laurey and Amy Casey, both age 38, of Wilkes-Barre, Pennsylvania, were indicted on October 17, 2017, by a federal grand jury for renting space at their residence in Wilkes-Barre for the purpose of producing methamphetamine. The indictment was unsealed yesterday following the arrest of the defendants.
According to United States Attorney Bruce D. Brandler, between June 21, 2016 and June 29, 2017, Laurey and Casey rented rooms within their residence to two individuals who were operating a methamphetamine lab. The defendants allegedly allowed the drug manufacturers to live rent free in exchange for methamphetamine being produced within the home.
The case was investigated by the Federal Bureau of Investigation, the Wilkes-Barre Police Department, the Kingston Police Department, and Pennsylvania State Police. Assistant United States Attorney Evan Gotlob is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 defendants are facing a maximum of 20 years in prison and a $500,000 maximum fine, and term of supervised release. 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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Westlake man arrested following indictment for defrauding the Cleveland Clinic out of $2.8 millionRead the Press Release
A Westlake man was indicted in federal court for his role in a conspiracy to defraud the Cleveland Clinic out of at least $2.8 million, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Wisam Rizk was charged in a 29-count indictment with one count of conspiracy to commit wire fraud and honest services wire fraud, 27 counts of wire fraud and honest services wire fraud and one count of obstruction of justice. He was arrested Thursday evening.
Rizk worked as Chief Technology Officer at Interactive Visual Health Records, a company formed by Cleveland Clinic Innovations to develop a visual medical charting concept of certain Clinic physicians into a functioning, marketable product, according to the indictment.
Rizk was hired at IVHR by Gary Fingerhut, the former executive director at Cleveland Clinic Innovations. Fingerhut has pleaded guilty to his role in the conspiracy and is awaiting sentencing.
Rizk and Fingerhut, as a condition of their employment, were prohibited from receiving any financial benefit or having any personal or familial financial interests in companies the Clinic did business with, unless they were expressly disclosed to, and approved by, the Clinic.
Rizk and others caused to be incorporated a shell company known as iStarFZE LLC (ISTAR) that did not actually perform or provide any goods or services. It was established in the name of a nominee owner. Rizk caused ISTAR to establish a web site and email addresses and a mailing address in New York City to create the false impression it was an operational business, according to the indictment.
Rizk caused ISTAR to submit a bid to the Clinic to develop and design IVHR’s software and to increase the price the Clinic paid for the software design and development, all without disclosing his financial interest in ISTAR, according to the indictment.
Rizk periodically paid Fingerhut a “referral” or “commission” fee in return for Fingerhut not disclosing the fraud scheme, according to the indictment.
“This defendant was hired to help develop advanced medical technology and instead defrauded the Cleveland Clinic out of millions of dollars,” Herdman said. “We will continue to aggressively prosecute corruption and self-dealing.”
“Rizk utilized the trust that had been placed in him and his immense technical and organizational skill as weapons against the very company and associates who had entrusted him for the purpose of stealing close to $3 million,” Anthony said.
The investigation is ongoing.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
W. Warwick Man Sentenced for Drug Trafficking, Bank FraudRead the Press Release
PROVIDENCE – Christian M. Domenech, 24, of West Warwick, was sentenced today to 36 months in federal prison for his participation in a conspiracy to traffic heroin, cocaine and crack cocaine, and for bank fraud.
Domenech pleaded guilty on July 14, 2017, to an indictment charging him with conspiracy to distribute heroin, three counts of distribution of heroin, 14 counts of distribution of crack cocaine, possession with the intent to distribute heroin, possession with the intent to distribute cocaine, possession with the intent to distribute crack cocaine and bank fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Domenech to serve 3 years supervised release upon completion of his prison term. The government and the defense recommended to the Court a sentence of 36 months of incarceration be imposed. The U.S. Sentencing Guideline imprisonment range in this matter is 41 to 51 months.
Domenech’s sentence is announced by Acting United States Attorney Stephen G. Dambruch, Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Domenech, and a co-defendant in this matter, Robert Wilkins, 26, of West Warwick, were arrested on July 12, 2016, following a three-month FBI Safe Streets Task Force investigation into the defendants’ drug trafficking activities. Wilkins pleaded guilty on July 28, 2017, to conspiracy, trafficking heroin, cocaine and crack cocaine, and for bank fraud. He is scheduled to be sentenced on November 20, 2017.
According to information presented to the Court, in March 2016, the FBI Safe Streets Task Force developed information that Robert Wilkins was involved in the distribution of heroin and crack cocaine while on federal supervised release from a previous drug trafficking conviction and term of incarceration. The investigation included several purchases of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each transaction was monitored by law enforcement. Domenech was present for nearly all of the transactions.
Additionally, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. According to information presented to the Court, Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew a total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
The defendants have been detained since their arrest.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The FBI Safe Street Tasks Force consists of members of the Providence, Cranston, Woonsocket and Central Falls Police Departments, Rhode Island State Police and investigators from the Rhode Island Department of Corrections.
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Two from Cleveland indicted for straw purchase of a firearm for a felonRead the Press Release
Two people from Cleveland were indicted for a case involving the straw purchase of a firearm for a felon, said U.S. Attorney Justin Herdman and ATF Special Agent in Charge Trevor Velinor.
Indicted are Tremaine Jackson, 28, and Valerie Woods, 29.
Jackson was indicted on one count of being a felon in possession of a firearm. Jackson had a FN Herstal .57-caliber pistol and ammunition on Nov. 25, 2016, despite previous convictions that prohibited him from having a firearms, including drug trafficking, carrying a concealed weapon and having a weapon while under disability.
Woods was indicted on one count of making false statements to a firearms dealer. She purchased the FN Herstal .57-caliber pistol on Oct. 28, 2016 at Stonewall Range in Broadview Heights. She represented to the dealer that she was the actual buyer of the firearm when she was not, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Kelly Galvin following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Convicted Felons Sentenced to Lengthy Federal Prison Terms for Gun and Drug CrimesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today the sentencings of two defendants with prior felony convictions for federal firearms and narcotics crimes.
United States v. Leo F. Haymond, III
In the first case, Chief United States District Court Judge Brian A. Jackson has sentenced LEO F. HAYMOND, III, 37, to serve 116 months in federal prison following his convictions for federal firearm, drug, and other violations. HAYMOND was also ordered to serve five years of supervised release following imprisonment, forfeit all property involved in his crimes, and pay a $200 special assessment.
HAYMOND was charged earlier this year in a multi-count indictment with federal firearm and drug offenses. On June 15, 2017, HAYMOND pled guilty to possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute heroin. In his plea agreement, HAYMOND admitted that he sold significant amounts of drugs, and that he possessed a Glock, model 30, .45 caliber pistol to further his drug trafficking.
HAYMOND previously was ordered to serve a 63-month term of imprisonment, and a 3-year term of supervised release, following a 2011 conviction for distribution of cocaine base in the Middle District of Louisiana. The terms of his supervised release barred HAYMOND from committing another federal, state, or local crime. During yesterday’s hearing, however, HAYMOND admitted that he committed the above offenses while serving out his term of supervised release.
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Ascension Parish Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Ryan Rezaei.
United States v. Tarzareo L. Jones
In the second case, Chief United States District Court Judge Brian A. Jackson sentenced TARZAREO L. JONES, age 27, of Baton Rouge, Louisiana, to 70 months in federal prison as a result of his conviction for possessing a firearm while a convicted felon. The Court further sentenced JONES to three years of supervised release following his term of imprisonment.
On January 8, 2017, a Louisiana State University Police Department Officer attempted to conduct a traffic stop of a vehicle operated by JONES near the LSU campus, but the vehicle did not immediately stop. After a brief car and foot pursuit, JONES was stopped and taken into custody. The officer recovered a .9mm pistol near the vehicle, which the officer had observed JONES discard, along with ammunition matching the caliber of the firearm inside the vehicle. An investigation of the firearm revealed that it had been reported stolen from an evidence room at the old Livingston Parish Sheriff’s Office. JONES had previously been convicted of attempted illegal carrying of a firearm and illegal use of a weapon, both felony offenses. On June 14, 2017, JONES pled guilty to one count of possession of a firearm by a convicted felon.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Louisiana State University Police Department, with the cooperation of the East Baton Rouge Parish District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Demetrius D. Sumner.
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Acting U.S. Attorney Amundson stated, “In the HAYMOND case, we have sent a strong message about our commitment to working with our law enforcement partners to get an armed drug trafficker off of our streets. Similarly, in the JONES case, it is not difficult to imagine the real danger the defendant’s decision to flee a lawful traffic stop posed to others that night. I sincerely appreciate the hard work by the Ascension Parish Sheriff’s Office, the LSU Police Department, and the ATF in bringing these defendants to justice.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated: “The Bureau of Alcohol, Tobacco, Firearms, and Explosives will continue to work closely with our federal, state, and local partners to provide a safe environment for everyone to live. ATF is proud to work with the United States Attorney’s Office to take a potentially violent offender from our streets and neighborhoods.”
The U.S. Attorney’s Office—Violent Crime Initiative
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Earlier this month, the U.S. Attorney’s Office for the Middle District of Louisiana launched an initiative targeting violent crime in and around Baton Rouge. The initiative accelerates the focus on federal gun prosecutions and places an emphasis on using federal tools to pursue violent offenders and drug traffickers. The initiative brings together resources from Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Department of Homeland Security, the Organized Crime and Gang Section of the U.S. Department of Justice, the U.S. Marshal’s Service, the Baton Rouge Police Department, the East Baton Rouge Sheriff’s Office, the Louisiana State Police, the District Attorney’s Office, and the Constable’s Office.
Through a newly-created Violent Criminal Enterprises Strike Force, the U.S. Attorney’s Office is targeting and attacking the most violent groups in our area. For more information about the U.S. Attorney’s Office’s Violent Criminal Enterprises Strike Force, please contact Assistant United States Attorney Christopher Dippel, who serves as a Deputy Criminal Chief within the USAO, at (225) 389-0443.