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Wednesday 30 August 2017
Former Columbia Sportswear Information Technology Employee Pleads Guilty to Computer IntrusionsRead the Press Release
PORTLAND, Ore. – On Wednesday, August, 30, 2017, Michael Leeper, 41, of Tigard, Oregon, pleaded guilty in United States District Court to intentionally accessing the Columbia Sportswear Company’s network without authorization in violation of 18 U.S.C. § 1030.
From May 2000 to February 2014, Leeper was employed by Columbia and eventually became the company’s Director of Technical Infrastructure in 2012. In March 2014, Leeper resigned from his position with Columbia and began working for an information technology vender. After leaving Columbia, Leeper remotely accessed the company’s network on a continuous basis, accessing and viewing commercially valuable and private information.
Leeper faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. His sentencing hearing is scheduled for December 7, 2017 before United States District Court Judge Robert E. Jones.
“As a result of the Columbia Sportswear Company’s cooperation and a thorough investigation by the FBI’s Oregon Cyber Task Force, we have secured an appropriate conviction” said Billy J. Williams, United States Attorney for the District of Oregon. “Unauthorized computer intrusion is a serious crime, and those that unlawfully gain sensitive or proprietary information must be held accountable for their illegal conduct.”
This case was investigated by the FBI’s Oregon Cyber Task Force and prosecuted by Scott E. Bradford, Assistant United States Attorney for the District of Oregon.
Fishing Vessel Owner Convicted for Oil and Garbage Offenses Off American SamoaRead the Press Release
A fishing vessel company that operated in and around American Samoa was convicted and sentenced today for maintaining false and incomplete records relating to the discharge of oil and garbage, announced Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division and United States Attorney Channing D. Phillips. The company, Yuh Fa Fishery (Vanuatu) Co. Ltd., owned the Fishing Vessel (“F/V”) Yuh Fa No. 201, the vessel that was responsible for the pollution.
Yuh Fa Fishery (Vanuatu) Co. Ltd., admitted that its engineers failed to document the illegal dumping of oily bilge water into the waters of the South Pacific Ocean without the use of required pollution prevention equipment. The Chief Engineer onboard the F/V Yuh Fa No. 201 acknowledged that there had been discharge of oil to the sea that caused a visible sheen upon the water and that he did not log this discharge in the vessel’s Oil Record Book, as required by law. The company also admitted that its engineers made several modifications using flexible hoses to the vessel’s piping system, which allowed oily bilge water and oil sludge to be discharged directly overboard.
The company further admitted that between June 2013 and June 2016, senior engineers regularly failed to accurately record the transfer and disposal of oil waste in the vessel’s Oil Record Book. The vessel’s captains also failed to properly maintain a Garbage Record Book, and Yuh Fa Fishery (Vanuatu) Co. Ltd., was unable to accurately account for the storing, sorting, and disposal of garbage during the vessel’s extended fishing trips. The Coast Guard relies on such records to determine whether vessels are illegally dumping oil and garbage at sea. As a result, tons of oil sludge, waste oil, oily bilge water, and garbage produced by the vessel remain unaccounted for.
The company pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain an Oil Record Book and a Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.5 million, which includes a community service payment of $625,000 for use in the National Marine Sanctuary of American Samoa. Yuh Fa Fishery (Vanuatu) Co. Ltd., will also serve a 5-year period of probation.
The case against Yuh Fa Fishery (Vanuatu) Co. Ltd., was investigated by U.S. Coast Guard personnel in American Samoa and Honolulu, Hawaii. The case was prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia.
Fishing Vessel Owner Convicted for Oil and Garbage Offenses Off American SamoaRead the Press Release
WASHINGTON – A fishing vessel company that operated in and around American Samoa was convicted and sentenced today for maintaining false and incomplete records relating to the discharge of oil and garbage, announced Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division and U.S. Attorney Channing D. Phillips. The company, Yuh Fa Fishery (Vanuatu) Co. Ltd., owned the Fishing Vessel (“F/V”) Yuh Fa No. 201, the vessel that was responsible for the pollution.
Yuh Fa Fishery (Vanuatu) Co. Ltd., admitted that its engineers failed to document the illegal dumping of oily bilge water into the waters of the South Pacific Ocean without the use of required pollution prevention equipment. The Chief Engineer onboard the F/V Yuh Fa No. 201 acknowledged that there had been discharge of oil to the sea that caused a visible sheen upon the water and that he did not log this discharge in the vessel’s Oil Record Book, as required by law. The company also admitted that its engineers made several modifications using flexible hoses to the vessel’s piping system, which allowed oily bilge water and oil sludge to be discharged directly overboard.
The company further admitted that between June 2013 and June 2016, senior engineers regularly failed to accurately record the transfer and disposal of oil waste in the vessel’s Oil Record Book. The vessel’s captains also failed to properly maintain a Garbage Record Book, and Yuh Fa Fishery (Vanuatu) Co. Ltd., was unable to accurately account for the storing, sorting, and disposal of garbage during the vessel’s extended fishing trips. The Coast Guard relies on such records to determine whether vessels are illegally dumping oil and garbage at sea. As a result, tons of oil sludge, waste oil, oily bilge water, and garbage produced by the vessel remain unaccounted for.
The company pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain an Oil Record Book and a Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.5 million, which includes a community service payment of $625,000 for use in the National Marine Sanctuary of American Samoa. Yuh Fa Fishery (Vanuatu) Co. Ltd., will also serve a five-year period of probation.
The case against Yuh Fa Fishery (Vanuatu) Co. Ltd., was investigated by U.S. Coast Guard personnel in American Samoa and Honolulu, Hawaii. The case was prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia.
Felons from Youngstown and Cleveland indicted for firearms offensesRead the Press Release
Two people were indicted for firearms offenses, U.S. Attorney Justin E. Herdman said.
Charles L. Pete, 23, of Youngstown, was indicted on charges of being a felon in possession of a firearm and ammunition. The indictment alleges Pete possessed a Norinco, model MAK90, 7.62 mm rifle and ammunition on Aug. 7, 2017, after having been convicted of drug trafficking and other offenses in 2015.
Andre Ellison, 29, of Cleveland, was indicted on charges of being a felon in possession of ammunition. The indictment alleges Ellison possessed ammunition on June 20, 2017, after having been convicted of felonious assault and domestic violence in 2011.
The cases are not related.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The Pete case was investigated by the Federal Bureau of Investigation and the Mahoning Valley Violent Crimes Task Force. It is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
The Ellison case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant. U.S. Attorney Megan Miller.
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.
Federal Inmate Charged with Making Threat Against PresidentRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jared Marc Brown, age 20, a federal inmate at United States Penitentiary, Allenwood, was indicted by a federal grand jury for making a threat to take the life of the President of the United States.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on June 14, 2017, Brown made a threat to take the life of the President of the United States.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney James T. Clancy.
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 maximum penalty under federal law for the offense is five years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Father and Son Plead Guilty to Racketeering ConspiracyRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 or
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709 or
Assistant U.S. Attorney Ajay Krishnamurthy (619) 546-9613
NEWS RELEASE SUMMARY – August 29, 2017
SAN DIEGO – Sanders Bruce Segal and his son, Sydney Bruce Segal, each pleaded guilty today to engaging in a racketeering conspiracy that operated for years out of the Lucky Lady Casino and Card Room and other locations in San Diego.
The defendants admitted at today’s hearing to participating in an international racketeering enterprise – Segal’s Lucky Lady Sports Book – that regularly engaged in unlawful activity such as bookmaking, transmitting wagering information, money laundering and collecting unlawful debts.
As outlined in the indictments, the Lucky Lady Casino and Card Room is a licensed gambling establishment that offers legitimate, tightly-regulated card games. Between 2013 and 2016, however, it also provided a front for Sanders Segal’s illegal bookmaking operations. Sydney Segal was an employee of the Lucky Lady Casino and Card Room, and used his position working in the cage to commingle cash from the card room’s lawful gambling operations with the proceeds of the enterprise’s unlawful sports betting.
In his plea agreement, Sanders Segal admitted his role as a leader and organizer of Segal’s Lucky Lady Sports Book. In this capacity, Sanders Segal directed the other members of the enterprise to use gambling websites based overseas to place illegal sports bets on behalf of customers located in the United States.
Sanders Segal and other conspirators also coordinated the unlawful collection of those illegal wagers, typically in cash, and sent and received large sums of cash on behalf of the enterprise. For example, Sanders Segal admitted that on April 2, 2015, he met co-defendant David Greg Leppo in a supermarket parking lot in Del Mar, California, and handed Leppo $10,000 in cash proceeds from illegal gambling.
Similarly, Sanders Segal admitted that on April 23, 2015, co-defendant Stanley Samuel Penn provided him with $20,000 in cash proceeds that Penn had been holding for the defendant, which Sanders Segal then delivered to co-defendant Petter Magnus Karlsson while at the Lucky Lady Casino and Card Room. Sanders Segal received 10% of any profits earned by the illegal sports bets placed through his enterprise, as well as additional financial benefits.
In his plea agreement, Sydney Bruce Segal admitted his role as bookkeeper for Segal’s Lucky Lady Sports Book, and specifically that he maintained records of winning and losing bettors and the amount of money that supported the enterprise’s activities held by him and other co-conspirators. Sydney Segal also admitted that cash from the Lucky Lady Casino and Card Room’s lawful gambling operations was held alongside proceeds of unlawful sports betting coordinated by Segal’s Lucky Lady Sports Book, including in a “player’s bank” provided by the card room.
As part of his plea, Sanders Segal agreed to forfeit $222,834, and Sydney Bruce Segal agreed to forfeit $10,000, each figure representing direct proceeds from their respective participation in the offense.
Twelve defendants have thus far pleaded guilty to federal charges as a result of the investigation targeting Segal’s Lucky Lady Sports Book: Sanders Bruce Segal, Petter Magnus Karlsson, Pablo Ballestero Frech, Sydney Bruce Segal, Joseph Edward Spatafore, Minh Triet Dinh Nguyen, James Heng Tear, Ken Pheng Keo, Jason D. Taylor, Jeffrey Alan Burke, Ryan Richard Buchardt and Robert Jay Zaben.
Sentencing for both Sanders Segal and Sydney Segal is scheduled for December 4, 2017 at 9 a.m. before U.S. District Judge Roger T. Benitez.
The two remaining defendants, Stanley Samuel Penn and David Greg Leppo, are charged with racketeering conspiracy and operating an illegal gambling business. Their cases are set for a motion hearing on August 31, 2017, and a jury trial on October 3, 2017, before Judge Benitez. The charges against these two defendants are merely accusations; they are considered innocent unless and until proven guilty.
DEFENDANTS Case Number: 16CR1695-BEN
Sanders Bruce Segal Age 66 San Diego
Sydney Bruce Segal Age 34 San Diego
SUMMARY OF CHARGES
Count 1: Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of Title 18, United States Code, Sections 1962(c) & (d)
Maximum penalties: 20 years in prison, 3 years supervised release, a $250,000 fine, forfeiture
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service – Criminal Investigation
Eighth Baltimore City Police Officer Arrested for Abusing Power in Federal Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was arrested today for a racketeering conspiracy and racketeering offenses, including robbery and extortion. The indictment was returned on August 24, 2017 and unsealed today.
The indictment was announced by Acting U.S. Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
The racketeering indictment alleges that Allers stole money from victims, some of whom had not committed crimes, swore out false affidavits and submitted false official incident reports. Sergeant Allers joined the Baltimore Police Department on July 22, 1996. He became the officer-in-charge of the Gun Trace Task Force (GTTF), a specialized unit created to investigate firearms crimes, on or about July 25, 2013.
The racketeering conspiracy alleges robbery and extortion violations committed by Allers in 2014, 2015 and 2016 when he was the officer-in-charge of the GTTF. Allers was reassigned out of the GTTF on June 14, 2016.
In some cases, there was no evidence of criminal conduct by the victims; Allers stole money that had been earned lawfully. The amounts stolen ranged from $700 to $66,000.
For example, on or about April 3, 2015, Allers and coconspirators executed a search warrant at a residence in Baltimore City and discovered approximately $6,000 in the home. This money was a combination of money that the homeowners had made buying and selling used cars and a tax refund the wife had received. Allers and his coconspirators took approximately $5,700 of the $6,000, and then filed a false incident report stating that only $233 had been seized.
In another incident, on or about March 2, 2016, Allers and his co-conspirators executed a search warrant at a residence in Baltimore City. The resident of the home had $200 in her purse, which her daughter had received the previous day during her birthday party, $900 to pay her rent for that month, $300 to pay down the amount of money she owed Baltimore Gas & Electric for utilities and $8,000 which was the proceeds of drug sales. Allers approved the false report that stated that only $1,624 had been seized from home, when in fact, he had stolen more than $7,000.
In another incident, on or about April 28, 2016, Allers and coconspirators robbed a residence after arresting an individual who resided at the residence. Allers and his coconspirators robbed the occupants of the residence of over $10,000. Allers approved a false incident report which failed to report that any money had been taken from the residence, when in fact he and his coconspirators stole more than $10,000. Following this robbery, one of the residents was shot and killed because he could not repay a drug-related debt.
According to the indictment, Allers allegedly prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that the officers had stolen money from individuals. In addition, the indictment alleges that Allers obstructed law enforcement by alerting other members of the GTTF about potential investigations of their criminal conduct.
Allers has been charged with nine counts of Robbery and Extortion and the indictment alleges that he stole over $90,000.00.
Allers faces a maximum sentence of 20 years in prison for the conspiracy, the robberies and for racketeering. Allers is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:00 p.m. in Courtroom 7D.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Acting U.S. Attorney Schenning also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Eight Indicted in Multi-Million Dollar Drug Distribution and Money Laundering ConspiracyRead the Press Release
Assistant U.S. Attorney Jarad E. Hodes (619) 546-7432
SAN DIEGO – A federal grand jury returned an indictment today charging eight defendants from Southern California and the Mexican state of Sinaloa with participation in conspiracies to distribute multiple controlled substances throughout the United States and to launder millions of dollars in cash proceeds from those drug sales.
Five of those defendants – Javier Felix-Bayardo, Rigoberto Munoz-Banuelos, Manuel Felix-Gutierrez, Hector Sandoval-Toloza, and Camilo Ayon-Mondragon – were charged in a conspiracy to distribute large quantities of cocaine, methamphetamine, and marijuana. Felix-Bayardo and Munoz-Banuelos, along with Gabriela Nunez, Mario Noriega-Osuna, and Margarito Rodriguez-Ochoa, were charged in a conspiracy to launder over $5 million in proceeds through the operation of dozens of bank accounts. Nunez was also charged with using $20,000 in drug proceeds for a down payment on a 2015 Dodge Durango. Munoz-Banuelos was also charged with bulk cash smuggling in connection with his attempt to transport $101,083 in cash to Mexico in a 2011 Ford F-150 truck.
According to an affidavit filed in support of a criminal complaint in the case, Felix-Bayardo was the leader of this criminal network, whose members would distribute multiple drugs throughout the United States and then receive cash deposits into bank accounts opened in their own names and under aliases. The affidavit lists over 20 fraudulent accounts at Bank of America and Wells Fargo Bank opened using falsified Mexican identification documents.
Agents from the Drug Enforcement Administration, Internal Revenue Service and Homeland Security Investigations discovered that some of the same false identification documents had been used to rent two storage units in National City, California. On August 9, 2017, agents executed a search warrant at those storage units and seized approximately 26.5 kilograms of cocaine, 938 grams of methamphetamine, and 486 kilograms of marijuana, along with five firearms including an AR-15 style rifle modified to function as a machine gun capable of fully automatic fire.
As drugs like these flowed throughout the United States, thousands of dollars flowed from Felix-Bayardo’s accounts into the bank account of his wife, Nunez, who then paid for the couple’s lifestyle expenses, including a $1,260 monthly lease payment on a 2016 Mercedes-Benz GLE 450 and a $1,002 monthly loan payment on the 2015 Dodge Durango.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Arraignment on the indictment is scheduled for September 14, 2017 at 9:30 a.m. before U.S. Magistrate Judge Nita L. Stormes.
*The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Javier Felix-Bayardo Age: 33 Bonita, California
Gabriela Favela Nunez Age: 35 Bonita, California
Rigoberto Munoz-Banuelos Age: 31 West Covina, California
Mario Noriega-Osuna Age: 35 San Diego, California
Margarito Rodriguez-Ochoa Age: 36 National City, California
Manuel Felix-Gutierrez Age: 63 Sinaloa, Mexico
Hector Sandoval-Toloza Age: 42 Sinaloa, Mexico
Camilo Ayon-Mondragon Age: 30 Sinaloa, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine, Methamphetamine, and Marijuana – Title 21, U.S.C., Section 846
Maximum penalty: Life in prison and $10,000,000 fine
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(h)
Maximum penalty: 20 years in prison and fine equal to double the value of assets laundered
Engaging in Monetary Transaction in Property Derived From Specified Unlawful Activity – Title 18, U.S.C., Section 1957(a)
Maximum penalty: 10 years in prison and $250,000 fine
Bulk Cash Smuggling – Title 31, U.S.C., Section 5332
Maximum penalty: 5 years in prison and $250,000 fine
AGENCIES
Drug Enforcement Administration
IRS Criminal Investigation
Homeland Security Investigations
United States Border Patrol
Eastern Iowa Businessman Sentenced to Prison for Failing to Pay Employment Taxes and Violating Clean Water ActRead the Press Release
An Eastern Iowa businessman who failed to pay over employment taxes and violated the Clean Water Act by causing ethanol to be discharged into a tributary of the Maquoketa River, was sentenced today in federal court in Cedar Rapids, Iowa to 15 months in federal prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sean R. Berry of the Northern District of Iowa.
According to documents filed with the court, Randy Less was the majority owner, general partner, and general manager of Permeate Refining Inc., an ethanol production business in Hopkinton. Less had the responsibility to collect, truthfully account for, and pay over to the Internal Revenue Service (IRS) federal employment, social security, and Medicare taxes withheld from his employees’ wages. At the sentencing hearing, the district court found Less was responsible for $654,921 in tax loss to the government because he did not account for and pay over employment taxes for Permeate during 2009 through 2012. Less also knowingly discharged or caused to be discharged ethanol, a pollutant, from a point source into a water of the United States without a permit to do so.
“Those who violate their legal obligation to pay over employee withholdings are stealing from the U.S. Treasury and taking advantage of law-abiding businesses,” said Acting Deputy Assistant Attorney General Goldberg. “Employment tax enforcement will continue to be a top priority for the Tax Division.”
“Mr. Less’s failure to pay over employment taxes for years was an attempt to dodge his obligations to his employees and to the United States. Our system and our citizens depend upon employers like Mr. Less to be honest and pay what they owe in employment taxes,” said Acting U.S. Attorney Berry. “Additionally, his pollution of an Iowa waterway is a serious matter and this prosecution demonstrates our commitment to protecting our state’s environment.”
“Illegal discharges of unpermitted wastewater into rivers and streams threaten public health, wildlife and water quality,” said Assistant Special Agent in Charge Justin Oesterreich of EPA’s criminal enforcement program in Iowa. “Enforcing the laws that protect our waters from pollution is an important way EPA safeguards the health of communities nationwide and ensures a level playing field for businesses that follow the rules.”
“There are often multiple victims associated with employment tax fraud to include the government and the employees,” said Special Agent in Charge Karl Stiften of IRS Criminal Investigation. “Employers have a responsibility to withhold the proper amount of taxes and pay those taxes over to the IRS.”
In addition to the term of prison imposed, U.S. District Court Judge Leonard T. Strand ordered Less to serve two years of supervised release, fined Less $10,000 and ordered him to pay $8,673.30 in costs of prosecution.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Berry commended special agents of IRS Criminal Investigation, the FBI, the U.S. Postal Inspection Service, and the U.S. Environmental Protection Agency, who investigated the case, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Eastern Iowa Businessman Sentenced to Prison for Failing to Pay Employment Taxes and Violating Clean Water ActRead the Press Release
An Eastern Iowa businessman who failed to pay over employment taxes and violated the Clean Water Act by causing ethanol to be discharged into a tributary of the Maquoketa River, was sentenced today in federal court in Cedar Rapids to 15 months in federal prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sean R. Berry of the Northern District of Iowa.
Randy Less, from Delaware County, Iowa, received the prison term after a June 14, 2016 guilty plea to one count of willfully failing to account for and pay over employment taxes and one count of a Clean Water Act violation. At his guilty plea hearing, Less admitted he was the majority owner, a general partner, and the general manager of Permeate Refining, Inc., in Hopkinton, Iowa. In those roles, Less had the responsibility to collect, truthfully account for, and pay over to the Internal Revenue Service (IRS) federal employment, Social Security, and Medicare taxes withheld from his employees’ wages. At the sentencing hearing, the district court found Less was responsible for $654,921 in tax loss to the government because he did not account for and pay over employment taxes for Permeate during 2009 through 2012. Less also admitted that, in July 2013, he knowingly discharged or caused to be discharged ethanol into a water of the United States without a permit to do so.
“Mr. Less’s failure to pay over employment taxes for years was an attempt to dodge his obligations to his employees and to the United States. Our system and our citizens depend upon employers like Mr. Less to be honest and pay what they owe in employment taxes,” said Acting U.S. Attorney Berry. “Additionally, his pollution of an Iowa waterway is a serious matter and this prosecution demonstrates our commitment to protecting our state’s environment.”
“Those who violate their legal obligation to pay over employee withholdings are stealing from the U.S. Treasury and taking advantage of law-abiding businesses,” said Acting Deputy Assistant Attorney General Goldberg. “Employment tax enforcement will continue to be a top priority for the Tax Division.”
“There are often multiple victims associated with employment tax fraud to include the government and the employees,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Employers have a responsibility to withhold the proper amount of taxes and pay those taxes over to the IRS.”
“Illegal discharges of unpermitted wastewater into rivers and streams threaten public health, wildlife and water quality,” said Justin Oesterreich, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Iowa. “Enforcing the laws that protect our waters from pollution is an important way EPA safeguards the health of communities nationwide and ensures a level playing field for businesses that follow the rules.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Berry commended special agents of IRS Criminal Investigation, the FBI, the U.S. Postal Inspection Service, and the U.S. Environmental Protection Agency, who investigated the case, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
In addition to the term of prison imposed, Chief U.S. District Court Judge Leonard T. Strand ordered Less to serve two years of supervised release, fined Less $10,000, imposed a $200 special assessment, and ordered Less to pay $8,673.30 in costs of prosecution. There is no parole in the federal system. Less was released on the bond previously set and is to surrender to the Bureau of Prisons in the near future.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2002-LTS. Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Dominican National Pleads Guilty to Cocaine ChargeRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to his role in a drug trafficking conspiracy.
Juan Manuel Tejeda-Serrano, 30, a/k/a Jose R. Narvaez-Arroyo, pleaded guilty today to one count of conspiracy to distribute and possess with intent to distribute controlled substances, including cocaine, before U.S. District Court Judge Indira Talwani. Tejeda-Serrano previously pleaded guilty to a separate federal charge of illegally re-entering the country after having been deported. Sentencing for today’s plea will occur after Tejeda-Serrano is sentenced on Nov. 16, 2017, for his immigration offense.
In February 2017, Tejeda-Serrano and 12 others were charged in an indictment with conspiring to distribute heroin, fentanyl and cocaine. The charge stemmed from a six-month wiretap investigation into the drug activities of Jose Antonio Lugo-Guerrero, who was allegedly operating a trafficking organization first in New Bedford, and later in Boston. On Jan. 3, 2017, Tejeda-Serrano arranged for Lugo-Guerrero to obtain a kilogram of cocaine. And on Jan. 5, 2017, Lugo-Guerrero ordered another two kilograms of cocaine from Tejeda-Serrano, which he attempted to steal, but was unsuccessful.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Tejeda-Serrano is also subject to deportation after serving any sentence that is imposed. 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 Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Theodore Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Doctor, Wife Plead Guilty to Running Pill MillRead the Press Release
DAYTON – David Kirkwood, 61, and Beverly Kirkwood, 50, of Dayton, pleaded guilty in U.S. District Court to health care fraud. David Kirkwood also pleaded guilty to one count of unlawful drug trafficking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG) Chicago Region and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the pleas entered into before U.S. District Judge Water H. Rice.
According to the facts outlined in the plea agreements, David Kirkwood owned and operated Kirkwood Family Practice in Dayton beginning in 1986.
David Kirkwood distributed nearly 4,000 units of Oxycodone outside the scope of medical practice and not for a legitimate medical purpose. All of these units were paid for by Medicare or Medicaid.
The doctor often used the same billing code for his customers regardless of the service performed, and would accept health care insurance payments for examinations that were not medically appropriate or sufficient for the billing codes submitted. Those bills were submitted on behalf of the practice and with the assistance of Beverly Kirkwood.
According to the indictment, David Kirkwood saw up to 100 patients per day, charging $100 per office visit. The government has sought to seize approximately $2.5 million in proceeds from the conspiracy.
“When a doctor distributes Oxycodone without a legitimate medical purpose and outside the scope of medical practice, that’s not just bad practice. It’s unlawful drug trafficking,” U.S. Attorney Glassman said. “In pleading guilty, David Kirkwood admitted that he was distributing opioids and other controlled substances as a drug dealer, not as a doctor.”
“The investigation found that this doctor took advantage of those suffering from addiction in the Dayton area for personal gain,” said Attorney General DeWine. “The pills never should have been prescribed because they served no legitimate medical purpose, and I applaud the work of state, federal, and local authorities to hold him accountable for his actions.”
As part of David Kirkwood’s plea, he has agreed to pay restitution in the amount of nearly $160,000, which represents the loss to Medicare and Medicaid.
Both David and Beverly are scheduled for sentencing before Judge Rice on December 6.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Medicaid Fraud Control Unit, HHS-OIG and DEA, as well as Special Assistant United States Attorney Maritsa Flaherty and Assistant United States Attorney Timothy Oakley.
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Department of Justice Funds Law Enforcement Training to Combat Elder Financial ExploitationRead the Press Release
Nationally representative studies conclude that nearly 10 percent of older Americans have experienced some form of financial exploitation or fraud in the past year, with some experts asserting that financial exploitation is the most common form of elder abuse. With 10,000 Americans turning 65 each day, the population of Americans who likely will be exposed to elder fraud and abuse is growing significantly.
The financial loss to older Americans is estimated in the billions of dollars, without accounting for costs to family members and society. Many older victims of fraud or financial exploitation also experience a diminished quality of life and increased mortality.
The Department of Justice is making assertive efforts to interrupt the scourge of financial exploitation and fraud against older Americans. As part of these efforts, the Department is funding the National White Collar Crime Center (https://www.nw3c.org/) to enhance the ability of state and local law enforcement to respond effectively to complex elder fraud cases.
In announcing those efforts, Attorney General Jeff Sessions said:
“The Department of Justice is committed to protecting all Americans from fraud and exploitation. Few things are more despicable than defrauding vulnerable persons. We have to do a better job of addressing this problem. This training will equip our partners in state and local law enforcement to ensure that our seniors receive justice and the criminals who defraud them receive consequences. I applaud the communities chosen for this training and look forward to seeing their results.”
Through carefully crafted programs, the National White Collar Crime Center will provide training in eight selected communities, with up to 100 law enforcement officers per community, on Financial Crimes against Seniors. This training, developed by the National White Collar Crime Center, will reach up to 800 law enforcement officers, who in turn will share what they have learned with their fellow officers.
The eight communities selected for this highly sought after training are:
- Wilmington, Delaware (Delaware Department of Justice)
- Minneapolis/St. Paul, Minnesota (Minnesota Chiefs Association & Minnesota Sheriff’s Association)
- Denmark, Tennessee (Madison County Sheriff’s Office)
- Topeka, Kansas (State of Kansas Office of Attorney General)
- Hidalgo County, Texas (Hidalgo County Sheriff’s Office)
- Columbia, South Carolina (South Carolina Law Enforcement Division (SLED))
- Ada, Oklahoma (Council of Law Enforcement Education and Training (CLEET))
- King County, Washington (King County Prosecuting Attorney’s Office)
In addition, the Department of Justice, through its Elder Justice Initiative, is working on multiple other fronts to protect older Americans from financial exploitation and fraud, as well as other forms of elder abuse.
The Department continues to prosecute aggressively mass mailing fraud schemes, such as lottery and sweepstakes scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents (https://www.justice.gov/elderjustice/task-forces).
The Department also actively supports state and local efforts to prevent and combat elder abuse by:
- Helping older victims and their families by connecting them to available resources, assistance, and information on its Elder Justice Website (https://www.justice.gov/elderjustice/victims-families-caregivers);
- Advancing understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project (www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse);
- Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings (https://www.justice.gov/elderjustice/outreach); and
- Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians.
Check the Law Enforcement Webpage (https://www.justice.gov/elderjustice/law-enforcement-1) periodically for these and other materials as they become available. More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.
Department of Justice Funds Law Enforcement Training to Combat Elder Financial ExploitationRead the Press Release
WASHINGTON - Nationally representative studies conclude that nearly 10 percent of older Americans have experienced some form of financial exploitation or fraud in the past year, with some experts asserting that financial exploitation is the most common form of elder abuse. With 10,000 Americans turning 65 each day, the population of Americans who likely will be exposed to elder fraud and abuse is growing significantly.
The financial loss to older Americans is estimated in the billions of dollars, without accounting for costs to family members and society. Many older victims of fraud or financial exploitation also experience a diminished quality of life and increased mortality.
The Department of Justice is making assertive efforts to interrupt the scourge of financial exploitation and fraud against older Americans. As part of these efforts, the Department is funding the National White Collar Crime Center (https://www.nw3c.org/) to enhance the ability of state and local law enforcement to respond effectively to complex elder fraud cases.
In announcing those efforts, Attorney General Jeff Sessions said:
“The Department of Justice is committed to protecting all Americans from fraud and exploitation. Few things are more despicable than defrauding vulnerable persons. We have to do a better job of addressing this problem. This training will equip our partners in state and local law enforcement to ensure that our seniors receive justice and the criminals who defraud them receive consequences. I applaud the communities chosen for this training and look forward to seeing their results.”
Through carefully crafted programs, the National White Collar Crime Center will provide training in eight selected communities, with up to 100 law enforcement officers per community, on Financial Crimes against Seniors. This training, developed by the National White Collar Crime Center, will reach up to 800 law enforcement officers, who in turn will share what they have learned with their fellow officers.
The eight communities selected for this highly sought after training are:
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Wilmington, Delaware (Delaware Department of Justice)
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Minneapolis/St. Paul, Minnesota (Minnesota Chiefs Association & Minnesota Sheriff’s Association)
- Denmark, Tennessee (Madison County Sheriff’s Office)
- Topeka, Kansas (State of Kansas Office of Attorney General)
- Hidalgo County, Texas (Hidalgo County Sheriff’s Office)
- Columbia, South Carolina (South Carolina Law Enforcement Division (SLED))
- Ada, Oklahoma (Council of Law Enforcement Education and Training (CLEET))
- King County, Washington (King County Prosecuting Attorney’s Office)
In addition, the Department of Justice, through its Elder Justice Initiative, is working on multiple other fronts to protect older Americans from financial exploitation and fraud, as well as other forms of elder abuse.
The Department continues to prosecute aggressively mass mailing fraud schemes, such as lottery and sweepstakes scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents (https://www.justice.gov/elderjustice/task-forces).
The Department also actively supports state and local efforts to prevent and combat elder abuse by:
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Helping older victims and their families by connecting them to available resources, assistance, and information on its Elder Justice Website (https://www.justice.gov/elderjustice/victims-families-caregivers);
-
Advancing understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project (www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse);
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Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings (https://www.justice.gov/elderjustice/outreach); and
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Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians.
Check the Law Enforcement Webpage (https://www.justice.gov/elderjustice/law-enforcement-1) periodically for these and other materials as they become available. More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.
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Defendants Plead Guilty to Upstate Counterfeiting ConspiracyRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated that Crystal Hudson, age 36, of Honea Path, South Carolina, Travis Attaway, age 26, of Belton, South Carolina, and Evan Tatham, age 26, of Anderson, South Carolina, entered guilty pleas yesterday in federal court in Greenville to Conspiracy to Pass Counterfeit Federal Reserve Notes, in violation of Title 18 U.S.C. § 371. United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose the sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Crystal Hudson manufactured and trained others to manufacture counterfeit federal reserve notes in the Upstate of South Carolina. Evan Tatham transported counterfeit notes and manufacturing material for a co-conspirator and passed counterfeit notes in exchange for drugs. Travis Attaway received counterfeit from multiple co-conspirators and passed it at locations including the Stop-A-Minute and Bojangles in Belton, SC.
Ms. Drake stated that the maximum penalty Hudson, Tatham, and Attaway could receive is 5 years imprisonment and a fine of $250,000 dollars. The case was investigated by the United States Secret Service, Anderson County Sheriff’s Office, Anderson Police Department, Belton County Police Department, Greenville County Sheriff’s Office, Easley Police Department, and the South Carolina Department of Probation, Parole, and Pardon Services. Assistant United States Attorneys Jamie Lea Schoen of the Greenville office prosecuted the case.
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Davenport Man Sentenced to 84 Months in Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On August 30, 2017, Romance Desuave Armstrong, 29, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 84 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Armstrong will serve three years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund.
On April 20, 2017, Armstrong pleaded guilty to the offense and admitted that on October 16, 2016, he possessed a Ruger P95 9mm semi-automatic handgun while inside his vehicle in his Davenport driveway. Armstrong was prohibited from possessing a firearm due to multiple felony convictions from Scott County, Iowa. The charge resulted from an investigation initiated when Davenport Police responded to a call of Armstrong suffering a gunshot wound at his residence and to a call of a walk-in patient suffering a gunshot wound at Genesis Medical Center.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Davenport Man Sentenced to 70 Months in Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA – On August 30, 2017, Eugene Williams, Jr., 22, of Davenport, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 70 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Williams will serve three years of supervised release following his imprisonment. The firearm involved in the offense was forfeited.
In July and August of 2016, Davenport police officers received information that Williams, a felon, was in possession of guns and was selling drugs. On August 30, 2016, officers obtained a search warrant for his apartment and vehicle. Officers contacted Williams at the state probation office, searched the vehicle Williams was driving, and found a 9 mm Hi-Point gun along with a box of 9 mm ammunition, and small amounts of heroin and marijuana.
After his arrest, Williams threatened to shoot the officers after serving his time.
The Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Davenport Man Sentenced to 36 Months in Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On August 29, 2017, Leroy Lynell Grandberry, 30, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 36 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Grandberry was ordered to serve three years of supervised release following his imprisonment and to pay $100 to the Crime Victims’ Fund.
On April 24, 2017, Grandberry pleaded guilty to the offense and admitted on August 27, 2016, he possessed a Bersa Thunder .380 caliber semi-automatic handgun while a passenger in a vehicle in Davenport. Grandberry was prohibited from possessing a firearm due to a 2005 felony conviction from Scott County, Iowa.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Davenport Man Sentenced to 120 Months in Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA – On August 30, 2017, Paris Hollingshed, 37, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 120 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Hollingshed will serve three years of supervised release following his imprisonment. Hollingshed was found guilty of this charge after a three-day jury trial on March 3, 2017.
In August of 2015, officers received information that Hollingshed, a felon, was in possession of guns and selling drugs. Officers executed a search warrant at Hollingshed’s residence and found a loaded Taurus 38 caliber handgun, along with evidence of drug trafficking, on August 20, 2015.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Cleveland man indicted for stealing $77,000 in federal grants designed to help Native AmericansRead the Press Release
A Cleveland man was indicted on charges that he stole more than $77,000 in federal grants designed to help Native Americans, said U.S. Attorney Justin E. Herdman and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General.
A three-count indictment charges Robert Roche, 70, with one count of conspiracy to commit theft concerning programs receiving federal funds and two counts of theft from programs receiving federal funds.
“Mr. Roche took tens of thousands of dollars earmarked for Native American children and families and put the money in his own pockets,” Herdman said.
“Federal funds provided through the Circles of Care grant administered by the Substance Abuse & Mental Health Administration are precious and invaluable to the communities and individuals they serve,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The embezzlement, stealing, or intentional misappropriation of these funds is inexcusable and will not be tolerated. The OIG will continue to identify, investigate and seek the prosecution of those individuals who improperly enrich themselves with vital taxpayer dollars.”
Roche served as executive director of the American Indian Education Center (AIEC), a Parma-based nonprofit established in 1995 to support Native American causes in Northeast Ohio, according to the information.
Craig McGuire operated McGuire & Associates LLC, a company that wrote grant applications and provided evaluation services. Roche entered into an agreement with McGuire & Associates in April 2011 to draft grant proposals on behalf of the AIEC. Later that year, McGuire submitted an application on behalf of the AIEC to receive a Circle of Care grant, offered through the Substance Abuse and Mental Health Services Administration (SAMHSA). The grant was designed to provide Native American communities with the tools and resources to design programs to support mental health and wellness for children and families, according to the indictment.
The AIEC’s application contained numerous false statements including: misrepresenting the date the AIEC was established; falsely claiming the AIEC had a wellness department and a “Positive Paths” afterschool program serving 500 children when no such department or program existed; fraudulently listing people the AIEC allegedly employed and mischaracterizing the description of the AIEC’s building and alleged physical amenities, according to the indictment.
SAMHSA awarded the AIEC a Circle of Care grant on Sept. 1, 2012 of approximately $302,340 for FY 2012. On June 26, 2012, SAMHSA awarded the second year of a Circle of Care grant in the amount of $308,040 for FY 2013, according to the indictment.
The AIEC received approximately $482,766 from SAMHSA from 2011 through 2013. The AIEC did not receive full funding because SAMHSA placed it in “high risk” status, according to the indictment.
Roche paid himself through AIEC on several occasions as a project coordinator for the Circle of Care project. Roche was not identified as the project coordinator on the grant application and such payments were precluded by regulation, according to the indictment.
Roche and McGuire embezzled at least $183,703 from the SAMHSA grant. Roche converted approximately $77,097 of that money for his own personal use, according to the indictment.
McGuire pleaded guilty earlier this year to crimes related to his role in the conspiracy and is awaiting sentencing.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorneys Robert J. Patton following an investigation by the Department of Health and Human Services – Office of Inspector General.
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.
Clarksburg woman sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Danna J. Hern, 31, of Clarksburg, West Virginia, was sentenced today to 51 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Hern pled guilty to one count of “Conspiracy to Possess With the Intent to Deliver Heroin” in September 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Christopher Fox Arrested for Various Internet Crimes Against ChildrenRead the Press Release
HONOLULU – Christopher Ernest Fox, age 20, was arrested and had his Initial Appearance today on a Criminal Complaint filed in the United States District Court for the District of Hawaii. The Complaint charges him with five violations of federal law, including the transfer of obscene material to a minor under the age of 16, production of child pornography, cyberstalking, and distribution and possession of child pornography. The crime of production of child pornography carries a mandatory minimum of 15 years in prison.
According to Acting United States Attorney Elliot Enoki, the Complaint states that between August and November of 2016, Fox corresponded with a minor female in the United Kingdom using social media applications including Instagram and Snapchat. During the time the two were in contact, the girl turned thirteen years old and confirmed her age to Fox. Fox stated that he did not mind the age difference, and told her that he wanted to marry her when she turned 18 years old. During these discussions, Fox solicited information from the minor about her life, including the names of her friends.
According to the Complaint, after being in contact for several weeks, Fox sent sexually explicit photos and videos of himself to the minor female, and encouraged her to send sexually explicit photos of herself in return.
According to the Complaint, once in possession of these photos of the minor female, Fox threatened to post them online or send them to her friends unless she sent him more photos of herself naked. Fox then created a social media account using the minor’s name, and contacted her friends via the social media account. He then distributed the explicit images of the minor to her friends and classmates using the account.
The Honorable Richard L. Puglisi, United States Magistrate Judge, set a detention hearing for Friday, September 1, 2017 at 1:30pm before the Honorable Kenneth J. Mansfield.
The charges in the Complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the United States Department of Homeland Security, Homeland Security Investigations, with assistance from the Wiltshire Police Department in the United Kingdom. It is being prosecuted by Assistant United States Attorney Morgan Early.
Chinese National Sentenced for Fraudulently Obtaining a Student VisaRead the Press Release
BOSTON - A Chinese national pleaded guilty and was sentenced today in federal court in Boston for defrauding the Department of Homeland Security (DHS) in its administration of the Student and Exchange Visitor Program.
Xiaomeng Cheng, 21, pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge Denise J. Casper sentenced Cheng to time-served and ordered Cheng to be immediately removed from the United States to the People’s Republic of China.
In March 2016, Cheng registered to take the Test of English as a Foreign Language (TOEFL) exam, which is an exam required by American universities that participate in DHS’s Student and Exchange Visitor Program. On prior occasions, Cheng had failed to achieve a high enough score on the TOEFL exam to be admitted to one of the participating universities. When Cheng registered to take the exam again in March 2016, she provided her passport and exam registration information to a co-conspirator who used the materials to take the exam for Cheng. The co-conspirator scored high on the exam, and Cheng fraudulently submitted the co-conspirator’s test results as her own and was subsequently admitted into a university in the United States. Once admitted, Cheng was issued DHS’s Form I-20, which made her eligible to receive an F-1 non-immigrant student visa to enter and remain in the United States for the duration of her studies.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. State Department's Diplomatic Security Service, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case
Chicago Man Facing Federal Firearms Charges for Allegedly Dealing Ammunition on City’s South SideRead the Press Release
CHICAGO — A Chicago man is facing federal firearms charges for allegedly dealing ammunition and gun accessories on the city’s South Side.
BRENT TURPIN illegally supplied an extended handgun magazine, a laser sight and two boxes of ammunition to a convicted felon who, unbeknownst to Turpin, was cooperating with the Federal Bureau of Investigation, according to a criminal complaint and affidavit filed in federal court in Chicago. Turpin supplied the materials to the informant earlier this month in Turpin’s residence on the South Side of Chicago, the complaint states.
Turpin, 53, was arrested Tuesday. A detention hearing is scheduled for today at 3:00 p.m., before U.S. Magistrate Judge M. David Weisman in Chicago. The complaint charges Turpin with one count of conspiracy to dispose of a firearm and ammunition to a known felon, and one count of disposing of ammunition to a known felon.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the FBI. The Chicago Police Department participated in the investigation.
In addition to the disposal of the ammunition and materials, the complaint also describes Turpin’s efforts to secure a firearm for the informant at a gun show in Indiana. As the pair traveled together to the show earlier this summer, Turpin allegedly instructed the informant on what to say and do. “If they ask you if you’re from Indiana, say yes,” Turpin told the informant, according to the complaint. “If they say where [are] you from, say like, say South Bend or something, or Indianapolis,” Turpin said, according to the complaint. Turpin and the informant met with a gun dealer at the show, but it did not result in a deal because Turpin declined to present his driver’s license, the complaint states.
Turpin is employed as a teacher at a school on the South Side of Chicago, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge of conspiring to distribute firearms and ammunition is punishable by a maximum sentence of five years in prison, and the charge of distributing ammunition is punishable by a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Ankur Srivastava and Albert Berry.
Charlotte Man Pleads Guilty to Identity TheftRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Stanley Fard Harper, age 32, of Charlotte, pled guilty in federal court in Columbia to Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A. United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will sentence him at a later date.
Harper was an employee of The Lash Group, a health care consulting firm located in Ft. Mill, SC, since 2010. Harper had access to the personal identification information (PII) of Lash’s customer pool. Harper stole this information and used it to open bank and credit card accounts at Founders Federal Credit Union, also located in Ft. Mill.
Harper used Lash client files to set up fraudulent accounts at Founders using his personal cell phone. He would then go to the Founders branch in Ft. Mill, deposit a nominal sum to show activity, then apply for a credit card linked to that account. He would then use a fake North Carolina identification and a fake social security card matching the stolen identity to make cash advances and purchases. He would then deposit additional money into the account to increase the credit limit on his card. He used the fraudulent cards until they were suspended for nonpayment, and then he would get rid of all the documents. He opened thirteen accounts. He received his false identification documents from a website for $60 per set. All of the cash advances and purchases were for personal items.
Harper also opened fraudulent accounts at Charlotte Metro Federal Credit Union, Truliant Federal Credit Union, and Chase Bank USA. The total actual loss to all the financial institutions was $75,571.51.
Ms. Drake stated the statutorily mandated penalty faced by Harper is imprisonment for two years, with a potential fine up to $250,000.
The United States Secret Service investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Charleston felon sentenced to over eight years in federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to eight years and four months in federal prison for a gun crime, announced United States Attorney Carol Casto. Randy Allen Taylor, 34, previously pleaded guilty to a single-count indictment charging him with being a felon in possession of a firearm.
On September 4, 2016, Taylor consented to a search by the Charleston Police Department of a hotel room at the Courtyard Marriott in Charleston. During the search, officers recovered a Kel-Tec, Model PF-9, 9mm pistol and approximately 3.7 ounces of methamphetamine. Following the search of the hotel room, Taylor consented to a search of his 2005 Lincoln Aviator. Inside the vehicle, officers recovered a stolen Cobra, Model CA-380, .380 caliber handgun.
Taylor was prohibited from possessing any firearm under federal law because of a 2011 felony conviction in the United States District Court for the Southern District of West Virginia for possession with intent to distribute oxycodone.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Matt Davis handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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 existing local programs targeting gun crime.
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Central Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that David Lee Cook, age 38, of Central, South Carolina, entered a guilty plea yesterday in federal court in Greenville to Possession with Intent to Distribute 50 Grams or More of a Substance Containing Methamphetamine, in violation of Title 21 U.S.C. § 841. United States District Judge Timothy M. Cain accepted the guilty plea and will impose the sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on May 5, 2017, law enforcement observed someone throw a brown bag from the window of a car. Officers collected the brown bag and located methamphetamine. Officers pulled over the vehicle, in which Cook was the passenger. Cook confessed that he had thrown the bag of drugs out of the window when he saw the officer’s vehicle.
Ms. Drake stated that the maximum penalty Cook could receive is 40 years imprisonment and a fine of $5,000,000 dollars. The case was investigated by agents of Bureau of Alcohol, Tobacco and Firearms, and the Anderson County Sheriff’s Office. Assistant United States Attorneys Jamie Lea Schoen of the Greenville office prosecuted the case.
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Captain with Bristol County Sheriff’s Office Charged with Smuggling Profits to PortugalRead the Press Release
BOSTON – A Captain with the Bristol County Sheriff’s Office was arrested and charged today in connection with helping Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal.
Jamie Melo, 45, of North Dartmouth, Mass., was charged with one count each of bulk cash smuggling, structuring and conspiracy. He was released on a $10,000 unsecured bond following his appearance in federal court in Boston late this afternoon.
In May 2015, federal agents began an undercover operation targeting Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S. In the fall of 2015, undercover agents, posing as potential buyers of Rafael’s business, met with Rafael to negotiate buying his fishing business. Rafael told the agents that he hid the cash proceeds of his illegal fishing sales, in part, by smuggling the money to Portugal. Rafael said that he sometimes took the money himself, but also used the services of others, and referred to knowing several members of the Bristol County Sheriff’s Office, including Melo, whom he described as, “the captain at the prison.”
On Nov. 10, 2015, agents conducting surveillance as Logan Airport saw Melo and Rafael arrive in a white car, marked as belonging to the Bristol County Sheriff’s Office, for a flight to Portugal. Melo completed TSA screening without incident, but Rafael was found in possession of $27,000, for which he completed a financial affidavit. Several other acquaintances of Rafael and Melo were also on the flight and, allegedly coordinated by Melo, helped Rafael smuggle an additional $50,000 in cash to Portugal. It is further alleged that before the flight, Melo distributed envelopes of cash to these acquaintances, each of whom took an envelope on the flight and returned it to Melo or Rafael after landing in Portugal. Two days later, on Nov. 13, 2015, Portuguese bank records indicate that $76,000 in U.S. currency was deposited into a Banif Bank account in Rafael’s name.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of bulk cash smuggling provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of structuring carries a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Investigations, Philadelphia Field Office; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buster Hernandez, aka “Brian Kil,” and “Purge of Maine” charged in nation-wide cyber sextortion and threat caseRead the Press Release
Alleged to have extorted and made death threats to minor victims around the country-Victims are urged to contact law enforcement if threats were made
PRESS RELEASE
Indianapolis –A Bakersfield, California, man was recently charged in the Southern District of Indiana for making cyber threats to young woman in a suburb of Indianapolis. He is also believed to have made similar threats to other teenagers around the country in as many as ten states, including Maine. Buster Hernandez, 26, a/k/a Brian Kil, a/k/a Purge of Maine, was charged with threats to use an explosive device, threats to injure and sexual exploitation of a child.
“Terrorizing young victims through the use of social media and hiding behind the anonymity of the Internet will not be tolerated by this office,” said Minkler. “Those who think they can outwit law enforcement and are above being caught should think again. Mr. Hernandez’s reign of terror is over.”
According to court documents, the Brownsburg Police Department contacted the FBI in December 2015, asking for assistance with a cyber-threat case involving a minor female victim (Victim 1), a resident of Plainfield Indiana. The threats came from a person known only at the time as “Brian Kil” who used Facebook to communicate with Victim 1 to extort sexually explicit pictures from her. This pattern continued for approximately 16 months with Victim 1 sending sexually explicit images of herself under threat by “Brian Kil.” This technique is commonly referred to as “sextortion.”
When Victim 1 refused to provide additional images as demanded, Hernandez is alleged to have made physical threats to Victim 1, stating “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” These threats caused school administrators to close the Plainfield and Danville High Schools. The Shops at Perry Crossing in Plainfield was also closed December 19, 2015, but reopened the following day after law enforcement insured there were no credible threats.
Hernandez is also alleged to have sexually exploited and threatened two other minor victims (Victims 2 and 3). When Victim 2 stopped complying with Hernandez’s demands, he posted sexually explicit images and videos of Victim 2 that she sent to Hernandez against her will. According to the complaint affidavit, Hernandez asked Victim 3 to attend a community forum held in Plainfield, Indiana, and record law enforcement’s statements about the investigation into “Brian Kil.”
In addition, Hernandez is alleged to have “sextorted” a number of victims in at least 10 federal districts.
“This was a unique and complex investigation that highlights the tenacity, perseverance, expertise and dedication of the FBI Indianapolis’ Crimes Against Children Task Force and was a top priority. Innovative techniques were utilized, solutions to roadblocks created and partnerships with key private sector partners were developed,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I stood in front of concerned parents and community members and told them we would find the person who had been victimizing these young girls and, with the tireless work of our agents and partners, we never gave up.”
Hernandez had his initial appearance in the Eastern District of California on Friday, August 4, 2017. He will appeared before a magistrate judge in Indianapolis at 3pm Wednesday, Aug 30, 2017.
This investigation was jointly conducted by the Federal Bureau of Investigation, the Indiana State Police, the Plainfield Police Department and the Brownsburg Police Department.
Indiana State Police Superintendent Doug Carter said, “I have no doubt Buster Hernandez had forgotten all about Plainfield, Indiana and the terror he inflicted; but none of us here forgot.” Carter concluded, “We said we’d keep looking until we found you, and we did.”
According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Hernandez faces a mandatory minimum sentence of 15 years’ imprisonment, and a maximum of 30 years’ imprisonment if convicted on all counts.
A criminal complaint is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
If you believe you have been a victim of sextortion by Buster Hernandez, a/k/a Brian Kil, a/k/a Purge of Maine, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000, Option 2, to make a report.
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Burlington Man Sentenced to Prison for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA – On August 30, 2017, Daniel James Lusk, 26, formerly of Burlington, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 60 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Lusk will serve three years of supervised release and pay a $100 special assessment to the Crime Victims’ Fund.
On October 24, 2016, Lusk was arrested in Burlington in possession of two handguns. Lusk was arrested after burglarizing a private residence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Burlington Police Department, and Des Moines County Sheriff’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Bureau of Prisons Employees Indicted by Federal Grand JuryRead the Press Release
Abingdon, VIRGINIA – A federal grand jury in Abingdon returned two indictments yesterday against four United States Bureau of Prisons correctional officers who were employed at United States Penitentiary at Lee County (“USP-Lee”), Acting United States Attorney Rick A. Mountcastle announced.
The indictments returned against Charles Carter, 47, of Wise, Va., Ryan Sluss, 27, of Coeburn, Va., and William Marshal, 49, of Jonesville, Va., charge them each with one count of making a false statement and using a false writing in a matter within the executive branch of the United States government. The indictment returned against Jerry Shuler, 38, of Big Stone Gap, Va., charges him with ten counts of making a false statement and using a false writing in a matter within the executive branch of the United States government.
The indictment alleges that Sluss, Marshall, Carter, and Shuler, while employed at USP-Lee, falsified forms in the Special Housing Unit stating they, or other officers, had done required checks on inmates when the checks were in fact not conducted.
The investigation of the case was conducted by the Department of Justice Office of the Inspector General and the United States Bureau of Prisons. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Brunswick Gang Leader Sentenced to 25 Years in Federal PrisonRead the Press Release
BRUNSWICK, GA -- Calvin Lewis, 38, from Brunswick, Georgia, was sentenced earlier this week by United States District Judge Lisa Godbey Wood to 25 years in federal prison for his role in a violent gang and drug trafficking organization that operated in Southeast Georgia and elsewhere.
Evidence presented during numerous hearings revealed that Calvin Lewis was the Brunswick-area leader of the Rolling 20’s Bloods gang, whose members endured “beat ins” as part of their initiations. During a lengthy undercover investigation, FBI agents and Glynn County Police Department investigators conducted multiple wiretaps to gather evidence and to dismantle Lewis’ drug organization. Wire intercepts revealed that Lewis encouraged his fellow gang members to gather firearms to protect their drug trafficking organization and to retaliate against threats, both perceived and real. Investigating agents were also able to determine that Lewis and other conspirators sold kilograms of cocaine and crack cocaine from “trap” houses located throughout Brunswick, Georgia.
Lewis was one of 19 conspirators in Brunswick convicted as part of an investigation dubbed by law enforcement as “Operation Bloody Prince.” The operation was investigated through the Organized Crime Drug Enforcement Task Force (OCDETF), which is comprised of local, state and federal law enforcement agents. Melvina Lewis, Calvin Lewis’ wife, was previously sentenced to 165 months in federal prison; their step-son, Jamar Bradley, was sentenced to 215 months in prison. Agencies that participated in the FBI-led investigation included the Coastal Georgia Violent Gang Task Force, the Glynn County Police Department and the United States Marshal’s Service.
Assistant United States Attorneys E. Greg Gilluly, Jr. and Tania D. Groover prosecuted the cases on behalf of the United States. For questions, please contact the U. S. Attorney’s Office at (912) 201-2522.
Boston Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Dane Mitchell, 25, of Boston, Massachusetts, pled guilty today in U.S. District Court to being a felon in possession of firearms.
According to court records, on April 8, 2017, Mitchell and another individual travelled to Gray, Maine, where they rented firearms, purchased ammunition, and fired the weapons at a shooting range. Boston Police Department officers identified Mitchell and the shooting range from videos that were uploaded to Snapchat. Mitchell was prohibited from possessing firearms as the result of his 2016 Massachusetts felony convictions for possessing a firearm without a permit and possessing a firearm with a defaced serial number.
Mitchell faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boston Police Department’s Youth Violence Strike Force.
Allendale Drug Trafficker Convicted by Federal JuryRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Ernest Roberts, a/k/a “Balla Walla,” (age 41) of Allendale, South Carolina, was convicted this morning by a jury in Columbia, South Carolina, after a two-day trial in federal court. Roberts was charged and convicted of possession with intent to distribute and distribution of crack cocaine, in violation of Title 21, United States Code, Section 841.
Audio and video evidence presented at trial established that on February 22, 2016, Roberts traveled to Bert’s Fast Stop and Pawn Store in Fairfax, South Carolina to meet with an informant working with the South Carolina Law Enforcement Division (SLED). After discussing the meet on several recorded phone calls, evidence established that Roberts sold the informant 26.35 grams of “crack” cocaine in exchange for $1300.00 while standing near 10th Street in Fairfax. SLED Agents testified that they observed the transaction and identified Ernest Roberts as the individual who met with the informant to conduct the controlled purchase.
During a pretrial conference held on the case on August 23, 2017, the parties discussed Roberts’ extensive prior record for drug distribution offenses. As a result of his prior convictions for possession with intent to distribute oxycodone and crack cocaine in 2014, possession with intent to distribute marijuana in 2013, and distribution of cocaine in 2006, Roberts faces a statutory sentencing range of up to 30 years in federal prison as a result of his conviction.
This case was investigated by Special Agents with the South Carolina Law Enforcement Division (SLED) and Officers with the Allendale Police Department. The case was prosecuted pursuant to 14th Circuit Solicitor Duffie Stone’s longstanding partnership with the United States Attorney’s Office to target career criminals in Beaufort, Jasper, Hampton, Colleton, and Allendale Counties in federal court. Solicitor Stone noted, “this case is an excellent example of how State and Federal cooperation can target and eliminate the threat of career criminals in South Carolina.” Special Assistant United States Attorney Carra Henderson of the 14th Circuit Solicitor’s Office and Assistant United States Attorney JD Rowell of the US Attorney’s Office in Columbia prosecuted the case.
United States District Judge Mary G. Lewis of Columbia presided over the trial of the case and will impose sentence after a presentence investigation report has been prepared by the United States Probation Office.
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Akron man indicted for trafficking heroin and cocaineRead the Press Release
An Akron man was indicted for trafficking heroin and cocaine, said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio.
A federal grand jury returned a two-count indictment charging Mark E. Jones, 44, with possession of approximately 230 grams of heroin and approximately 374 grams of cocaine.
Jones was arrested on a federal criminal complaint on August 3, 2017. Agents from the DEA and the Summit County Drug Unit served a search warrant at a residence in Akron where they located and seized both cocaine and heroin, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S Attorney Teresa L. Riley following an investigation by the DEA and Summit County Drug Unit.
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.
5 Arrested for Trafficking over 1,300 Pounds of Candles Containing MethamphetamineRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrests of AGUSTIN ZAMORA-VEGA, a/k/a “Julio Cesar,” ORLANDO ALCANTARA, CINDY CARRILLO, SANTOS MINJAREZ, and JOSE LUIS GONZALEZ-SOLIS, all of whom conspired to distribute over 1,300 pounds of wax candles laced with methamphetamine. The defendants were arrested overnight in New Jersey, and were presented today before U.S. Magistrate Judge Kevin Nathaniel Fox.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, the defendants worked to distribute a massive quantities of methamphetamine, concealed in wax candles. As creative as these defendants were, allegedly hiding dangerous drugs in a common household item, law enforcement was on top of this newest scheme.”
DEA Special Agent-in-Charge James J. Hunt said: “DEA has seen drugs smuggled in numerous ways: concealed in puppies, lollipops, furniture, and produce. But secreting a million dollars’ worth of methamphetamine in wax candles of various shapes is shocking. This seizure signifies that drug trafficking organizations are determined to create a stronghold of meth users in the Northeast. Through the good work of SDNY, DEA, HSI and NYPD, this load of methamphetamine was seized before it even hit the streets, thwarting the organization's plans.”
HSI Special Agent-in-Charge Angel M. Melendez said: “These individuals allegedly possessed more than half a ton of wax candles that would be melted down and converted into crystal meth, eventually introducing more of these destructive synthetic drugs onto our streets. Drug traffickers are always thinking of more creative ways to store and traffic their drugs. But the ever evolving way in which investigations are conducted and information is shared among law enforcement is key to identifying and prosecuting these criminals.”
According to the allegations contained in the Complaint[1] charging the five defendants:
In August 2017, law enforcement agents learned that ZAMORA-VEGA was seeking a facility in which he intended to store and convert a large quantity of methamphetamine into crystal form (“crystal meth”). After that, on August 17, 2017, an undercover officer (the “UC”) drove with ZAMORA-VEGA to a warehouse in New Jersey (the “NJ Warehouse”) that the UC offered to ZAMORA-VEGA to use to store and convert methamphetamine to crystal meth. ZAMORA-VEGA indicated that he was interested in using the NJ Warehouse for those purposes.
In the days following August 17, 2017, ZAMORA-VEGA indicated to the UC that he was expecting a large shipment of methamphetamine to arrive in the New York area in the coming days, and that he intended to transport the methamphetamine to the NJ Warehouse where he would convert it to crystal meth.
On August 29, 2017, ZAMORA-VEGA told the UC that the methamphetamine had arrived at a facility on Long Island. CARRILLO texted the UC the address of the Long Island facility so that the UC could meet ZAMORA-VEGA and CARRILLO there. Ultimately, however, the UC agreed to meet ZAMORA-VEGA and CARRILLO at a hotel in New Jersey where ZAMORA-VEGA and CARRILLO had been staying (the “NJ Hotel”).
When the UC arrived at the NJ Hotel, he met with ZAMORA-VEGA, CARRILLO, ALCANTARA, MINJAREZ, and GONZALEZ-SOLIS. While at the NJ Hotel, ZAMORA-VEGA showed the UC that the boxes contained a large quantity of what appeared to be wax candles (the “Meth Candles”). ZAMORA-VEGA indicated that the candles actually contained methamphetamine, which could be melted and converted to crystal meth. Thereafter, all of the defendants travelled from the NJ Hotel to the NJ Warehouse.
Once at the NJ Warehouse, ZAMORA-VEGA, CARRILLO, ALCANTARA, MINJAREZ, GONZALEZ-SOLIS all engaged in a discussion with the UC about the fact that the NJ Warehouse would be used to convert the Meth Candles to crystal meth. The defendants continued to discuss with the UC topics such as how they intended to begin converting the Meth Candles to crystal meth; that they would stay in the NJ Warehouse until the process was completed; that they would need additional equipment; and that they expected it would take them from August 29, 2017, until September 2, 2017, to complete the process of converting the Meth Candles to crystal meth. ALCANTARA stated that two fans, one on each side of the NJ Warehouse, would need to be uncovered before they began converting the Meth Candles to crystal meth. In response, GONZALEZ-SOLIS stated that only one fan needed to be uncovered, since they would only be converting the Meth Candles to crystal meth in that area of the NJ Warehouse.
Thereafter, MINJAREZ indicated that he would purchase the necessary supplies. At that point, CARRILLO provided a credit card to MINJAREZ and told MINJAREZ to charge to the credit card all items purchased to convert the Meth Candles to crystal meth. MINJAREZ left the NJ Warehouse. Shortly thereafter, ZAMORA-VEGA, ALCANTARA, MINJAREZ, GONZALEZ-SOLIS and the UC unloaded the boxes containing the Meth Candles. ZAMORA-VEGA, CARRILLO, ALCANTARA, and GONZALEZ-SOLIS were subsequently placed under arrest. MINJAREZ was arrested later at the NJ Hotel.
Agents with the DEA, HSI, and NYPD recovered from the NJ Warehouse approximately 27 cardboard boxes each containing a large number of candles, with an aggregate weight in excess of 1,300 pounds. A field test of one of the Meth Candles revealed that the Meth Candle contained a detectable amount of methamphetamine.
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AGUSTIN ZAMORA-VEGA, a/k/a “Julio Cesar,” 30, ORLANDO ALCANTARA, 33, CINDY CARRILLO, 27, SANTOS MINJAREZ, 26, and JOSE LUIS GONZALEZ-SOLIS, 28, are each charged with one count of conspiracy to distribute and possess with the intent to distribute 500 grams and more of mixtures and substances containing methamphetamine. This charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised DEA, HSI, and the NYPD for their outstanding work on the investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jonathan Rebold and Danielle Sassoon are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 29 August 2017
Zuni Pueblo Man Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Darold Ray ZunieFeathers, 21, a member and resident of Zuni Pueblo, N.M., was sentenced today in federal court in Santa Fe, N.M., to 30 months in prison followed by three years of supervised release for his involuntary manslaughter conviction.
ZunieFeathers was arrested in April 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, ZunieFeathers killed a Zuni Pueblo man by running over him with a vehicle on July 29, 2015, on the Zuni Indian Reservation in McKinley County, N.M. At the time ZunieFeathers ran over the victim, ZunieFeathers was driving under the influence of alcohol. ZunieFeathers was subsequently indicted on the same charge on May 10, 2016.
On Jan. 11, 2017, ZunieFeathers pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. ZunieFeathers acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Gallup office of the FBI and the Zuni Police Department and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Windham Resident Involved in Drug Ring Sentenced to 15 Months in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE LIZARDO-OLEA, 30, a citizen of the Dominican Republic last residing in Windham, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 15 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and crack.
According to court documents and statements made in court, in October 2015, the DEA, Willimantic Police Department and Connecticut State Police initiated an investigation into a Willimantic-based narcotics trafficking ring after several overdoses in the region. The investigation, which included the use of confidential informants, physical surveillance, controlled purchases of drugs and court authorized wiretaps on five cellular telephones utilized by the co-conspirators, revealed that Jose Miranda, also known as “Omar,” 52, of the Bronx, N.Y., was supplying large quantities of heroin and cocaine to individuals in eastern Connecticut and Rhode Island, including Carlos Alberto Lopez-Zelada, of Willimantic, and Persio Hernandez, of North Windham. In Connecticut, Lopez-Zelada converted a portion of the cocaine he received into crack cocaine. Lopez-Zelada, Hernandez and other co-conspirators then distributed heroin, cocaine and crack cocaine in the Willimantic area.
LIZARDO-OLEA worked with Carlos Lopez-Zelada in supplying cocaine and crack cocaine, connecting Lopez-Zelada to customers, and delivering drugs for Lopez-Zelada.
LIZARDO-OLEA was arrested on July 6, 2016. On December 23, 2016, he pleaded guilty to one count of conspiracy to distribute cocaine and cocaine base (“crack”).
LIZARDO-OLEA faces immigration proceedings when he is released from prison.
Miranda, Lopez-Zelada and Hernandez pleaded guilty to related charges. On June 13, Miranda was sentenced to 74 months of imprisonment. Lopez-Zelada and Hernandez await sentencing.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso, David Nelson and Amy Brown.
Whiting Man Sentenced to Four Months for Social Security FraudRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Daniel Fitzsimmons, 54, of Whiting, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to four months in prison to be followed by three years of supervised release for social security fraud. Fitzsimmons was also ordered to pay about $144,415 in restitution. Fitzsimmons pleaded guilty on February 22, 2017.
According to court records, the defendant began receiving Social Security Disability Insurance (“SSDI”) payments in 2002. SSDI benefits are paid by the Social Security Administration (“SSA”) to people with disabilities. From 2003 to 2013, the defendant and his dependents received about $144,415 in SSDI benefits. In order to obtain those benefits, the defendant was required to certify that he could no longer perform “substantial gainful work.” In numerous forms submitted to the SSA and at an in-person SSA interview, the defendant reported little work activity and very low annual earnings between 2003 and 2013. In fact, an investigation revealed that, contrary to his statements, the defendant was actively and consistently engaged in commercial fishing over that period.
The case was investigated by SSA’s Office of Inspector General and the U.S. Coast Guard.
West Virginia Woman Sentenced to Seven Years in Federal Prison for Obstructing A Federal Kidnapping/Death InvestigationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Belenda Sandy (57, Buckhannon, West Virginia) to seven years and three months in federal prison for obstruction of justice. She pleaded guilty on May 26, 2017.
According to court documents, Sandy obstructed justice and hindered a federal kidnapping/death investigation by making false statements and omitting material information during interviews with investigators. The investigation began on November 27, 2016, after a victim went missing in Ormond Beach, Florida. Investigators eventually determined that the victim had recently relocated to Florida from Indiana to get away from her estranged husband, Jarvis Wayne Madison, who was also in an intimate relationship with Sandy. In the days leading up to the victim’s disappearance, Madison stayed with Sandy at her West Virginia residence, where she provided him with food, money, and new tires for his vehicle. Eventually, Madison left Sandy’s residence and drove to Florida, where he located the victim as she was jogging on Ormond Beach. Phone records reflected that Madison had a 23-minute phone conversation with Sandy, just before the victim disappeared.
On November 28, 2016, an investigator contacted Sandy by telephone and interviewed her to determine Madison’s whereabouts. During this interview, Sandy denied having any recent contact with Madison. This statement was false. Even after the investigator informed Sandy that the victim had likely been abducted by Madison, she continued to claim that she had not seen Madison in a long time. Following the interview, Sandy met with Madison at a 7-11 gas station near her home and told him that law enforcement was looking for him in connection with the victim’s disappearance. Sandy’s false responses to the investigator’s inquiries ultimately delayed Madison’s arrest on federal kidnapping charges, and delayed the recovery of the victim’s body.
After learning from Sandy that law enforcement was looking for him, Madison drove to Tennessee, where he buried the victim’s dead body. He then drove to Kentucky, where law enforcement arrested him on December 2, 2016. On the same date, FBI agents recovered the victim’s body in Tennessee and determined that Madison had shot and killed her sometime after her disappearance on November 27, 2016.
Madison is currently charged in a superseding indictment with kidnapping that resulted in a death, interstate domestic violence, and interstate stalking. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. A trial date for Madison is currently set for the March 2018 trial term.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Volusia County Sheriff’s Office, the U.S. Marshals Service, and the Indiana State Police. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
West Plains Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Christopher Waldorf, 30, of West Plains, was sentenced by U.S. District Judge Brian C. Wimes to four years and three months in federal prison without parole.
On Nov. 14, 2016, Waldorf pleaded guilty to being a felon in possession of a firearm. Waldorf admitted that he possessed a loaded Taurus 9mm firearm on Sept. 3, 2015.
West Plains police officers were dispatched to a residence on Sept. 3, 2015, in response to a call for gunshots fired. When officers arrived, they determined that Waldorf became involved in an argument with another individual and, during that argument, fired the handgun.
The victim of Waldorf’s assault told officers that as he exited his vehicle, Waldorf approached him in an aggressive manner and said that he was going to kill him. Waldorf produced a pistol and fired one shot over the victim’s head. The victim stated that after the first shot, he grabbed Waldorf’s hand and pushed it away from his head. Waldorf responded by striking him along the side of his head with the pistol. The victim told officers that as Waldorf struck the side of his head, the pistol discharged, nearly striking him. After the second shot Waldorf ran inside his residence.
Officers found Waldorf hiding in a bedroom closet in his residence and placed him under arrest. Officers found the loaded firearm in a dresser drawer.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Waldorf has prior felony convictions for the sale of methamphetamine and possession of a controlled substance.
According to court documents, Waldorf has repeatedly possessed firearms and illegal narcotics and has been repeatedly arrested by the West Plains police department. Less than two months prior to Waldorf’s actions in this case, he was arrested for sale of methamphetamine and possession of ammunition. Approximately three months after this incident, law enforcement officers executed a search warrant of Waldorf’s residence and discovered numerous firearms, ammunition and drug paraphernalia containing drug residue.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Plains, Mo., Police Department.
Webster Man Sentenced on Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Brian Donaldson, 50, of Webster, NY, who was convicted of conspiracy to possess with intent to distribute five grams or more of methamphetamine, was sentenced to 51 months in prison by U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendant and his co-defendant Pablo Ulloa. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box, which contained a much larger quantity of methamphetamine.
A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale and pipes.
Pablo Ulloa has also been convicted, and he is scheduled to be sentenced November 1, 2017.
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 and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
Waterville Man Convicted of Firearms ChargesRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Iulian Petre, also known as Julian Petre, 50, of Waterville, was convicted yesterday of illegally receiving and shipping firearms following a jury trial in U.S. District Court. He was found not guilty of smuggling and money laundering charges.
Court records and trial evidence revealed that in 2012 and 2013, Petre purchased and received firearms from out-of-state sellers intending to unlawfully export them. He shipped some of these firearms to Romania. The export of these firearms required authorization from the U.S. Department of State, which the defendant knowingly failed to obtain.
Petre faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the U.S. Department of Commerce’s Bureau of Industry and Security.
Virginia man sentenced for his role in a meth distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Robert Lewis Jones, of Waynesboro, Virginia, was sentenced today to 168 months incarceration for methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jones, age 55, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in March 2017. Jones admitted to conspiring with others to distribute more than 500 grams of methamphetamine in the Northern District of West Virginia and elsewhere. The crime occurred from May 2013 until October 2016.
There was also a forfeiture judgement in the amount of $4,499.00, the amount seized in this case.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Regional Drug and Violent Crime Task Force and the Barbour County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.Vice Lords Leader Sentenced for Gang-Related Shooting in DetroitRead the Press Release
A leader of the Vice Lords street gang was sentenced today to 146 months for his role in various criminal gang-related activities, including the May 7, 2015, shooting of four people with an AK-47 assault rifle.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Acting Special Agent in Charge Thomas L. Chittum of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.
Kenneth Smith, 36, of Detroit, pleaded guilty on Feb. 22, 2016, before U.S. District Judge David M. Lawson of the Eastern District of Michigan, to one count of RICO conspiracy and one count of failure to appear in court.
In connection with his plea, Smith admitted that the Vice Lords is a national gang broken down into various “sets,” “decks,” or “branches,” which includes the Detroit-based Traveling Vice Lords (TVL), and that these sets operate in a hierarchical chain of command, answering to the gang’s leaders in Chicago, Illinois and Detroit, Michigan. Vice Lords members engage in a variety of racketeering crimes in furtherance of the gang’s activities, including shootings of rivals, armed robberies and narcotics trafficking. In addition, gang members impose punishment on members for violations of the gang’s rules, including for attempts to leave or withdraw from the gang, which often result in a physical beating or a “green light” order to kill.
Pursuant to his plea agreement, Smith admitted that he was a leader of the TVL, and that, in May 2015, he directed other members of the TVL to search for two individuals who had attempted to leave the gang in order to harm them. Smith further admitted that on May 7, 2015, members of the TVL traveled in multiple cars to the intended victims’ house, including a car owned by Smith’s girlfriend, where TVL members shot four victims with an AK-47.
As part of his plea, Smith also admitted that, while on pretrial release for a prior indictment in this case, he sent numerous text messages threatening harm to a potential witness and that witness’s children if the witness continued “telling” on the Vice Lords. Smith also admitted that, when the government filed a motion to revoke his pretrial release, he removed the GPS tether he had been ordered to wear as a condition of pretrial release and willfully failed to appear in court.
Smith is the last of nine defendants charged in connection with the May 7, 2015, shooting to be sentenced. Eight other members and leaders of the TVL previously pleaded guilty to charges related to the shooting and received sentences ranging from 36 to 240 months in prison for their respective roles. In addition, a tenth defendant previously pleaded guilty and was sentenced to 48 months in prison for witness tampering stemming from his role in accessing the shooting victims’ medical records to provide identifying information to Vice Lords gang members who wished to prevent the victims from cooperating in the investigation.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.
The ATF, FBI and Detroit Police Department are investigating the case. Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Vice Lords Leader Sentenced for Gang-Related Shooting in DetroitRead the Press Release
A leader of the Vice Lords street gang was sentenced today to 146 months for his role in various criminal gang-related activities, including the May 7, 2015, shooting of four people with an AK-47 assault rifle.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Acting Special Agent in Charge Thomas L. Chittum of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.
Kenneth Smith, 36, of Detroit, pleaded guilty on Feb. 22, 2016, before U.S. District Judge David M. Lawson of the Eastern District of Michigan, to one count of RICO conspiracy and one count of failure to appear in court.
In connection with his plea, Smith admitted that the Vice Lords is a national gang broken down into various “sets,” “decks,” or “branches,” which includes the Detroit-based Traveling Vice Lords (TVL), and that these sets operate in a hierarchical chain of command, answering to the gang’s leaders in Chicago, Illinois and Detroit. Vice Lords members engage in a variety of racketeering crimes in furtherance of the gang’s activities, including shootings of rivals, armed robberies and narcotics trafficking. In addition, gang members impose punishment on members for violations of the gang’s rules, including for attempts to leave or withdraw from the gang, which often result in a physical beating or a “green light” order to kill.
Pursuant to his plea agreement, Smith admitted that he was a leader of the TVL, and that, in May 2015, he directed other members of the TVL to search for two individuals who had attempted to leave the gang in order to harm them. Smith further admitted that on May 7, 2015, members of the TVL traveled in multiple cars to the intended victims’ house, including a car owned by Smith’s girlfriend, where TVL members shot four victims with an AK-47.
As part of his plea, Smith also admitted that, while on pretrial release for a prior indictment in this case, he sent numerous text messages threatening harm to a potential witness and that witness’s children if the witness continued “telling” on the Vice Lords. Smith also admitted that, when the government filed a motion to revoke his pretrial release, he removed the GPS tether he had been ordered to wear as a condition of pretrial release and willfully failed to appear in court.
Smith is the last of nine defendants charged in connection with the May 7, 2015, shooting to be sentenced. Eight other members and leaders of the TVL previously pleaded guilty to charges related to the shooting and received sentences ranging from 36 to 240 months in prison for their respective roles. In addition, a tenth defendant previously pleaded guilty and was sentenced to 48 months in prison for witness tampering stemming from his role in accessing the shooting victims’ medical records to provide identifying information to Vice Lords gang members who wished to prevent the victims from cooperating in the investigation.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang and identified the leaders and key members of the gang, who now have been held accountable.
The ATF, FBI and Detroit Police Department are investigating the case. Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Two Individuals Charged in Synthetic Opioid Drug Conspiracy Following Overdose DeathRead the Press Release
NEWARK, N.J. – A man from New York and a woman from New Jersey were arrested this morning for their roles in a conspiracy to distribute dangerous designer drugs, including a synthetic opioid that is several times more potent than morphine, Acting U.S. Attorney William E. Fitzpatrick announced.
Brian Parker, 34, of Long Island City, New York, and Victoria Koleski, 29, of Farmingdale, New Jersey, are charged by criminal complaint with conspiring to distribute controlled substance analogues, and distributing and possessing with intent to distribute the controlled substance analogues U-47700, A-PHP, and 3-MEO-PCP. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
Controlled substance analogues are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances. Parker, who has two prior convictions for federal narcotics-related crimes, allegedly manufactured and distributed controlled substance analogues and other illegal chemicals through two internet-based companies he controlled. The substances sold by Parker were linked to an overdose death which occurred in May 2016.
On May 22, 2016, law enforcement officers were dispatched to a residence in Madison, Wisconsin, in response to a report of a 37-year-old man who had stopped breathing. The victim was dead by the time officers arrived at his residence. An autopsy later confirmed that the victim’s death was caused by acute intoxication due to the combined effects of a substance called U-47700 and Benzodiazepine Analogue (Etizolam).
U-47700 is a synthetic opioid that is several times more potent than morphine. Law enforcement officers recovered several mail parcels that were addressed to the victim, one or more of which contained full glass vials labeled “U-47700,” as well as multiple invoices indicating the victim had been ordering U-47700 and other substances from a website run by Parker.
After learning of the victim's overdose, law enforcement agents began investigating one of Parker’s websites. The investigation revealed that Parker used other conspirators, including Koleski, to send and receive packages for his narcotics distribution business. Those conspirators received raw materials from China or elsewhere through the mail, repackaged and sent them to Parker, who then manufactured those materials into the chemicals that he sold online. Afterwards, Parker transported the finished products back to his conspirators, who then shipped them to Parker's customers.
For example, from June 30, 2017 through July 5, 2017, Koleski shipped approximately 218 parcels from a post office located in Farmingdale, many of which contained controlled substance analogues that Parker sold online. A court-authorized search and seizure of approximately 75 of those packages revealed that Parker and Koleski were also distributing the controlled substance analogues A-PHP and 3-MEO-PCP, which have chemical structures and hallucinogenic properties similar to the Schedule I controlled substances A-PVP and PCP, respectively.
Each charge in the complaint carries a maximum potential penalty of 20 years in prison and a $1 million fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three sentenced for five million dollar tax fraudRead the Press Release
ATLANTA - Kim A. Earlycutt, Shannon A. King, and Marcia Farmer, have been sentenced for conspiring to submit false tax returns totaling more than $5 million over the course of four years.
“The defendants went to great lengths to steal tax money from the IRS, with the twist in this case that they used stolen identities of foreign nationals to seek phony refunds,” said U. S. Attorney John Horn. “It all comes back to basic theft to enrich themselves at the expense of the taxpayers.”
“Identity theft continues to victimize unknowing individuals as well as the Internal Revenue Service. If you steal someone’s identity and file false tax returns, you will be prosecuted,” said Acting Special Agent in Charge, James E. Dorsey, IRS Criminal Investigation. “These sentencings should serve as a clear message to the public, theft will cost you significant jail time.”
“This is a great example of a joint investigation in which the financial footprints of these defendants were uncovered to gather evidence to bring them to justice. The prison sentences sent a strong message that we will continue to aggressively investigate criminals that engage in fraudulent schemes,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Together we will continue to be vigilant in disrupting criminal organizations who illegally utilize the U.S. Postal Service.”
“The United States Secret Service will continue to collaborate with our law enforcement partners and prosecutors to ensure that nefarious individuals who violate their positions of trust to illegally enrich themselves are put behind bars,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals and their conspirators that stealing from the American people will not go unpunished.”
According to U.S. Attorney Horn, the charges and other information presented in court: The three defendants obtained identity documents of foreign nationals and forged foreign identity documents in connection with their work at T&K Tax Services and More, which Earlycutt partially owned. Using these identity documents, the defendants submitted IRS W-7 forms to get individual taxpayer identification numbers (ITINs). The defendants then created false and fraudulent tax claim forms, specifically Forms 1040, or individual income tax returns, using these ITINs. Included with these Forms 1040 were falsified W-2 forms, which had fraudulent employer information, income, withholding amounts, and deduction amounts.
The defendants filed the fraudulent tax returns with the IRS, by mailing them and by using T&K’s electronic filing number. The tax returns all contained requests for refunds which were not actually due. The defendants enriched themselves by retaining a portion of the tax refunds that had been fraudulently obtained, including in some instances the entire refund. In all, they sought refunds in excess of $7 million and actually received over $5 million in fraudulent refunds. They used these fraudulent funds to pay personal expenses, including paying their personal automobile insurance. One defendant, Kim Earlycutt, used the fraudulent funds for gambling.
Kim A. Earlycutt, 54, of Covington, Georgia, was sentenced to nine years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,222,634. Earlycutt was convicted on these charges on June 15, 2017, after she pleaded guilty.
Shannon A. King, 37, of Lithonia, Georgia, was sentenced to four years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,596,169. King was convicted on these charges on June 15, 2017, after he pleaded guilty.
Marcia Farmer, 51, of Snellville, Georgia, was sentenced to one year, six months in prison to be followed by nine months of home confinement, and three years of supervised release. She was ordered to pay restitution in the amount of $3,370,811. Farmer was convicted on these charges on October 28, 2016, after she pleaded guilty.
All three were sentenced by U.S. District Judge Leigh Martin May.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Charged with Conspiring to Provide Illegal Big Game Hunts in Wrangell-St. Elias National Park and PreserveRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Jeffrey Harris, 44, from Poulsbo, WA, Dale Lackner, 72, from Haines, AK, and Casey Richardson, 47, from Huson, MT, with conspiring to provide illegal hunts for Dall Sheep, creating false records, and making false statements to federal agents in order to conceal the illegality of the hunts. Charges were also filed for illegally baiting game, and using xylitol, a substance toxic to wolves and coyotes, for predator control. All of the hunts occurred at the Ptarmigan Lake Lodge in Wrangell-St. Elias National Park and Preserve.
According to the indictment, Ptarmigan Lake Lodge (PLL) was permitted to operate as a concessionaire to provide sport hunting guide services within Wrangell-St. Elias National Park and Preserve. The indictment alleges that, during the 2014 and 2015 hunting seasons, out-of-state hunters illegally hunted and killed Dall Sheep at PLL without being accompanied by a registered guide. Harris and Richardson, not Alaska residents nor registered guides, are charged with illegally hunting themselves and conducting many of the illegal hunts. Lackner, a registered guide in 2015, conspired with Richardson to conduct an illegal hunt. The indictment further alleges that Harris and Lackner created false State of Alaska hunt records claiming the hunts were conducted with registered guides. Harris later made false statements to law enforcement during the investigation into the illegal activities at PLL.
In addition, the indictment alleges that Harris also engaged in illegal predator control by establishing bait piles. Richardson and Harris then used xylitol, an artificial sweetener in many food products, but deadly to canines and birds, on the bait piles to kill wolves and coyotes; such conduct is prohibited on a national preserve.
The law provides for a maximum sentence of five years in prison, and a $250,000 fine, or both. Under federal sentencing statutes, the actual sentences imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
It is lawful to hunt in a federal preserve if in compliance with federal and state laws.
The U.S. Fish and Wildlife Service, the National Park Service, the State of Alaska Wildlife Troopers, and the Montana Department of Fish, Wildlife and Parks conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Texas Man Facing Federal Armed Robbery, Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Lane Michael Reed, 23, of Killeen, Texas, made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with the armed robbery of a business involved in interstate commerce, carjacking and firearms offenses. During today’s proceedings, a U.S. Magistrate Judge determined that there was probable cause to support the charges against Reed, and ordered Reed detained pending trial based on findings that he poses a risk of flight and a danger to the community.
Acting U.S. Attorney James D. Tierney, 4th Judicial District Attorney Richard Flores, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, New Mexico State Police Chief Peter N. Kassetas and Santa Fe County Sheriff Robert A. Garcia announced the federal charges against Reed, noting that the federal prosecution is being pursued as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The criminal complaint charges Reed with interfering with interstate commerce by robbery, taking a vehicle from another by force and violence, using, brandishing and discharging a firearm during crimes of violence, and being a felon in possession of firearms and ammunition. Reed allegedly committed this rash of crimes on July 25, 2017, in San Miguel County, N.M. At the time, Reed was prohibited from possessing firearms or ammunition because he previously had been convicted on two felony offenses in the state of Texas.
According to the criminal complaint, on the morning of July 25, 2017, Reed allegedly robbed the Pecos River Station in San Jose, N.M., by brandishing a firearm at a clerk and a small child and taking money from the cash register. Shortly thereafter, the storeowner entered the store and Reed allegedly brandished a firearm at the storeowner and robbed the storeowner of the keys to his vehicle and a firearm. Reed allegedly departed the store in the storeowner’s vehicle and soon encountered officers of the New Mexico State Police and Santa Fe County Sheriff’s Office who responded to a “be on the lookout” callout for Reed. While driving on the frontage road to Interstate 25 and southbound on the Interstate and seeking to evade the officers, Reed allegedly discharged a firearm in the direction of the officers, some of whom returned fire.
Officers of the New Mexico State Police and Santa Fe County Sheriff’s Office arrested Reed without incident on Interstate 25 near Mile Post 247, and was charged with state offenses by the 4th Judicial District Attorney’s Office. Reed remained in state custody until he was transferred to federal custody yesterday to face the charges in the federal criminal complaint.
If convicted of the charges in the criminal complaint, Reed faces the following statutory maximum penalties: 20 years of imprisonment on the Hobbs Act robbery charge; 15 years of imprisonment on the carjacking charge; and ten years of imprisonment for being a felon in possession of a firearm. In addition, Reed faces statutory mandatory penalties of seven years of imprisonment for brandishing a firearm during a crime of violence and ten years of imprisonment for discharging a firearm during a crime of violence, which must be served consecutive to any sentence imposed on the other charges. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe office of the FBI, the New Mexico State Police and the Santa Fe County Sheriff’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.