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16 October 2017
Chelsea Bomber Ahmad Khan Rahimi Convicted for Executing September 2016 Bombing in New York CityRead the Press Release
A jury returned a guilty verdict today against Ahmad Khan Rahimi, aka, “Ahmad Rahami,” 29, of Elizabeth, New Jersey, in Manhattan federal court on all eight counts of the Indictment, which charged him with offenses related to his execution and attempted execution of bombings in New York City on Sept. 17, 2016. Rahimi, who faces mandatory sentence of life in prison, is scheduled to be sentenced on Jan. 18, 2018.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Office and Commissioner James P. O’Neill of the NYPD made the announcement. U.S. District Judge Richard M. Berman presided over the two-week trial.
“Ahmad Khan Rahimi constructed bombs with high explosives and shrapnel to inflict maximum damage to innocent victims in multiple locations,” said Acting Assistant Attorney General Boente. “The defendant's bombs caused injuries to numerous people. Thanks to outstanding investigative work, the defendant was identified and arrested before he could do any more harm. This verdict is an important step in holding him accountable for his crimes. Pursuing those who seek to conduct attacks on our homeland will remain the highest priority of the National Security Division. I would like to commend all of the agents, analysts and prosecutors who made this result possible.”
“On September 17, 2016, Ahmad Khan Rahimi attacked our country and our way of life,” said Acting U.S. Attorney Kim. “Inspired by ISIS and al Qaeda, Rahimi planted and detonated bombs on the streets of Chelsea, in the heart of Manhattan, and in New Jersey, hoping to kill and maim as many innocent people as possible. Rahimi’s crimes of hate have been met with swift and resolute justice. Just over a year after his attacks, and following a fair and open trial, Rahimi now stands convicted of his crimes of terror by a unanimous jury of New Yorkers. As a result, he now faces a mandatory sentence of life in prison. Today’s verdict is a victory for New York City, a victory for America in its fight against terror, and a victory for all who believe in the cause of justice.”
“It’s no secret New York City remains a desirable target for those who wish to disrupt our way of life,” said Assistant Director in Charge Sweeney Jr. “Last September, Rahimi set out to harm innocent people who were simply living their lives one Saturday evening. He underestimated the resilience of New Yorkers as well as the resolution of the FBI’s Joint Terrorism Task Force to see justice served. Today and always, along with our partners, we remain committed to putting terrorists and would-be terrorists behind bars. While the threat posed by Rahimi has been mitigated, I can’t overstate the critical role the public continues to play in combating the threats we face. As we welcome this victory today, I ask everyone to remain engaged, stay aware, and immediately report suspicious activity to the authorities.”
“Ahmed Rahimi deliberately placed two bombs on the streets of Chelsea in the dark of night with the intention of maiming and killing innocent New Yorkers enjoying a September Saturday night,” Commissioner O’Neill. “The fact that victims were not killed when one bomb exploded and another failed to detonate is miraculous. Mr. Rahimi was following to the hateful propaganda of al-Qaida and ISIS that calls for the killing of Americans. The combined efforts of the FBI, NYPD, the New York State Police and the Linden New Jersey Police Department led to the capture of Mr. Rahimi within 50 hours of the bombing. The investigation, as well as this conviction is an example of the work of the nation’s best counterterrorism team. I want to commend the detectives, agents and police officers, the prosecutors of the United States Attorney’s Office for the Southern District of New York, and the members of the jury for bringing Ahmed Rahimi to justice. Today’s verdict is the most forceful deterrent for anyone considering waging terror in our City. We will investigate; we will find those responsible; and justice will prevail.”
As set forth in the Complaint, Indictment and the evidence presented at trial:
On Sept. 17, 2016, Rahimi transported two improvised explosive devices from New Jersey to New York, New York. Rahimi placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York (the “23rd Street Bomb”) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York (the “27th Street Bomb”).
At approximately 8:30 p.m., the 23rd Street Bomb – containing a high explosive main charge – detonated, causing injuries to over 30 people and multimillion-dollar property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone; and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left near a dumpster. The explosion propelled a more-than-one-hundred-pound dumpster – which was introduced as an exhibit at trial – more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, the 27th Street Bomb was identified by a civilian who promptly called 911, which recorded call was introduced in evidence and played at trial. The 27th Street Bomb, which was rendered safe prior to detonation, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings and steel nuts.
Earlier that day, at approximately 9:35 a.m. on Sept. 17, 2016, another improvised explosive device, which had been planted by Rahimi in the early morning hours, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed. Had the race started on time, the bomb would have detonated as runners were passing by where Rahimi had planted it.
On Sept. 18, 2016, at approximately 8:40 p.m., six additional improvised explosive devices that Rahimi also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth. One of these devices detonated as law enforcement used a robot to defuse it.
On Sept. 19, 2016, at approximately 9:30 a.m., Rahimi was arrested by police in Linden, New Jersey. Rahimi fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued and placed under arrest. In the course of Rahimi’s arrest, a handwritten journal was recovered from Rahimi’s person. Written in the journal were, among other things, mentions of explosive devices (including “The sounds of bombs will be heard in the streets” and “Bombs set off in the streets they plan to run a mile”), and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, Mohammed al-Adnani, a former senior leader of the Islamic State in Iraq and al Sham and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
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Rahimi was convicted of one count of using a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of attempting to use a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of bombing a place of public use, which carries a maximum sentence of life in prison; one count of destroying property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of attempting to destroy property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of interstate transportation and receipt of explosives, which carries a maximum sentence of 20 years in prison; and two counts of using of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, each of which individually carries a mandatory minimum consecutive sentence of 30 years in prison, a potential maximum sentence of life in prison, and, by virtue of his convictions on both counts, a mandatory sentence of life in prison.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In addition to the charges of which he was convicted in Manhattan federal court, Rahimi also has been charged in the District of New Jersey in a Complaint with offenses in connection with his alleged efforts to detonate explosives in Seaside Park and Elizabeth.
Mr. Boente and Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
Assistant U.S. Attorneys Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley of the Southern District of New York are prosecuting this case with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Chelsea Bomber Ahmad Khan Rahimi Convicted in Manhattan Federal Court for Executing September 2016 Bombing in New York CityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced that a jury returned a guilty verdict today against AHMAD KHAN RAHIMI, a/k/a “Ahmad Rahami,” in Manhattan federal court on all eight counts of the Indictment, which charged him with offenses related to his execution and attempted execution of bombings in New York City on September 17, 2016. RAHIMI, who faces a mandatory sentence of life in prison, is scheduled to be sentenced on January 18, 2018, by U.S. District Judge Richard M. Berman, who presided over the two-week trial.
Acting Manhattan U.S. Attorney Joon H. Kim said: “On September 17, 2016, Ahmad Khan Rahimi attacked our country and our way of life. Inspired by ISIS and al Qaeda, Rahimi planted and detonated bombs on the streets of Chelsea, in the heart of Manhattan, and in New Jersey, hoping to kill and maim as many innocent people as possible. Rahimi’s crimes of hate have been met with swift and resolute justice. Just over a year after his attacks, and following a fair and open trial, Rahimi now stands convicted of his crimes of terror by a unanimous jury of New Yorkers. As a result, he now faces a mandatory sentence of life in prison. Today’s verdict is a victory for New York City, a victory for America in its fight against terror, and a victory for all who believe in the cause of justice.”
Acting Assistant Attorney General Dana J. Boente said: “Ahmad Khan Rahimi constructed bombs with high explosives and shrapnel to inflict maximum damage to innocent victims in multiple locations. The defendant’s bombs caused injuries to numerous people. Thanks to outstanding investigative work, the defendant was identified and arrested before he could do any more harm. This verdict is an important step in holding him accountable for his crimes. Pursuing those who seek to conduct attacks on our homeland will remain the highest priority of the National Security Division. I would like to commend all of the agents, detectives, analysts and prosecutors who made this result possible.”
FBI Assistant Director William F. Sweeney Jr. said: “It’s no secret New York City remains a desirable target for those who wish to disrupt our way of life. Last September, Rahimi set out to harm innocent people who were simply living their lives one Saturday evening. He underestimated the resilience of New Yorkers as well as the resolution of the FBI’s Joint Terrorism Task Force to see justice served. Today and always, along with our partners, we remain committed to putting terrorists and would-be terrorists behind bars. While the threat posed by Rahimi has been mitigated, I can’t overstate the critical role the public continues to play in combating the threats we face. As we welcome this victory today, I ask everyone to remain engaged, stay aware, and immediately report suspicious activity to the authorities.”
NYPD Commissioner James P. O’Neill said: “Ahmed Rahimi deliberately placed two bombs on the streets of Chelsea in the dark of night with the intention of maiming and killing innocent New Yorkers enjoying a September Saturday night. The fact that victims were not killed when one bomb exploded and another failed to detonate is miraculous. Mr. Rahimi was following to the hateful propaganda of al-Qaida and ISIS that calls for the killing of Americans. The combined efforts of the FBI, NYPD, the New York State Police and the Linden New Jersey Police Department led to the capture of Mr. Rahimi within 50 hours of the bombing. The investigation, as well as this conviction is an example of the work of the nation’s best counterterrorism team. I want to commend the detectives, agents and police officers, the prosecutors of the United States Attorney’s Office for the Southern District of New York, and the members of the jury for bringing Ahmed Rahimi to justice. Today’s verdict is the most forceful deterrent for anyone considering waging terror in our City. We will investigate; we will find those responsible; and justice will prevail.”
As set forth in the Complaint, Indictment, and the evidence presented at trial:
On September 17, 2016, RAHIMI transported two improvised explosive devices from New Jersey to New York, New York. RAHIMI placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York, New York (the “23rd Street Bomb”) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York, New York (the “27th Street Bomb”).
At approximately 8:30 p.m., the 23rd Street Bomb – containing a high explosive main charge – detonated, causing injuries to over 30 people and multimillion-dollar property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs, and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone; and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left near a dumpster. The explosion propelled a more-than-one-hundred-pound dumpster – which was introduced as an exhibit at trial – more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, the 27th Street Bomb was identified by a civilian who promptly called 911, which recorded call was introduced in evidence and played at trial. The 27th Street Bomb, which was rendered safe prior to detonation, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings, and steel nuts.
Earlier that day, at approximately 9:35 a.m. on September 17, 2016, another improvised explosive device, which had been planted by RAHIMI in the early morning hours, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed. Had the race started on time, the bomb would have detonated as runners were passing by where RAHIMI had planted it.
On September 18, 2016, at approximately 8:40 p.m., six additional improvised explosive devices that RAHIMI also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth, New Jersey. One of these devices detonated as law enforcement used a robot to defuse it.
On September 19, 2016, at approximately 9:30 a.m., RAHIMI was arrested by police in Linden, New Jersey. RAHIMI fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued, and placed under arrest. In the course of RAHIMI’s arrest, a handwritten journal was recovered from RAHIMI’s person. Written in the journal were, among other things, mentions of explosive devices (including “The sounds of bombs will be heard in the streets” and “Bombs set off in the streets they plan to run a mile”), and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, Mohammed al-Adnani, a former senior leader of the Islamic State in Iraq and al Sham, and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
* * *
RAHIMI, 29, of Elizabeth, New Jersey, was convicted of one count of using a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of attempting to use a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of bombing a place of public use, which carries a maximum sentence of life in prison; one count of destroying property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of attempting to destroy property by means of fire or explosive, which carries a maximum sentence of 20 years in prison; one count of interstate transportation and receipt of explosives, which carries a maximum sentence of 20 years in prison; and two counts of using of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, each of which individually carries a mandatory minimum consecutive sentence of 30 years in prison, a potential maximum sentence of life in prison, and, by virtue of his convictions on both counts, a mandatory sentence of life in prison.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In addition to the charges of which he was convicted in Manhattan federal court, RAHIMI also has been charged in the District of New Jersey in a Complaint with offenses in connection with his alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. Kim and Mr. Boente praised the outstanding efforts of the Federal Bureau of Investigation’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Carroll Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute was sentenced on October 16, 2017, to more than 11 years in federal prison.
Troy Dillavou, 41, from Carroll, Iowa, received the prison term after a guilty plea to one count of conspiracy to distribute methamphetamine.
Evidence at sentencing showed that, prior to entering the conspiracy to distribute methamphetamine, defendant was convicted of felony drug offenses in 2013 and 2014. This resulted in him being sent to state prison for approximately one and a half years. Upon being paroled in January 2016, defendant began distributing methamphetamine to a number of customers in quantities ranging from ounces to one-half pound. During the course of the conspiracy, defendant supplied methamphetamine to his 23-year-old daughter and tasked her with picking up multi-pound quantities of methamphetamine from his source.
Dillavou was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Dillavou was sentenced to 141 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Dillavou is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3023.
Follow us on Twitter @USAO_NDIA.
Barre Resident Sentenced to Prison for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Robert Eldred, 57, of Barre, Vermont, was sentenced on October 16, 2017, in United States District Court in Rutland, Vermont, to serve six (6) months in federal prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Eldred to serve a five (5) year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in February 2015, the Federal Bureau of Investigation seized the computer server that hosted a website dedicated to the sharing and trading of, and communication among offenders about, child pornography (the Website). The FBI did not shut down the Website for approximately 13 days. During that time, when an individual accessed the Website, a Network Investigative Technique (NIT) was deployed to allow law enforcement to identify the Internet Protocol address of the user of the computer that accessed the Website. Through further investigation, the FBI determined that a computer used by Eldred accessed the Website for approximately two hours on March 4, 2015. The FBI executed a warrant to search Eldred’s residence for evidence of child pornography. During the search, Eldred’s computer was seized. During a forensic examination of the computer, the FBI found approximately 22 images of child pornography.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI in the investigation and prosecution of Eldred. The prosecution of Eldred was handled by Assistant U.S. Attorney Barbara A. Masterson. Eldred was represented by Assistant Federal Public Defender David L. McColgin.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bakersfield Man Pleads Guilty to Possession of Stolen U.S. Mail and Possession of 15 or More Credit CardsRead the Press Release
FRESNO, Calif. —Jason Leroy Geiser, 37, of Bakersfield, pleaded guilty today to conspiring to possess stolen U.S. mail and to unlawfully possessing 15 or more unauthorized access devices (credit or debit cards), United States Attorney Phillip A. Talbert announced.
According to court documents, from on or about October 1, 2016, and continuing to March 2, 2017, Geiser conspired with others to fraudulently and unjustly enrich himself from the unauthorized use of, and trafficking in, access devices stolen from the U.S. Mail.
This case was the product of an investigation by the United States Postal Service and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Geiser is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 16, 2018. Geiser faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General Jeff Sessions Issues Statement on FBI Statistics Showing Staggering Rise in Law Enforcement Officers Killed and Assaulted in the Line of Duty in 2016Read the Press Release
Attorney General Jeff Sessions today issued the following statement on the FBI's 2016 Law Enforcement Officers Killed and Assaulted report, which show an unacceptable rise in law enforcement officers assaulted and killed in the line of duty: "Every law enforcement officer goes to work knowing that today might be his or her last. But last year, we saw a staggering 61 percent increase in the number of law enforcement officers killed in the line of duty because of a felony, and on average, more than 150 officers were assaulted in the line of duty every single day. These numbers are as shocking as they are unacceptable.
“Our law enforcement deserves the support of the people they serve. Fortunately we have a President who understands this. President Trump ran for office as a law-and-order candidate; now he is governing as a law-and-order President.
“In one of his first Executive Orders to this Department, President Trump directed us to prevent violence against law enforcement officers. He stands with our law enforcement 100 percent—and so does this Department of Justice. That's one more reason why we're focused on the President's goal of reducing violent crime and united with local, state, and federal law enforcement in our shared mission to protect law-abiding people in every community."
According to statistics collected by the FBI, 118 law enforcement officers were killed in line-of-duty incidents in 2016 – this is a 37 percent increase from 2015, when 86 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2016 there were 66 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a staggering 61 percent increase from 2015, when 41 law enforcement officer were killed in line-of-duty incidents.
Moreover, 57,180 officers were victims of line-of-duty assaults – this is a 14 percent rise from the 50,212 officer that were victims of line-of-duty assaults in 2015.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2016 edition of Law Enforcement Officers Killed and Assaulted report, released today.
Albuquerque Man Facing Federal Robbery and Prescription Drug Trafficking Charges Arising Out of Pharmacy RobberyRead the Press Release
ALBUQUERQUE – Abraham Martinez, 35, of Albuquerque, N.M., made his initial appearance this morning in federal court on a criminal complaint charging him with violating the Hobbs Act and prescription drug trafficking. The charges against Martinez arise out of the alleged armed robbery of an Albuquerque-area pharmacy on Oct. 13, 2017. Martinez remains in custody pending a preliminary hearing and a detention hearing both of which are scheduled for Oct. 17, 2017.
The criminal complaint charges Martinez with violating the Hobbs Act by robbing a business engaged in interstate commerce and possession of Xanax with intent to distribute. According to the criminal complaint, Martinez allegedly committed the offenses by robbing the Walgreens pharmacy located at 2625 San Pedro Dr. NE in Albuquerque, by threatening the pharmacist with a knife and demanding Xanax.
If convicted of the charges in the criminal complaint, Martinez faces a statutory maximum penalty of 20 years in federal prison for violating the Hobbs Act and a statutory maximum penalty of 10 years in federal prison for possession of prescription drug with intent to distribute. Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorney Joel R. Meyers is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
13 October 2017
Worcester Business Owner Pleads Guilty to Fentanyl Distribution and Money LaunderingRead the Press Release
BOSTON – A Worcester business owner pleaded guilty today in federal court in Worcester to distributing fentanyl and using the proceeds of drug sales to purchase and renovate nine properties in Worcester County.
Kevin A. Perry, 44, of Worcester, pleaded guilty to nine counts of money laundering, three counts of aggravated cash structuring, one count of making a false statement on a loan application, and one count of distribution of fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 11, 2018.
Perry was previously convicted in federal court in Massachusetts of conspiracy to manufacture and distribute MDMA, commonly referred to as Ecstasy. Despite filing an affidavit claiming he possessed nothing of monetary value to satisfy the court’s forfeiture order, Perry boasted to an individual that he successfully concealed from the government “millions of dollars” in profits from drug sales. Following his release from prison in 2008, Perry returned to the manufacturing and distribution of controlled substances, including fentanyl, a powerful synthetic opioid that is 50 to 100 times more potent than morphine and heroin. On Feb. 23, 2017, Perry distributed 2,000 pills containing fentanyl to an individual cooperating with law enforcement.
Additionally, from April 2012 to October 2016, Perry used over $1 million in proceeds from drug sales to purchase and renovate nine properties in Worcester County. Those purchases included two restaurants in the city of Worcester: The Usual Restaurant located at 166 Shrewsbury Street and The Blackstone Tap located at 81 Water Street. Perry also used the proceeds from his drug sales to purchase more than 230 money orders totaling over $150,000 from the United States Postal Service and Western Union to make structured cash payments on real estate loans and to finance his wedding in August 2015. The only employment that Perry reported during that time was as a fitness trainer. He also collected unemployment benefits from June 2015 through January 2016.
The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The charge of aggravated cash structuring provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. The charge of making a false statement on a loan application provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1 million. The charge of distribution of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release, and a fine of up to $10 million.
According to the plea agreement, Perry will be sentenced to between 14 and 16 years in prison and five years of supervised release. He will also forfeit the nine properties, the business assets of the two restaurants, over $510,000 in cash and precious metals seized to date, an illegal pill press, and two vehicles. The sentence will also include a money judgment of $1,180,943 against Perry should additional assets be located. 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office is prosecuting the case.
Williamsport Man Charged with Drug Trafficking and Unlawful Possession of AmmunitionRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hakim Handy, age 34, of Williamsport, Pennsylvania was indicted on October 12, 2017, by a federal grand jury for conspiring to distribute heroin and crack cocaine, the distribution of heroin, and the unlawful possession of ammunition.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Handy sold heroin on January 9 and 15, 2015, and possessed with the intent to distribute crack cocaine and heroin on January 16, 2017, in Lycoming County, Pennsylvania. The indictment also alleges that Handy unlawfully possessed 24 rounds of .44 caliber Remington ammunition.
The case was investigated by the Williamsport Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 is life imprisonment, a term of supervised release following imprisonment, and a 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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William J. Powell sworn in as United States Attorney for the Northern District of West VirginiaRead the Press Release
WHEELING, WEST VIRGINIA – William J. Powell has taken the oath of office to become the United States Attorney for the Northern District of West Virginia. Powell was nominated by President Donald Trump on August 3, 2017 and confirmed by the U.S. Senate on October 3, 2017. Chief U.S. District Judge Gina M. Groh administered the oath of office to U.S. attorney Powell today.
“I am honored and humbled to be named as the U.S. Attorney for the Northern District of West Virginia. I’m excited to start working with the very fine staff and attorneys in the district on the very important work that needs to get done,” said Powell.
As U.S. Attorney, Powell is the top-ranking federal law enforcement official in the Northern District of West Virginia, which includes offices in Wheeling, Martinsburg, Clarksburg, and Elkins. He oversees a staff of 45 employees, including 21 attorneys and 24 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Powell, a Martinsburg native, was born in Manhasset, New York in 1960. He most recently served as the Chief Deputy Prosecuting Attorney in Jefferson County, West Virginia. He has also held positions as a member attorney at Jackson Kelly, PLLC, and an Assistant United States Attorney in the United States Attorney’s Office for the Southern District of West Virginia.
He received his J.D. in 1985 from the West Virginia University College of Law and his B.A. in 1982 from Salem College. He is a past president of the West Virginia Bar Association, past Member of the Board of Governors for the West Virginia State Bar, and has been active in numerous community and professional organizations.
He has been married to his wife, Sharon, for 31 years, and they have raised three boys.
West Texas Methamphetamine Distributors Given Lengthy Prison SentencesRead the Press Release
LUBBOCK, Texas — Arnoldo Mendoza Lepez, 45, of Littlefield, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 405 months in federal prison following his guilty plea to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas. A co-defendant, Joseph Raymond Jaramillo, Jr., 30, also of Littlefield, Texas, was sentenced last week to 365 months in federal prison following his guilty plea to his role in the same conspiracy.
Both Lepez and Jaramillo pleaded guilty in July 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Both have been in custody since the time of their arrest in May 2017.
Co-defendant Zahir Rivera-Pineda, 27, pleaded guilty in June 2017 to his role in the conspiracy and was sentenced to 60 months in prison in September of this year.
According to plea documents filed in the case, on May 5, 2017, New Mexico State Police stopped a vehicle being driven by Rivera-Pineda that was found to contain approximately 20 pounds of suspected methamphetamine near Albuquerque, New Mexico. Agents with Homeland Security Investigations (HSI) were able to determine that the methamphetamine was destined for a specific residence located in Littlefield, Texas. HSI agents coordinated with agents from the Lubbock County, Texas Sheriff’s Office (LCSO) and Drug Enforcement Administration (DEA) to complete the delivery of the methamphetamine to the residence in an attempt to identify the individuals receiving the narcotics.
Shortly after the methamphetamine was delivered to the residence in Littlefield, agents executed a search warrant. Inside the residence, agents located Jaramillo, Jr. and Lepez. Inside the room with Jaramillo and Lepez, agents located in plain-view several of the bundles containing the methamphetamine that had just been delivered to the house. The remainder of the bundles were located inside a hidden compartment located in the closet of the same room. Agents found two firearms in the room with the defendants as well as several other firearms throughout the residence.
The methamphetamine located in the residence weighed a total of 8,833 grams.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Lubbock County Sheriff’s Office, and New Mexico State Police conducted the investigation. Assistant U.S. Attorney Sean Long was in charge of the prosecution.
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US Attorney's Office and Michigan Department of Civil Rights Reach Agreement with Macomb County Prosecutor's Office to Ensure Effective Communication for Persons Who are Deaf or Hard of HearingRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan and the Michigan Department of Civil Rights have reached an agreement with the Macomb County Prosecutor’s Office under the Americans with Disabilities Act (“ADA”) and the Michigan Persons with Disabilities Civil Rights Act (“MPWDCRA”), Acting U.S. Attorney Daniel L. Lemisch and Agustin V. Arbulu, Director of the Michigan Department of Civil Rights, announced today. Under the terms of the agreement, the Prosecutor’s Office will provide sign language interpreters and other aids and services, free of charge, to members of the public who are deaf or hard of hearing.
The settlement resolves a complaint that the Prosecutor’s Office failed to provide a sign language interpreter to an individual who is deaf and communicates primarily in American Sign Language (ASL). The complainant alleged that the Prosecutor’s Office asked the complainant to provide information and sign a summons and complaint in a child support matter, but she was unable to communicate effectively with employees without an interpreter.
The ADA and MPWDCRA require that public entities provide effective communication to all individuals with disabilities who seek to participate in or benefit from their services, programs or activities. “Effective communication” means that communication with persons who are deaf or hard of hearing should be as effective as communication with others. Entities must provide auxiliary aids and services, including qualified and certified ASL interpreters, when necessary to give persons with disabilities equal access.
Under the settlement, the Macomb County Prosecutor’s Office agreed to modify its policies and train its staff to ensure that members of the public who are deaf are able to effectively communicate with the office, provide appropriate auxiliary aids and services at no cost, and post signs notifying the public of the availability of these services.
“Government offices have an obligation under the Americans with Disabilities Act to ensure that people with disabilities are able to access their programs and services,” said Acting United States Attorney Daniel L. Lemisch. “We are pleased that the Macomb County Prosecutor’s Office is updating its policies to ensure that individuals who are deaf or hard of hearing will have access to the tools they need to communicate with its employees. We hope this case will remind other government offices to ensure they have the tools in place to provide effective communication to the public that they serve.”
“Access for all to our justice system is a fundamental aspect of our democracy,” said Agustin V. Arbulu, Director of the Michigan Department of Civil Rights. “People who are Deaf, DeafBlind or Hard of Hearing must be able to communicate effectively within our justice systems, whether as a defendant, a witness, a victim of a crime or a party to a proceeding. The Macomb County Prosecutor’s Office deserves our thanks for providing a simple, cost-effective model for other Michigan Prosecutor offices to follow in ensuring access for Deaf, DeafBlind and Hard of Hearing citizens.”
“The right to effective communication is a core right for Michigan citizens who are Deaf, DeafBlind and Hard of Hearing, and the ability to fully access programs and services in our courts must be protected,” said Annie Urasky, Director of MDCR Division on Deaf, DeafBlind and Hard of Hearing. “I thank the Macomb County Prosecutor’s Office for recognizing the need to review and update their policies with regards to sign language interpreters.”
Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Those interested in learning more about the Michigan Department of Civil Rights, the Division on Deaf, DeafBlind and Hard of Hearing and the laws they enforce can visit www.michigan.gov/mdcr or call 800-482-3604; via Video Phone at 313-437-7035; or send email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
U.S. Attorney’s Office and FBI to Host 9th Annual Cyber Crime Prevention Symposium for Educators, Parents and StudentsRead the Press Release
LOS ANGELES – The United States Attorney’s Office, the FBI, and a coalition of other law enforcement agencies and community organizations are hosting the 9th Annual Cyber Crime Prevention Symposium on Monday, October 16. More than 450 educators, parents, and middle and high school students are expected to attend the daylong conference at the California Endowment Center for Healthy Communities in Los Angeles.
The Symposium will address a wide range of Internet-related security and safety issues. Speakers will address and lead discussions on topics that include child exploitation, cyberbullying, the implications of digital communication on teen health, digital reputation, navigating peer pressure, social media, sexting and sextortion. This year’s Symposium will feature a youth panel presentation on social media, a SnapChat geotag and a surprise appearance during the lunch break by celebrity guests from Disney.
“The internet and social media are a core component of our everyday lives. Because the internet is such an integral part of their relationships, young people must have tools to understand the online environment, the responsibilities they have to themselves and others, and the perils of reckless behavior,” said Acting United States Attorney Sandra R. Brown. “This Symposium will provide young people with important information that will help them avoid danger while engaging with others online.”
“I’m proud that the FBI has been part of this annual event for nine years, during which we’ve seen the rules associated with the internet and cyber security evolve dramatically,” said Danny Kennedy, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “In 2017, our children must deal with traditional challenges such as peer pressure and bullying, but we also expect them to navigate their way through the latest technology. A byproduct of this event has always been that the FBI learns a great deal from the students too, as we endeavor to teach them the latest tools that can make a difference in their lives.”
As part of this year’s event, theater students from California State University, Northridge will perform a cyber-related skit for students and interact with the audience in a “Write-Around” exercise addressing current issues such as sexting and cyberbullying.
Student teams from each of the schools attending this year’s Symposium will also be invited to participate in the annual Cyber Safety Challenge. Participating students will be asked to develop a cyber safety program for their respective schools to educate the entire student body on the various risks associated with cyber crime. The contest promotes good online etiquette by challenging students to create cyber safety programs. Students participating in this challenge will have their contest entries judged by a panel of experts, and the winning school will be awarded prizes in May 2018.
“The cyber world can be a wonderfully enlightening place, but it can also be a dangerous one, especially for children,” said Los Angeles City Attorney Mike Feuer. “My office is proud to work with our law enforcement partners to find ways to make the web safer.”
Organized under the aegis of the Inter-Agency Council on Child Abuse and Neglect (ICAN), law enforcement agencies participating in tomorrow’s conference include the United States Attorney’s Office, the Federal Bureau of Investigation, the Los Angeles City Attorney’s Office, the Los Angeles County Sheriff’s Department, and the Los Angeles Police Department’s Internet Crimes Against Children Task Force (ICAC). The Cyber Crime Prevention Symposium is hosted this year by the Archdiocese of Los Angeles, and the planning committee also includes participation by Santa Monica-UCLA Medical Center, the Anti-Defamation League, Fox Entertainment Group, the Walt Disney Company, and Warner Bros. Entertainment.
“Children who are growing up in this high-tech age are being targeted by online predators at an alarmingly high rate,” said Deanne Tilton Durfee, Executive Director for the ICAN. “Each year, this Symposium provides participants with resources and tools to help children learn how to protect themselves and be safe in the cyber world, while enjoying all of the benefits of the fast-growing technologies.”
Two men indicted for 11 armed robberies across Cleveland areaRead the Press Release
A 17-count indictment was filed in federal court charging two men for nearly a dozen armed robberies in Northeast Ohio, law enforcement officials said.
Richard Glenn, Jr., 40, of Maple Heights, and Brandon Williams, 35, of Euclid, are charged with using firearms to rob banks, drug stores and convenience stores in South Euclid, Euclid, Wickliffe, Lyndhurst, Cleveland, Bedford Heights and Maple Heights.
The locations and dates of the robberies detailed in the indictment are listed below:
Aug. 9: Walgreens, 2135 Warrensville Center Road, Warrensville Heights (Glenn and Williams).
Aug. 15: Euclid Mart, 26610 Lakeshore Blvd. Euclid (Williams).
Aug. 17: Walgreens, 20485 Euclid Ave., Euclid (Glenn).
Aug. 21: Ohio Savings Bank, 29169 Euclid Ave., Wickliffe (Williams).
Aug. 23: U.S. Bank, 5695 Turney Road, Garfield Heights (Glenn).
Aug. 25: Chase Bank, 5400 Mayfield Road, Lyndhurst (Williams).
Aug. 29: Dollar General, 9111 Miles Road, Cleveland (Glenn).
Aug. 31: A&M Food Mart, 25600 Aurora Road, Bedford Heights (Glenn and Williams).
Sept. 5: Dollar Bank, 240 E. 228 Street, Euclid (Williams).
Sept. 11: Chase Bank, 5435 Northfield Road, Bedford Heights (Williams).
Sept. 11: Dollar Bank, 5180 Warrensville Center Road, Maple Heights (Williams)
The charges include Hobbs Act robberies, bank robberies, brandishing a firearm during a crime of violence and being felons in possession of firearms.
Glenn has prior felony convictions in Cuyahoga County Common Pleas Court for aggravated robbery and drug possession that make it illegal for him to have a firearm. Williams has felony convictions in Cuyahoga County Common Pleas Court for robbery, burglary, grand theft and arson that make it illegal for him to have a firearm, according to the indictment.
“These defendants used firearms to rob 11 stores and banks all over the east side of Greater Cleveland,” U.S. Attorney Justin E. Herdman said. “Our law enforcement partners did a tremendous job bringing this violent crime spree to an end. Now this duo will be held accountable for terrorizing our neighbors.”
“Williams and Glenn put everyday citizens’ lives in peril with their gun-wielding robberies,” said FBI Special Agent in Charge Stephen D. Anthony. “For these dangerous crimes they are facing a significant amount of time in a federal penitentiary. The FBI will continue to work aggressively with our local law enforcement partners to ensure violent criminals like these are prosecuted to the fullest extent of the law.”
This case was investigated by the FBI and police departments from Cleveland, Bedford Heights, Euclid, South Euclid, Garfield Heights, Lyndhurst, Maple Heights, Wickliffe and Willoughby Hills, with assistance from the Cuyahoga County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh.
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.
An indictment is a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Executives Sentenced for Promoting A Fraudulent Offshore Tax Shelter SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Duane Crithfield (70, Lecanto) to four years and six months in federal prison and Stephen P. Donaldson, Sr. (72, Tampa) to six years’ imprisonment for their roles in a conspiracy to defraud the United States using an offshore tax shelter scheme. A separate hearing will be held at a later date to determine the amount of restitution owed by the two defendants.
Crithfield and Donaldson were indicted on May 2, 2013, for conspiracy to defraud the United States. A superseding indictment was returned on July 25, 2013, that added two substantive charges.
As alleged in the superseding indictment, from 2001 to at least March 2008, Crithfield and Donaldson, and others, through Foster & Dunhill, Offshore Trust Service, Fidelity Insurance Company ("FIC"), and Citadel Insurance Company ("CIC") promoted, marketed, and implemented a fraudulent offshore tax strategy known as the Business Protection Plan ("BPP"). The fraudulent BPP strategy enabled the defendants' affluent clients to claim business expense deductions based on sham “BPP insurance premium” payments made to offshore entities FIC and CIC in amounts intended primarily to substantially reduce the clients' taxable income for a particular year.
According to court records and evidence admitted during the bench trial, Crithfield and Donaldson conspired together, and with others, to create and promote the offshore BPP tax shelter strategy. The strategy, however, was nothing more than self-insurance and was devoid of any economic substance and the so‑called “BPP insurance premiums” were not based on any business risks. After obtaining the benefit of a tax deduction on a client's corporate income tax return, the client would later receive approximately 83‑85% of the premium back. Thus, the premium amounts were not ordinary and necessary business expenses that were entitled to deductions under Section 162(a) of the Internal Revenue Code. Rather, they were merely sham expenditures and not properly deductible for U.S. income tax purposes on the respective businesses’ tax returns.
This case was investigated by the Internal Revenue Service. It was being prosecuted by Assistant United States Attorneys Jay G. Trezevant and Megan K. Kistler.
Trenton Man Admits Role in Conspiracy to Distribute and Possess with Intent to Distribute CocaineRead the Press Release
TRENTON, N.J. – A Trenton man today admitted his role in a conspiracy to distribute and possess with intent to distribute more than 1.5 kilograms of cocaine and more than 122 grams of cocaine base, Acting U.S. Attorney William E. Fitzpatrick announced.
Khalfini Richardson, 33, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.
According to the documents filed in this case and statements made in court:
From September of 2013 through Jan. 13, 2016, Richardson conspired with co-defendants Bobby Williams, William Enmond and Capitol T. Wellons to distribute cocaine, and to manufacture and distribute cocaine base, primarily from two adjacent residences in Trenton. On May 8, 2015, Richardson cooked powder cocaine into cocaine base inside one of the Trenton residences and sold approximately 40 grams of it to a confidential government source for $1,800. Richardson admitted to conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and to conspiring to manufacture as well as distribute, and possess with intent to distribute, 122.6 grams of cocaine base.
The count to which Richardson pleaded guilty is punishable by a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 17, 2018.
Enmond previously pleaded guilty before Judge Ship and was sentenced July 21, 2017, to five years in prison. The charges and allegations against Williams and Wellons are merely accusations, and they are considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber and Senior Litigation Counsel Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brynn Giannullo Esq., New Brunswick, New Jersey
Three South Shore Men Plead Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – Three South Shore men pleaded guilty today in federal court in Boston to their roles in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
David Tejeda, 35, of New Bedford; Jeffrey Freitas, 32, of Bridgewater; and John Paul Tanguay, 34, of Taunton, each pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Tejeda, Freitas, and Tanguay were arrested and charged along with 20 other co-defendants. U.S. District Court Judge Indira Talwani scheduled the sentencings for Tejeda and Freitas for Jan. 4, 2018, and Jan. 5, 2018, respectively. U.S. District Court Judge Leo T. Sorokin scheduled Tanguay’s sentencing for Oct. 16, 2018. As part of the District Court’s RISE program, Tanguay will participate in supervised drug treatment in advance of his sentencing hearing.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Jose Antonio Lugo-Guerrero, 32, a Dominican national operating in Boston, and Fernando Hernandez, 42, a Dominican national residing in Providence, R.I. Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton. The organization sold heroin and fentanyl to customers, including Tanguay, who re-distributed a portion of the drugs he obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston and sold to numerous customers, including Tejeda and Freitas. It is further alleged that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
Hernandez and Lugo-Guerrero each pleaded not guilty and are awaiting trial.
The conspiracy charge against Tanguay and Tejeda 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. Freitas faces a sentence of at least five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime term of supervised release and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Florida Residents Charged for Receiving Bribes from Aliens in Exchange for Immigration BenefitsRead the Press Release
Elisa Pelaez, 54, Ginou Baptiste, 48, and Fritz Cyriaque (a/k/a “Joseph,” a/k/a “Ferguson”), 50, all of Miami, were indicted by a federal grand jury for conspiracy to solicit, demand and accept money or anything of value in excess of $5,000, from aliens, intending to be influenced and rewarded in connection with any business, transaction, and series of transactions, of Behavioral Intervention, Inc. a/k/a BI, Inc. (BI, Inc.), a Geo Group Company, an organization that received in any one year period, benefits in excess of $10,000, under a federal program involving a contract.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of Inspector General (DHS-OIG), and Michael T. Moreland, Special Agent in Charge, U. S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), made the announcement.
According to court documents, DHS and ICE conducted an undercover operation into an immigration fraud ring suspected of soliciting aliens participating in the Intensive Supervision Appearance Program. The Intensive Supervision Appearance Program was administered by BI, Inc., a private company contracted by the U.S. Department of Homeland Security. BI, Inc. relied on electronic GPS monitoring devices, telephonic reporting, office interviews, unannounced home visits, employment verification, case management services, and documenting aliens’ attendance at court hearings to perform its contractual obligations to monitor individuals in the Intensive Supervision Appearance Program.
Elisa Pelaez was an employee and agent of BI, Inc. She managed staff, conducted community outreach, and supervised aliens awaiting immigration proceedings. Ginou Baptiste was an employee and agent of BI, Inc. She supervised aliens awaiting immigration proceedings. Fritz Cyriaque was an associate of defendants Pelaez and Baptiste.
From on or about November 2010 through February 2014, defendants Pelaez and Baptiste used their positions of authority as employees and agents of BI, Inc. to unlawfully demand and receive monies from participants in the Intensive Supervision Appearance Program in exchange for removal of their electronic monitoring devices. Baptiste would identify participants who desired to have their electronic monitor removed prematurely and had the ability to pay for its removal. Pelaez and Baptiste referred participants seeking to have their electronic monitors removed to Cyriaque. Batiste told participants in the Intensive Supervision Appearance Program that Cyriaque was an ICE official who could assist them in resolving their immigration issues. Cyriaque posed as a United States ICE official and collected monies from participants in the Intensive Supervision Appearance Program in exchange for removal of their electronic monitoring device. After Cyriaque obtained payments from the participants, Pelaez and Baptiste would direct other BI, Inc. employees to remove the participants’ monitors. Additionally, Pelaez, Baptiste and Cyriaque used intimidation and other means to further the conspiracy and to dissuade participants from reporting their illegal conduct to law enforcement.
Mr. Greenberg commended the investigative efforts of DHS-OIG and ICE-OPR. This case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Texas Money Launderer Sentenced to 40 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Priscilla Ann Ellis (52, Killeen, Texas) to 40 years in federal prison for conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud. As part of her sentence, the Court entered a money judgment in the amount of $9,288,241.36, and ordered the forfeiture of various assets, including Ellis’s bank accounts, properties, and a luxury vehicle. The Court also ordered Ellis to pay restitution to the victims of the offenses in the amount of $3,767,196.
A federal jury found Ellis guilty on October 21, 2016.
According to evidence presented at trial, Ellis, her attorney, Perry Don Cortese, and her daughter, Kenietta Rayshawn Johnson, were members of an international criminal organization that defrauded dozens of victims across the United States and then laundered the funds, much of which were sent overseas. The fraud schemes took several forms. Many victims were law firms solicited online to perform legal work, provided counterfeit cashier’s checks for deposit into the firms’ trust accounts, and then directed to wire money to third-party shell businesses controlled by the conspirators. Others were title companies defrauded in phony real estate transactions. Other victims were targeted and defrauded by fake suitors on dating websites. The conspiracy also employed hackers who compromised both individual and corporate e-mail accounts, ordering wire transfers from brokerage and business accounts to shell accounts controlled by conspirators.
Victims were instructed to wire money into funnel accounts held by conspirators, known as “money mules.” The funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records presented at trial indicate that, from 2012 to 2015, several millions dollars’ worth of wires were received in such accounts to be laundered. Conspirators in Canada, Nigeria, South Korea, Senegal, and elsewhere helped coordinate the fraud and money laundering activity from abroad.
Ellis laundered several million dollars’ worth of fraud proceeds through her bank accounts and other accounts under her control. She also arranged for the creation of high-quality forgeries of checks and other documents. Cortese, a licensed attorney in Texas, worked for the conspirators by laundering victim money through his interest on lawyers trust accounts (“IOLTAs”). He also met with individuals in person to retrieve cash withdrawn from receiver accounts. Cortese recruited his paralegal and others to open such accounts to launder funds. The evidence further showed that Johnson, then a bank employee at Capital One, helped create counterfeit checks and monitor money flows between accounts controlled by conspirators.
On November 29, 2017, Ellis is scheduled to be sentenced in a related matter, in which a jury found her guilty of conspiracy to commit counterfeiting, using interstate commerce facilities in the commission of murder-for-hire, and retaliating against a witness.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the United States Postal Inspection Service, and the Toronto Police Service in Ontario, Canada. The case was prosecuted by Assistant United States Attorneys Patrick Scruggs and Eric Gerard.
Tennessee Dentist Pleads Guilty to Tax EvasionRead the Press Release
Memphis, TN – A Shelby County, Tennessee dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa, LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation of the funds in the nominee’s bank account, and caused the nominee to purchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for January 12, 2018, before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in federal prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and United States Attorney D. Michael Dunavant, commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
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Tennessee Dentist Pleads Guilty to Tax EvasionRead the Press Release
A Shelby County, Tennessee, dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for Jan. 12, 2018 before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Statement by Annette L. Hayes, U.S. Attorney for Western WashingtonRead the Press Release
Today, the U.S. Department of Justice filed its response in support of the City of Seattle’s “Motion to Declare It in Full and Effective Compliance with the Consent Decree.” The United States concludes that the City has met its obligations under the first phase of the Consent Decree based on (1) the ten assessments conducted by the Monitor – assessments that covered all of the requirements of the Consent Decree – and (2) the Department of Justice’s own independent review of the City’s compliance. The Court’s continued oversight in phase two of this effort will ensure that the City continues to comply as required under the Decree.
The following is a statement from Annette L. Hayes, U.S. Attorney for the Western District of Washington:
“After much work over more than five years, the City of Seattle has reached a significant milestone in complying with the requirements of the Consent Decree. New policies, training, and systems of oversight and accountability have resulted in the Seattle Police Department (SPD) meeting its obligations under Phase I of the Consent Decree and thereby eliminating the pattern or practice of unconstitutional policing that led to our investigation and findings in 2011.
We have not come to this conclusion lightly. Career civil rights attorneys and police-practices experts have spent more than five years investigating SPD, overseeing the creation of new policies and training, and independently reviewing the relevant data and the results of assessments conducted by the Court-appointed Monitor that examined the implementation of the Consent Decree’s requirements.
We know that real reforms can’t just happen on paper. They must be carried out in practice. That is why Department of Justice civil rights attorneys and police reform experts, along with the Monitor, took a hard look at the way officers are using force on the street -- whether there is a real commitment to de-escalation, whether new approaches to crisis situations are resulting in better outcomes, and whether internal supervision and independent civilian-led accountability systems are sufficient to address any shortcomings
This conclusion does not mean the police department is perfect, nor does it end the hard work required under the Decree. There is more to do and issues that need to be addressed. Rather, this milestone represents the end of one chapter and the beginning of another. Under the terms of the Consent Decree, SPD is required to sustain compliance for at least two years before the Court, Monitor or the Department of Justice could agree that termination of the Decree is appropriate.
I appreciate the hard work and commitment of SPD’s officers and leadership, the elected officials who have made police reform a priority, and, of course, the strong support of – and demands from – the community and the ongoing engagement from the Community Police Commission. Continued engagement by all concerned in the next phase of the reform efforts and beyond will be critical to ensuring further progress under the Consent Decree.”
Statement of Acting U.S. Attorney Joon H. Kim on the Convictions of Scott Tucker and Timothy Muir for Unlawful Payday Lending EnterpriseRead the Press Release
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent. Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes. But that was a lie. The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.”
South Bend/Mishawaka Men IndictedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced the return of a seven-count indictment that alleges a heroin distribution conspiracy. Named in today’s indictment are:
- Corey Harris, age 22, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 3)
- Isaiah Whitmore, age 25, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 2)
- Reginald Blackburn, age 25, of Mishawaka, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 4)
- Ryan Williams, age 27, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (County 5)
- Terron Taylor, age 22, of Mishawaka, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 6)
- Anthony Owens, age 30, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 7)
According to documents in this case, from March 2017 up to and including October 2017, the above individuals knowingly and intentionally conspired to distribute a Schedule I controlled substance, heroin, in excess of 1 kilogram.
Four of the individuals named in the indictment have been arrested. Law enforcement is currently seeking the whereabouts of Corey Harris and Terron Taylor. If you have any information as to the whereabouts of the above individuals please contact Michiana Crime Stoppers at 574-288-STOP.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Indiana State Police; the Mishawaka Police Department; St. Joseph County Drug Investigations Unit; the St. Joseph County Police Department; the St. Joseph County Prosecuting Attorney; and the United States Marshals Service. The above agencies were also supported by Project Disarm, a Bureau of Alcohol, Tobacco, Firearms and Explosives Task Force; the Drug Enforcement Administration Task Force; Elkhart Police ICE Unit; and the United States Marshals Service Fugitive Task Force. The case is being handled by Assistant U.S. Attorneys Joel Gabrielse and Molly Donnelly.
###
- Corey Harris, age 22, of South Bend, Indiana
Six people indicted for illegally reentering the U.S.Read the Press Release
Six people were indicted for illegal reentry into the United States after being found in Ohio, said U.S. Attorney Justin E. Herdman.
Ignacio Mendoza-Arriaga, 31, a Mexican citizen, was found in Youngstown after being deported to Mexico in 2008 following a felony conviction.
Reinaldo Herrerra-Herrerra, 36, a Mexican citizen, was found in Youngstown after being deported to Mexico in 2011.
Christian Euceda-Lopez, a citizen of Honduras, was found in Ohio after being deported from the U.S., in 2012.
Jorge Manuel Ramos-Cruz, 49, a Mexican citizen, was found in Ohio after being deported four times in 2009 and 2010.
Wilson Antonio Miranda-Rivera, 36, a citizen of Honduras, was found in Ohio after being deported four times between 2002 and 2014.
Abelardo Beltran-Arriola, 31, a citizen of Mexico, was found in Ohio after twice being deported, in 2008 and 2011.
The Arriaga and Herrerra cases are being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the Youngstown Police Department and the U.S. Immigration and Custom Enforcement.
The Lopez case is being prosecuted by Assistant U.S. Attorney Michael J. Freeman following an investigation by U.S. Customs and Border Protection.
The Cruz case is being prosecuted by Assistant U.S. Attorney Bradley Beeson following an investigation by the U.S. Immigration and Custom Enforcement.
The Rivera case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by U.S. Customs and Border Protection,
The Arriola case is being prosecuted by Assistant U.S. Attorney Thomas P. Weldon following an investigation by the U.S. Immigration and Custom Enforcement.
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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shelby Man Sentenced to 63 Months in Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - On October 11, 2017, United States District Court Judge Stephanie M. Rose sentenced Matthew P. Goodside, 32, of Shelby, Iowa, to 63 months in prison for possession of child pornography, announced United States Attorney Marc Krickbaum. Goodside was also ordered to serve ten years of supervised release following his imprisonment and comply with Sex Offender Registration and Notification Act requirements.
Federal and state authorities began investigating Goodside in July of 2014 regarding the suspected distribution of synthetic marijuana from his residence in Avoca, Iowa. During a search warrant that was conducted at the Avoca residence in January of 2015, several laptops and pieces of computer equipment were recovered. A later forensic examination of the computers revealed the presence of several images and videos reflecting child pornography that had been downloaded using a peer-to-peer file sharing program.
This matter was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, the Pottawattamie County Sheriff’s Office, the Douglas County Sheriff’s Office, the Avoca Police Department, and the Southwest Iowa Narcotics Taskforce. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Scott Tucker and Timothy Muir Convicted at Trial for $3.5 Billion Unlawful Internet Payday Lending EnterpriseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that SCOTT TUCKER and TIMOTHY MUIR were convicted after a five-week jury trial on all fourteen counts against them, for operating a nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 1000% on loans.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent. Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes. But that was a lie. The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.”
According to the allegations contained in the Superseding Indictment, and evidence presented at trial:
The Racketeering Influenced Corrupt Organizations (“RICO”) Crimes
From at least 1997 until 2013, TUCKER engaged in the business of making small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet. TUCKER’s lending enterprise, which had up to 1,500 employees based in Overland Park, Kansas, did business as Ameriloan, f/k/a Cash Advance; OneClickCash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”). TUCKER, working with MUIR, the general counsel for TUCKER’s payday lending businesses since 2006, routinely charged interest rates of 600% or 700%, and sometimes higher than 1,000%. These loans were issued to more than 4.5 million working people in all fifty states, including more than 250,000 people in New York, many of whom were struggling to pay basic living expenses. Many of these loans were issued in states, including New York, with laws that expressly forbid lending at the exorbitant interest rates TUCKER charged. Evidence at trial established that TUCKER and MUIR were fully aware of the illegal nature of the loans charged and in fact prepared scripts to be used by call center employees to deal with complaints by customers that their loans were illegal.
Fraudulent Loan Disclosures
The Truth-in-Lending Act (“TILA”) is a federal statute intended to ensure that credit terms are disclosed to consumers in a clear and meaningful way, both to protect customers against inaccurate and unfair credit practices, and to enable them to compare credit terms readily and knowledgeably. Among other things, TILA and its implementing regulations require lenders, including payday lenders like the Tucker Payday Lenders, to accurately, clearly, and conspicuously disclose, before any credit is extended, the finance charge, the annual percentage rate, and the total of payments that reflect the legal obligation between the parties to the loan.
The Tucker Payday Lenders purported to inform prospective borrowers, in clear and simple terms, as required by TILA, of the cost of the loan (the “TILA Box”). For example, for a loan of $500, the TILA Box provided that the “finance charge – meaning the “dollar amount the credit will cost you” – would be $150, and that the “total of payments” would be $650. Thus, in substance, the TILA Box stated that a $500 loan to the customer would cost $650 to repay. While the amounts set forth in the Tucker Payday Lenders’ TILA Box varied according to the terms of particular customers’ loans, they reflected, in substance, that the borrower would pay $30 in interest for every $100 borrowed.
In fact, through at least 2012, TUCKER and MUIR structured the repayment schedule of the loans such that, on the borrower’s payday, the Tucker Payday Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Tucker Payday Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. With TUCKER and MUIR’s approval, the Tucker Payday Lenders proceeded automatically to withdraw such “finance charges” payday after payday (typically every two weeks), applying none of the money toward repayment of principal, until at least the fifth payday, when they began to withdraw an additional $50 per payday to apply to the principal balance of the loan. Even then, the Tucker Payday Lenders continued to assess and automatically withdraw the entire interest payment calculated on the remaining principal balance until the entire principal amount was repaid. Accordingly, as TUCKER and MUIR well knew, the Tucker Payday Lenders’ TILA box materially understated the amount the loan would cost, including the total of payments that would be taken from the borrower’s bank account. Specifically, for a customer who borrowed $500, contrary to the TILA Box disclosure stating that the total payment by the borrower would be $650, in fact, and as TUCKER and MUIR well knew, the finance charge was $1,425, for a total payment of $1,925 by the borrower.
The Sham Tribal Ownership of the Business
In response to complaints that the Tucker Payday Lenders were extending abusive loans in violation of their usury laws, several states began to investigate the Tucker Payday Lenders. To thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes. Beginning in 2003, TUCKER entered into agreements with several Native American tribes (the “Tribes”), including the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, and the Modoc Tribe of Oklahoma. The purpose of these agreements was to cause the Tribes to claim they owned and operated parts of TUCKER’s payday lending enterprise, so that when states sought to enforce laws prohibiting TUCKER’s loans, TUCKER’s lending businesses would claim to be protected by sovereign immunity. In return, the Tribes received payments from TUCKER, typically one percent of the revenues from the portion of TUCKER’s payday lending business that the Tribes purported to own.
In order to create the illusion that the Tribes owned and controlled TUCKER’s payday lending business, TUCKER and MUIR engaged in a series of lies and deceptions. Among other things:
- MUIR and other counsel for TUCKER prepared false factual declarations from tribal representatives that were submitted to state courts, falsely claiming, among other things, that tribal corporations substantively owned, controlled, and managed the portions of TUCKER’s business targeted by state enforcement actions.
- TUCKER opened bank accounts to operate and receive the profits of the payday lending enterprise, which were nominally held by tribally owned corporations, but which were, in fact, owned and controlled by TUCKER. TUCKER received over $380 million from these accounts on lavish personal expenses, some of which was spent on a fleet of Ferraris and Porsches, the expenses of a professional auto racing team, a private jet, a luxury home in Aspen, Colorado, and his personal taxes.
- Employees of TUCKER making payday loans over the phone told borrowers, using scripts directed and approved by TUCKER and MUIR, that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating at TUCKER’s corporate headquarters in Kansas in order to deceive borrowers into believing that they were dealing with Native American tribes.
These deceptions succeeded for a time, and several state courts dismissed enforcement actions against TUCKER’s payday lending businesses based on claims that they were protected by sovereign immunity. In reality, the Tribes neither owned nor operated any part of TUCKER’s payday lending business. The Tribes made no payment to TUCKER to acquire the portions of the business they purported to own. TUCKER continued to operate his lending business from a corporate headquarters in Kansas, and TUCKER continued to reap the profits of the payday lending businesses, which generated over $3.5 billion in revenue from just 2008 to June 2013 – in substantial part by charging struggling borrowers high interest rates expressly forbidden by state laws.
* * *
TUCKER, 55, and MUIR, 46, were convicted in all 14 counts in the Indictment, including one count of conspiring to commit racketeering through the collection of unlawful debt, three counts of participating in a racketeering enterprise through the collection of unlawful debt, one count of conspiring to commit wire fraud, one count of wire fraud, one count of conspiring to commit money laundering, two counts of money laundering, and five counts of violating TILA.
Mr. Kim praised the outstanding investigative work of the St. Louis Field Office of the IRS-CI. Mr. Kim also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the Federal Trade Commission for their assistance with the case.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor, Hagan Scotten, and Sagar Ravi are in charge of the prosecution.
Schenectady Man Sentenced for Firearm and Drug OffensesRead the Press Release
ALBANY, NEW YORK – Dujuan Pleasant, 35, of Schenectady, New York, was sentenced today to serve 120 months in prison for distributing crack cocaine and possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Mae A. D’Agostino also ordered that Pleasant serve a four-year term of supervised release following his release from federal prison.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA).
Pleasant, who pled guilty in June 2017, admitted that he distributed over 100 grams of crack cocaine in 2016. He also admitted that he possessed an Arminius .22 caliber revolver, a Kel-Tec .32 caliber semi-automatic handgun, 33 rounds of ammunition, several digital scales, as well as cocaine and ecstasy at his residence. Pleasant admitted that he kept both firearms in his residence to protect his drugs and drug proceeds from third parties.
This case was investigated by the DEA and the Saratoga County Sheriff’s Department and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Salvadoran citizen charged with usurping identity of Puerto Rican manRead the Press Release
A federal grand jury returned a three-count indictment charging Jose E. Carrillo-Abrego, 33, a citizen of El Salvador, with usurping the identity of a Puerto Rican man to conceal his illegal presence in the United States, U.S. Attorney Justin E. Herdman said.
Assistant United States Attorneys Robert W. Kern and Elliot Morrison are prosecuting the case following an investigation by the United States Border Patrol.
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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Salinas Residents and Others Charged in Drug Distribution Conspiracy and Related CrimesRead the Press Release
SAN JOSE- A federal grand jury indicted five individuals for their respective roles in an alleged conspiracy to engage in a methamphetamine trafficking network, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. A sixth defendant was named in the indictment and charged along with one of the conspirators with using a telephone to facilitate the sale of methamphetamine. The indictment was unsealed today.
The indictment alleges that between March 2017 and September 2017, the conspiracy involved an agreement to distribute and to possess with intent to distribute methamphetamine. In addition, some of the defendants were charged with related crimes, including possessing with intent to distribute methamphetamine, distributing methamphetamine, and use of a communication facility to commit a felony drug offense. The precise charges against each defendant, as well as their ages and places of residence, are set out in the chart below.
Defendant
Age/
Residence
Charges
Statute
OSCAR GONZALEZ QUEVEDO, a/k/a “Oscar Quevedo Gonzalez,” a/k/a “El Oso,”
34/Mexicali, Mexico
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Distribution of 500 Grams or More of Methamphetamine (3 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
FRANCISCO PUGA CAMACHO, a/k/a “Francisco Puga Garcia,”
a/k/a/ “Frank Puga,”
48/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Possession With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(iii)
Distribution of 500 Grams or More of Methamphetamine (3 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
Use of Communication Facility (Telephone) to Commit Felony Drug Offense
21 U.S.C. § 843(b)
HORACIO QUINTANA
22/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Possession With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
Distribution of 500 Grams or More of Methamphetamine (2 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
JOEL QUINTANA MEDINA
25/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Distribution of 500 Grams or More of Methamphetamine (2 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
JESUS BERNAL NUNEZ, a/k/a “Animal,” a/k/a “Jesse James,”
33/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Distribution of 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
NESTOR TAVAREZ
50/Gonzalez, CA
Use of Communication Facility (Telephone) to Commit Felony Drug Offense
21 U.S.C. § 843(b)
The indictment was filed September 28, 2017, and describes four transactions in which two or more of the defendants are alleged to have possessed or distributed methamphetamine.
Each of the following defendants was arrested and appeared in court on October 12, 2017: Francisco Puga Camacho, Joel Quintana Medina, and Jesus Bernal Nunez Nestor Tavarez. The coordinated arrests and searches took place in Salinas, Greenfield, Castroville, and Gonzalaz. The defendants made their initial appearances before Magistrate Judge Nathanael M. Cousins on October 12, 2017. Quevedo, pictured below, remains a fugitive.
The case has been assigned to the Honorable Lucy H. Koh, United States District Judge, for Northern District of California.
In addition to the indictment, two criminal complaints were filed as a result of this investigation, and two additional defendants were arrested.
Alejandro Dominguez Hernandez was charged by complaint with distribution of a controlled substance in violation of 21 USC§ 841 (a)(1), (b)(1)(B). According to the affidavit supporting the complaint, Hernandez distributed approximately one pound of methamphetamine to a confidential source on October 5, 2017, in Salinas, California.
Ernesto Calderon Ramirez was charged by complaint with distribution of a controlled substance in violation of 21 USC§ 841 (a)(1), (b)(1)(B). According to the affidavit supporting the complaint, Ramirez attempted to dispose of quantities of methamphetamine and cocaine when agents executed a search warrant at a residence in Greenfield, California.
Indictments and Complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalties for the crimes of which the defendants have been accused are as follows:
CHARGE
STATUTE
MAXIMUM PENALTY
(per count)
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Minimum 10 years imprisonment
Maximum lifetime imprisonment
Minimum 5 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii)
Minimum 10 years imprisonment
Maximum lifetime imprisonment
Minimum 5 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Distribution of 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
Minimum 5 years imprisonment
Maximum 40 years
Minimum 4 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $5,000,000 fine
Use of Communication Facility (Telephone) to Commit Felony Drug Offense
21 U.S.C. § 843(b)
Maximum 4 years imprisonment
Further, additional fines, forfeitures, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jeffery Backhus is prosecuting the cases with assistance from Ryka Bargi. The prosecution is the result of an investigation by the FBI with assistance from the DEA (including the DEA San Jose Task Force Group and the DEA San Francisco Field Division SRT), the U.S. Marshal Service, the California Department of Corrections, the Unified Narcotic Enforcement Team, the Peninsula Regional Violence and Narcotic Team, the Santa Cruz County Anti-Crime Team, and the California Highway Patrol.
These cases are the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Reserve Men Plead Guilty to Gun and Drug Charges, and Retaliation Against a WitnessRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that GARRICK JONES, age 38, and RESHAD FRANK, age 39, both of Reserve, pled guilty yesterday to charges relating to narcotics trafficking, illegal possession of a firearm, and retaliation against a witness.
According to court documents, JONES conspired with others to distribute at least 28 grams of cocaine base (“crack”), and FRANK conspired to distribute a quantity of cocaine hydrochloride. For the drug charges, JONES faces a term of imprisonment of at least five and up to forty years, a fine of $5,000,000, and at least four years of supervised release following any term of imprisonment. FRANK faces a term of imprisonment of up to twenty years, a fine of $1,000,000, and at least three years of supervised release following any term of imprisonment.
JONES also pled guilty to retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense. For that charge, JONES faces a term of imprisonment of up to twenty years, a fine of $250,000, and up to three years of supervised release following any term of imprisonment.
JONES, who was previously convicted of a felony, also pled guilty to illegal possession of a firearm by a felon. JONES possessed a Smith and Wesson .38 caliber pistol. For that charge, JONES faces a term of imprisonment of up to ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
Judge Jane Triche Milazzo set sentencing for January 18 2018.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Postal Service letter carrier and Euclid man indicted for receiving two kilograms of methamphetamineRead the Press Release
A U.S. Postal Service letter carrier and a Euclid man were indicted for a conspiracy in which they received more than two kilograms of methamphetamine from California, U.S. Attorney Justin Herdman said.
Marquacia Deshawn Morris, 26, of Woodmere, and Devon Williams, 23, of Euclid, were indicted on one count of conspiracy to possess with intent to distribute more than two kilograms of methamphetamine. Kevin Williams, also 23 and of Euclid, was indicted on one count of possession with intent to distribute heroin.
A package containing 2214 grams of methamphetamine was mailed from California to Beachwood on Sept. 7. Four days later, Morris, a U.S. Postal Service letter carrier, accepted the package and began her daily assigned mail route, according to the indictment.
She diverted from her daily mail route on Sept. 11 and travelled to 27020 Cedar Road in Beachwood, where she met Devon Williams. He accepted the package and transported it to 440 Richmond Park East in Richmond Heights, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the U.S. Postal Service’s Office of Inspector General and the U.S. Postal Inspection Service, with assistance from the Willoughby Hills Police Department. It is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pocola Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUANE RAY BRYANT, age 31, of Pocola, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(C), punishable by not more than 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The Indictment alleged that on or about January 29, 2017, within the Eastern District of Oklahoma, the defendant, DUANE RAY BRYANT, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Sallisaw Police Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Pleasants County woman admits to charges involving the theft of social security benefitsRead the Press Release
CLARKSBURG, WEST VIRGINIA - A St. Marys, West Virginia woman has admitted to a theft charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Anne Louise Hall, age 57, pled guilty to one count of “Theft of Government Money.” Hall admitted to collecting social security benefits under false pretenses. The crime occurred from October 2006 to March 2017.
Hall faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Social Security Administration Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pensacola Man Sentenced to 10 Years in Federal Prison for Illegal Firearm Possession and Selling MethamphetamineRead the Press Release
PENSACOLA, FLORIDA – Anthony J. Fountain, 23, of Pensacola, was sentenced today to 10 years in federal prison after pleading guilty on July 20 to possession of a firearm by a convicted felon and two counts of distributing methamphetamine. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May 2017, an undercover agent purchased approximately 57.3 grams of methamphetamine from Fountain for $1,800. Several days later, the agent purchased a firearm from Fountain, a previously convicted felon, for $150. The next day, the agent purchased approximately 70.3 grams of methamphetamine from Fountain for $2,350. Upon completion of the last methamphetamine transaction, law enforcement officers approached Fountain, who fled and began to throw potential evidence into Pensacola Bay. The discarded evidence was retrieved, and Fountain was arrrested.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Federal Bureau of Investigation; Customs and Border Protection; the Florida Department of Law Enforcement; the Escambia County Sheriff’s Office; the Pensacola Police Department; and the State Attorney’s Office for the First Judicial Circuit. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Carolina Man Pleads Guilty to Fraud ChargesRead the Press Release
Harrisonburg, VIRGINIA – A North Carolina man, who previously lived in Frederick County, Virginia, pleaded guilty today to federal wire fraud conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Michael Dean Kent, a.k.a. “Michael Dean,” a.k.a. “Michael Scott,” age 57, most recently of Franklin County, North Carolina, and formerly of Frederick County, Virginia, waived his right to be indicted and pleaded guilty today to a one count Information charging him with conspiracy to commit wire fraud.
According to evidence presented at today’s hearing by Assistant United States Attorney Erin M. Kulpa, between 2014 and 2017, Kent and his co-conspirators targeted more than 500 victims across the United States who owned interests in timeshare properties and made false representations, by phone and by email, to convince the victims to sign property transfer contracts and to send currency under false pretenses to them, via mail.
During this time, Kent and his co-conspirators represented themselves to be employed at two different companies, The Holiday Property Group and Vacation Properties by Owner. Kent incorporated both entities, served as the principal of both, operated both and took significant steps to make both appear legitimate. Kent, and his coconspirators, established websites, paid for commercial post office boxes in various states, paid for memberships in business rating organizations such as the Better Business Bureau, applied for and received a federal tax identification number, and had corporate credit and debit cards in the names of the businesses.
After identifying timeshare owners (victims), Kent and his co-conspirators would introduce the victims to another coconspirator who posed as the “buyer” by assuming a false identity that included a different name and email address. The co-conspirator posing as the buyer communicated with the victim by phone and email would agree to purchase the victim’s property, often at the asking price, and would tell the victim they were going to use The Holiday Property Group/Vacation Properties by Owner [HPG/VPO] for the sale. The same “buyer” was in contact with multiple victims at one time.
Kent, and his co-conspirators, would then contact the victim to inform them they needed to send The Holiday Property Group/Vacation Properties by Owner money, typically between $500 and $1,500, to cover costs associated with the sale/transfer, such as “closing costs” or resort “transfer fee.” Kent represented that any fees would be held in escrow, and were refundable at any time. In fact, the fees received were not held in escrow, but instead were deposited into the accounts of HPG/VPO.
Throughout the course of this conspiracy, Kent and his coconspirators defrauded a total of over $550,000 from the victims he targeted. Kent usually immediately withdrew much of the money deposited from the victim payments to use for his own personal expenses, pay for expenses needed to continue the scheme, or to pay his coconspirators for their role in the criminal scheme.
The investigation of the case was conducted by the United States Postal Inspection Service, the Virginia Office of the Attorney General, and the Frederick County Sheriff’s Office. Assistant United States Attorney Erin M. Kulpa and Trial Attorney Andrew Tyler of the Department of Justice’s Fraud Section prosecuted the case for the United States.
Niceville Man Sentenced to More Than Eleven Years in Prison for Federal Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Jeremy Langston Alford, 34, of Niceville, was sentenced yesterday to serve 135 months in prison after pleading guilty on July 31, 2017, to unlawfully possessing a firearm as a convicted felon, possessing stolen firearms, and theft of firearms from the premises of a federal firearms licensed dealer. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On February 24, 2017, Okaloosa County Sheriff’s deputies discovered that Jim’s Guns and Supplies, a federal firearms licensed dealer in Niceville, had been burglarized and a number of firearms, ammunition, and other items had been stolen. Evidence recovered from the crime scene led officials to a shed belonging to Alford’s relative. Officials recovered 39 firearms and numerous rounds of ammunition from inside the shed and the residence. Further investigative efforts led to the recovery of more than 60 firearms, as well as numerous rounds of ammunition, and multiple pieces of tactical equipment, including a gas mask that were all stolen from Jim’s Guns and Supplies. On February 26, 2017, Alford was arrested and admitted to burglarizing Jim’s Guns and Supplies and stealing firearms, ammunition, and other items.
This case resulted from investigations by the Okaloosa County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant U.S. Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Man Convicted of Armed Bank RobberyRead the Press Release
A man who robbed the Citizens State Bank in Hopkinton, Iowa, was convicted by a jury yesterday after a three-day trial in federal court in Cedar Rapids.
Daniel Louis Jackson, 27, from Younkers, New York, was convicted of armed bank robbery, conspiracy to commit armed bank robbery, aiding and abetting the use, carrying, and brandishing of a firearm during a crime of violence, and conspiracy to use, carry, and brandish a firearm during a crime of violence. The verdict was returned yesterday following about two hours of jury deliberations.
The evidence at trial showed that Jackson moved to Muscatine, Iowa, during the summer of 2016 along with his co-defendant, Jason Centeno. While in Iowa, Jackson and Centeno reach an agreement to rob the Citizens State Bank in Hopkinton, Iowa. Prior to the robbery, Jackson obtained a .38 caliber revolver from an individual in Detroit, Michigan. On the morning of October 21, 2016, Jackson and Centeno drove Jackson’s car from Muscatine to Hopkinton. Centeno entered the bank brandishing the firearm, while Jackson carried a knife. Both men jumped over the bank counter and demanded money from the two employees working at the time. While Centeno collected money from one teller, Jackson forced the other teller to place her hands behind her back and restrained her using zip ties. Jackson and Centeno had purchased the zip ties together the day before at the Wal-Mart in Muscatine.
During the robbery, a third bank employee entered the bank. Jackson also ordered him to place his hands behind his bank and secured his hands with zip ties. Jackson and Centeno left the bank, taking approximately $8,000, and then returned to Muscatine. Jackson and Centeno the fled from Iowa, first to Younkers, New York, and later to Florida where they were eventually arrested by the Volusia County Sheriff’s Office.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Jackson remains in custody of the United States Marshal pending sentencing. Jackson faces a mandatory minimum sentence of seven years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $400 in special assessments, and 20 years of supervised release following any imprisonment.
On September 14, 2017, Centeno pled guilty to armed bank robbery and using, carrying, and brandishing a firearm during a crime of violence. Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Centeno remains in custody of the United States Marshal pending sentencing. Centeno faces a mandatory minimum sentence of seven years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, $200 in special assessments, and 10 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Jacob Schunk and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, the Delaware County Sheriff’s Office, the Muscatine County Sheriff’s Office, the Muscatine Police Department, the Manchester Police Department, the Yonkers Police Department, and the Volusia County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-2057.
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New Jersey Woman Guilty of Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Briani Gomez, age 21, of New Jersey, pleaded guilty on October 12, 2017, before U.S. District Court Judge Malachy E. Mannion, to participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine.
According to United States Attorney Bruce D. Brandler, Gomez admitted to transporting more than 100 grams of heroin (which is equivalent to more than 4,000 retail bags of heroin) to co-conspirators in Maine during 2012 through June 2014.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing for Gomez will be scheduled at a later date.
Gomez was indicted along with three other people by a federal grand jury in October 2016, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, the Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a 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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National Children’s Advocacy Center in Huntsville Receives $2 Million in DOJ GrantsRead the Press Release
HUNTSVILLE – The Department of Justice has awarded grants totaling $2.1 million to the National Children’s Advocacy Center for the 2017 fiscal year, announced U.S. Attorney Jay E. Town and NCAC Executive Director Chris Newlin.
The Huntsville Center is receiving the funding through the Office of Juvenile Justice and Delinquency Prevention’s Victims of Child Abuse grant programs. Under the Training and Technical Assistance for Child Abuse Professionals program, the center received $900,000 to develop a training program for state and local professionals who shepherd child abuse victims through the judicial system. It also received a $1.2 million grant under the VOCA Act Regional Children’s Advocacy Centers Program to support the Southern Regional Children’s Advocacy Center, which provides training and technical assistance to state chapters, other children’s advocacy centers, and multidisciplinary teams in 16 states and the District of Columbia.
“I am so pleased to be able to announce that the Department of Justice has awarded grants totaling more than $2 million to the National Children’s Advocacy Center this year,” Town said. “This center is renowned for the training and support it provides the many professionals who work with child abuse victims and strive to improve the judicial system’s handling of their cases.”
“The NCAC is honored to be awarded these two grants, which will allow us to continue providing the highest quality child abuse training and technical resources for professionals working throughout the United States,” Newlin said. “The Department of Justice has continuously funded these two projects at the NCAC for more than 20 years. This is testament to the quality of training and technical assistance we have provided during that time, which also has seen the number of CACs in the United States increase to more than 900 in 2017, serving more than 300,000 children per year. At the same time, our nation has seen the sexual abuse of children decline by almost 50 percent! We are making progress, and the NCAC and this community have played a pivotal role in this regard.”
The Huntsville Center was the first child advocacy center in the country, and it continues to provide prevention and intervention services for child abuse in Huntsville and Madison County. It also houses the NCAC Training Center, the Southern Regional Children’s Advocacy Center, NCAC Virtual Training Center, and the Child Abuse Library Online – CALiO.
The purpose of the two grants is to develop and implement a model training and technical assistance program to improve the judicial system's handling of child abuse and neglect cases and enhance the expertise of child abuse professionals.
The program will provide training and support for multidisciplinary teams of child abuse professionals at the state and local levels, and will develop resources and publications designed to enhance the coordinated multidisciplinary response to child abuse.
The training by the National Children’s Advocacy Center will emphasize the implementation of developmentally appropriate, trauma-informed and evidence-based programs, policies and practices. Training will address topics including Forensic Interviews at Trial: Preparation and Presentation Training; Building Forensic Interviewing Skills Training; Conducting Child Abuse Investigations for Child Protective Services, and Law Enforcement Training for CPS Investigators and Law Enforcement Investigators.
The grants also will help the advocacy center provide scholarships for child abuse professionals to the International Symposium on Child Abuse and offer new, recorded online child-abuse response training sessions and provide new webinars on high-priority child-abuse response topics. The center will continue to provide archived webinars and online trainings. Through its technical assistance efforts, the NCAC will provide technical assistance via online Mentoring and Consultation Groups for Forensic Interviewers and online Consultation and Support Groups for Supervisors of Child Forensic Interviewers.
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Monongalia County woman admits to maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - A Morgantown, West Virginia woman has admitted to having a drug-involved premises, Acting United States Attorney Betsy Steinfeld Jividen announced.
Brianna Blackman, also known as “BB,” age 22, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Blackman admitted to maintaining an apartment in Rhea Terrace in Fairmont in Marion County, West Virginia for the purpose of distributing oxycodone. The crime occurred from May until December 2016.
Blackman faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Milton Man Sentenced to 40 Years in Prison for Online Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Danny Ray Murphy, 37, of Milton, was sentenced today to 40 years in prison, after being convicted on June 14 of conspiracy, receipt of child pornography, and possession of child pornography involving a minor under age 12. As part of his sentence, Murphy will be required to register as a sex offender. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During the trial, the jury reviewed three months of online communications between Murphy and a co-conspirator, including images and a video of the co-conspirator sexually assaulting a three-year old child. These communications along with forensic evidence from Murphy’s cellular telephone, revealed he was attempting to gain personal access to the three-year-old for the same purpose.
U.S. Attorney Canova said: “Children’s lives are easily influenced by their early experiences, and they trust adults to keep them safe. As such, it is especially horrific that this long-lasting harm was inflicted upon a vulnerable child. My office and our law enforcement partners are committed to pursuing these child predators to protect our communities and to rescue defenseless children.”
HSI Tampa Special Agent in Charge James C. Spero said: “HSI special agents will continue to investigate these crimes and ensure the criminals are brought to justice for preying on our kids.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Escambia County Sheriff’s Office, the Pensacola Police Department, the State Attorney’s Office for the 1st Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Michigan man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Julian Michael-Thomas “Cain” Johnson, of Detroit, Michigan, was sentenced today to 40 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Thomas, age 22, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location” in June 2017. The crime occurred November 2016 near West Virginia University in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Mexican National Pleads Guilty to Aggravated Identity Theft and Passport Fraud ChargesRead the Press Release
ALBUQUERQUE – Juan Manuel Almanza-Martinez, 58, a Mexican national illegally residing in the United States, pled guilty yesterday in federal court in Las Cruces, N.M., to making false statements on a passport application and aggravated identity theft charges.
Almanza-Martinez was arrested on July 19, 2017, on a criminal complaint charging him with making a false statement in an application for a passport in Dona Ana County, N.M. An investigation into Almanza-Martinez was initiated in Feb. 2017, by the Las Cruces office of Homeland Security Investigations (HSI) after agents received information that Almanza-Martinez was illegally residing in Anthony, N.M. According to the complaint, the Social Security Administration (SSA) interviewed Almanza-Martinez in 2015, after he applied for Social Security benefits in El Paso, Tex., after learning that the Social Security number Almanza-Martinez provided had been reported stolen from the victim approximately 30 years earlier. The complaint further alleged that Almanza-Martinez fraudulently used the victim’s Social Security number to apply for replacement Social Security cards in Jan. 2008 and Sept. 2008; for a passport in Nov. 1999, March 2009, and Dec. 2009; and for unemployment benefits in July 2015.
Court filings reflect that Almanza-Martinez was previously deported from the United States in 1982, following a felony conviction for second-degree burglary in Colorado. They further reflect that in 1990, Almanza-Martinez admitted lying to the U.S. Immigration and Naturalization Service (USINS) in 1982, about his name and being a Mexican national, and provided the USINS with a false birth certificate from the State of California. Due to a lack of available information, the USINS was unable to verify Almanza-Martinez’s citizenship and no further action was taken against Almanza-Martinez at that time. On March 3, 2017, a certified copy of Almanza-Martinez’s Mexican birth certificate was provided to HSI confirming that Almanza-Martinez was born in Chihuahua, Mexico in 1959.
During yesterday’s proceedings, Almanza-Martinez pled guilty to a felony information charging him with making a false statement in an application for a passport on Dec. 10, 2009, and aggravated identity theft on July 18, 2017. According to the information, Almanza-Martinez committed the offenses in Dona Ana County. The guilty plea was entered without the benefit of a plea agreement.
At sentencing, Almanza-Martinez faces a maximum penalty of five years in federal prison on the false statement on an application for a passport charge. He also faces a mandatory minimum penalty of two years in federal prison on the aggravated identify theft charge which must be served consecutive to any other sentence imposed. A sentencing hearing has yet to be scheduled.
This case was investigated by the Diplomatic Security Service of the U.S. Department of State, Las Cruces office of HSI and the SSA Office of Inspector General. Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Mexican Man Admits Illegal Transportation of Alien Within the United StatesRead the Press Release
ALBANY, NEW YORK – Wilder Arreola-Medel, 45, of Milwaukee, Wisconsin, pled guilty today to transporting an alien within the United States, announced Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
In pleading guilty, Arreola-Medel admitted that on September 17, 2017, while driving his car along the international border near Chateaugay, New York, he picked up a Mexican citizen who had just crossed the border illegally from Canada, and was driving her away from the border area when he was stopped and arrested by U.S. Border Patrol agents. Arreola-Medel admitted that he intended to transport the Mexican citizen to Milwaukee, Wisconsin.
As a result of his conviction, Arreola-Medel faces up to 5 years in prison and a fine of up to $250,000, and a term of post-imprisonment supervision of up to 3 years when he is sentenced by U.S. District Court Judge Mae A. D’Agostino on February 2, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The smuggled alien, Judith Hernandez-Daniel of Mexico, pled guilty to Entering the United States Without Inspection by Immigration Authorities, and was sentenced to a 20-day period of imprisonment on October 3, 2017.
This case was investigated by the United States Border Patrol, Burke Station, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Maryland Real Estate Flipper Sentenced to Prison for Obstructing IRS and Failing to File Tax ReturnsRead the Press Release
A Maryland man who bought, improved and sold residential real estate was sentenced to 36 months in prison announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the indictment and evidence presented for sentencing, David J. Simard, 58, purchased and sold real estate in Maryland and the Washington, D.C. metropolitan area since the mid-1980s. In January 2008, Simard received notice that the Internal Revenue Service (IRS), in connection with an audit of his personal income taxes, had requested documents and information from third parties regarding his real estate transactions. Less than one month after receiving this notice, Simard created Pegasus Home Corporation and began buying and selling properties in its name instead of his own. From 2009 through 2010, Simard purchased and sold 96 properties in the name of Pegasus. Simard attempted to conceal his ownership and control of Pegasus by falsely representing that his relative was the owner. Simard had the same relative apply with the IRS for an employer identification number for Pegasus and used that number when buying and selling properties. This caused the IRS to receive information falsely indicating that the relative owned Pegasus. Simard also instructed the relative to open a bank account for Pegasus. Simard did not file timely personal tax returns for tax years 2009 and 2010, despite earning income requiring him to file. He also did not file timely corporate tax returns for Pegasus for the same years despite having an obligation to do so. Simard last filed a timely personal income tax return in 1995. The court found that Simard caused a tax loss of $1.5 million.
In addition to the term of prison imposed, U.S. District Judge Roger W. Titus ordered Simard to serve one year of supervised release and to pay a $10,000 fine. Simard previously pleaded guilty on July 10 to obstructing the lawful functions of the IRS and failing to file personal and corporate income tax returns.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Marrero Woman Sentenced to One Year Imprisonment for Healthcare FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MONICA SYLVEST, age 52, of Marrero, was sentenced today after previously pleading guilty to health care fraud.
U.S. District Judge Susie Morgan sentenced SYLVEST to serve one year and one day imprisonment, restitution in the amount of $536,724, and three years of supervised release.
According court documents, from August 2014 through September 2016, SYLVEST worked as a Practice Administrator for a local pediatric clinic. During her employment, SYLVEST embezzled and diverted to her personal use approximately $536,724 in medical reimbursements from the Medicaid program in connection with the delivery of and payment for health care benefits, items, and services paid to the clinic. As the Practice Administrator, SYLVEST utilized a business credit card issued by American Express and made over $536,000 in unauthorized charges to purchase several luxury items including a Harley Davidson motorcycle, custom diamond jewelry, and collectible artwork. SYLVEST then accessed her employer’s bank account containing the Medicaid reimbursements to make transfers and payments to cover the illegal purchases. SYLVEST disguised the payments made to American Express as “biologicals” or “vaccinations” in order to make it appear that the expenses were related to the normal operations of the clinic.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the U.S. Department of Health and Human Services in investigating this matter. The prosecution of this case is being handled by Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Man Sentenced to 43 Months’ Imprisonment for Unlawful Gun PossessionRead the Press Release
A man who drove by a house in Waterloo, Iowa, and fired a gun twice at the detached garage was sentenced yesterday to more than three years in federal prison.
Dayton Jay Myers, age 21, from Waterloo, Iowa, received the prison term after a June 1, 2017, guilty plea to possession of a firearm by a drug user.
At the sentencing hearing, Myers admitted that he drove to the Waterloo residence on the night of January 3, 2017, to send a message to a person who was threatening him after a failed drug deal. Myers drove up and down the street beside the house before firing a stolen handgun twice at the detached garage, striking the garage and a parked vehicle. At the time he fired the gun, Myers was under the influence of alcohol and marijuana.
Myers was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Myers was sentenced to 43 months’ imprisonment and a special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Myers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2018-LRR.
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Man Sentenced for Defrauding Woman of $377,000Read the Press Release
NORFOLK, Va. – A Winchester man was sentenced today to nearly 6 years in prison for defrauding a woman of approximately $377,000 based on false statements that included a fraudulent inducement of marriage.
Harry Randall Withers, Jr., 38, pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property on June 27. According to court documents, Withers made a series of false representations to a woman to induce her to lend him approximately $377,000. Withers told the woman he was the owner of a wine and cheese bar and that his employees had embezzled from him, when in fact he was the manager of the bar and had embezzled from the actual owner. Wither also told the woman he was a member of an affluent family that had founded Union Camp Corporation, a pulp and paper company that was later acquired by International Paper; that his grandmother had died and left him a large inheritance that he would use to repay a loan; and that the IRS had frozen his bank accounts. He made the further false representation that if they were married, it would solve tax and legal issues that were preventing him from accessing his money and that he would then be able to repay her. In reliance on these misrepresentations, the woman married Withers and lent him the money, which he used for his own benefit with no intention of repaying her. Withers wrote a series of checks that purported to be in partial repayment of the money the woman had lent him, but they were written on funds that had insufficient funds or were closed. He also forged the woman’s signature on checks written on her account that he made payable to himself.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-166.
Justice Department Settles Immigration-Related Discrimination Claim Against Florida RestaurantRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Ark Rustic Inn LLC d/b/a Rustic Inn Crabhouse (Rustic Inn), a restaurant located in Fort Lauderdale, Florida. The agreement resolves the department’s investigation into whether Rustic Inn discriminated against work-authorized immigrants when verifying their employment authorization, in violation of the Immigration and Nationality Act (INA).
The department’s investigation revealed that Rustic Inn routinely requested that work-authorized non-U.S. citizens present specific documents, such as Permanent Resident Cards or Employment Authorization Documents, to verify their citizenship status information, but did not subject U.S. citizens to such verification. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status or national origin.
Under the settlement, Rustic Inn will pay a civil penalty to the United States, train its staff, post notices informing workers about their rights under the INA’s anti-discrimination provision, and be subject to departmental monitoring for three years.
“Employers, large and small, must be aware of their legal obligations to avoid imposing barriers to employment based on citizenship status or national origin,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We commend Rustic Inn for its cooperation throughout this investigation and its commitment to ensure compliance with the law.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.