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12 October 2017
Former Chemours Employee Charged with Conspiracy to Steal Trade Secrets in Connection with Plan to Sell Trade Secrets to Chinese InvestorsRead the Press Release
WILMINGTON, Del. – A federal grand jury in Wilmington has charged a former Chemours employee with conspiring to steal trade secrets and attempting to monetize them with Chinese investors, announced Acting U.S. Attorney David Weiss and Gordon B. Johnson, Special Agent in Charge of the FBI Baltimore Division.
According to the indictment, the conspiracy involved sodium cyanide, a chemical used in mining and for which Chemours is the world’s largest producer. Chemours, based in Wilmington, performs the research and development for sodium cyanide at the Experimental Station in Wilmington. Sodium cyanide is most often used to mine gold, silver, and other precious metals. Earlier this summer, Chemours broke ground on a $150 million sodium cyanide plant in Mexico.
The individual charged in the indictment is Jerry Jindong Xu, who moved from China to North America in 2011 while employed by DuPont, and became a Chemours employee when Chemours spun off of DuPont in 2015. Xu, terminated by Chemours in 2016, was a marketing professional specializing in sales of sodium cyanide. Xu was aided by an unnamed co-conspirator, who was also a longtime DuPont employee before leaving the company in 2014 to open a cyanide and mining consulting business.
According to the indictment, Xu completed several overt acts in furtherance of the conspiracy. His main objective was either to help investors build a competing sodium cyanide plant or become an import competitor in North America. Over the course of one year, all while employed at Chemours, he:
- Misled colleagues and fabricated assignments in order to accumulate vast amounts of pricing and other information, including obtaining passwords for spreadsheets.
- Contacted potential Chinese investors to solicit funding for building a sodium cyanide plant. They would communicate in English and Chinese, sometimes over an encrypted Chinese messaging service.
- Explained to one Chinese investor that he wanted to do this project “for himself and not to slave away at this only to benefit someone else”
- During a 2016 trip to China, accessed Chemours documents and told his co-conspirator he had “out-of-the-big (sic) ideas cooking” that he was anxious to discuss. He also asked how much their plant project would be worth. “Would you say in the millions?”
- Created a company, made his wife the director, and executed a non-disclosure agreement with his co-conspirator.
- Asked for and received a tour of Chemours’ sodium cyanide plant, during which he secretly took pictures of plant system diagrams and sent them to himself.
- In the week after he was notified of his termination, he copied and/or sent himself many Chemours confidential documents, and then falsely certified that he had returned all Chemours files.
Xu is charged with conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5). The maximum penalties he faces are 10 years imprisonment and a $250,000.00 fine. Xu was arrested in New York in August and arraigned in Wilmington on September 28, 2017.
Chemours was formed in July of 2015 after the DuPont Corporation separated its performance chemicals business line from its other business. Chemours is a publicly traded corporation with its corporate headquarters located in Wilmington, Delaware. It is the world’s largest sodium cyanide producer.
“We are committed to prosecuting anyone—be they rogue actors or foreign nations—who tries to line their pockets by jeopardizing the hard work our businesses perform every day,” said Acting U.S. Attorney Weiss. “This brazen conduct goes to the heart of intellectual property protection and our office will aggressively and diligently pursue anyone who breaks laws and threatens corporate innovation.”
FBI Special Agent-in-Charge Johnson said, “The FBI investigation and this indictment reveal a broken trust from a company employee who stole trade secrets in a structured, multi-faceted fashion,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “The FBI will vigorously investigate cases whenever trade secrets are stolen or otherwise compromised. Private sector entities should be alert to protect trade secrets, and report indicia of their theft to the FBI."
The case is being prosecuted by Assistant United States Attorneys Jamie McCall and Alexander Mackler. The investigation, which is ongoing, is being conducted by the FBI.
Former Chairman of the North Hempstead Democratic Party and Nassau County Board of Elections Pleads Guilty to Tax EvasionRead the Press Release
Earlier today at the federal courthouse in Central Islip, Gerard Terry pleaded guilty to one count of tax evasion for the tax years 2000 through 2015 in the amount of $992,057. The proceeding took place before United States District Judge Joanna Seybert. When he is sentenced, Terry faces a maximum of five years’ imprisonment, a fine of up to $100,000 and mandatory restitution to the Internal Revenue Service.
The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).
According to court filings and facts presented during the plea proceedings, Terry, an attorney licensed to practice in New York State, attempted to evade substantial income tax due and owed by him, even though he earned income from numerous government and quasi-government positions in Nassau County, including the Democratic Party in the town of North Hempstead, the Nassau County Board of Elections, the Town of North Hempstead, the Long Beach Housing Authority, the North Hempstead Housing Authority, the Freeport Community Development Agency, the Roosevelt Public Library, the Village of Port Washington, and the Village of Manorhaven. Since January 2000, despite earning over $250,000 per year, Terry has failed to pay a federal tax debt of over $1.4 million which includes additional fees, interest and penalties.
During the period charged in the indictment, Terry routinely failed to file personal Form 1040 tax returns, filing years later and only after vigorous pursuit by the IRS. Even then, Terry filed Forms 1040 that contained false information and failed to report income. Moreover, Terry has still failed to file returns for tax years 2009 and 2010. Terry also evaded the IRS’s attempts at levy collection by cashing hundreds of wage and compensation checks worth over $500,000, rather than depositing them into checking or savings accounts where they could be seized. When depositing those checks into his bank account, Terry did so in the minimum amounts necessary to cover checks and payments for his own personal expenses and luxury items, thereby making sure there were insufficient funds upon which the IRS could levy. In his communications with the IRS, Terry routinely provided false, misleading and incomplete information to obstruct internal revenue laws. For example, Terry created and utilized a checking account in the name of a corporate nominee so as to conceal income and avoid levy collection. Additionally, Terry had one of his employers make direct payments to his credit card rather than issuing him a paycheck, allegedly to avoid levy collection by the IRS.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution.
The Defendant:
GERARD TERRY
Age: 62
Residence: Roslyn, New YorkE.D.N.Y. Docket No. 17-CR-37 (JS)
Former Army Manager Sentenced to Prison for Taking $1 Million in Illegal GratuitiesRead the Press Release
PITTSBURGH – A resident of Rochester Hills, Michigan, has been sentenced in federal court to 46 months incarceration and a $100,000 fine, on charges of taking illegal gratuities, income tax evasion and making false statements to federal law enforcement officers, United States Attorney Soo C. Song announced today.
Judge Schwab imposed the sentence on Anthony A. Shaw, 55, of Rochester Hills, Michigan.
According to the information presented to the court, Shaw was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as U.S. Army High Mobility Multipurpose Wheeled Vehicle (hereinafter Humvees) at the U.S. Department of Army, Tank-Automotive and Armaments Command (TACOM). TACOM is located in Warren, Michigan, and is the Department of Defense's facility responsible for contracting for design, production, modification and maintenance of vehicles used by the Armed Services. During a wartime buildup, it has been responsible for as much as $65 billion of contracts.
Because of his position at TACOM, Shaw came to know the Buckner brothers, who were 50/50 owners of Ibis Tek, LLC (hereinafter Ibis Tek). Ibis Tek’s main office was located at 912 Pittsburgh Street, Butler, Pennsylvania 16002, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, Saxonburg, PA 16056. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. The Buckners were perennially interested in getting TACOM business. Over time, Ibis Tek held several subcontracts and prime contracts for TACOM.
In addition to his TACOM job, Shaw purchased houses in the Detroit area, and either flipped them or rented them. He owned more than 90 houses when the housing market sank in 2008. Shaw came from Detroit to the Buckners and complained about carrying more than $400,000 of credit card debt, explained that he needed money to avoid bankruptcy, which could result in him losing his job. As a result, from 2008 through 2011 Shaw took $1,055,500 in illegal gratuities from the Buckners. Shaw failed to pay income tax on these monies and ran up a criminal tax liability of $325,800. In addition, when federal agents interviewed Shaw, he lied to them by denying that he ever traveled in a car, a boat or an airplane owned by Thomas Buckner or John Buckner, and denied that he ever stopped to see Thomas or John Buckner in Pennsylvania while on a motorcycle trip, when in fact, he had done each of these things.
There are two more related guilty pleas entered in this investigation and each of these defendants is awaiting sentencing.
Harry H. Kramer, 52, of Wexford, Pennsylvania, pleaded guilty to one count of fraud for his role as CFO of Ibis Tek in a $6,085,709 fraud scheme against TACOM. Counts Two and Three charged him with filing false returns for Ibis Tek for 2009 and 2010.
David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) pleaded guilty to a one-count information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money from Ibis Tek, LLC to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw.
"Today's sentencing, the third of five related cases, is the successful product of a joint investigation conducted by the Defense Criminal Investigative Service (DCIS), the Internal Revenue Service, Criminal Investigation, the U.S. Army Criminal Investigation Command and the U.S. Attorney's Office, Western District of Pennsylvania," stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. "Confidence in the integrity of the public officials working in the DoD procurement process and supply chain is of vital importance to all Americans. DCIS is committed to working with its law enforcement partners to investigate any violations of this public trust.”
"IRS-Criminal Investigation provides financial investigation expertise in our work with our law enforcement partners," said IRS Acting Special Agent in Charge Ed Wirth. "Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentence demonstrates our collective efforts to enforce the law and ensure public trust".
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division for the investigation leading to the successful prosecution of these defendants.
Five MS-13 Gang Members Charged with MurderRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging five members and associates of MS-13 with the murder of Christian Alexander Sosa Rivas, 21, on January 1 at a park in Dumfries.
According to allegations in the indictment, Edgar Oswaldo Blanco Torres, Jose Martir Larios Espenal, Samuel Enrique Villalobos Sanchez, Dimas Misael Canales Santos, and Keyri Sujey Portillo Gonzalez conspired together and with others to kidnap and murder Sosa Rivas because they believed he was a member of a rival gang who was falsely representing himself as a member of MS-13. The indictment further alleges that the defendants kidnapped and murdered Sosa Rivas for the purpose of gaining entrance to and maintaining and increasing position in MS-13, which is an enterprise engaged in racketeering activity.
Name
Age, Country of Origin
Charges
Max Penalty
Edgar Oswaldo Blanco Torres
25, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering;
Murder in Aid of Racketeering;
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Jose Martir Larios Espenal
21, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Samuel Enrique Villalobos Sanchez
19, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Dimas Misael Canales Santos
27, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Keyri Sujey Portillo Gonzalez
19, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorneys Rebeca H. Bellows, J. Tyler McGaughey, and Nicholas U. Murphy are prosecuting the case.
This case was investigated by the FBI's Washington Field Office and the Prince William County Police Department. The Virginia Commonwealth Attorney's Office provided significant assistance with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-238.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Five Gang Members and Associates Indicted in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted five members and associates of the Sureno Mob Trece gang for crimes including drug distribution and unlawful possession of firearms, U.S. Attorney Bart M. Davis announced. The charges stem from an investigation by the Treasure Valley Metro Violent Crimes Task Force.
The indicted defendants are Sebastian Tate Levasseur, 22, of Nampa; Isaac Alexander Carreno, 20, of Nampa; Christian Bradley James Barker, 18, of Meridian; Abel Arturo Negrete, 41, of Nampa; and Thomas Antonio Pinto, 21, of Meridian. All were indicted on October 11, 2017. Levasseur is charged with three counts of distribution of methamphetamine and two counts of unlawful possession of a firearm. Carreno is charged with two counts distribution of methamphetamine and two counts distribution of hydrocodone. Barker is charged with four counts distribution of methamphetamine. Negrete is charged with two counts unlawful possession of a firearm. Pinto is charged with one count distribution of methamphetamine.
Levasseur is currently in the custody of the Idaho Department of Corrections and Barker is currently in custody at the Ada County Jail. Negrete was arrested yesterday. Warrants have been issued for Pinto and Carreno.
Federal drug trafficking charges are generally punishable by up to twenty years in prison, a fine up to $1 million and at least three years of supervised release. Where some of the defendants are charged with distributing higher amounts of methamphetamine, they face a minimum term of incarceration of five years, with a maximum term of up to forty years in prison, a fine up to $5 million and at least four years supervised release.
The charge of unlawfully possessing a firearm is punishable by up to ten years in prison, a maximum fine of $250,000 and up to three years of supervised release.
The indictments are the result of an investigation by the Treasure Valley Metro Violent Crime Task Force. The Task Force was created approximately 12 years ago and is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; the Canyon County Sheriff’s Office; and the Idaho Department of Corrections. The Task Force conducts complex long-term investigations of criminal gangs.
The charges are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury IndictmentsRead the Press Release
Columbia, South Carolina----United States Attorney Beth Drake stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Beaufort Man Indicted on Firearm and Drug Charges. J Dorian M. Allen, age 33, of Beaufort County, was charged in a 3-count indictment with Possession with Intent to Distribute Controlled Substances, a violation of Title 21, U. S. C. §841(a)(1), Possession of a Firearm in Furtherance of a Drug Trafficking Crime, a violation of Title 18, U. S. C. §924(c)(1)(A)(i), and Felon in Possession of Firearm or Ammunition, a violation of Title 18, U. S. C. §922(g)(1). The maximum penalty Allen could receive is 20 years imprisonment and a maximum fine of $1,000,000,. The case was investigated by the Beaufort County Sheriff's Office and Bureau of Alcohol, Tobacco, Firearms and Explosives and is assigned to Special Assistant United States Attorney Carra Henderson of the Charleston office for prosecution.
Two Indicted for Making and Passing Counterfeit Currency. Bryan Lambert, age 30, and Kayla Nichols, age 25, both of Myrtle Beach, South Carolina, were charged in a 4-count Indictment with Making and Passing Counterfeit Currency, a violation of Title 18, United States Code, Sections 471 and 472. The maximum penalty that Lambert and Nichols could receive is 20 years imprisonment. The case was investigated by agents of the United States Secret Service and the Moncks Corner Police Department and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Andrews Woman Indicted for Theft of Government Property. Denise Mack, age 54, of Andrews, South Carolina, was charged in a 1-count Indictment with Theft of Government Property, a violation of 18 U. S. C. § 641. The maximum penalty that Mack could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Eric Matthew Reddick Arrested on Federal Armed Robbery and Firearms ChargesRead the Press Release
Initiative
ALBUQUERQUE – Eric Matthew Reddick, 22, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws. The charges against Reddick arise out of the alleged armed robbery of a convenience store on Oct. 6, 2017, during which Reddick allegedly shot and injured two individuals. Reddick remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for Oct. 13, 2017.
Reddick is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The FBI arrested Reddick early this morning on a criminal complaint charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce and with discharging a firearm during a crime of violence on Oct. 6, 2017, in Bernalillo County, N.M. According to the criminal complaint, on Oct. 6, 2017, Reddick allegedly entered an Albuquerque-area convenience store and placed a pack of gum and a dollar bill on the counter. When the store clerk opened the cash drawer, Reddick allegedly pointed a firearm at the store clerk, and demanded and obtained cash from the store clerk. As he left the convenience store, Reddick allegedly fired several rounds of ammunition at the store clerk and a witness who was taking photographs of him with a cellular telephone, hitting and injuring both of them.
Later that day, officers of the Albuquerque Police Department (APD) arrested Reddick, who was in the vehicle in which he allegedly used to flee from the convenience store, on related state charges, which have been dismissed in favor of federal prosecution. In the vehicle, the officers allegedly observed a firearm during an inventory search.
If convicted on the charges in the criminal complaint, Reddick faces a statutory maximum penalty of 20 years in prison on the Hobbs Act charge. Reddick also faces a statutory mandatory minimum of ten years of imprisonment for discharging a firearm during a crime of violence, which must be served consecutive to any sentence imposed on the other charge. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and APD, with assistance from the 2nd Judicial District Attorney’s Office. Special Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
Reddick ComplaintEl Paso Man Sentenced for Using Interstate Communications to Threaten Las Cruces Police OfficersRead the Press Release
ALBUQUERQUE – Sean Stinson, 33, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to time-served (406 days) in custody for using interstate communications to threaten the lives and safety of Las Cruces Police Department (LCPD) officers. Stinson will be on supervised release for three years.
Stinson was arrested on Sept. 2, 2016, for making telephone calls from El Paso to individuals in Las Cruces during which he threatened the lives of LCPD officers. According to the criminal complaint, Stinson had several telephone calls, including some which were recorded, with LCPD officers during which Stinson threatened to shoot, kill and otherwise injure specific officers.
Stinson subsequently was indicted on Sept. 21, 2016, and was charged with seven counts of transmitting interstate communications with intent to threaten to injure another person. According to the indictment, Stinson committed the crimes between Aug. 24, 2016 and Sept. 2, 2016.
On July 24, 2017, Stinson pled guilty to the indictment and admitted that on Aug. 24 and 25, 2016, he made several telephone calls from El Paso to the LCPD during which he threatened to injure an LCPD officer. Stinson acknowledged that he intended his calls to be perceived as threats.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the LCPD. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
East Hartford Resident Charged with Child Enticement OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging JOSE ANTONIO QUIROZ-MARTINEZ, 26, last residing in East Hartford, with enticement of a minor to engage in sexual activity.
The indictment alleges that in April and May 2017, QUIROZ-MARTINEZ used a cell phone to entice a minor to engage in sexual activity constituting a violation of federal law prohibiting the production of child pornography.
If convicted of the charge, QURIOZ-MARTINEZ faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
QUIROZ-MARTINEZ has been detained since his arrest on related state charges on May 4, 2017.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Eagle Butte Man Convicted of Simple AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that Carlin Jimi Jewett, Jr., a/k/a Jimmy Jewett, Jr., age 37, of Eagle Butte, South Dakota, was found guilty of Simple Assault as a result of a federal jury trial in Pierre, South Dakota.
The charges carry a maximum penalty of 6 months in custody and/or a $5,000.00 fine, a $10.00 special assessment to the Federal Crime Victims Fund, and restitution.
Jewett was indicted by a federal grand jury on May 16, 2017.
The conviction stems from an incident on March 31, 2017, when the defendant held a pocket knife, with the blade exposed, to the neck of a juvenile female at her home in Timber Lake, South Dakota.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date is set for January 2, 2018. The defendant was remanded to the custody of the U.S. Marshals Service.
District Man Sentenced to 4 1/2-Year Prison Term for Robbing Man of His SUV in Northeast WashingtonRead the Press Release
WASHINGTON – Marcquise Smith, 27, of Washington D.C., was sentenced today to a prison term of four and a half years for robbing a man of his sport utility vehicle last summer, U.S. Attorney Jessie K. Liu announced.
Smith pled guilty to a robbery charge in August 2017 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Juliet McKenna. Upon completion of his prison term, Smith will be placed on three years of supervised release.
According to a factual proffer submitted at the time of the plea hearing, on June 27, 2017, at approximately 11:25 p.m., Smith approached two men after they had just parked a black Nissan Pathfinder in the unit block of P Street NE. While pretending that he was armed, Smith demanded that the driver of the SUV give him everything that he had, including his car keys. The victim gave his car keys to Smith, who then unlocked the vehicle and rode off.
The victims provided a description of the suspect, including that he was wearing jeans and a black belt with a silver buckle, and that he covered the majority of his face with a yellow T-shirt. Law enforcement broadcast a lookout for the stolen black Nissan Pathfinder with Tennessee tags. Within minutes, officers with the Metropolitan Police Department (MPD) observed the black Nissan Pathfinder heading eastbound in the 1300 block of New York Avenue NE. The officers attempted a traffic stop of the vehicle, but Smith refused to listen to the officers’ commands and fled southbound on West Virginia Avenue NE.
The officers pursued the black Nissan Pathfinder with full emergency equipment activated, until Smith crashed the stolen vehicle at 19th Street and Maryland Avenue NE. Smith fled on foot, but officers quickly located him inside an apartment building. At the time he was arrested, Smith was wearing blue jeans, a brown belt with a golden buckle, red tennis shoes and was shirtless. Law enforcement subsequently located an orange T-shirt in the road that Smith drove on during his flight from the police, and the victim who handed Smith his car keys identified him as the assailant. Smith has been in custody since his arrest.
In 2008, Smith committed a series of robberies in the District of Columbia and he later pled guilty to armed robbery and other offenses. He was sentenced in October 2011 to more than five years of incarceration, and was eventually placed on supervised release on May 12, 2017. Within six weeks of his release back into the community, Smith committed the robbery.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of Assistant U.S. Attorney Vivien Cockburn, who prosecuted the matter.
Deputy Leader of Violent Grape Street Crips Gang Admits Murder, Attempted Murders, Plot to Kill Witness, as Part of Racketeering ConspiracyRead the Press Release
Plea Calls for Prison Sentence of 39 to 45 Years
NEWARK, N.J. – The second-in-command of the New Jersey set of the Grape Street Crips street gang today admitted his role in committing a murder, participating in numerous attempted murders, plots to kill a state witness and to kidnap a heroin trafficker, and conspiring to distribute heroin, all as part of a racketeering conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Kwasi Mack, a/k/a “Welches,” 28, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to eight counts of the sixth superseding indictment, which charged him with murder and attempted murders as part of a RICO conspiracy, assaults with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon, and conspiracy to distribute one kilogram or more of heroin.
According to documents filed in this case and statements made in court:
Mack admitted that as the second-in-command of the NJ Grape Street Crips he committed the following violent acts in furtherance of the RICO conspiracy:
- In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.
- On Oct. 10, 2011, during an outdoor cookout, Mack used an assault rifle to attempt to kill a gang-member who had previously cooperated in a murder investigation and whose loyalty to the gang was in question. Mack shot eight individuals, at least two of whom suffered permanent or life-threatening injuries.
- After being charged by the Essex County Prosecutor’s Office with the Oct. 10, 2011, attempted murder, Mack was provided during the discovery process with the identity of the only witness against him. Mack ordered fellow gang-members to kill that witness. Gang-members took substantial steps to carry out Mack’s orders, but the murder never took place.
- In 2013, Mack and others planned to kidnap a major heroin-trafficker in order to rob him.
- On Oct. 5, 2013, Mack ordered the murder of a person identified in the indictment as “Victim-1.” On Oct. 27, 2013, following Mack’s orders, several gang-members repeatedly shot Victim-1 and Victim-4.
- On Oct. 7, 2013, Mack and others participated in the attempted murder of rival gang-members in retaliation for the murder of a fellow gang-member.
Mack also admitted to participating in a conspiracy to distribute one kilogram or more of heroin, possessing firearms in furtherance of the RICO and narcotics conspiracies, using minors to commit these offenses, and engaging in these offenses as a pattern of criminal conduct engaged in as a livelihood.
Under the terms of the plea agreement, Mack will be sentenced to 39 to 45 years in prison five years of supervised release. Sentencing is scheduled for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Criminal Division, and Richard J. Ramsay of the Office’s Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Robert J. Fettweis, Esq., Moonachie, New Jersey
- In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.
Connecticut Woman Pleads Guilty to Robbery ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Cara M. Blewitt, 30, of Oakville, Connecticut, pleaded guilty yesterday in U.S. District Court to aiding and abetting bank robbery and Hobbs Act robbery. The charges arose from the robberies of a TD Bank branch and a Dollar Tree store.
Court records reveal that on May 28, 2017, an individual robbed a TD Bank branch in Bangor absconding with cash. The next day, the same individual robbed the Dollar Tree store in Bangor at gunpoint, again, absconding with cash. The defendant served as the getaway driver for both robberies. Officers from the Bangor Police Department arrested the robber and the defendant within minutes of the Dollar Tree robbery.
The defendant faces up to 20 years in prison, a $250,000 fine and full restitution. The defendant will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Columbus 'Pimp' Sentenced for Trafficking WomenRead the Press Release
COLUMBUS, Ohio – Lerenzo M. White, aka “Justice” and “Justin,” 31, of Columbus, was sentenced in U.S. District Court to 180 months in prison and release supervision for life for sex trafficking women through force, fraud or coercion.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Prosecutor Ron O’Brien, Columbus Police Chief Kim Jacobs and Franklin County Sheriff Dallas Baldwin announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
White pleaded guilty in May to one count of sex trafficking by force, fraud or coercion.
According to the Statement of Facts in this case, undercover officers conducted a prostitution sting operation at a Crowne Plaza Hotel in Columbus on June 4, 2014. While conducting the operation, officers observed White drop off two females at the hotel for the purpose of exchanging sexual acts for money.
In August of 2015, one of the females made a report of domestic violence against White to the Columbus Division of Police. She stated she had worked for White since the spring of 2014 and was beaten and choked on the few occasions she had indicated she did not want to engage in prostitution. White frequently beat her for other reasons, she was fearful of White, and White maintained all the money that she made.
White used Backpage.com to create prostitution advertisements of the victim. Further investigation of his activity on the website confirmed numerous other adult females had worked as prostitutes for White.
Three of those females stated White had been physically violent towards them. An additional female stated she stayed with White and worked for him for several months because she was addicted to heroin and White provided her with the drug; however, White would not permit her to obtain any heroin until she had made a certain “quota” through prostitution activities.
“White forced women to engage in prostitution through physical force or controlling them with drugs,” U.S. Attorney Glassman said. “He controlled where they lived, where they went, and their contact with the outside world. If one escaped, he would find another to victimize. We must remember that adult women can be victims, too, and bring to justice abusers like White, who exploit victims for their own gain.”
“HSI has a vast investigative portfolio of crimes, but the trafficking of women is among the most sinister and must be met with swift action by law enforcement,” said Special Agent in Charge Steve Francis. “HSI along with our partners will continue to aggressively investigate cases such as these to identify and rescue its innocent victims.”
“This case proves just how serious state, federal, and local authorities are about putting a stop to human trafficking in Ohio,” said Attorney General DeWine. “The investigation found that this defendant forced women into the sex trade against their will. This is modern day slavery, and those who commit this heinous crime will be held accountable.”
U.S. Attorney Glassman by the Central Ohio Human Trafficking Task Force, which is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and includes authorities from U.S. Homeland Security Investigations, Columbus Division of Police, the Franklin County Sheriff’s Office, the Franklin County Prosecutor’s Office, the Delaware County Prosecutor's Office, the Delaware County Sheriff’s Office and Powel Police Department, as well as Assistant U.S. Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are prosecuting the case.
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Columbia Man Sentenced in Federal Court for Selling Crack Cocaine to Undercover Police OfficerRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jamey O. Green, a/k/a “Hog”, age 42, of Columbia, South Carolina, was sentenced in federal court in Columbia for possession with intent to distribute and distribution of crack cocaine, a violation of 21 U.S.C. § 841(a)(1). United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced Green to 188 months (15 years and 8 months) in federal prison followed by 6 years of supervised release.
Evidence presented at the change of plea hearing established that after receiving complaints from citizens, members of the Columbia Police Department (CPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into drug distribution in the Martin Luther King Park area of Columbia. On five separate dates between May and September of 2014, agents made undercover crack cocaine purchases from Green.
Earlier this year, Green pled guilty in federal court to one of those distributions, a sale of crack cocaine he made to an undercover officer on July 30, 2014. On this date, the undercover officer met Green at a home in the area to purchase an ounce of crack cocaine. Green agreed and walked to the rear of the residence to retrieve the crack cocaine. When he returned, Green sold the officer approximately an ounce of crack cocaine for $1100.
The case was investigated by officers and agents of the City of Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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Chico Fraternity and Former Chapter President Plead Guilty and Are Sentenced for Cutting Down Trees in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — The California State University, Chico chapter of the Pi Kappa Alpha Fraternity was sentenced Tuesday by U.S. Magistrate Judge Craig M. Kellison to 9,800 hours of community service, a three-year term of probation, and a $4,000 fine after pleading guilty to illegally cutting or otherwise damaging any timber, tree, or other forest product. The court also ordered the fraternity to pay restitution in the amount of $4,387.97 to the Lassen National Forest, United States Attorney Phillip A. Talbert announced.
In addition, the former president of the Chico fraternity chapter, Evan Clinton Jossey, was sentenced to a term of court probation and $1,000 fine after pleading guilty to the same offense.
According to the criminal complaint, Jossey and other members of the fraternity participated in an initiation ceremony at the Deer Creek Trailhead in the Lassen National Forest. During the course of the initiation ceremony, 32 trees were cut down at the site.
This case was the product of an investigation by the Tehama County Sheriff’s Office and the United States Forest Service, Law Enforcement and Investigations. Special Assistant United States Attorney Joseph M. Cook prosecuted the case.
Canadian Man Sentenced to 63 Months for Possessing 290 Pounds of CocaineRead the Press Release
COLUMBUS, Ohio – David Ayotte, 46, of Maribel, Canada, was sentenced in U.S. District Court to 63 months in prison and three years of supervised release for possession with intent to distribute more than five kilograms of cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced the filing of the plea documents today.
Law enforcement and other agencies involved in this case include: Homeland Security Investigations, U.S. Drug Enforcement Administration, Federal Aviation Administration, Ohio University Police Department, the Ohio University Airport, Athens County Sheriff’s Office, U.S. Customs and Border Protection Air and Marine Operations, Ohio National Guard Counter Drug Program, Ohio Bureau of Criminal Investigations, U.S. Homeland Security Investigations Attaché Office Montreal, Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force, Royal Canadian Mounted Police, Canada Border Services Agency and Service de Police del la Ville de Montreal.
Ayotte and Sylvain Desjardins, 48, also of Maribel, Canada, pleaded guilty in May 2017 to one count of possession with intent to distribute more than five kilograms of cocaine.
According to the Statement of Facts filed in this case, on March 29, 2017, a U.S. Customs and Border Protection Air and Marine Operations center official in Riverside, Calif. detected an aircraft that departed from the Bahamas and was traveling to Windsor, Ontario, Canada but had diverted to Gordon K. Bush Airport at Ohio University.
The official contacted the Athens County Sheriff’s Office, who, along with agents from HSI, executed a search warrant on the plane upon arrival. While doing so, investigators discovered approximately 132 kilograms or 290 pounds of cocaine.
Desjardins was the pilot and Ayotte was his passenger. The two men intended on flying the cocaine to Canada to then distribute, but discovered that the plane was having mechanical issues.
U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Deputy Criminal Chief Michael J. Hunter, who is representing the United States in this case.
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Camden, New Jersey, Woman Sentenced to Six Years in Prison for Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – A Camden, New Jersey, woman was sentenced today to 72 months in prison for sex trafficking of a minor, Acting U.S. Attorney William E. Fitzpatrick announced.
Aja M. Easley, 24, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging her with one count of sex trafficking of a minor. Judge Sheridan imposed the sentence today in Trenton federal court.
Easley, Aaron J. Gray, 30, of Camden, and Kenneth A. Mertz, 36, of Collingswood, were previously charged in a criminal complaint with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. Gray was also charged in the complaint with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Easley admitted that on March 2, 2015, she communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts and drove the minor to a motel in Cherry Hill for that purpose.
At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts. After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley also told the victim that if any trouble arose, Gray was outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.
The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim.
On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
In addition to the prison term, Judge Sheridan sentenced Easley to five years of supervised release.
Gray previously pleaded guilty to an information charging him with one count of sex trafficking of a minor and was sentenced March 16, 2017, to 151 months in prison. Mertz previously pleaded guilty to an information charging him with one count of violation of the Travel Act. He is scheduled to be sentenced Nov. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Michael Morell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Office’s Criminal Division in Trenton.
Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Theodore Calhoun, 54, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, was sentenced to 22 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Brendan T. Cullinane, who handed the case, stated that between January and February of 2015 in the Western District of New York, the defendant, on three different occasions, distributed one-ounce quantities of cocaine in exchange for $1,400 on each occasion.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Baton Rouge Man Pleads Guilty to Theft of Disaster Assistance FundsRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson, who also serves as the Acting Executive Director of the National Center for Disaster Fraud, announced today that COURTNEY D. HICKMAN, age 42, of Baton Rouge, Louisiana, pled guilty to theft of $26,362 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 Baton Rouge flooding.
Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, and clothing because of the flood. In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.
HICKMAN entered a plea of guilty to theft of government funds. According to documents submitted to the Court, in August 2016, HICKMAN filed a fraudulent claim with FEMA seeking disaster assistance funds for a home in Baton Rouge that he claimed was his primary residence at the time of the storm. At the time of the storm, however, HICKMAN was residing elsewhere and was renting his home to a tenant for 4 months prior to and throughout the period of the August 2016 flooding.
Acting U.S. Attorney Amundson stated, “The federal government consistently comes to the aid of individuals affected by disaster, and with the intent to return these individuals to the lives they lived before being victimized by disasters. The federal government’s efforts, however, are at times hindered by the actions of fraudsters who seek to steal disaster assistance funds that are intended for true victims. The United States Attorney’s Office for the Middle District of Louisiana, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, will continue to identify and prosecute those individuals who seek to steal assistance funds and affect the ability of the federal government to assist those truly in need.”
Special Agent-in-Charge David Green, Houston Field Office, Department of Homeland Security Office of Inspector General stated, “The DHS OIG, with the help of the U.S. Attorney’s Office, will continue to hold these individuals accountable. Stealing from the U.S. taxpayer by filing fraudulent FEMA claims for disaster assistance will never be tolerated by our agency.”
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Armed Drug Trafficker Ordered to Serve 15 Years in CustodyRead the Press Release
McALLEN, Texas – Another member of an armed crew involved in stealing 246 kilograms of marijuana has been ordered to prison, announced Acting U.S. Attorney Abe Martinez.
Mexican nationals Eduardo Rodriguez-Silva, 27, and Arturo Guadalupe Saldivar-Abrego, 30; Eliezer Jesus Vela, 39, of Pharr; and Luis Angel Gonzalez, 21, and Nery Gonzalez Jr., 29, both of Edinburg, pleaded guilty to one count of possession with intent to distribute a controlled substance. Rodriguez-Silva, Saldivar-Abrego, Gonzalez and Gonzalez Jr. also pleaded to conspiracy to carry and use a firearm during and in relation to a drug offense.
Today, U.S. District Judge Randy Crane ordered Rodriguez-Silva to serve 60 months imprisonment for the drug trafficking and a 120-term of imprisonment for the firearm charge. The sentences will run consecutively for a total of 15 years in federal prison. He is expected to face deportation proceedings following his release.
Judge Crane previously sentenced Gonzalez Jr. to 207 months in prison, while Gonzalez, Saldivar-Abrego and Vela were ordered to serve 180, 96 and 60 months, respectively. Vela, Gonzalez and Gonzalez Jr. will also serve four years of supervised release following completion of the prison terms. Not a U.S. citizen, Saldivar-Abrego is expected to face deportation proceedings following his release from prison.
On Oct. 9, 2015, a vehicle containing approximately 246 kilograms of marijuana was traveling on expressway 83. Rodriguez-Silva, Saldivar-Abrego, Gonzalez and Gonzalez Jr. soon approached in a second vehicle and fired gunshots at the load vehicle, forcing it to stop. They then transferred the marijuana into their vehicle. Following a pursuit, officers apprehended Saldivar-Abrego. Gonzalez and Gonzalez Jr. were arrested shortly thereafter. In March of 2017, Rodriguez-Silva was arrested. A subsequent investigation revealed Vela was the owner of the vehicle and that it was purchased knowing it was to be used to transport narcotics.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and police departments in San Juan and Alamo. Assistant U.S. Attorney Rolando Cantu and Kristen Rees prosecuted the case.
Alleged Mafia Soldier Charged with Tax EvasionRead the Press Release
A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Salvatore Demeo, an alleged member of the Genovese organized crime family of La Cosa Nostra, with tax evasion and failure to file tax returns.
The charges were announced by William J. Muller, Executive Assistant United States Attorney for the Eastern District of New York, and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).
As detailed in the indictment, in two separate real estate transactions in 2013 and 2014, Demeo sold his shares in valuable real estate in Downtown Brooklyn, earning him more than $2 million in capital gains. Rather than report this income, as he was required to do, Demeo took a series of measures designed to conceal the proceeds from the IRS. For example, he instructed his attorney to issue his shares to him in eight separate bank checks: three checks for the first transaction and five checks for the second transaction. In addition, even though Demeo had multiple bank accounts, he chose to not deposit the proceeds into them, and instead enlisted the assistance of others to help conceal the funds. First, he endorsed two checks, amounting to $1 million, to a plumbing business, despite the fact that he has no apparent ownership interest in it, or other business relationship with it. In addition, he endorsed another of the checks, in the amount of approximately $355,944, to an individual who operated an unlicensed check-cashing business, who then withdrew from the accounts approximately five cashier’s checks in smaller amounts, which were then cashed at licensed check-cashing establishments in exchange for a fee. As a result of Demeo’s fraud, Demeo avoided payment of federal taxes in excess of $365,000.
“Today’s arrest reflects our continued commitment to prosecuting alleged members of the mafia with every tool available to us,” stated Executive Assistant United States Attorney Muller. “Tax crimes like those charged in the indictment harm our government and every American citizen. Organized crime members are on notice that this Office and its law enforcement partners will hold them accountable for such economic crimes no less than for their traditional schemes and offenses.”
“Regardless of your occupation, we Americans all must file and pay our income taxes,” stated IRS-CI Special Agent-in-Charge Robnett. “The allegations of tax evasion spelled out in this indictment are what IRS Criminal Investigation Special Agents have been investigating for almost 100 years.”
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Elizabeth Geddes is in charge of the prosecution.
The Defendant:
SALVATORE DEMEO
Age: 77
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-545 (KAM)
Albuquerque Felon Charged with Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Albert Pulido, 29, of Albuquerque, N.M., made his initial appearance today in federal court on a criminal complaint charging him with violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Pulido remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Pulido this morning on a criminal complaint charging him with unlawfully possessing a firearm and ammunition on Sept. 7, 2017, in Bernalillo County, N.M. The criminal complaint alleges that on that date, officers of the Albuquerque Police Department (APD) arrested Pulido on state charges after observing Pulido exit a vacant, yellow-tagged residence, that no was permitted to enter. During a search incident to arrest, the officers allegedly found that Pulido was in possession of a firearm and ammunition.
According to the criminal complaint, on Sept. 7, 2017, Pulido was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including convictions for receiving and transferring a stolen vehicle, residential burglary, possession of a controlled substance, embezzlement, and child abuse.
The related state charges against Pulido will be dismissed in favor of federal prosecution.
If convicted of the crime charged in the criminal complaint, Pulido faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and APD, with assistance from the 2nd Judicial District Attorney’s Office. Special Assistant U.S. Attorney Timothy Trembley is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Akron man sentenced to life in prison for shooting woman in the Cuyahoga Valley National ParkRead the Press Release
An Akron man was sentenced to life in prison for shooting a woman in the Cuyahoga Valley National Park last year, law enforcement officials said.
DeZay M. Ely, 28, was previously pleaded guilty to attempted murder, discharging a firearm during a crime of violence and being a felon in possession of ammunition.
Ely attempted to kill a woman on July 3, 2016, by shooting her in the head, according to court documents.
U.S. District Judge Benita Pearson sentenced Ely to 20 years in prison for attempted murder, to be followed by a consecutive sentence of life in prison for discharging a firearm during a crime of violence.
“This defendant took a firearm into a national park and tried to murder a young woman,” U.S. Attorney Justin E. Herdman said. “He left her with lifelong, serious injuries. Our community is a safer place with him behind bars.”
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, said: “Law enforcement is pleased that Dezay Ely will be spending the rest of his life in prison for the horrific crime he committed against an innocent victim. The collaboration between the FBI, the Cuyahoga Valley National Park Service, BCI and the public was invaluable to identifying and holding Ely accountable for this senseless crime.”
The case is being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Linda Barr following an investigation by the FBI, the Cuyahoga Valley National Park Police and the Ohio Bureau of Criminal Investigation.
Airman Sentenced to 60 Months in Prison for Possessing Child PornographyRead the Press Release
WILMINGTON, Del. – Acting U.S. Attorney David C. Weiss of the District of Delaware announced today that Robert Z. Hollingsworth, 27, of Bryon, Illinois, was sentenced to 60 months in prison followed by 10 years of supervised release by U.S. District Judge Richard G. Andrews of the District of Delaware.
Hollingsworth, an Airman First Class stationed at the Dover Air Force Base, had collected more than 10,000 images and 3,000 videos of children engaging in sexually explicit conduct, including but not limited to sexual intercourse. More than 600 of those images depicted prepubescent children or children younger than 12 years of age. Of the one hundred sixty-two identified victims, sixteen came forward seeking restitution. The U.S. District Court awarded $48,000 in total restitution, for the known victims.
Acting U.S. Attorney David C. Weiss stated, "Our office will do whatever is necessary to protect the most vulnerable among us – our children – from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace."
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Graham Robinson of the District of Delaware prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
11 October 2017
Young San Benito Man Sent to Federal Prison for Producing Child PornographyRead the Press Release
BROWNSVILLE, Texas – A 27-year-old resident of San Benito has been ordered to federal prison following his conviction of sexual exploitation of a minor, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez. Jonathan Rios aka Jonathan Rios Ventura was an assistant manager at a local restaurant prior to his arrest on July 26, 2016. He pleaded guilty Nov. 16, 2016.
Today, U.S. District Judge Andrew Hanen handed Rios a sentence of 235 months in federal prison. He was further ordered to serve 20 years on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his plea, the court heard that Rios persuaded or coerced a minor to engage in sexually explicit conduct. Specifically, he had sexual intercourse with a minor child under the age of six and filmed it with his cell phone.
Rios has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, the Rio Grande Valley Child Exploitation Task Force and the San Benito Police Department conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Jason Corley and Ana Cano, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Wilmington Man Sentenced to 132 Months for Heroin TraffickingRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever III sentenced TACARLOS ANTIGO MILLER, 39, of Wilmington, NC to 132 months imprisonment, followed by 3 years of supervised release.
MILLER was found guilty after trial by jury in June 2016, of conspiracy to distribute and possess with the intent to distribute heroin and two (2) counts of distribution of heroin.
During the investigation, law enforcement used confidential informants (CIs) to make controlled purchases from MILLER. Based on these controlled purchases and information regarding heroin trafficking by MILLER from 2013, until his arrest in May 2015, the defendant is accountable for at least 100 grams of heroin. He also possessed a firearm in connection with his drug trafficking activities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the New Hanover County Sheriff’s Office. Assistant United States Attorney Lawrence J. Cameron represented the government.
Williamson County Man Sentenced on Methamphetamine OffensesRead the Press Release
On October 11, 2017, Ricky E. Shull, 51, Marion, was sentenced to federal prison for methamphetamine offenses, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Shull, who had previously pled guilty to a two-count indictment charging conspiracy to distribute methamphetamine and distribution of methamphetamine, was sentenced to 168 months of imprisonment, to be followed by 3 years of supervised release, and was fined $400.00. The indictment alleged that the offenses occurred between September 2016 and January 19, 2017, in Williamson County. Evidence at the plea and sentencing hearings established that Shull was involved with other persons in the distribution of ice in southern Illinois. Ice is methamphetamine which has a purity level of at least 80%. On January 19, 2017, Shull sold ice to a confidential source working for law enforcement. At sentencing, the district court found that Shull was responsible for the distribution of 436.45 grams of ice. Shull received an enhanced sentence based on his classification as a career offender.
The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office also assisted in the investigation.
Washington Man Sentenced to Prison in Drug Trafficking CaseRead the Press Release
HELENA— A Kennewick, Washington man was sentenced today for conspiring to distribute methamphetamine. United States District Judge Sam E. Haddon sentenced Hector Ricardo Gonzalez, 30, to 260 months in prison, 5 years of supervised release, and a $100 surcharge. Gonzalez was part of a scheme by multiple conspirators to distribute very large amounts of methamphetamine through Deer Lodge, Montana each month between January 2016 and January 2017. Members of the conspiracy, including Gonzalez, possessed firearms in connection with the drug trafficking crimes they committed in Montana.
Other members of the conspiracy included Jeff Allen Trask, Chase Ryan Storlie, and Christian Jesus Ruiz. The court previously sentenced Trask to 54 months in prison and five years of supervised release for his role in the conspiracy. The two remaining members of the conspiracy, Storlie and Ruiz, face sentencing on January 3, 2018.
Gonzalez and Ruiz’s involvement in the conspiracy came to a sudden end on January 24, 2017, when the authorities arrested them in Mineral County, Montana, in possession of 20 pounds of methamphetamine. The methamphetamine was destined for Deer Lodge.
The charges against Gonzalez and his codefendants are the result of an investigation by the Montana Division of Criminal Investigations, the Missouri River Drug Task Force, the Helena Police Department, the Lewis and Clark County Sheriff’s Department, the Federal Bureau of Investigation, the Mineral County Sheriff’s Department, the Powell County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Montana Highway Patrol, and the Drug Enforcement Administration. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Tom Bartleson prosecuted the case.
United States Attorney Kurt Alme explained, “This is an important step in the ongoing effort to stop the organized, unlawful distribution of controlled substances coming to Montana from other states and countries. The case is particularly important because the defendants possessed firearms in connection with drug trafficking, a prescription for violent crime of the sort the United States Department of Justice is committed to ridding from our communities. The Court’s sentence today sends the message that those who bring illegal drugs to Montana—particularly those who do so while armed—will be caught, prosecuted, and imprisoned.” Alme also praised the collaborative work of the law enforcement agencies and prosecutors in the case.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
United States Attorney Announces Two Sentencings on Project Safe Neighborhood CasesRead the Press Release
R. Trent Shores, United States Attorney for the Northern District of Oklahoma, announced two sentencings on Project Safe Neighborhoods (PSN) cases. PSN is the Justice Department’s national initiative to reduce violent crime, particularly gun violence. It is a results-oriented, collaborative approach to public safety that utilizes law enforcement, community partnerships, and strategic enforcement to focus on the most violent criminals in the most violent areas within each district. “This office is committed to working with our law enforcement and community partners to prevent and deter violent offenders from possessing firearms in the Northern District of Oklahoma,” said United States Attorney Shores.
JERRY LEE NICHOLS
On October 10, 2017, Chief United States District Court Judge Gregory K. Frizzell sentenced Jerry Lee Nichols, 47, of Pryor, Oklahoma, to 52 months of imprisonment for the crime of Felon in Possession of a Firearm and Ammunition. On April 15, 2017, Mayes County Sheriff’s Deputies were searching for Nichols after his girlfriend reported him for domestic violence. Deputies tracked Nichols to a home in Locust Grove, Oklahoma, and found Nichols hiding underneath a pile of clothes inside a playpen. Deputies found a loaded derringer underneath Nichols and a shotgun hidden underneath a couch in the room within which Nichols was hiding. In addition to the term of imprisonment, Chief Judge Frizzell sentenced Nichols to 3 years of supervised release upon completion of imprisonment. Assistant United States Attorney Neal C. Hong prosecuted the case, which the Mayes County Sheriff’s Office investigated.
JESUS DELANO MENDOZA
On October 10, 2017, Chief United States District Court Judge Gregory K. Frizzell also sentenced Jesus Delano Mendoza, 34, of Phoenix, Arizona, to 114 months of imprisonment for Felon in Possession of a Firearm and Ammunition and Brandishing a Firearm During and in Relation to a Crime of Violence. On April 22, 2017, Mendoza robbed a convenience store in North Tulsa. Mendoza entered the store with a mask, brandished a firearm at the clerk, and took money and other items from the store. Five days later, the United States Marshal Service’s Violent Crimes Task Force tracked Mendoza to a home in Tulsa and apprehended him. During the arrest, Deputy Marshals found a loaded .22 caliber revolver in the area Mendoza was found. In addition to the term of imprisonment, Chief Judge Frizzell sentenced Mendoza to 5 years of supervised release upon completion of imprisonment. Assistant United States Attorney Neal C. Hong prosecuted the case. The Tulsa Police Department, the Tulsa County Sheriff’s Office, the United States Marshal Service’s Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives jointly investigated the case.
U.S. Border Patrol Intercepts Fifteen-Person Human Smuggling Attempt in Derby, Vermont; Honduras Man Charged with Transporting Illegal Aliens; Two Mexican Men Charged with Illegal Re-Entry After DeportationRead the Press Release
In a joint press release issued with the U.S. Border Patrol, the United States Attorney Office for the District of Vermont stated that it has charged three persons in connection with a fifteen-person human smuggling attempt in Derby, Vermont. Hector Ramon Perez-Alvarado, 25, a Honduras citizen, has been charged with transporting illegal aliens inside the United States. As part of the investigation, the U.S. Border Patrol took into custody a total of sixteen illegal aliens, including Hector Ramon Perez-Alvarado, the alleged driver, who is Honduran. Eleven of the other illegal aliens are Guatemalan citizens and four are Mexican citizens.
According to Court records, in addition to the smuggling charge against Hector Ramon Perez-Alvarado, two persons were charged with re-entering the United States after previously being removed. Specifically, the United States alleges that Noe Perez-Ramirez, 33, of Mexico, and Alberto Alvarado-Castro, 29, of Mexico both were removed from the United States on multiple prior occasions. In support of its motion for detention, the Government further alleged that Alvarado-Castro has multiple prior felony burglary convictions in the United States.
According to the Border Patrol Agent’s affidavit accompanying the Criminal Complaints, on the evening of October 7, 2017, the U.S. Border Patrol identified a Nissan van, with a license plate not affiliated with any state, making multiple trips from Beebe Road near the Canadian Border to the Four Seasons Motel in Derby, Vermont. Additional Border Patrol agents stationed in the vicinity spotted several male subjects on foot heading south from the border in the same area indicating a possible smuggling attempt.
Just after midnight on October 8, 2017, the Border Patrol pulled the van over in the motel parking lot and questioned the driver. According to the Border Patrol agent’s affidavit, the van was driven by defendant Hector Ramon Perez-Alvarado, who had no legal status in the United States. The van also contained six passengers, none of whom had legal status in the United States.
According to the Border Patrol agent’s affidavit, the van’s driver, defendant Hector Ramon Perez-Alvarado, gave the Border Patrol agents the key to his motel room at the Four Seasons and requested that the agents recover his personal items. When Border Patrol agents entered the motel room, they found nine additional persons, none of whom had legal status in the United States.
The complaints filed in this case are accusations only and the defendants are presumed innocent until and unless proven guilty. If Hector Ramon Perez-Alvarado is convicted of transporting illegal aliens, he faces a maximum sentence of five years, potentially for each alien transported, and a $250,000 fine, potentially for each person smuggled. If Noe Perez-Ramirez and Alberto Alvarado-Castro are convicted of re-entry after removal from the United States, they each face a maximum sentence of two years and a $250,000 fine. If convicted the actual sentences of the defendants will be advised by the Federal Sentencing Guidelines.
Hector Ramon Perez-Alvarado, Noe Perez-Ramirez and Alberto Alvarado-Castro all appeared in United States District Court in Burlington, Vermont on October 10, 2017, for an initial appearance. On the Government’s motion for pre-trial detention, Magistrate-Judge John M. Conroy ordered that all three be detained pending trial and remanded them into the custody of the U.S. Marshals Service.
This matter is being investigated by the United States Border Patrol and Homeland Security Investigations. “This case is an excellent example of the dedication and hard work put forth by Border Patrol agents to keep our country and communities safe,” said U.S. Border Patrol Swanton Sector Chief Patrol Agent John Pfeifer. “Our agents did an outstanding job thwarting this smuggling attempt.”
The Assistant U.S. Attorney prosecuting this matter is Joe Perella. Elizabeth Quinn, Esq., of the Federal Public Defender’s Office represents Perez-Alvarado. David Watts, Esq., of Burlington represents Alvarado-Castro. Robert Sussman, Esq., of Burlington represents Perez-Ramirez.
U.S. Attorney Reaches Settlement for False Claims Act Violations on Project Management Oversight ContractRead the Press Release
PHILADELPHIA – Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with URS Corporation (“URS”) resolving civil claims concerning URS’ improperly billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak. To resolve the government’s civil claims against it, URS has agreed to pay the United States $900,000.00 pursuant to the settlement agreement.
URS and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that URS bill actual labor and overhead rates for the employees working the various projects. The United States contends that it has certain civil claims against URS arising from URS’ billing under the PMO contract during the period January 1, 2011 through December 31, 2014. This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; and b) billing employees at home overhead rates although they were considered as field employees’ in URS’ general ledger.
The case arose when an audit of URS’ billing showed discrepancies. Amtrak and the Department of Transportation’s Offices of Inspector General investigated this case. For the United States Attorney’s Office for the Eastern District of Pennsylvania, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.
The claims resolved by this settlement agreement are allegations only and there has been no determination of liability.
Three Plead Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – Two Dominican nationals and a Taunton woman pleaded guilty yesterday in federal court in Boston to their roles in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
Wilmi Hernandez-Diaz, 22, a Dominican national residing in Boston; Jancer Soto, 26, of Boston; and Stephanie O’Sullivan, 31, of Taunton, each pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Hernandez-Diaz, Soto, and O’Sullivan were arrested and charged along with 20 other co-defendants. U.S. District Court Judge Indira Talwani scheduled the sentencings for Soto and Hernandez-Diaz for Jan. 3, 2018, and Jan 11, 2018, respectively. U.S. District Court Judge Leo T Sorokin scheduled sentencing for O’Sullivan for Jan. 11, 2018.
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 O’Sullivan, who re-distributed a portion of the drugs she 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 was assisted by Hernandez-Diaz, Soto, and approximately six others. 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 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. 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 Theodore B. 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.
The Woodlands Woman Convicted of Defrauding EmployerRead the Press Release
HOUSTON – A 52-year-old resident of The Woodlands has pleaded guilty to wire fraud, announced Acting U.S. Attorney Abe Martinez.
Kavita Nehendra Duvvuru was a former employee of Vinmar International Ltd. Today, she admitted that while employed there, she made unauthorized charges and cash advances for personal expenses on credit cards which were only to be used for Vinmar business expenses. Duvvuru further admitted she altered the credit card statement and provided false information to conceal her fraud from the company.
Duvvuru began employment with the Houston petrochemical distribution and marketing company Vinmar in 2004. Vinmar paid the balances on several credit cards issued in the name of Vinmar’s president and another officer of Vinmar on a monthly basis. These credit cards included an American Express Plum card and two MasterCards and were used to charge Vinmar’s business expenses. Duvvuru had credit cards issued in her name on those accounts as well, but was only authorized to charge Vinmar business expenses.
Beginning in or about 2010, Duvvuru began making unauthorized charges for personal expenses on the American Express Plum credit card. Eventually, these unauthorized personal charges reached between $10,000 and $20,000 per month. She also obtained unauthorized cash advances from the MasterCard credit cards, which she used for personal expenses including payment of her property taxes and college tuition payments for her children.
In late 2016, Duvvuru made $22,359.29 in unauthorized personal charges on the American Express Plum card. She later accessed the online statement, downloaded a copy and used a software program to alter it to conceal her unauthorized personal charges. She then added a falsified charge for the same amount and attributed it to a Vinmar vendor. She also created false entries to account for the charge it to make it appear to be a legitimate Vinmar business expense. She then submitted the falsified entries to Vinmar’s accounting department.
As a result of her scheme, Vinmar suffered a loss of at least $2.5 million.
U.S. District Judge Sim Lake accepted the guilty plea today and has set sentencing for Jan. 19, 2018. At that time, Duvvuru faces up to 20 years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing. .
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Tennessee Woman Convicted of Stolen ID Refund FraudRead the Press Release
An Antioch, Tennessee, woman was convicted today by a federal jury sitting in Nashville, Tennessee, of eight counts each of wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee.
According to the indictment and evidence presented at trial, in January and February 2012, Monique Ellis, used stolen IDs, including those of prisoners held by the Alabama Department of Corrections, to file tax returns with the Internal Revenue Service (IRS) seeking fraudulent refunds. Ellis directed the fraudulently obtained refunds to bank accounts that she controlled, causing a tax loss of $121,851.10.
Sentencing is scheduled for Jan. 9, 2018 before U.S. District Court Judge Gershwin A. Drain. Ellis faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and a mandatory two year sentence for each count of aggravated identity theft. She also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Cochran thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Henry Leventis, and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
St. Clair Shores Restaurant and Shopping Center Works with U.S. Attorney's Office to Improve Access for People with DisabilitiesRead the Press Release
The Red Olive Restaurant in St. Clair Shores and ANK Enterprises, Inc., the owner of the Harper/Little Mack Shopping Center, have taken steps to improve physical accessibility for individuals with disabilities, Acting U.S. Attorney Daniel L. Lemisch announced today.
This resolution concludes an investigation under the Americans with Disabilities Act, alleging that the restaurant was not accessible to individuals with disabilities. The complaint was filed by a restaurant patron who uses a wheelchair.
After discussions with the U.S. Attorney's Office, the Red Olive Restaurant made changes to the restaurant’s interior, improving accessibility for people with disabilities. The Red Olive Restaurant is located within the Harper/Little Mack Shopping Center in St. Clair Shores. The U.S. Attorney's Office also worked with the owner of the shopping center, ANK Enterprises, Inc., who renovated accessible parking spaces and a sidewalk curb cut as a part of this investigation.
“The Americans with Disabilities Act ensures that people who have disabilities have the same access to public accommodations as all other Americans,” said Lemisch. “This case is a reminder that businesses must comply with federal requirements that enable individuals with disabilities to fully participate in their communities.”
This resolution was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by businesses that serve the public.
More information about the ADA is available at the Justice Department's toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s civil rights hotline at (313) 226-9151.
South Florida Attorney Charged with Securities Fraud and Money Laundering in Relation to Fraudulent Sale of Shell Companies and Secretly Controlled StockRead the Press Release
A South Florida attorney was charged with securities fraud, wire fraud, and money laundering offenses in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of unrestricted or “free-trading” shares in the companies that they secretly controlled, and sell the shares to the investing public at a profit. To date, nine defendants have been charged and convicted in connection with the ongoing prosecution of the Shell Factory Fraud investigation.
Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
James M. Schneider, 76, of Hillsboro Beach, Florida, was charged by indictment with one count of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; five counts of securities fraud, in violation of Title 18, United States Code, Section 1348; six counts of wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and twenty counts of money laundering, in violation of Title 18, United States Code, Section 1957. Schneider faces a maximum statutory sentence of twenty-five years for the securities fraud conspiracy count, twenty-five years each for the securities fraud counts, and ten years each for the conspiracy to commit money laundering and money laundering counts, as well as a fine up to $250,000 or double the proceeds as to each. The case is No. 17-20712-CR-FAM and is assigned to U.S. District Judge Federico A. Moreno in Miami.
In related cases, seven defendants have been charged to date: Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, in Case No. 16-20707-CR-JEM, and David Lubin, 52, of West Hempstead, New York, in Case No. 17-20508-CR-MGC. All seven of these defendants were convicted. Six of the seven have already been sentenced, and sentencing for Lubin is scheduled for November 2, 2017, before U.S. District Judge Marcia G. Cooke in Miami. In an additional related case, Myron Gushlak and Yelena Furman were also indicted on October 10, 2017, in Case No. 17-20713-CR-CMA.
According to the indictment, from approximately March 2008 through approximately May 2015, Schneider conspired with Sanders, McKelvey, Mirman, Lamson, Lubin and others in a scheme to fraudulently create shell companies and file documents with the SEC indicating that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the principals. The control block of shares listed in the name of the officer were deemed restricted and could not be sold to the public. The principals would also list in SEC filings the a description of various shareholders to make it appear that these shares were owned by persons other than the conspirators. These shares would later become unrestricted, or “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval for the shares of the companies to be sold publicly over the counter. Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure of this common control and simultaneous sale to the SEC or the investing public. This would allow the shell buyers to engage in stock manipulation or pump and dump schemes using the “free trading” shares.
Schneider, according to the indictment, was an attorney licensed to practice in Florida who authored false and fraudulent legal opinion letters indicating that shares of the companies were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators. Schneider also created false billing records to make it appear like he was performing work for, and taking direction from, the straw CEOs. In reality, he took his direction from Sanders and McKelvey, who would keep their names off of documents. Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators. Schneider did this, according to the indictment, even though he had no authorization from the named shareholders or verification that the persons whose names were listed on the escrow agreements authorized or approved these transfers.
The SEC today announced a parallel civil enforcement action against Schneider.
Mr. Hummel commended the investigative efforts of the FBI’s Miami Field Office. Mr. Hummel also thanked the SEC’s Washington Home Office and Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation. The SEC previously filed civil enforcement actions against McKelvey, Sanders, Mirman, Rose, Kass, Lamson, and Lubin. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment merely contains allegations and a defendant is 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.
South Carolina Man Charged with Forcing Victim with Intellectual Disability to Work at RestaurantRead the Press Release
An indictment was unsealed today in the U.S. District Court for the District of South Carolina charging Bobby Paul Edwards, 52, of Conway, S.C., with one count of forced labor, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Beth Drake of the District of South Carolina.
According to the indictment, over a five-year period, between September 2009 and October 2014, Edwards used force, threats of force, physical restraint, and coercion, among other means, to compel the victim, who has an intellectual disability, to work as the buffet cook of J&J Cafeteria in Conway, South Carolina. Edwards managed the restaurant at the time of the alleged incidents.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. If convicted of forced labor, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution.
The case is being investigated by FBI’s Myrtle Beach Resident Agency. It is being prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Alyssa Richardson of the District of South Carolina.
South Carolina Man Charged with Forcing Victim with Intellectual Disability to Work at RestaurantRead the Press Release
WASHINGTON – An indictment was unsealed today in the U.S. District Court for the District of South Carolina charging Bobby Paul Edwards, 52, of Conway, S.C., with one count of forced labor, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Beth Drake of the District of South Carolina.
According to the indictment, over a five-year period, between September 2009 and October 2014, Edwards used force, threats of force, physical restraint, and coercion, among other means, to compel the victim, who has an intellectual disability, to work as the buffet cook of J&J Cafeteria in Conway, South Carolina. Edwards managed the restaurant at the time alleged incidents.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. If convicted of forced labor, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution.
The case is being investigated by FBI’s Myrtle Beach Resident Agency. It is being prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Alyssa Richardson of the District of South Carolina.
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Six Sentenced in Federal Upstate Methamphetamine ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that the following Cherokee County residents, all previously convicted on federal methamphetamine conspiracy charges, were sentenced in federal court to the following terms of imprisonment:
- Zactrick Michael Jefferies, age 29, sentenced to 236 months imprisonment
- James Lasamuel Humphries, age 24, sentenced to 30 months imprisonment
- Brianna Allison Jones, age 22, sentenced to 48 months imprisonment
- Katherine Elizabeth Williams, age 28, sentenced to 70 months imprisonment
- Crystal Dawn Osborne, age 38, sentenced to 27 months imprisonment
- Andrell Lopez, age 25, sentenced to 36 months imprisonment
Senior United States District Judge Henry M. Herlong, Jr., of Greenville imposed the sentences on October 10, 2017. Also charged in the conspiracy and awaiting sentencing are co-defendants Everette De’Angelo Dawkins and Richard Stewart Hawkins.
At an earlier guilty plea hearing, Assistant U. S. Attorney Jeanne Howard established that after his release from federal prison in February 2015, Everette De’Angelo Dawkins began conspiring with other codefendants to distribute up to 45 kilograms of methamphetamine in the upstate. A number of seizures of methamphetamine occurred during the time of the conspiracy including one in September, 2015, during which the Cherokee County Sheriff’s Office executed a search warrant and seized approximately 662 grams of methamphetamine from Zactrick Jefferies. Following a car stop in January 2016, the Cherokee County Sheriff’s Office seized 520 grams of methamphetamine from James Humphries. In December 2016, Zactrick Jefferies was arrested with another kilogram of methamphetamine. Andrell Lopez was arrested by the South Carolina Highway Patrol after a car stop where 583 grams of methamphetamine and 9 pounds of marijuana were seized.
The case was investigated by agents of the Department of Homeland Security, the Cherokee County Sheriff’s Office, the United States Marshal’s Service Task Force, the South Carolina Highway Patrol, SLED and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
#####Seng Xiong Sentenced to 87 Months in Prison for Defrauding Members of the Hmong CommunityRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of SENG XIONG, 49, to 87 months in prison for operating an affinity scheme targeting members of the Hmong community. XIONG, who was found guilty on January 26, 2017, following an eight-day jury trial, was sentenced today before Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minn.
As proven at trial, from at least mid-2014 through approximately March 2016, XIONG conducted a fraud scheme through his organization “Hmong Tebchaws,” which translates to “Hmong Country,” in which members of the Hmong community were directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, victims were promised 10 acres of land, a house, and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
As proven at trial, XIONG claimed to be working closely with the United States government and the United Nations to establish the new Hmong country somewhere in Southeast Asia. Through a series of YouTube videos and nationwide conference calls, XIONG promoted his scheme in the Hmong language, claiming that he was working with high-ranking officials who had “approved” or “authorized” his proposal and had arranged for land to be set aside for XIONG and his followers.
As proven at trial, XIONG offered several investment options that purported to represent varying levels of return that “founders” would be able to receive on their investment in the new country. Investments between $3,000 and $5,000 would guarantee the investor and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age, as well as a return on that investment equal to a percentage of the income generated by the new Hmong country. Those who could not afford the $3,000 - $5,000 “founders” option could pay $20 per month, or $240 per year. This lesser investment would secure a spot in the new Hmong country along with some of the benefits.
This case was the result of an investigation conducted by the Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation, Minnesota Financial Crimes Task Force, and Appleton Police Department.
Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.
Assistant United States Attorneys Amber M. Brennan and Surya Saxena prosecuted this case.
Defendant Information:
SENG XIONG, 49
Maplewood, Minn.
Convicted:
- Wire fraud, 1 count
- Mail fraud, 1 count
Sentenced:- 87 months in prison
- Three years supervised release
- $1,226,466.00 in restitution to victims
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Selby Man Charged with Violating the Migratory Bird Treaty ActRead the Press Release
United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, man, has been indicted by a federal grand jury for a violation of the Migratory Bird Treaty Act.
Steven Marin, age 46, d/b/a Mobridge Pawn, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for this misdemeanor offense is up to six months in custody and/or a $15,000 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 11, 2014, and June 18, 2014, Marin, d/b/a Mobridge Pawn, possessed, offered for sale, sold, offer to barter, bartered, delivered for transportation, transported, and caused to be transported, a migratory bird and parts thereof of any such bird.
The charge is merely an accusation and Marin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Marin was released on bond pending trial. A trial date has not been set.
Scranton Man Charged with Participating in A $3.5 Million Stolen Identity Refund Fraud ConspiracyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Reyes, age 29, of Scranton, Pennsylvania, was charged in a criminal information with one count of conspiring to defraud the government with respect to tax claims.
According to United States Attorney Bruce D. Brandler, Reyes owned and operated Reyes Services LLC, a Scranton, Pennsylvania-based check cashing business. From January 2011 to June 2015, Reyes and his co-conspirators used stolen identities to prepare and file false federal income tax returns, unbeknownst to their victims. Reyes’s co-conspirators obtained the income tax refund checks from those fraudulent returns and provided them to Reyes, who cashed the fraudulently obtained checks at his business. Reyes kept a portion of each check cashed as compensation. The scheme netted at least $3,547,642 in false claims paid by the U.S. Treasury.
The government seized $48,933 during the course of the investigation. The government also filed a plea agreement with Reyes to the charges. Reyes was charged on August 9, 2016, and pleaded guilty on October 18, 2016, but the matter remained under seal until today. Reyes is scheduled to be sentenced on November 2, 2017.
The case was investigated by the Internal Revenue Service Criminal Investigations. Assistant United States Attorneys William Houser and Phillip J. Caraballo are prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of 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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San Jose Resident Sentenced to Three Years in Prison for Threatening IRS EmployeesRead the Press Release
SAN JOSE – Hung Ha was sentenced today to 36 months’ imprisonment for threatening IRS employees at the San Jose Taxpayer Assistance Center, announced United States Attorney Brian J. Stretch. The sentence was handed down by the Honorable Lucy Koh, U.S. District Judge, following a jury trial resulting in Ha’s conviction of the crime.
Ha, 41, of San Jose, was indicted by a federal grand jury on April 22, 2015. He was charged with threatening a federal official. Ha was convicted on July 17, 2017, by a jury after a four day trial. During the trial, evidence showed that Ha threatened to bomb the San Jose IRS Taxpayer Assistance Center. Specifically, Ha demanded a tax refund he believed he was owed and said that if the IRS refused to give him the refund, he would bomb the office. Ha was charged with two counts of threatening federal officials, in violation of 18 U.S.C. § 115(a)(1)(B). The jury convicted Ha of one count.
In addition to the prison term, Judge Koh sentenced the defendant to a three year period of supervised release. The defendant is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Scott Simeon and Special Assistant U.S. Attorney Christopher Vieira prosecuted the case with the assistance of Mimi Lam and Ryka Barghi. The prosecution is the result of an investigation by the Treasury Inspector General for Tax Administration.
Russellville Operations Results in 44 Federal Defendants Charged with Multiple Drug and Gun Crimes (more than 25 pounds of methamphetamine, 69 firearms seized)Read the Press Release
RUSSELLVILLE—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Anthony Lemons, Acting Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), William McCrary, Assistant Special Agent in Charge, New Orleans Field Division, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), and David Gibbons, Prosecuting Attorney for the Fifth Judicial District of Arkansas, announced today the unsealing of a federal indictment charging 44 defendants in a major operation aimed at disrupting drug and gun crime in Pope and Yell Counties. The indictment was returned by a federal grand jury on October 3, 2017, and was unsealed today following a coordinated roundup of the charged defendants.
In total, including defendants charged in state courts, law enforcement obtained arrest warrants for 70 defendants associated with the case, and arrested 27 individuals early Wednesday morning. Eighteen federal and two state defendants were already in custody. Twenty-three defendants, including 11 federal fugitives and 12 state fugitives, remain at large.
During Wednesday morning’s arrest operation law enforcement also seized 46 guns, bringing the total number of firearms seized in the investigation to 69.
“Targeting violent, armed drug dealers will be a priority for my office, as well as for all law enforcement agencies in central Arkansas,” Hiland said. “Law enforcement at all levels is committed to working together to help rid these communities of drugs and those who are responsible for their distribution. Today’s operation is a perfect example of that coordination. Our collective goal is to return these communities to their law-abiding citizens, and taking these criminals off the streets has made Pope and Yell Counties safer places to live and work. Today’s arrests are a victory against these dangerous criminals, but know that our commitment to finding and stopping gun and drug crime all across the Eastern District of Arkansas will continue long after today.”
During the nearly two-year coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as the 69 firearms and more than $70,000 in drug proceeds.
Among the 44 federal defendants are nine people who are avowed white supremacists, including eight members of the New Aryan Empire (NAE) and one member of the White Aryan Resistance (WAR). The NAE slogan is “To The Dirt,” which is in reference to the rule that members must remain in the NAE until they die. These groups are Arkansas white supremacist organizations, which began as prison gangs.
This Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named “To The Dirt,” began in early 2016, when local law enforcement officials started investigating various crimes being committed by the NAE, including the distribution of methamphetamine. It soon became apparent that the methamphetamine trafficking in this area went far beyond only NAE members, and the Fifth Judicial District Drug Task Force enlisted the help of the DEA and ATF.
“The DEA is committed to working with our federal, state and local law enforcement partners to target all levels of drug trafficking organizations that are responsible for drug trafficking and related violence in our communities,” said Stephen G. Azzam, Special Agent in Charge of the DEA’s New Orleans Field Division, which includes the Eastern District of Arkansas. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs, including the New Aryan Empire. Today’s arrests should significantly impact the violent drug related activity that has wreaked havoc throughout the Eastern District of Arkansas.”
From January 2016 through October 2017 multiple agencies at the local, state, and federal level coordinated dozens of controlled purchases of methamphetamine from individuals associated with the NAE, as well as others distributing drugs in Russellville. While more than 25 pounds of methamphetamine were actually seized in Arkansas, the investigation revealed that hundreds of pounds of methamphetamine had been trafficked from California for distribution in central Arkansas in the course of this conspiracy. Arrest warrants have been issued for two of the main methamphetamine suppliers in California, who lived in Sacramento and Los Angeles and remain fugitives at this time.
Early Wednesday morning 200 law enforcement officers, including more than 150 tactical officers, helped execute the arrest warrants for those defendants in Arkansas in a targeted takedown that resulted in arrests on multiple charges, including conspiracy to possess with intent to distribute and to distribute meth, distribution of methamphetamine, use of a firearm in relation to a drug trafficking crime, and felon in possession of a firearm. Most of the defendants are residents of Pope County (see attachment for complete list of defendants and charges).
A majority of the 44 federal defendants are convicted felons, many with violent histories. Among the 69 guns seized include handguns, rifles, shotguns, and several high-capacity assault-style rifles.
“This almost two-year collaborative effort between ATF, DEA, U.S. Postal Inspectors, Pope County Sheriff’s Office, Arkansas State Police, Arkansas Highway Police, Russellville Police Department, 5th Judicial Drug Task Force, and other state and local law enforcement partners is a shining example of ATF’s commitment to reducing violence in our communities,” ATF Asst. Special Agent in Charge McCrary. “The armed drug trafficking conspiracy dismantled today was a plague on Russellville and the surrounding communities, and the prosecution and incarceration of its leaders and participants will make these communities safer.”
“The present operation is just the latest example of the long history of successful cooperation between federal agencies and the state, county, local, and DTF law enforcement personnel of the Fifth District,” said Fifth Judicial District Prosecuting Attorney David Gibbons said. “From the criminal histories of most of those arrested during this operation, it is clear that in some cases state prosecution alone does not have the resources or reach to eliminate those who make a living from drug distribution. This operation will subject those individuals who have made a career of criminal activity to federal prosecution and prison time. As a result, our communities should be safer, healthier, and more pleasant places in which to raise our families.”
In addition to the methamphetamine and firearms recovered, during the investigation agents with the U.S. Postal Inspection Service and the Conway Police Department seized approximately $65,000 from this drug trafficking organization, which conspirators attempted to ship through the U.S. mail from Arkansas to California for payment for methamphetamine. All told, agents seized more than $70,000 in drug proceeds, as well as a Porsche Carrera seized in California that was used to aid methamphetamine distribution in California.
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Patricia S. Harris beginning at 10 a.m. on Friday.
The investigation was conducted by DEA and ATF, in partnership with the Pope County Sheriff’s Office, Yell County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service.
Wednesday’s arrest operation included the assistance of DEA, ATF, U.S. Postal Inspection Service, United States Marshal’s Service, Arkansas Highway Police, Arkansas National Guard Counter Drug Unit, Arkansas State Police, Arkansas Community Corrections, Pope County Sheriff’s Office, Yell County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department.
The case is being prosecuted by Assistant United States Attorneys, Liza Jane Brown and Kristin Bryant. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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To The Dirt defendant listSTATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of 50 grams or more of actual methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of 5 grams or more of actual methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Distribution of a mixture containing a detectable amount of methamphetamine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession of a firearm by a felon is punishable by not more than 10 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a firearm in relation to a drug-trafficking crime is punishable by not less than 5 years’ incarceration, not more than life, in the Bureau of Prisons, consecutive to any other conviction, with a possible fine of up to $250,000, and not more than 3 years supervised release.
“TO THE DIRT” FEDERAL FUGITIVE LIST1. TROY R. LOADHOLT, aka Tricky, 36, Russellville
2. APRIL M. TEETER, aka April Crain, 37, Russellville
3. BRITTANY FERGUSON, aka Brittany Gideon, 26, Russellville
4. RALPH A. ROSS, aka R.A., 53, Atkins
5. BRITANNY S. CONNER, 32, San Pedro, California
6. KATHRINE R. ROSS, aka Katie, 26, Russellville
7. CHRISTOPHER S. HELMS, 34, Dardanelle
8. PAULA S. ENOS, 44, Russellville
9. WESLEY W. PIERSON, 53, Charleston
10. JAMES NICHOLAS GEORGE, aka Nick, 37, Dardanelle
11. KEITH C. SAVAGE, aka K.C., 36, BellevilleRevere Man Sentenced for Multiple Bank RobberiesRead the Press Release
BOSTON – A Revere man was sentenced today in federal court in Boston for robbing 10 banks during a 19-day spree from late December 2016 to early January 2017.
Fred Mandracchia, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs to 100 months in prison, three years of supervised release, and ordered to pay restitution of $16,695 to the banks he robbed. In July 2017, Mandracchia pleaded guilty to 10 counts of bank robbery
Following a Jan. 3, 2017, robbery of the Mechanics Cooperative Bank branch in Fall River, law enforcement identified Mandracchia as the individual responsible for that robbery. Based on similarities in the robberies and the physical description of the perpetrator, Mandracchia was suspected to have also been involved in nine other Boston-area bank robberies. Mandracchia was arrested in Chelsea on Jan. 7, 2017, and confessed to robbing the banks.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Police Departments of Fall River, Boston, Malden, and Chelsea assisted with the investigation. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit prosecuted the case.
Registered Sex Offender Pleads Guilty to Child Pornography Charges on the Morning of TrialRead the Press Release
Acting U.S. Attorney Gregory G. Brooker today announced the guilty plea of DONALD THOMAS PERRIN, 57, a registered sex offender, to child pornography charges. PERRIN, who was charged in a criminal complaint on November 9, 2016, pleaded guilty yesterday morning before Judge Wilhelmina M. Wright, moments before his jury trial was set to begin in U.S. District Court in St. Paul, Minn.
“This defendant, a registered sex offender who repeatedly exploited minors, has admitted his guilt and will now face the consequences of his egregious crimes,” said Assistant U.S. Attorney Kate Buzicky. “I am grateful for the dedication and hard work put forth by the FBI and the Carver County Sheriff’s Office throughout the investigation process and in preparation for trial.”
According to his guilty plea and documents filed in court, in the summer of 2014, PERRIN, a registered sex offender, began engaging in sexually explicit online chats with a fifteen-year-old minor. In the fall of 2014, PERRIN was arrested and jailed at Carver County Jail following a violation of his sex offender registration requirement. After he was released from Carver County Jail, PERRIN continued his online communications with the minor and made screen captures of their video chat sessions depicting sexually explicit activity. On February 12, 2016, PERRIN was again arrested and jailed as a result of his non-compliance with his sex offender registration requirements. Following his arrest, law enforcement executed search warrants at PERRIN’S home and recovered several digital devices containing thousands of child pornography files. PERRIN was scheduled to begin trial on October 10, before U.S. District Judge Wilhelmina M. Wright in St. Paul, Minn.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the FBI and the Carver County Sheriff’s Office.
Assistant United States Attorneys Katherine T. Buzicky and Angela Munoz-Kaphing are prosecuting this case.
Defendant Information:
DONALD THOMAS PERRIN, 57
Sherburne County Jail
Convicted:
- Production of child pornography, 1 count
- Commission of a felony while being required to register as a sex offender, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Prison-Based Meth Distribution Ring DismantledRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces sentences imposed on 19 defendants since January of this year resulting from the dismantling of a drug ring distributing methamphetamine and other drugs and operated from within the prisons of the Georgia Department of Corrections. The following sentences, all of which were imposed by the Honorable Leslie J. Abrams, United States District Judge in Albany, Georgia, resulted from guilty pleas by each defendant for distribution and/or conspiracy to distribute methamphetamine in violation of federal law, except as specifically noted otherwise below, to-wit:
1) Curtis Wood, age 55, of Waycross, Georgia, was sentenced on March 16, 2017, to 120 months imprisonment;
2) Tiffany Leverette, age 33, of Nahunta, Georgia was sentenced on February 1, 2017, to 36 months imprisonment;
3) Austin Brown, age 43, of Rebecca, Georgia, was sentenced on March 16, 2017, to 120 months imprisonment;
4) Jamie Crews, age 42, of Okeechobee, Florida, was sentenced on December 14, 2016, to 200 months imprisonment;
5) Jacob Herrin, age 23, of Hoboken, Georgia, was sentenced February 1, 2017, to 48 months imprisonment;
6) Loretta Hunt, age 47, of Tifton, Georgia, was sentenced on August 29, 2017, to five years of probation for conspiracy to distribute marijuana;
7) Adam Arnold, age 40, of Charleston, West Virginia, was sentenced on August 29, 2017, to 80 months imprisonment;
8) Jimmy Waldrop, age 45, of Leesburg, Georgia, was sentenced on August 29, 2017, to 96 months imprisonment for illegal use of a communication facility to facilitate drug trafficking;
9) Tony Carrithers, age 47, of Tifton, Georgia, was sentenced on August 29, 2017, to 72 months imprisonment;
10) Jimmy Barrentine, age 55, of Tifton, Georgia, was sentenced on August 29, 2017, to 60 months imprisonment;
11) Jimmy Taylor, age 42, of Tifton, Georgia, was sentenced on August 29, 2017, to 180 months imprisonment;
12) Gaye Miles, age 46, of Tifton, Georgia, was sentenced on August 30, 2017, to 36 months imprisonment;
13) Tonya Harp, age 38, of Tifton, Georgia, was sentenced on August 30, 2017, to 60 months imprisonment;
14) Sarah Taylor, age 41, of Tifton, Georgia, was sentenced on August 30, 2017, to 18 months imprisonment;
14) Dexter Davis, age 53, of Enigma, Georgia, was sentenced on August 30, 2017, to 144 months imprisonment;
15) Dorian Holt, age 40, of Fairburn, Georgia, was sentenced on August 30, 2017, to 135 months imprisonment;
16) Leslie Howard, age 47, of Chula, Georgia was sentenced on August 30, 2017, to 120 months imprisonment;
17) Anthony Moore, age 30, of Hoboken, Georgia, was sentenced on August 30, 2017, to 210 months imprisonment;
18) Antron Miles, age 48, of Tifton, Georgia, was sentenced on October 10, 2017, to 360 months imprisonment (to begin in 2020 and run consecutive to his Tift county sentence); and
19) Rehjan Mujanovic, age 27, a citizen of Bosnia, residing in Gwinnett County, Georgia was sentenced on August 30, 2017, to 240 months imprisonment, with sentencing on separate charges in the State of Georgia to take place subsequently.
Co-defendant Bobby Grantham is awaiting sentencing.
Investigative efforts in this case revealed that several inmates in the custody of the Georgia Department of Corrections, including Antron Miles, Anthony Moore, and Rejhan Mujanovic had engaged in a conspiracy with one another and with other persons, who were not inmates, to acquire and distribute a variety of controlled substances such as methamphetamine, heroin, cocaine and marijuana. Miles, Moore and Mujanovic were able to engage in this criminal activity due to cell phones that had been smuggled into the Georgia Department of Corrections and to which they had access.
Based on an order authorizing a wiretap on the phone used by Miles, agents learned that Miles, a native of Tifton, Georgia, was obtaining controlled substances, primarily methamphetamine, but also marijuana, cocaine/cocaine base and heroin from persons associated with Mujanovic. Miles’ nephew, Dorian Holt, regularly met with the suppliers and transported the bulk quantity narcotics from the Atlanta area to the Tifton area. In some instances the controlled substances were shipped via United States Mail to Enigma, Georgia, where Loretta Hillman Hunt was the Relief Post Master. Ms. Hunt would divert the packages from the normal flow of mail and provide them to either Tonya Harp or Dexter Davis for distribution.
In Tifton, the drugs were warehoused and distributed by Leslie Howard, Tonya Harp and Sarah Frost Taylor assisted by Jimmy Taylor, Tony Carrithers and Dexter Davis. Anthony Moore routed customers such as Curtis Wood, Tiffany Leverette, Jacob Herrin and Jamie Crews from the Ware, Coffee and Brantley County areas through Miles to arrange meetings with Miles’ co-conspirators in Tifton. Jimmy Barrentine assisted in transporting the controlled substances to Wood on some occasions. Miles’ wife, Gaye, took control of the proceeds of the sales and assisted in acquiring supplies necessary for processing the methamphetamine. Other listed defendants, including Austin Brown, Adam Arnold and Jimmy Waldrop, were repeat customers who acquired regular multi-ounce quantities of methamphetamine and heroin for resale in Georgia and West Virginia.
The agents monitored the wiretap from May 22, 2015 to June 8, 2015. Before, during and after the conclusion of the wiretap, agents engaged in controlled purchases of controlled substances. They conducted surveillance and traffic stops based on the information obtained through the wire-tap. Additionally, they executed search warrants at many of the Tifton area storage locations.
As a result of these efforts, agents seized multiple kilograms of high purity methamphetamine, hundreds of grams of heroin and marijuana, along with small amounts of cocaine and prescription pills such as Oxycodone and Xanax. Agents also seized in excess of $30,000 in United States Currency.
“This prosecution is the result of an ongoing and unrelenting investigation by the federal, state and local agencies listed below as well as the dedicated prosecution team in the Albany Branch of this office,” said United States Attorney Peterman. “This effort has dismantled a major drug distribution network in Southwestern Georgia, an operation that had continued even from prison. It is an outstanding example of what a dedicated team of law enforcement professionals can accomplish when working together across jurisdictional lines.”
This case was investigated by the Drug Enforcement Administration Macon Division; GBI Sylvester, Ben Hill County Sheriff’s Office, Tift County Sheriff’s Office, and Mid South Narcotics Task Force. Assistant United States Attorney Leah E. McEwen prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Philadelphia Pair Charged in Drug Trafficking ConspiracyRead the Press Release
Herman Rosario, 34, of Philadelphia, Pennsylvania, and Yatska Melendez, 22, of Philadelphia, Pennsylvania, were charged today by Indictment[1] with one count of conspiring to distributed one kilogram or more of heroin, and 28 grams of more of crack cocaine, announced Acting United States Attorney Louis D. Lappen. Rosario was also charged with possessing with the intent to distribute one kilogram or more of heroin, and 28 grams of more of crack cocaine, possessing a firearm in furtherance of drug trafficking crime, and being a felon in possession of a firearm. On July 14, 2017, Rosario and Melendez were arrested in South Philadelphia after a month-long investigation by the Philadelphia Police Department. Rosario faces a maximum sentence of life in prison, mandatory minimum prison sentences of 10 and 5 years, a $20,500,000 fine, a lifetime of supervised release, and a $400 special assessment. Melendez faces a maximum sentence of life in prison, a mandatory minimum prison sentence of 10 years, a $10,000,000 fine, a lifetime of supervised release, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced in Tax Refund Fraud SchemeRead the Press Release
Jose Perez, 52, of Philadelphia, PA was sentenced today after pleading guilty to one count of conspiracy to defraud the United States announced Acting United States Attorney Louis D. Lappen. Perez was sentenced to 51 months’ imprisonment and ordered to pay $814,981 in restitution.
Perez admitted that he participated in a scheme that defrauded the United States by filing false income tax returns using stolen identities of Puerto Rico residents. Perez collected the tax refund checks from addresses he and others controlled and then he gave the checks to another member of the scheme to be cashed. Between April 2009 and June 2009, Perez and others in the scheme cashed over $800,000 of fraudulently obtained United States Treasury tax refund checks.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney David Ignall.