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Thursday 24 August 2017
Former Professional Track Athlete and Paralympic Gold Medalist Sentenced to Federal Prison for Fraudulent SchemeRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson of the Middle District of Louisiana announced that RAPHEW T. REED, JR., age 32, of Baton Rouge, Louisiana, has been sentenced to serve forty eight (48) months in federal prison as a result of his convictions for false representation of a Social Security number and wire fraud. At yesterday’s sentencing, Judge John W. deGravelles further ordered REED to make restitution to his victims totaling $140,973.75 and pay $200 in special assessments. Additionally, REED will be required to forfeit $125,000 in proceeds from his crimes. Following his release from prison, REED will be required to serve a 3-year term of supervised release.
REED is a resident of Baton Rouge, Louisiana. As REED represented at the sentencing hearing, he is an accomplished track and field athlete, having competed at the collegiate level for the University of Mississippi, in the Paralympic Games as a member of the United States Track & Field Team, and ultimately as a professional track athlete. After his track career ended, REED returned to Baton Rouge and entered the world of finance, holding himself out as a financial advisor and as someone who could assist individuals and businesses in obtaining credit and financing.
Ultimately, REED turned to fraud. As REED has admitted, in May of 2012, he knowingly provided a federally insured credit union with a false Social Security number and false documents that misrepresented his identity, income, and credit score, in an attempt to secure a loan. When that scheme failed, from late 2012 through April 2013, REED executed a scheme to defraud another company, which, on November 27, 2012, wired $125,000 to REED. REED fraudulently diverted the funds to his friends, family members, others to whom he owed money, and to another one of his own bank accounts. In 2013, when the victim repeatedly asked REED to return the funds, as he had promised he would do, REED falsely represented to the victim that he was in the process of returning the company’s funds.
During the sentencing hearing, the Court found that REED’s fraudulent conduct spanned several years. In fact, REED defrauded another victim in June of 2014—a former teacher of REED’s in Baton Rouge who believed, based on REED’s representations, that he would invest her money in a hedge fund. Then, in the spring of 2015, REED defrauded a technology company in Los Angeles, California, by making false representations and causing the company to incur expenses based on the false pretense that REED would purchase the company. In total, REED’s scheme had an intended loss of more than $200,000, not counting the potential loss associated with several fraudulent foreign securities and bonds that REED attempted to deposit at various financial institutions during the same time period described above. These fraudulent foreign bonds had a total face value in the hundreds of millions of dollars.
Acting U.S. Attorney Amundson stated, “Thankfully REED’s string of colorful schemes—all of them fraudulent—has finally come to an end. REED’s conduct justifies every day of the lengthy sentence that the Court handed down in this case. We appreciate the hard work of our law enforcement partners to put a stop to REED’s conduct and bring this serial fraudster to justice, and we will continue to aggressively pursue others who would attempt the same type of criminal conduct.”
FBI Special Agent in Charge Jeffrey Sallet stated, “This case is an excellent example of the dedication and focus exhibited by the FBI, United States Attorney's Office, and law enforcement partners throughout this investigation. This outcome should serve as a deterrent to those who attempt to defraud others, particularly those who attempt to use deceit and sophisticated means to avoid prosecution.”
This matter was investigated by the Baton Rouge office of the Federal Bureau of Investigation, with valuable assistance from the Social Security Administration’s Office of Inspector General. The matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as Chief of the office’s Criminal Division.
Former Investment Advisor Arrested for $20 Million FraudRead the Press Release
NORFOLK, Va. – The former owner of a Virginia Beach investment company was arrested today for his alleged role in leading an investment fraud scheme that caused losses of at least $20 million.
Daryl Gene Bank, 47, of Port St. Lucie, Florida, and Raeann Gibson, 45, of Palm City, Florida, were previously residents of Virginia Beach. Each have been charged with conspiracy to commit mail and wire fraud, mail and wire fraud, and engaging in unlawful monetary transactions. According to the allegations in the indictment, Bank created, owned and operated dozens of Virginia limited liability companies, including Dominion Investment Group (DIG), and Dominion Private Client Group (DPCG), with offices in Virginia Beach and in Port St. Lucie.
According to allegations in the indictment, Bank and Gibson engaged in a conspiracy by which they operated several investment fraud schemes from approximately January 2012 through July 2017. For example, in one fraud scheme, Bank caused numerous material misrepresentations and omissions to be made to several investors, including BC, who was blind and in his late 70s at the time he invested $20,000 of his retirement funds in an investment fraud called Prime Spectrum. Immediately upon receipt of BC’s funds, Bank and Gibson misappropriated 70 percent investment funds and sent BC a statement reflecting his investment in Prime Spectrum was fully invested.
During the various fraud schemes, Bank and Gibson prepared materially false and misleading investment offerings, and knowingly omitted information and made material misrepresentations to at least 300 investors, causing his victims to lose at least a combined $20 million.
According to the indictment, in 2015, the Securities and Exchange Commission (SEC) filed a civil complaint against Bank and entities he controlled accusing him of running a multi-million dollar scheme to defraud investors. That same year, the Virginia State Corporation Commission filed a civil enforcement action against both Bank and Gibson to enjoin them from the fraudulent sale of unregistered securities.
If you believe you may be a victim in this case, please call the FBI’s Norfolk Field Office at: 757-609-2514.
Bank faces a maximum penalty of 260 years in prison if convicted, and Gibson faces a maximum penalty of 240 years in prison if convicted. 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, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement. Assistant U.S. Attorneys Melissa E. O’Boyle and Elizabeth M. Yusi are prosecuting the case.
The FBI’s Miami Field Office provided significant assistance with the execution of the arrest and search warrants.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-126.
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.
Former IT Director Sentenced for Embezzling Hundreds of Thousands from EmployerRead the Press Release
HOUSTON – The former director of Information Technology (IT) Services for a Houston-based real estate services company has been ordered to prison following his conviction related to a conspiracy in which he stole nearly $800,000, announced Acting U.S. Attorney Abe Martinez. Bradley David Freitas, 37, of Tomball, previously pleaded guilty to conspiracy to commit mail and wire fraud.
Today, U.S. District Judge Sim Lake handed Freitas a sentence of 33 months in federal prison to be followed by three years of supervised release. His wife - Loren Elizabeth Freitas, 34, had also been convicted in the case. She pleaded guilty to conspiracy to commit mail fraud and was ordered to serve a term of probation. The couple are both required to pay $773,555 in restitution.
From approximately April 14, 2009 through Jan. 14, 2014, Bradley Freitas embezzled $773,500 from the company, at times with the help of his wife.
Bradley Freitas was hired as the Director of IT services for the real estate company on March 5, 2009. Throughout his employment, he created false explanations on internal company justification documents so that the unauthorized purchases were masked as IT related items. Bradley Freitas would miscode justification documents to mask the unauthorized personal purchases for several years and made these unauthorized purchases with the company credit cards issued to him for IT purchases only. The merchandise was purchased from online retailers, such as Amazon, NewEgg and CDW, and mailed either to his office or home.
Several of the items, such as a dining room table with chairs, a Gucci purse and wallet, home entertainment systems, televisions and more, were purchased for the Freitas’ own personal enrichment. Other items, such as ipads and laptops, were sold on eBay or to their own private customers in New York and elsewhere for them to obtain a profit. At times, Loren Freitas would direct her husband as to what to purchase and then mailed the various items to be sold to their customers via FedEx or UPS.
Previously released on bond, Bradley Freitas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Suzanne Elmilady is prosecuting the case.
Former Fresno Resident and Teacher Sentenced to 9 Years in Prison for Child Pornography OffensesRead the Press Release
FRESNO, Calif. — Jack Mootz, 63, of Sacramento, formerly of Fresno, was sentenced on Wednesday to nine years in prison for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Dale A. Drozd also imposed a term of supervised release of 15 years during which Mootz will be required to register as a sex offender and his access to the internet, computers, and children will be restricted.
According to court documents, a law enforcement officer in Plano, Texas detected that Mootz was sharing thousands of images of child pornography through the BitTorrent network. Most of the images depicted children as young as infants and toddlers being sexually abused by adults.
Mootz had been employed in numerous school districts throughout Central California as a teacher, often working with special needs students. Mootz had been living in Fresno but relocated to Sacramento after a search warrant was executed at his residence. Mootz was indicted on March 9, 2017, and pleaded guilty without a plea agreement on May 31, 2017.
This case was the result of an investigation by the Federal Bureau of Investigation offices in Dallas, Texas and Fresno, California as well as the Plano Police Department. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Final Two Defendants in Multi-State Methamphetamine Ring Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced the final two sentencings in a federal prosecution aimed at a drug trafficking organization that operated in Louisiana, Mississippi, and Texas. On Wednesday, August 23, 2017, TIMOTHY ROUSSEL, age 38, of Saint Amant, Louisiana, and BRANDON BOURGEOIS, age 43, of Baker, Louisiana, were sentenced by U.S. District Judge James J. Brady for their roles in the drug ring.
These defendants were prosecuted as part of an investigation targeting methamphetamine traffickers operating in and around Baton Rouge. The investigation resulted in federal charges against 15 individuals for federal narcotics violations, including, among others, conspiring to distribute and possess with intent to distribute methamphetamine and possession of firearms in furtherance of the conspiracy. The leaders of the organization were convicted and sentenced as follows:
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RANDY TIBBITS BROWN, a.k.a. Randall Brown, age 37, of Powder Springs, Georgia, was sentenced on February 2, 2017, to serve 15 years in federal prison following his convictions for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possessing firearms in furtherance of the conspiracy.
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TRAYMONDA OWENS, a.k.a. Traymonda Jarmichael Owens, age 26, of Houston, Texas, was sentenced on October 13, 2016, to serve 10 years in federal prison following his convictions for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute 500 grams or more of a mixture of substance containing methamphetamine, and using a communications facility to facilitate these crimes.
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TONYA C. BRELAND, a.k.a. Tonya Crawford, age 43, of Pride, Louisiana, was sentenced on June 15, 2017, to serve 5 years in prison following her convictions for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, distribution of methamphetamine, and using a communications facility to facilitate these crimes.
Yesterday, Judge Brady sentenced BOURGEOIS to serve 18 months in federal prison and sentenced ROUSSEL to serve 366 days in federal prison for their roles in the drug trafficking ring. In all, through the investigation, 9 defendants were sentenced to prison.
Acting U.S. Attorney Amundson stated, “By successfully pursuing and prosecuting leaders and facilitators of this multi-state drug trafficking group, a group responsible for poisoning our community has been neutralized. Indeed, the enforcement of our federal drug laws must be a significant part of any solution to our current epidemic. I greatly appreciate the dedicated efforts of the prosecutors and agents who contributed to this important operation.”
"These sentencings today deliver a strong message to all who engage in the distribution of illegal drugs that we will work together to see that you are brought to justice. Federal and local law enforcement successfully collaborated in order to put these individuals in federal prison as a result of their desire to supply the citizens of Baton Rouge with methamphetamine,” said Drug Enforcement Administration (DEA) Assistant Special Agent-in-Charge Brad L. Byerley.
This matter was investigated by the U.S. Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorneys Robert Piedrahita, Kevin Sanchez, and Ryan Rezaei.
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Fairfield Man Pleads Guilty to Distributing Heroin and Fentanyl Involved in Deep River Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN VIBBERT, 37, of Fairfield, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of distribution of heroin and fentanyl.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the early hours of May 31, 2016, Connecticut State Police and emergency medical personnel responded to a residence in Deep River and found an unresponsive 35-year-old male. Although CPR was performed and Narcan was administered, the man was pronounced deceased at the scene.
The investigation, which has included analysis of the victim’s cellphone and a witness interview, revealed that, on May 30, 2016, the victim contacted VIBBERT to purchase heroin. The victim then drove to a restaurant near I-95 in Bridgeport where he met VIBBERT to complete the purchase.
The Office of the Chief Medical Examiner has determined that the cause of death to be “acute heroin and fentanyl toxicities.”
VIBBERT was arrested on a criminal complaint on March 27, 2017.
VIBBERT is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on November 15, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $50,000 bond.
This matter has been investigated by the Drug Enforcement Administration and the Connecticut State Police, with the assistance of the Monroe Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
Elkins Park Man Charged with Possession of Child PornographyRead the Press Release
Matthew McAlpin, 41, of Elkins Park, Pennsylvania was charged today by Information with one count of possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
It is alleged that on December 10, 2015, McAlpin possessed over five thousand images or videos of child pornography, or visual depictions of minors engaged in sexually explicit conduct, and that his collection included depictions involving the sexual victimization of minors under the age of 12 years.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a term of supervised release, $250,000 fine, mandatory restitution, forfeiture, a $100 special assessment, and a $5,000 additional special assessment under the Justice for Victims of Trafficking Act.
The case was investigated by Homeland Security Investigations, Abington Township Police Department, and the Montgomery County Detective Bureau. It is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Denver Area Meth and Cocaine Dealer from Mexico Found Guilty Following Jury TrialRead the Press Release
DENVER – Jorge Loya-Ramirez, age 49 of Denver, and a citizen of Mexico was convicted late yesterday of nine counts of various drug charges following a jury trial before U.S. District Court Judge Robert E. Blackburn, the U.S. Attorney’s Office, FBI Denver Division and the Metro Gang Task Force announced. The trial lasted seven days, and the jury deliberated for three hours before reaching their guilty verdicts. Loya-Ramirez is the last defendant of multiple defendants charged under the case name Operation Black Rhino. All other defendants had previously pled guilty and have or await sentencing. A sentencing date has not yet been set.
Loya-Ramirez and 27 others were indicted by a federal grand jury on June 23, 2015. Of the 27 other defendants, most have pled guilty, some have been sentenced, and others had their cases dismissed. The nine counts of conviction include: one count of Conspiracy to distribute cocaine and methamphetamine; five counts of Possession and possession with intent to distribute methamphetamine; one count of Possession and possession with intent to distribute cocaine; and three counts of Use of a telephone during the commission of a drug offense.
According to the facts presented at trial, the defendant claimed to be a man who sold tacos from a food truck. However, the prosecution proved beyond a reasonable doubt that Loya-Ramirez was the “El Jefe” or “The Boss” of a large-scale drug trafficking organization. He was responsible for importing nearly 200 pounds of methamphetamine, which was then distributed in the Denver metro area, Ft. Morgan, Greeley and southwest Kansas. Additionally, the defendant dealt with kilogram quantities of cocaine.
Further, the prosecution established that the defendant used violence and intimidation in order to make his drug organization function. His tactics included acts of violence and assaults on workers in Colorado as well as threat against family members of his associates here and in Mexico. While claiming to be a taco salesman, he built two high priced homes in Mexico during the course of the conspiracy.
At sentencing, the defendant faces a mandatory minimum of 10 years and up to life in federal prison for his crimes.
Acting U.S. Attorney Bob Troyer praised the trial team, Assistant United States Attorneys Tim Edmonds and Zachary Phillips for their hard work. He also recognized the FBI and the Metro Gang Task Force for their outstanding work investigating this complex drug trafficking organization.
Council Bluffs Woman Pleads Guilty to Identification FraudRead the Press Release
COUNCIL BLUFFS, IA - On August 23, 2017, Gina K. Malloy, of Council Bluffs, Iowa, pleaded guilty to the unlawful use of an identification document, announced United States Attorney Kevin E. VanderSchel. Malloy will be sentenced by Senior United States District Court Judge James E. Gritzner on January 24, 2018, at 10:30 a.m. at the Council Bluffs Federal Courthouse.
According to the plea agreement, in 2014, Malloy applied for a $30,000 loan from Windset Capital Corporation. The loan application was made in the name of Habitat for Humanity of Council Bluffs, where Malloy was the Executive Director. The promissory note required a second signature from a Habitat for Humanity member. Malloy signed the name of an unknowing victim, used the victim’s name, social security number, and attached the victim’s driver’s license’s copy to the promissory note. The application was then sent to Windset Capital Corporation via an electronic transfer service.
Malloy also admitted she applied for a U.S. Bank business Visa credit card for Habitat for Humanity on or about January 13, 2015. The application was sent to the U.S. Bank by Malloy, and contained the same victim’s personal data. Malloy has agreed to pay at least $13,490 to Habitat for Humanity of Council Bluffs and $12,100 to U.S. Bank in restitution.
The Federal Bureau of Investigation conducted the investigation. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Council Bluffs Man Sentenced to 70 Months in Prison for Methamphetamine and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA - On August 23, 2017, Ivan Wade Diaz-Rodrigues, 26, of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 70 months in prison for possession of methamphetamine with intent to deliver and possession of a firearm by a prohibited person, announced United States Attorney Kevin E. VanderSchel. Diaz-Rodrigues will serve three years of supervised release following his imprisonment.
Diaz-Rodrigues pleaded guilty to these charges on April 3, 2017, and admitted he offered to sell methamphetamine to a confidential source in Council Bluffs in February of 2017. Diaz-Rodrigues was apprehended by authorities after arranging the methamphetamine sale, and was found in possession of methamphetamine and a loaded .40 caliber handgun.
The case resulted from an investigation by Southwest Iowa Narcotics Enforcement Task Force, which consists of the Council Bluffs Police Department, Mills County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and Iowa Department of Public Safety Division of Narcotics Enforcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted with the firearm investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Corpus Christi Man Heads to Prison for Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old resident of Corpus Christi has admitted he attempted to meet an underage girl for the purpose of sex, announced Acting U.S. Attorney Abe Martinez. David Lee Vann pleaded guilty April 27, 2017.
Today, U.S. District Judge Hilda G. Tagle handed Vann a term of 120 months in federal prison. Vann was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
In June 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Corpus Christi Police Department - Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Vann was communicating with a person he believed was the mother of a 14-year-old female. In reality, he was talking to an undercover agent. Vann made arrangements to meet and engage in sexual activity with the mother’s minor female child.
Vann was apprehended as he arrived at the designated meeting place, at which time he was in possession of a box of condoms and lubricant. He also admitted to authorities that he had sent messages indicating his intention to engage in sexual acts with the child. Vann was also in possession of a cellular telephone. A forensic examination of the phone resulted in the discovery of 35 images and 20 videos of child pornography.
Vann was arrested on the federal charges in November 2016. He has been and will remain in custody pending his sentencing hearing.
The case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, 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."
Columbia Man Sentenced on Firearm and Drug Trafficking OffenseRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Michael D. Quattlebaum, age 45, of Columbia, South Carolina, was sentenced in federal court to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), and possession with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Section 841(b)(1)(C). United States District Judge Mary Geiger Lewis sentenced Quattlebaum to 68 months imprisonment with 3 years of federal supervised release to follow.
Evidence presented at the earlier change of plea hearing established that on April 17, 2016, Quattlebaum attempted to allude officers of the Columbia Police Department during a routine traffic stop. Evidence showed that Quattlebaum left his vehicle and led officers on a foot chase. During the foot chase, officers observed Quattlebaum opening large packages of cocaine and attempting to get rid of the controlled substance. Officers eventually apprehended Quattlebaum and discovered a quantity of cocaine on his person. From the vehicle, officers also recovered a firearm, a Walther PPX, 9mm pistol, ammunition, and various drug paraphernalia, which all belonged to Quattlebaum. Quattlebaum is prohibited under federal law from possessing firearms based upon his prior state convictions and adjudications for pointing and presenting a firearm and assault and battery.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Alyssa L. Richardson of the Columbia office handled the case.
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Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man who was involved in a shooting at a local gas station was sentenced in federal court today for illegally possessing a firearm.
Turbo Lindsey Midgyett, 31, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole.
Midgyett pleaded guilty on April 3, 2017, to being a felon in possession of a firearm.
Columbia police officers responded to a gas station in the 1400 block of Rangeline in the early morning hours of March 6, 2016, where shots had reportedly been fired. Officers responded to a chaotic scene, with a large crowd (approximately 100 people) of uncooperative witnesses, and reviewed surveillance video to determine what had happened. Officers located two cars with damage from gunfire and found three 9mm casings. Video from the gas station showed a man pulling out a firearm, which appeared to misfire. The video showed Midgyett, the second shooter, racking a handgun and firing several times in the direction of the first shooter.
Officers went to Midgyett’s residence and spoke with his girlfriend, who told officers that Midgyett is allowed to use her gun and vehicle, and that the gun was usually in the glove box. Officers looked in the glove box and found a loaded Taurus 9mm handgun, which had three rounds missing. The brand of ammunition in the firearm was the same as the three rounds found at the shooting scene. Midgyett was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Midgyett has three prior felony convictions for robbery.
According to court documents, Midgyett and an accomplice robbed a Casey’s convenience store in Columbia on July 25, 2003, holding a store employee in a vehicle while another employee was taken inside to access money from the store safe. A few days later, Midgyett robbed a different Casey’s, ordering employees back into the store so that he could steal money. The night after that, Midgyett robbed yet another convenience store in Columbia.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Career Drug Trafficker Sentenced for Distributing Heroin and CocaineRead the Press Release
RICHMOND, Va. – A Henrico man who distributed a combined total of more than 20 kilograms heroin and cocaine into the Richmond area in 2016 was sentenced today to 262 months in prison.
Alphonso Jones, 43, pleaded guilty on May 23. According to court documents, Jones, who has multiple previous drug related convictions, admitted that he been involved in the distribution of more than seven kilograms of heroin and 15 kilograms of cocaine. These quantities convert to over 220,000 individual doses. Jones also admitted to possessing a .38 caliber handgun and ammunition as a convicted felon. In addition to his prison sentence, Jones was ordered to forfeit the firearm, and a monetary judgment was entered in the amount of $1.05 million, which represented the proceeds of Jones’ drug trafficking activities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Alfred Durham, Chief of Richmond Police, and Colonel Thierry Dupuis, Chief of Chesterfield County Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-34.
Canadian Man Pleads Guilty to Marijuana ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jean Luc Gaudreau, 39, of Ottawa, Canada, pleaded guilty before U.S. District Judge Richard J. Arcara to importing more than 100 kilograms of marijuana into the United States.Assistant U.S. Attorneys Paul Bonanno and Patricia Astorga, who are handling the case, stated that on February 1, 2006, the defendant imported approximately 498 pounds of marijuana into the United States from Canada at the Lewiston Bridge Port-of-Entry. During primary inspection, Gaudreau, a Canadian citizen and truck driver for a Canadian freight company, gave a Customs and Border Protection officer a manifest listing four shipments. During a secondary inspection, CBP officers performed a gamma ray scan of the defendant’s truck, which revealed a fifth shipment in the truck that was not listed on the manifest. The fifth shipment comprised 14 cardboard boxes filled with vacuum-sealed bags of marijuana.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for January 19, 2018, before Judge Arcara.
California Man Sentenced for $460,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was sentenced in federal court today for a nearly $460,000 bank fraud scheme that involved stolen checks and false identities, with much of the illegal proceeds used to purchase gold coins that remain hidden.
Michael Keefe White, 61, of Winnetka, Calif., was sentenced by U.S. District Judge Beth Phillips to nine years and three months in federal prison without parole. The court also ordered White to pay $288,769 in restitution.
On Feb. 9, 2017, White pleaded guilty to bank fraud, aggravated identity theft and money laundering. White admitted that he obtained checks stolen from the mail, then used counterfeit identification (such as driver’s licenses with his photo and the name of a victim) to open bank accounts in Missouri and other states in which to deposit the stolen checks as well as counterfeit checks modeled from the stolen checks. White then withdrew or wire transferred the money out of the account.
According to court documents, White laundered his bank fraud proceeds through gold coin companies in California; he wired the proceeds of his fraud to purchase at least $227,628 in gold coins in May and June 2016. The court earlier found White breached his plea agreement when he did not truthfully account for the gold coins he bought with proceeds of the bank frauds.
White used numerous counterfeit driver’s licenses to open bank accounts in both Kansas City and Portland, Ore., in a total attempted fraud amount of at least $977,441.
The specific bank fraud to which White pleaded guilty involved an account at a Parkville, Mo., bank in which White deposited a $48,700 counterfeit check. White was arrested at Bank Liberty while trying to redeem a $167,728 check payable to another victim whose identity White had also stolen.
In addition to this case, according to court documents, White committed similar bank frauds in Portland from 2014 to 2016, in which he opened accounts in the names of other men, deposited fraudulent checks, and withdrew $40,614 before the checks were discovered to be counterfeit. White intended to defraud the Portland banks of $517,545. Including his criminal activity in both Kansas City and Portland, the total actual loss from White’s bank frauds is $288,769 and the total intended loss is $977,441.
Court documents note that White, who has never held legitimate employment, has an extensive and uninterrupted criminal history.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Department of Treasury – Office of Inspector General and the U.S. Postal Inspector Service.
Burlington Man Sentenced on Child Pornography ChargeRead the Press Release
GREENSBORO, N.C. – An individual who pleaded guilty to receipt of child pornography was sentenced today, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
HAROLD WAYNE LAIL, 75, of Burlington, North Carolina, pleaded guilty on June 5, 2017, to one count of receipt of child pornography. He was sentenced by United States District Judge Loretta C. Biggs to 60 months imprisonment followed by 10 years supervised release. LAIL was also ordered to pay $30,500 in restitution and forfeit an Apple iMac and several storage devices containing child pornography.
Investigators searched LAIL’s home on June 30, 2016, after discovering that someone tried to access child pornography using LAIL’s IP address. They found thousands of images and videos of child pornography on a computer and storage devices in LAIL’s home.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including Homeland Security Investigations and the Burlington Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
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Buffalo Woman Pleads Guilty to StructuringRead 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 Jessica Lopez, 28, of Buffalo,, NY, pleaded guilty to structuring before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of five years prison.Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between July 2012, and January 18, 2013, the defendant, who was working as a teller at Bank of America, knowingly structured bank deposits for co-defendant Steven Bennett in an attempt to avoid the bank’s transaction reporting requirements for cash deposits exceeding $10,000. Specifically, Bennett, or his associates, would provide the proceeds from their unlawful sales of controlled substance to the defendant who, in turn, would make cash deposits into bank accounts related to Bennett. The total amount of cash deposits structured by the defendant amounted to approximately $85,300.
Steven Bennett has been convicted and is awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Agency, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for December 13, 2017, at 11:00 a.m. before Judge Skretny.
Buffalo Men Plead Guilty to Conspiring to Commit Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Rosier, 23, and Cody Kross-Rosier, 23, both of Buffalo, NY, pleaded guilty to conspiracy to commit bank fraud and bank fraud before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
According to Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, between January and March 2014, Rosier and Kross-Rosier conspired with others to defraud and fraudulently obtain money and funds from federally insured financial institutions. As part of the scheme, the defendants used existing bank accounts and opened new accounts at six financial institutions in order to obtain and attempt to obtain money, services and merchandise totaling over $120,000. Rosier and Kross-Rosier floated checks between the accounts in an effort to prevent the financial institutions from discovering that there were insufficient funds to cover checks deposited into and written on the accounts.
The plea is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for November 13, 2017, before Judge Arcara.
Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Early, 32, of Buffalo, NY, who was convicted of possession with intent to distribute cocaine, was sentenced to 72 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that on September 27, 2013, the Drug Enforcement Agency and Buffalo Police Department executed search warrant at 66 Connelly Avenue in Buffalo. During the search, officers found crack cocaine and $6,495 in cash.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Bettendorf Doctor Pleads Guilty to Health Care FraudRead the Press Release
DAVENPORT, IA – On August 22, 2017, Dr. Paul Matthew Bolger, 45, of Bettendorf, Iowa, pleaded guilty to 18 counts of false statements relating to health care matters and five counts of introduction of misbranded drugs. He also pleaded guilty to one count of false statements relating to health care matters for conduct occurring in California and transferred from the Central District of California to the Southern District of Iowa, announced United States Attorney Kevin E. VanderSchel. Bolger will be sentenced by Chief United States District Court Judge John A. Jarvey on January 9, 2018, at 9:30 a.m. at the Davenport Federal Courthouse.
Bolger knowingly and willfully made false statements by signing multiple prescription forms authorizing prescription drugs and indicating prescriptions were medically necessary. Bolger signed and attested to the validity of each prescription based only on an intake form recorded by non-medical staff (generated by call centers outside of the United States), and an accompanying prescription form. Bolger signed each of the prescription forms without talking to the patient, conducting a physical examination, or reviewing medical records. These signed prescription forms were then faxed to DCRX, a Florida pharmacy; or Haoeyou, a California pharmacy; the pharmacies filled the prescriptions, mailed them to the patients, and billed Tricare. Tricare is a federal health care benefit program providing medical care for U.S. military members and their dependents. Tricare reimbursed the pharmacies for the fraudulent compounded medication prescriptions.
Bolger authorized a total of 1,375 prescriptions for compounded medications from March through April of 2015. Based on 284 patients and 763 prescriptions Bolger authorized and filled by DCRX, Tricare paid approximately $2,920,354. Based on 32 patients and 112 similar prescriptions filled by Haoeyou (or its designee), Tricare paid approximately $566,836.
Bolger additionally wrote prescriptions for patients in 16 states where he was not licensed and misbranded those prescriptions. Bolger issued misbranded prescriptions for 11 Alabama patients, costing Tricare $268,000. Approximately 105 patients, located in states where he was licensed, received prescriptions authorized by Bolger, costing Tricare approximately $681,000.
The maximum penalty for counts related to false statements is five years in prison, a $250,000 fine, three years of supervised release, and a special assessment of $100 per count. The maximum penalty for misbranding charges is one year in prison, a $100,000 fine, one year of supervised release, and a special assessment of $25 per count. Bolger agreed to pay at least $10,000 in restitution to Tricare.
The Federal Bureau of Investigation and Office of the Inspector General for the Department of Defense conducted the investigation. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the Central District of California.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Bank Fraud Ring that Stole Wallets and more than $700,000 in Ten States Indicted in SeattleRead the Press Release
Eight people tied to a ten-state theft and bank fraud scheme were indicted today by a grand jury in Seattle on 18 federal crimes including bank fraud, money laundering, and aggravated identity theft, announced U.S. Attorney Annette L. Hayes. Five of the eight defendants have been arrested, and another is already serving a prison sentence in Nevada and will be arraigned on the indictment on August 31, 2017, and September 7, 2017.
According to the indictment and other records filed in the case, the theft ring was led by ALEXANDRA SHELBURNE, 24, and DARRYL KILGORE, 55, who used the proceeds of their scheme to buy and flip homes in the greater Los Angeles area, further laundering their stolen money. Between July 2014, and July 2017, the couple would prowl the aisles of grocery stores throughout the country, including the greater Seattle area. After creating a distraction, they would steal the victim’s wallet and immediately use the credit and debit cards, the identification documents, and blank checks for fraud. The couple, who were arrested at their home in Las Vegas, Nevada, recruited other co-conspirators to pose as the victims at area banks to make large cash withdrawals or obtain cash advances. In western Washington alone the fraud totaled more than $230,000. In the states of Minnesota, Oregon, California, Michigan, Texas, New Jersey, Colorado, Ohio, and Utah the fraud totaled more than $500,000.
Other defendants indicted in the case are ROBIN PERRY, 54 of Las Vegas, Nevada, AMBER OKHOMINA, 35 of Ontario, Canada, FREDERICK JACKSON, 62 of Los Angeles, California, SUSAN KOLLER 49, of Toronto, Canada, STACIA QUARTO, 63 of Albuquerque, New Mexico, and ELIZABETH EVANS, 43, of Las Vegas, Nevada.
All of the defendants are charged with Conspiracy to commit bank fraud which is punishable by up to 30 years in prison and a $1,000,000 fine. KILGORE and SHELBURNE are charged with eight counts of bank fraud, one count of money laundering conspiracy, and five counts of money laundering. KILGORE and SHELBURNE are both charged with three counts of aggravated identity theft, which carries a mandatory two-year sentence per count on top of any sentence imposed on the other charges. ROBIN PERRY, AMBER OKHOMINA, STACIA QUARTO and SUSAN KOLLER are each charged in one count of aggravated identity theft.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Secret Service and the Kirkland Police Department. The case is being prosecuted by Assistant United States Attorney Marie Dalton.
shelfurne_et_al_indictment_0.pdfAtoka Couple Sentenced to 3 Months, $67,000 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL FERRARIE EUBANKS, age 58, of Atoka, Oklahoma, and HYDIE ROYLENE EUBANKS, age 59, of Atoka, Oklahoma were sentenced to 3 months imprisonment, and 3 years of supervised release respectively, for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Sections 641 and 2; CONCEALMENT OF A MATERIAL FACT, in violation of Title 42, United States Code, Section 408(a)(4) and Title 18, United States Code, Section 2, and FALSE STATEMENT, in violation of Title 42, United States Code, Section 408(a)(2) and Title 18, United States Code, Section 2. They were also ordered to pay $67,633.00 to the Social Security Administration.
Evidence at trial proved that from in or about September 2010, and continuing through March 10, 2016, within the Eastern District of Oklahoma, defendants, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly and willfully embezzle, steal, and convert to their own use, money and things of value from the Social Security Administration (“SSA”), a department or agency of the United States, which money had been paid to the defendants as Social Security disability payments for the benefit of MICHAEL FERRARIE EUBANKS to which the defendants knew MICHAEL FERRARIE EUBANKS was not entitled, and having a value in excess of $1,000.00.
Evidence at trial further proved that from on or about September 2010, and continuing through March 10, 2016, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS intentionally concealed that MICHAEL FERRARIE EUBANKS secured gainful employment in order to receive and continue to receive Disability Income payments made by the Social Security Administration to them. By such action, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS took approximately $67,633.00 in Social Security Disability Income payments to which they were not entitled.
Evidence at trial further proved that on or about November 30, 2015, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly make or cause to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination. Specifically, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS jointly completed a Continuing Disability Review Report wherein MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS stated that MICHAEL FERRARIE EUBANKS had not worked since the date of MICHAEL FERRARIE EUBANKS last medical disability determination.
The verdict obtained was the result of an investigation by the Social Security Administration’s Office of Inspector General.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendants will report to a federal facility at which the nonparoleable sentences will be served.
Assistant United States Attorney Melody Nelson and Assistant United States Attorney Rob Wallace represented the United States.
Arizona Man Sentenced to Seven Years for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Eugene Daniel Gonzalez, 38, of Phoenix, Ariz., was sentenced yesterday in federal court in Las Cruces, N.M., to 84 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Gonzalez was arrested on Dec. 2, 2016, on a criminal complaint charging him with committing a methamphetamine trafficking offense in March 2016, in Hidalgo County, N.M. According to the complaint, law enforcement officers found two bags containing an aggregate of 938.7 grams of crystal methamphetamine in a vehicle in which Gonzalez was a passenger.
On April 11, 2017, Gonzalez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Gonzalez admitted that on March 25, 2016, he was a passenger in a vehicle that was stopped for speeding in Hidalgo County. Gonzalez further admitted that officers who searched the vehicle found approximately 938 grams of methamphetamine in a suitcase in the vehicle.
This case was investigated by the Las Cruces office of the DEA, the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and the New Mexico State Police. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Allegations Against Philadelphia Retail Food Store of Selling Improperly Labeled Chicken Held Under Insanitary ConditionsRead the Press Release
PHILADELPHIA, PA – Since the United States of America’s filing of a civil complaint in federal district court on February 15, 2017 against Philadelphia retail store J & B Poultry Market, Inc., and its president Johnny Wong, the parties have entered into a Consent Decree to resolve allegations that the defendants sold improperly labeled chickens stored under insanitary conditions, in violation of the Poultry Products Inspection Act. Acting United States Attorney Louis D. Lappen today announced the resolution.
The Poultry Products Inspection Act prohibits companies and individuals from selling “misbranded” or “adulterated” poultry. The Complaint alleges that United States Department of Agriculture (“USDA”) inspections of the retail store established that chickens stored by the defendants were misbranded because they lacked safe handling instructions and other information required by law, and were adulterated because they were held under unacceptable conditions, including in the back of a pick-up truck outside, and at ambient temperatures in the store as high as 80 degrees.
The Consent Decree, which is not final until accepted by the United States District Court, resolves the allegations in the Complaint, prohibits defendants from committing future violations of the Act, and calls for monetary penalties, and other appropriate relief, in the event of future violations.
“This resolution furthers the Department of Justice’s and the USDA’s goal of educating individuals and companies on safe food handling practices, and ensuring compliance with those practices,” said Acting United States Attorney Louis D. Lappen.
The case was handled by Assistant United States Attorney Stacey L. B. Smith. The matter was investigated by the United States Food and Drug Administration, with legal assistance provided by Lauren Axley, USDA Attorney Advisor.
27 Southwestern Pennsylvania Residents Indicted for Trafficking Controlled SubstancesRead the Press Release
PITTSBURGH, PA – Twenty-seven southwestern Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh on charges of narcotics trafficking and other controlled substances offenses, Acting United States Attorney Soo C. Song announced today. The indictments were returned on Tuesday, August 22, and unsealed today.
These 27 defendants are charged in two separate, but related, indictments, one of which (“the Skyler Carter Indictment”) contains four counts and names:
- Skyler Carter, 36, of Clairton, PA;
- Dawndre Bivins, 30, of North Versailles, PA;
- Jojuan Bray, 21, of Clairton, PA;
- Courtney Carter, 39, of Clairton, PA;
- Jalea Carter, 25, of Clairton, PA;
- Bernard Dawkins, 60, of Clairton, PA;
- Jammie Fridley, 48, of West Mifflin, PA;
- Malcolm Howard, 25, of Clairton, PA;
- Jean Hull, 52, of Clairton, PA;
- Kevin Jackson, 34, of Clairton, PA;
- Samuel Lopresti, 55, of Clairton, PA;
- Cameron Ranson, 42, of Clairton, PA;
- Eugene Reddick, 35, of Dunlevy, PA;
- Paul Sedor, 36, of Elizabeth, PA;
- Katie Spratt, 31, of Pittsburgh, PA;
- Erika Turner, 30, of Clairton, PA;
- Terrence Wade, 47, of Clairton, PA.
The second indictment (“the Corey Jackson Indictment”) contains three counts and names:- Corey Jackson, 31, of Clairton, PA;
- Alex Brown, 39, of Clairton, PA;
- John H. Jenkins, Jr., 48, of Finleyville, PA;
- Quintin Napper, 30, of Clairton, PA;
- Tywan Napper, 33, of Clairton, PA;
- Colleen Paff, 47, of Finleyville, PA;
- William Paff, 52, of Finleyville, PA;
- Herbert Ranson, 30, of Clairton, PA;
- David Stevenson, Jr., 32, of Clairton, PA;
- Samuel Terrant, 49, of Finleyville, PA.
According to the indictments presented to the court, the above-named defendants conspired to possess with intent to distribute and distribute heroin and various other controlled substances. The Skyler Carter Indictment alleges that he and the other defendants conspired to possess with intent to distribute and distribute heroin, fentanyl, cocaine, and crack cocaine between March and August of 2017. The Corey Jackson Indictment alleges that he and the other defendants conspired to possess with intent to distribute and distribute heroin, cocaine, and crack cocaine between January and August of 2017. The quantity of crack cocaine attributed to Skyler Carter, Corey Jackson, and David Stevenson, Jr. is 28 grams or more. In addition, in the Skyler Carter Indictment, Courtney and Jalea Carter are each charged with using or maintaining a drug involved premises between March and June 2017. In the Corey Jackson Indictment, Alex Brown, Jr. is charged with possession with intent to distribute a quantity of butyryl fentanyl (a fentanyl analog that is temporarily controlled under Schedule I) and fentanyl (a Schedule II controlled substance) on February 23, 2017. Tywan Napper is charged with possession with intent to distribute heroin on February 28, 2017.For Skyler Carter, Corey Jackson, and David Stevenson, Jr., the law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5 million, or both. For the remaining defendants in both indictments, the law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
15 Individuals Charged with Trafficking Heroin, Crack Cocaine, and Fentanyl for Two YearsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury returned a 22-count indictment charging 15 individuals from Pennsylvania, New York and Connecticut with various narcotics trafficking and firearms offenses. All 15 defendants are alleged to have conspired to distribute heroin, crack cocaine and fentanyl from on or about March 2015 through March 2017. The indictment was returned on June 20, 2017, but remained under seal until all 15 defendants were apprehended.
The individuals charged in the indictment are:
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Charles Gibson, Jr. of the Bronx, NY, age 38;
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Victoria Kraynak of Plymouth, PA, age 26;
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Amanda Romano of Wilkes-Barre, PA, age 43;
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John Maybank of the Bronx, NY, age 24;
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Luis Nevarez of the Bronx, NY, age 19;
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Adam Gottstein of Kingston, PA, age 30;
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Cara Dubaskas of Kingston, PA, age 25;
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Kassandra Martin of Wilkes-Barre, PA, age 36;
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Tanay Jones of the Bronx, NY, age 25;
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William Waring of the Bronx, NY, age 26;
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Siobhan Daniels of Wilkes-Barre, PA, age 30;
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Josh Lenchick of Luzerne, PA, age 28;
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Chad Eckrote of Plymouth, PA, age 24;
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Adonis Smith of New London, CT, age 37;
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Kristyna Shotwell of Plymouth, PA, age 29.
According to United States Attorney Bruce D. Brandler, in addition to the conspiracy charge against all defendants, the indictment charges Gibson, Kraynak, Romano, Maybank, Nevarez, Dubaskas, Gottstein, Daniels, Waring, Jones, Martin, and Smith with a combined 18 counts of distributing and possessing with intent to distribute heroin, crack cocaine, and fentanyl. Defendants Cara Dubaskas, Adam Gottstein, and Kristyna Shotwell also are charged with maintaining drug premises. Amanda Romano is charged with possessing a firearm in furtherance of her trafficking activities.
Several of the defendants are charged with conspiring to distribute drug weights that trigger mandatory minimum sentences:
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Defendants Gibson and Kraynak are charged with conspiring to distribute in excess of one kilogram of heroin, which is the equivalent of at least 40,000 individual doses of heroin, and carries a 10-year mandatory minimum term of imprisonment.
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Defendants Maybank, Nevarez, Gottstein, Dubaskas, Martin, Jones, Waring, Daniels, and Lenchick are charged with conspiring to distribute in excess of 100 grams of heroin, which is the equivalent of at least 4,000 individual doses of heroin, and carries a five-year mandatory minimum term of imprisonment.
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Defendants Gibson, Kraynak, Romano, Maybank, Gottstein, and Dubaskas are charged with conspiring to distribute in excess of 280 grams of crack cocaine, which carries a 10-year mandatory minimum term of imprisonment.
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Defendants Nevarez, Martin, Jones, Waring, Daniels, and Lenchick are charged with conspiring to distribute in excess of 28 grams of crack cocaine, which carries a five-year mandatory minimum term of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kingston Police Department, and by the Luzerne County Drug Task Force. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
The case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses is up to life in prison. 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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Wednesday 23 August 2017
Wheeling man admits to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man pled guilty today to cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Sylvester “Sly” Walker, age 24, pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” He admitted to distributing cocaine near Luau Manor in Ohio County on January 25, 2017.
Walker faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Wagoner Man Sentenced to 21 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AARON EMIL WEEDEN, age 37, of Wagoner, Oklahoma, was sentenced to 21 months imprisonment, and 3 years supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about November 13, 2016, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Wagoner Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
Two Carbon County Men Charged with Production of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jared Andrew Novy, age 37, of Jim Thorpe, Pennsylvania, and Keith Keiser, age 26, of Lehighton, Pennsylvania, were indicted separately on August 22, 2017, by a federal grand jury with multiple child exploitation crimes.
According to United States Attorney Bruce D. Brandler, both indictments allege that Novy and Keiser produced multiple videos and images of a minor engaged in sexually explicit conduct. The indictments further allege that Novy and Keiser received, distributed and possessed material in the form of visual depictions involving the use of minors engaging in sexually explicit conduct.
The charges stem from an investigation conducted by the Homeland Security Investigations – Philadelphia Division. Assistant United States Attorney Michelle Olshefski is prosecuting the cases.
Both cases were 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."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Novy is 150 years’ imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for Keiser is 120 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Alleged Heroin and Fentanyl Dealers IndictedRead the Press Release
PITTSBURGH - Two former residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on August 22, named David Anthony Somerville, aka Charles Payne, aka Midnite, age 29, of Pittsburgh, PA, and Natel Deque Walker, aka Natel Harper, aka Davone Scott, age 30, of Pittsburgh, PA, as the defendants.
According to the indictment, from September 11, 2015 to January 9, 2016, Somerville and Walker conspired with each other and others to distribute and to possess with intent to distribute heroin and fentanyl. The indictment further alleges that on January 9, 2016, Somerville and Walker possessed with intent to distribute heroin, a Schedule I controlled substance, and fentanyl, a Schedule II controlled substance.
The law provides for a maximum of 40 years imprisonment, and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crimes Section is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Robinson Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Twenty people from Youngstown indicted laundering $16 million obtained through computer hacking and other fraudRead the Press Release
Twenty people from the Youngstown area were indicted for their roles in a conspiracy to launder $16 million obtained through computer hacking and other fraud, law enforcement officials said.
Indicted are: Julius Smith Williams, 46; Jamal Perry, 37; Joseph Joe III, 40; William Howell, 47; Terry Marlowe, 53; Emmett Conner, 44; Sterling Green, 47; Keisha Johnson, 32; Kayla Neeley, 29; Isiah Patterson, 29; Donald Washington, Jr., 43; Terrance Phillips, 41; Steve Croom, Jr., 40; Crystal Jefferson, 39; Dulcinea Purdue, 32; Terrance Howard, 43; Cobie Phillips, Jr., 41; Ray Wynn, 43; Jermaine Donlow, 45, and Semira Stone, 29.
They are each charged with one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit money laundering.
The defendants are accused of working as conspirators in an international fraud organization with conspirators operating from Canada, Africa and other parts of the United States.
These 20 defendants were recruited and managed by a mid-level operator identified in court documents as Z.H. He operated in and around Youngstown, Columbus and Atlanta. Working at Z.H.’s direction, the defendants established shell companies and business bank accounts used to receive and launder at least $16 million obtained through various fraud schemes, according to the indictment.
The larger conspiracy involved several different fraud schemes designed to dupe unsuspecting law firms, businesses and people to think they were engaging in legitimate business or financial transactions when, in fact, they were not. These schemes often involved computer hacking, spoofed emails and computer takeovers, according to the indictment.
Z.H. provided the conspirators in Canada and elsewhere with the numbers and other information about the accounts opened by the defendants. The victim funds were transferred into the bank accounts. Then the defendants, working at Z.H.’s direction, transferred the fraudulently obtained money out of the accounts, typically in multiple smaller transactions designed to conceal the source of the proceeds and hinder efforts to recover the money, according to the indictment.
The defendants shared in the proceeds of the fraud schemes, typically commensurate with their respective roles, according to the indictment.
Ten other people have already pleaded guilty to criminal informations for their roles in the conspiracy.
“These defendants were a vital cog in an international theft ring,” U.S. Attorney Justin E. Herdman said. “They laundered millions of dollars of stolen money and now have to answer for their actions.”
“These individuals took great efforts devising various fraudulent schemes in an effort to conceal the illegal source of their money,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue to work with our law enforcement partners through long term investigations, such as this one, to ensure fraudsters are brought to justice.”
This case was investigated by the FBI’s offices in Youngstown, Buffalo and Tampa, as well as by the Toronto Police Service. It is being prosecuted by Assistant U.S. Attorneys Ranya Elzein and Paul Flannery.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tulare County Woman Pleads Guilty to Tax Fraud and Investment FraudRead the Press Release
FRESNO, Calif. — Marie E. Sherrill, 56, of Porterville, pleaded guilty today to one count of wire fraud and one count of aiding the preparation of a false tax return, U.S. Attorney Phillip A. Talbert announced.
According to the plea agreement, Sherrill promoted a fraudulent investment program that promised the victims of the scheme that their money would be put into “pooled investments” with the money of other investors, to earn a high rate of return. The money was, in fact, never invested. Instead, it was used to pay Sherrill’s personal expenses, including gambling, and to make lulling payments to earlier investors to make them believe their money was earning a profit. As a result of this scheme, victims were defrauded of at least over $1.3 million.
In addition to the investment fraud scheme, Sherrill also committed tax fraud. According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill prepared false tax returns for her clients containing false deductions to maximize their tax refunds, causing a loss to the IRS of approximately $255,900.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Sherrill is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 13, 2017. Sherrill faces a maximum statutory penalty of 20 years in prison for wire fraud and three years in prison for the tax charge. She also faces a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tennessee Sheriff Sentenced to 33 Months in Prison for Federal Corruption and Civil Rights ChargesRead the Press Release
A former Tennessee Sheriff was sentenced today to 33 months in prison and two years of supervised release for corruption and civil rights offenses committed while he ran the Fentress County Jail in Jamestown, Tenn.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Jack Smith of the Middle District of Tennessee, Special Agent in Charge Michael Gavin of the FBI’s Memphis Division, Director Mark Gwyn of the Tennessee Bureau of Investigations (TBI), and District Attorney General Jared Effler of the Eighth Judicial District in Tennessee made the announcement.
Charles Scott Cravens, 47, of Jamestown, Tenn., was sentenced by U.S. District Judge Aleta A. Trauger. Cravens pleaded guilty on April 20, to three counts of honest services bribery and one count of deprivation of rights under color of law.
According to admissions made in connection with his guilty plea, Cravens used his position as Sheriff to solicit sex from female inmates incarcerated at the Fentress County Jail on multiple occasions between July 2016 and April 2017 in exchange for benefits that other inmates did not receive. Among those benefits, Cravens personally transported inmates outside the jail to visit relatives. Cravens also provided money on three occasions to the relatives of two inmates for deposit into the inmates’ commissary accounts. Cravens further allowed two inmates to exit the jail building to smoke cigarettes that he either provided personally or directed other jail staff to provide. Cravens additionally provided his personal cellular telephone number to the inmates with whom he engaged in sexual conduct so they could call him using the Fentress County Jail telephone system to leave recorded messages with personal requests. Between Aug. 24, 2016, and March 1, three inmates placed over 700 calls total to Cravens’ phone.
In connection with his guilty plea, Cravens also admitted to using unreasonable force as a law enforcement officer in November 2016, kicking a handcuffed male inmate in the backside and also punching the handcuffed inmate twice in the back of the head.
The FBI and TBI investigated the case. This case was prosecuted by Trial Attorneys Andrew Laing and Lauren Bell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee.
Statement of Acting U.S. Attorney Joon H. Kim on the Second Circuit’s Affirmation of the Conviction in U.S. V. Mathew MartomaRead the Press Release
“We are gratified by the Second Circuit’s affirmation of Mathew Martoma’s conviction. The strength of our securities markets rests on their integrity and fairness. And the successful prosecution of those who cheat by trading on illegally obtained inside information, as Martoma did to the tune of over $275 million, is critical to maintaining that integrity and fairness in our markets.”
St. Agnes Healthcare Agrees to Resolve False Claims Act Allegations of Overbilling MedicareRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – St. Agnes Healthcare has agreed to pay the United States $122,928 to resolve claims under the False Claims Act alleging that St. Agnes submitted false claims to Medicare by billing for evaluation and management (E&M) services at a higher reimbursement rate than the Federal health care programs allowed.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Nick DiGuilio of the Office of Inspector General for the Department of Health and Human Services.
In June 2011, St. Agnes acquired a medical practice consisting of twelve cardiologists who were formerly members of MidAtlantic Cardiovascular Associates. The twelve cardiologists became employees of St. Agnes and continued to provide services to their patients through Maryland Cardiovascular Specialists, a specialty practice affiliated with St. Agnes. Medicare permits a higher rate of reimbursement for E&M services provided to new patients as opposed to E&M services provided to established patients. A new patient is defined as a patient who has not received any professional services from the physician or physician group practice within the previous three years.
According to the settlement agreement, the United States contends that for E&M services rendered from June 3, 2011 through June 3, 2014 by the twelve cardiologists who became St. Agnes’ employees, St. Agnes improperly submitted or caused to be submitted claims to Medicare using CPT codes 99201-99205 (new patient E&M codes) when CPT codes 99211-99215 (existing patient E&M codes) should have been used. By using the new patient codes as opposed to the existing patient codes, St. Agnes improperly received more reimbursement than it was entitled to under Medicare.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Jonathan Safren, a former cardiologist employed by St. Agnes (United States ex rel Jonathan Safren v. St. Agnes Healthcare., Case No. ELH-16-2537 (D. Md.)). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Dr. Safren will receive $20,000. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Acting United States Attorney Stephen M. Schenning commended the Inspector General of the Department of Health and Human Services and thanked Assistant U.S. Attorneys Thomas Corcoran and Jane Andersen who handled the case.
Sallisaw Woman Sentenced to 70 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AMBER LUANA SMALL, age 25, of Sallisaw, Oklahoma, was sentenced to 70 months imprisonment, and 4 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and Title 18, United States Code, Section 2.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the District 27 Drug Task Force and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Timothy Hammer represented the United States.
Rockford Man Sentenced to 8 Years and 7 Months in Federal Prison on Firearm ChargeRead the Press Release
ROCKFORD — A Rockford man was sentenced Tuesday in federal court by U.S. District Judge Frederick J. Kapala for illegally possessing a firearm as a convicted felon.
DEONTA M. NEWTON, 29, was sentenced to 103 months in prison, to be followed by three years of supervised release. Newton pleaded guilty to the charge on March 17, 2017.
According to a written plea agreement, Newton on July 18, 2016, was a passenger in a vehicle driven by another individual on the way to a convenience store on the west side of Rockford. When the other individual went into the store, a blue minivan pulled in the store’s parking lot and someone inside the van fired several shots at Newton while he was in the car. Newton grabbed a .45-caliber semi-automatic pistol, got out of the car with the gun in hand, and ran away. The minivan left and shortly thereafter Newton returned to the parking lot and got back in the passenger side of the vehicle. The other individual got back in the vehicle and drove to his residence with Newton, where Newton took the pistol inside and hid it in the basement. The pistol was later located and seized by officers of the Rockford Police Department.
Newton was charged in federal court as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state and federal law enforcement to attack gun crimes. Additional information about Project Safe Neighborhoods may be found at: www.psn.gov.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Joseph Bruscato, Winnebago County State’s Attorney; and Dan O’Shea, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Penacook Man Convicted of Drug Trafficking and Firearms Charges Sentenced to 120 Months in Federal PrisonRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Bryan Franklin, 42, formerly of Penacook, New Hampshire, was sentenced to 120 months in federal prison after pleading guilty to possession with the intent to distribute fentanyl and methamphetamine and unlawful possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court proceedings, on September 24, 2016, the Tilton, New Hampshire Police Department conducted a traffic stop of a vehicle operated by Franklin that was found to contain multiple needles, cut plastic baggies, and other items associated with drug use. A subsequent search of another vehicle owned by Franklin resulted in the seizure of a lock box that contained approximately $15,958 in cash, approximately 750 grams of fentanyl, assorted prescription pills, a quantity of methamphetamine, a thumb drive, and two digital scales. Additionally, a backpack in the vehicle contained a tin box that contained an additional quantity of fentanyl, a drug ledger, and a loaded semi-automatic handgun that had been reported to law enforcement as stolen. Franklin pleaded guilty to the charges that resulted from this investigation on May 12, 2017.
“The aggressive investigation and prosecution of individuals engaged in fentanyl trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state and federal level,” said Acting U.S. Attorney Farley. “As New Hampshire continues to face an unprecedented number of overdose deaths directly caused by opioid use, we will continue to work tirelessly to prosecute those who are responsible for distributing these dangerous drugs in our state. Most drug deaths in New Hampshire are associated with fentanyl use. The quick-thinking law enforcement officers who seized this large quantity of fentanyl and prevented it from being distributed may have saved several lives.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
Franklin was sentenced to 60 months’ imprisonment on the drug trafficking charge and a consecutive mandatory minimum term of imprisonment of five years on the firearms charge, for a total sentence of 120 months’ imprisonment.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tilton Police Department. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Owner of Arecibo Aquarium Business Pleads Guilty to Two Federal Lacey Act Felonies for Illicit Trafficking of Protected CoralsRead the Press Release
Aristides Sanchez, a resident of Arecibo, Puerto Rico, pleaded guilty today to two felony violations of the federal Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.
Sanchez was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade. Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
“Coral reefs surrounding the island of Puerto Rico are some of the most valued and fragile natural resources in the region,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Division will continue to work with its enforcement partners to prosecute those who illegally harm the marine environment for commercial gain.”
“We will continue to prosecute those who exploit our protected marine life for financial gain,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “We appreciate the support of U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration agents in this investigation.”
“This investigation, serves as a fine example of ongoing joint investigative efforts related to the entire span of the marine life trade,” said Resident Agent in Charge David Pharo of the U.S. Fish and Wildlife Service. “Whether responsibility lies as the initial harvester, wholesaler, retailer or a public aquarium, the USFWS and partner agencies stand ready to investigate the matter and bring those responsible for poaching our nations sensitive marine life resources to justice.”
“Our partnerships are vital to helping ensure the protection and sustainability of living marine resources. This investigation is another great example of how successful partnerships lead to effective results,” said Deputy Director Logan Gregory of National Oceanic and Atmospheric Administration’s Office of Law Enforcement. “Investigating and bringing to justice those who exploit protected marine life is vital in helping to ensure a healthy ocean.”
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany another person and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, Sanchez would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. The false labeling was one of identification whereby Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about January 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez, or on his behalf with his knowledge, was between $800,000 and $1,200,000.
Sanchez is scheduled to be sentenced on December 20, 2017.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
Owner of Arecibo Aquarium Business Pleads Guilty to Two Federal Lacey Act Felonies for Illicit Trafficking of Protected CoralsRead the Press Release
guilty_plea_coral_reefs_8-23-17_0.pdf WASHINGTON – Aristides Sánchez, a resident of Arecibo, Puerto Rico, pleaded guilty today to two felony violations of the federal Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.Sánchez was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade. Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
“Coral reefs surrounding the island of Puerto Rico are some of the most valued and fragile natural resources in the region,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Division will continue to work with its enforcement partners to prosecute those who illegally harm the marine environment for commercial gain.”
“We will continue to prosecute those who exploit our protected marine life for financial gain,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “We appreciate the support of U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration agents in this investigation.”
“This investigation, serves as a fine example of ongoing joint investigative efforts related to the entire span of the marine life trade,” said Resident Agent in Charge David Pharo of the U.S. Fish and Wildlife Service. “Whether responsibility lies as the initial harvester, wholesaler, retailer or a public aquarium, the USFWS and partner agencies stand ready to investigate the matter and bring those responsible for poaching our nation’s sensitive marine life resources to justice.”
“Our partnerships are vital to helping ensure the protection and sustainability of living marine resources. This investigation is another great example of how successful partnerships lead to effective results,” said Deputy Director Logan Gregory of National Oceanic and Atmospheric Administration’s Office of Law Enforcement. “Investigating and bringing to justice those who exploit protected marine life is vital in helping to ensure a healthy ocean.”
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany another person and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, Sanchez would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. The false labeling was one of identification whereby Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about January 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez, or on his behalf with his knowledge, was between $800,000 and $1,200,000.
Sanchez is scheduled to be sentenced on December 20, 2017.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
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Norfolk Man Pleads Guilty to Child Pornography CrimesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, Alfredo Martinez, 51, was identified in an online undercover operation as sharing images of minors engaged in sexually explicit conduct. In May 2017, law enforcement executed a federal search warrant at his house in Norfolk. Martinez was found in possession of numerous items of electronic media that contained images of minors engaging in sexually explicit conduct, including a cell phone, external hard drives, and three different computers. Martinez was arrested at the time of the search warrant and was later by indictment by a federal grand jury.
Martinez faces a mandatory minimum of five years and a maximum penalty of 20 years in prison when sentenced on November 21. 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 Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-98.
New York Man Sentenced to 39 Months in Prison for Role in Robbery of New Jersey BarRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 39 months in prison for his role in the robbery of a North Jersey bar, Acting U.S. Attorney William E. Fitzpatrick announced.
Balmore Carrillo-Iraheta, 20, of Suffern, New York, previously pleaded guilty before Judge Linares for his role in the Hobbs Act Robbery of a Hawthorne, New Jersey, bar. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Balmore Carrillo-Iraheta admitted that on Dec. 25, 2016, he and others forcibly robbed the bar and fled with approximately $200 in cash.
In addition to the prison term, Judge Linares sentenced Carrillo-Iraheta to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Ruth M. Liebesman Esq., Paramus, New Jersey
New Hampshire Human Trafficking Task Force Selects New Project DirectorRead the Press Release
CONCORD, N.H. - The New Hampshire Human Trafficking Collaborative Task Force announced today that Rebecca Ayling has been selected as its new Project Director.
Ayling has worked as a social worker for nine years. She started her career as a social worker with the New Hampshire Division for Children, Youth, and Families. She then worked with children and families in need of social services and support in England. For the last two years she has focused on helping human trafficking victims and developing strategies to address human trafficking both globally and locally. Ayling previously worked for an international anti-trafficking organization in Bangkok, Thailand, where she worked to identify and assist victims of human trafficking. She currently serves as a Senior Intensive Case Manager at Child and Family Services, a private non-profit, where she has worked to develop plans to combat human trafficking in New Hampshire. Ayling holds a B.S. from North Central University and Master of Social Work degree from the University of New Hampshire.
Ayling was selected after an extensive interview process conducted by the Manchester Police Department, Child and Family Services, and several other representatives of the Task Force.
“Rebecca’s experience in combatting human trafficking both in New Hampshire and elsewhere will make her an excellent Project Director,” said Acting U.S. Attorney John J. Farley. “The other Task Force members and I look forward to working with her to combat the terrible problem of human trafficking. We are confident that she will provide the leadership that the Task Force needs to coordinate our community’s effort to combat this troubling issue.”
“Child and Family Services has the utmost confidence in Rebecca’s ability as the Project Director,” said Program Director Erin Kelly. “Rebecca has the passion and commitment it will take to succeed in this position and to lead the Task Force onto meeting its goals of combating all forms of human trafficking through services, prosecution, and prevention.”
The Task Force is funded by a $1.3 million grant from the United States Department of Justice. Its goals are to ensure that comprehensive and specialized services are made available to victims of human trafficking through a multidisciplinary and collaborative approach and that perpetrators of sex trafficking and forced labor are investigated and prosecuted.
The core team members of the New Hampshire Human Trafficking Task Force are the Manchester Police Department, Child and Family Services, Immigration and Customs Enforcement (ICE) - Homeland Security Investigations, and the United States Attorney’s Office.
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Nationwide Scheme to Defraud Casinos and Credit Card Companies Leads to 3-Year Prison SentenceRead the Press Release
SACRAMENTO, Calif. — Frank Luo, 49, of Las Vegas, Nevada, was sentenced today by U.S. District Judge Kimberly J. Mueller to three years in prison for wire fraud related to a nationwide casino and credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2008 and August 2014, Luo participated in a scheme to defraud casinos and credit card companies across the country. The scheme involved using false identities in the names and Social Security numbers of migrant workers to apply for casino credit called “markers” and to open credit card accounts. A marker is a cash advance provided by a casino to a patron, and it is often secured by a check from the patron’s bank account. Luo, working in concert with co-defendant Vivian Wang 54, of Lilburn, Georgia, initially timely repaid several markers at different casinos and several credit cards in order to give the impression of creditworthiness to future casinos and credit card companies. Luo and Wang recruited “clients” to participate in the scheme to induce the casinos and credit card companies to part with even more money under fraudulent pretenses.
Luo and his co-schemers coordinated their gambling activity in order to give the appearance of losing money (and thereby encouraging the casinos to issue future markers) when in fact one schemer would “lose” money while another would gain the same. In other instances, one schemer would surreptitiously deliver the issued gambling chips to another in order to give the appearance of having spent them. At the end of the scheme, Luo and his co-schemers did not repay the casino markers or the significant outstanding credit card balances accrued in a short amount of time once creditworthiness had been established. The combined fraud led to over $1.1 million in losses to casinos and credit card companies.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice’s Bureau of Gambling Control. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Charges are pending against Wang. She is scheduled for trial in March 2018. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Monmouth County, New Jersey, Man Charged with Identity Theft and Check KitingRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man appeared in federal court today to face charges that he operated a $530,000 check-kiting scheme using stolen Social Security numbers, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel White, 51, of Manalapan, New Jersey, was charged by complaint with one count of bank fraud and one count of aggravated identity theft. He made his initial appearance before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
From February 2015 to June 2016, White opened or directed others to open 413 accounts at TD Bank, using 133 different Social Security numbers, 84 of which belonged to other individuals. White then wrote or caused others to write 472 checks totaling more than $530,000 addressed to himself or the owners of the newly opened accounts, knowing that the accounts against which the checks were written did not contain sufficient funds. White and others deposited those checks into the newly opened accounts and withdrew money before the checks bounced.
The count of bank fraud with which White is charged carries a maximum potential penalty of 30 years in prison and a $1 million fine. The count of aggravated identity theft carries a mandatory minimum of two years in prison, consecutive to any other sentence imposed.
Acting U.S. Attorney Fitzpatrick credited the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; and the Manchester Police Department, under the direction of Chief Lisa D. Parker, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is innocent unless and until proven guilty.
Mescalero Apache Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – John Michael Carrillo, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 21 months in prison for his conviction on an assault charge. Carrillo will be on supervised release for three years after completing his prison sentence.
Carrillo was arrested on Dec. 17, 2016, on a criminal complaint alleging that he assaulted a Mescalero Apache woman on Dec. 2, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M., and that the victim suffered serious bodily injury as the result of the assault. According to the complaint, Carrillo assaulted the victim by throwing the victim to the floor and stomping on her face causing her to suffer a broken jaw, which required surgery.
On May 11, 2017, Carrillo pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the guilty plea, Carrillo admitted that on Dec. 2, 2016, he assaulted the victim by stomping on her face. Carrillo acknowledged that the victim suffered a fractured jaw as the result of the assault, which required surgical repair.
This case was investigated the Mescalero Agency of the BIA’s Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Mercer County Woman Charged with Producing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Farrell, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of producing and distributing images of the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Mary B. Jacobs, 25, as the sole defendant.
According to the indictment, Jacobs, from February 27, 2017, through February 28, 2017, produced and distributed still images depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of 50 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Member of Sunland Park Heroin Trafficking Ring Sentenced to Prison for Federal Narcotics Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Blanca Elisa Tovar, 43, of Phoenix, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 24 months in prison for her conviction on heroin trafficking charges resulting from a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M. Tovar will be on supervised release for three years after completing her prison sentence.
The DEA’s investigation targeted a heroin trafficking organization led by Raymundo Munoz, 69, of Sunland Park, N.M., that obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Texas. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten members of the heroin trafficking ring were charged in July 2016, in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The indictment charged all ten defendants with conspiring to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also included 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
On Dec. 13, 2016, Tovar pled guilty to conspiracy and three counts of possession of heroin with intent to distribute. In entering the guilty plea, Tovar admitted participating in the heroin trafficking conspiracy by crossing heroin from Mexico into the United States, and would then give the heroin to Rivera to give to Munoz to resell to others. Tovar further admitted smuggling the following amounts of heroin: two ounces on May 13, 2016; five ounces on June 24, 2016; five ounces on June 26, 2016; five ounces on June 28, 2016; seven ounces on July 1, 2016; six ounces on July 6, 2016; and seven ounces on June 11, 2016.
The following defendants previously entered guilty pleas in the case:
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Raymundo Munoz pled guilty on March 1, 2017, and was sentenced on Aug. 15, 2017, to 72 months in prison followed by four years of supervised release;
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Carlos Diaz, 37, of El Paso, Texas, pled guilty on Jan. 24, 2017, and was sentenced on June 29, 2017, to 18 months in prison followed by three years of supervised release;
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Sandra Francis Guzman, 53, of El Paso, Texas, pled guilty on March 21, 2017, and was sentenced on July 25, 2017, to 18 months in prison followed by three years of supervised release;
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Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and was sentenced on May 24, 2017 to time served followed by one year of supervised release;
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Juan Francisco Rivera pled guilty on Feb. 7, 2017, and faces a sentence of 108 months in prison under the terms of his plea agreement;
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Armando Daniel Marquez, 54 of Sunland Park, N.M., pled guilty on Feb. 23, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement; and
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Eleodoro Sanchez, 62, of Canutillo, Texas, pled guilty on March 7, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement.
One of the two remaining co-defendants has entered a plea of not guilty to the charges in the indictment; the second has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
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McKeesport Man Indicted for Conspiring to Distribute Fentanyl and HeroinRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 22, named Michael Henry, 35, of McKeesport, PA, as the sole defendant.
According to the indictment, from in and around September 2016, and continuing thereafter until in and around July 2017, Henry conspired with others to distribute quantities of fentanyl and heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
This prosecution is part of a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United Sates Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.