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Wednesday 16 August 2017
Nigerian Man Sentenced to Prison for Hacking and Fraud SchemeRead the Press Release
UTICA, NEW YORK – Obinna Obioha, age 31, and a citizen of Nigeria, was sentenced today to serve 51 months in prison for operating a fraud scheme that stole millions of dollars from businesses in the United States and other countries.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
“Obioha, working from Nigeria, was a central figure in a fraud scheme using digital disguises and deceit to bilk businesses out of millions of dollars. We will continue to track down and bring to justice cyber criminals like Obioha no matter where they operate. I thank the FBI for its terrific work in this case identifying and apprehending Obioha,” said Acting United States Attorney Grant C. Jaquith.
FBI Special Agent in Charge Vadim D. Thomas said: “These schemes can rob individuals and businesses of their livelihood. Cyber-crime is a serious threat and the FBI is prepared to go to any lengths to apprehend those like Obioha.”
As part of his guilty plea to wire fraud in April 2017, Obioha admitted that, while in Nigeria, he worked with and instructed others to hack into computers and email accounts used by dozens of victims in the United States and around the world. The organization infiltrated victims’ computers and email accounts using malicious software (“malware”). After monitoring victims’ information to identify imminent commercial transactions, Obioha and his associates created knockoff email addresses that appeared similar to – but varied slightly from – victims’ legitimate email addresses.
Obioha and his associates used those bogus email accounts to send fraudulent invoices to victims, instructing them to wire funds to bank accounts controlled by Obioha and his associates, under the pretense that the wires were payments for actual deals that had been previously negotiated by the victims. Obioha admitted that between January and September 2016, he was involved in at least 50 wire transfers, and that about $6.5 million was sent by wire to bank accounts that he and his associates controlled. The accounts received money from fraud victims in New York, Florida, Illinois, Ohio, and Texas, among other places.
During today’s sentencing, U.S. District Judge Donald N. Hurd described Obioha as “right in the middle of the action” in “very sophisticated criminal activity” designed to achieve “millions of dollars in illegal funds.”
Obioha was arrested on October 6, 2016, after flying from Lagos, Nigeria, to JFK International Airport. He has been in custody since that time.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Wayne A. Myers.
To learn how to avoid becoming a victim of a business email compromise scheme, please visit this FBI resource page: https://www.fbi.gov/news/stories/business-e-mail-compromise-on-the-rise.
New Orleans Meth Dealer Sentenced to 8 Years ImprisonmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROBERT CASE, age 47, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to distribute and to possess with the intent to distribute five hundred (500) grams or more of a mixture or substance containing a detectable amount of methamphetamine.
U.S. District Judge Kurt D. Engelhardt sentenced CASE to 100 months imprisonment, followed by 5 years of supervised release.
According to court documents, CASE was arrested on January 9, 2015 when a United States Postal Inspector intercepted two packages sent through the Postal Service found to contain methamphetamine. The Inspector posed as a letter carrier to deliver the packages to the suspect’s uptown apartments and then executed a search warrant on the residence, finding additional drugs and drug paraphernalia.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service and the Drug Enforcement Administration for investigating this matter. Assistant United States Attorneys James S. C. Baehr, Matthew Payne and Special Assistant United States Attorney Ryan McLaren were in charge of the prosecution.
Mexican Citizen Arrested in Saratoga Springs, NY Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Arturo Guzman-Martinez, 23, of Mexico, was sentenced today to time served (63 days in jail), for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), acting Field Office Director Thomas P. Brophy, Buffalo, New York Field Office.
As part of his guilty plea, Guzman-Martinez admitted that he was an alien, a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on September 18, 2015.
On June 14, 2017, Guzman-Martinez was encountered and arrested by ICE officers in Saratoga Springs, New York.
Following the sentencing, Guzman-Martinez was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Men indicted for robbing banks in Summit County this summerRead the Press Release
Two men were indicted for allegedly robbing banks in Summit County this summer, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
A federal grand jury returned a three-count indictment charging Jacob K. Onusic, 23, of Barberton, and Devonne Jacobs, 23, of Akron, with bank robbery.
Onusic, robbed the PNC Bank in Tallmadge, Ohio on June 23, according to the indictment.
Onusic robbed the Fifth Third Bank in Fairlawn on June 28, according to the indictment.
Onusic and Jacobs robbed the Fifth Third Bank in Stow on July 8, according to the indictment.
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.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Tallmadge Police Dept., the Fairlawn Police Dept., the Stow Police Dept., and the Akron Police Depart. The matter is being prosecuted by Assistant U.S Attorney David M. Toepfer.
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.
Member of Newark’s ‘South Side Cartel’ Gang Gets 315 Months in Prison for Racketeering, Carjacking, Robbery and Drug ChargesRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 315 months in prison for his role in a violent and long-running racketeering conspiracy perpetuated by the “South Side Cartel,” a set of the Bloods Street gang based in Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
Malik Lowery, a/k/a “Leek,” 36, previously pleaded guilty before U.S. District Judge Esther Salas to multiple counts of a second superseding indictment charging him with racketeering, racketeering conspiracy, carjacking, Hobbs Act Robbery and conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin and 280 grams or more of crack cocaine. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
As part of the racketeering charges, Lowery admitted his role in the Oct. 20, 2007 murder of a member of the South Side Cartel that took place on Bragaw Avenue in Newark. Lowery also admitted to committing an armed carjacking with fellow South Side Cartel members on Jan. 3, 2008 and to the robbery of a drug dealer on Feb. 3, 2008, among other acts.
Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang's members were officially brought into the Bloods gang in 2002 and 2003. The gang’s center of activities were apartments located inside buildings dubbed the “Twin Towers,” located at 496-500 Hawthorne Avenue, the location of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of the South Side Cartel members had tattoos showing these buildings and the logo of “SSC” representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. The South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise.
In addition to the prison term, Judge Salas sentenced Lowery to 10 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; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose; and prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, with the investigation.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Courtney Howard of the Organized Crime/Gangs Unit in Newark.
Defense counsel: John Azzarello Esq., Morristown, New Jersey, Anthony Ricco, New York,
Man Indicted for Armed Bank Robbery and CarjackingRead the Press Release
LAS VEGAS, Nev. – A man who allegedly stole approximately $18,120 from a credit union, then took three people hostage during a carjacking made his initial appearance in federal court today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
William C. Etheridge, 54, was indicted on Aug. 9, 2017, with one count of bank robbery and one count of carjacking.
According to allegations in the criminal complaint and indictment, on July 25, 2017, Etheridge entered a WestStar Credit Union, located at 110 East Harmon Avenue, in Las Vegas, brandished a semi-automatic pistol, and demanded money from four bank tellers. He then demanded a ride in one of the victim tellers’ personal vehicles to avoid law enforcement apprehension. When none of the tellers volunteered to provide him with a ride, he instructed one of the bank tellers to leave the bank with him. Etheridge stole approximately $18,120. Upon exiting the bank, Etheridge used force and violence to carjack a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a Harley Davidson dealership to purchase a getaway vehicle with the stolen money so he could leave the area. Law enforcement arrested Etheridge at the dealership.
If convicted, Etheridge faces the mandatory minimum penalty of 10 years in prison and a $250,000 fine for the bank robbery charge and 15 years in prison and a $250,000 fine for the carjacking charge.
The case is being investigated by the FBI and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Kilby Macfadden and Nicholas Dickinson.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty in a court of law.
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Man Arrested for Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI- Kenneth James, 51, of Dominica, made his initial appearance today before U.S. Magistrate Judge George W. Cannon after being charged in a criminal complaint with conspiracy and possession with intent to distribute cocaine, Acting United States Attorney Joycelyn Hewlett announced. James was detained pending preliminary and detention hearings set for August 17, 2017.
According to the complaint, on August 15, 2017, James attempted to sell to an individual approximately 12 kilograms of a white powdery substance that tested positive for cocaine.
Conspiracy and possession with the intent to distribute in excess of five kilograms of cocaine carries a sentence of not less than 10 years in prison or more than life and a $10,000,000 fine.
The case is being investigated by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Acting United States Attorney Hewlett reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Lexington County Man Pleads to Being a Felon in Possession of Firearm and Ammunition and Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jake Rupert, age 33, of Lexington, plead guilty in federal court to being a felon in possession of a firearm and ammunition and to being in possession of a firearm with an obliterated serial number, all in violation of Title 18, United States Code, Sections 922(g)(1) and 922(k). Senior United States District Judge Cameron McGowan Currie, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established on April 19, 2017, a trooper with the South Carolina Highway Patrol was on patrol on Boy Scout Road in Lexington County when he observed a male (later identified as Rupert) and a female trying to take a tire off a Dodge Charger on the side of the road. The two individuals advised that they were trying to get the Charger out of the dirt for a friend and that their vehicle was the Lexus parked across the road. The trooper noticed that the tag on the Lexus was expired and the male and female both provided false names to the trooper, so he called for backup from the Gaston Police Department. During this time, Rupert paced back and forth nervously until the trooper advised him to have a seat on the ground next to the Lexus. After learning Rupert’s true identity, the trooper patted Rupert down and found a loaded Jimenez Arms 9mm handgun in the front waistband of his pants. The serial number on the handgun had been obliterated. The trooper also found a black bag containing additional 9mm ammunition in the area where Rupert had been sitting. Rupert admitted to recently being released from state prison and to being a gang member. Rupert was placed under arrest for state charges. At the detention center, officers also found a small amount of marijuana in Rupert’s wallet. The female was also arrested on outstanding warrants. Rupert later made bond on the state charges.
During the federal investigation, ATF learned that Rupert was the individual being sought by local law enforcement after accidentally discharging a shotgun inside Dutch Square on April 22, 2017, three days after the above incident. After advise of rights, Rupert admitted to ATF that he had a sawed-off shotgun in a bag inside the mall and that when he sat the bag down, the gun accidentally discharged. Rupert advised that he then fled the scene.
Rupert is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions for conspiracy to manufacture methamphetamine, possession with intent to distribute methamphetamine, burglary 2nd degree, grand larceny (4 counts), and possession of stolen motor vehicle. At the time of the incident, Rupert was on supervised re-entry release from the South Carolina Department of Corrections after being released March 31, 2017.
Rupert faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge. Rupert faces maximum of 5 years imprisonment, a fine of $250,000, and 3 years of supervised release on the possession of a firearm with an obliterated serial number chargeThe case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the South Carolina Highway Patrol, and the Gaston 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 Stacey D. Haynes of the Columbia office handled the case.
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Leader of Trenton Drug Trafficking Organization Pleads Guilty to Heroin Distribution Conspiracy, Unlawful Firearms PossessionRead the Press Release
Co-Defendant Sentenced to 42 Months in Prison
TRENTON, N.J. – One Trenton man was convicted and another sentenced to prison today for their roles in a drug trafficking organization that distributed hundreds of grams of heroin in the Trenton area, Acting U.S. Attorney William E. Fitzpatrick announced.
Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi,” 27, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and one count of unlawful possession of a firearm by a convicted felon.
Bernadino Guervil, 29, a/k/a “BG,” was sentenced today to 42 months in prison and three years of supervised release. Guervil previously pleaded guilty before Judge Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute heroin.
In December 2016, Abdullah and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO” after the organization’s leader. Abdullah is the sixth of the 10 defendants to plead guilty.
According to documents filed in this case and statements made in court:
From May 2015 through December 2016, Abdullah and others participated in a drug trafficking organization that operated in the area of Spring and Passaic Streets in the Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Guervil. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement.
During his plea hearing, Abdullah admitted that he conspired with others to distribute at least 400 grams of heroin. Abdullah, who is a previously convicted felon, also admitted knowingly possessing a SCCY Industries CPX-2 firearm.
The conspiracy charge to which Abdullah pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential sentence of 40 years in prison, and a $5 million fine. The firearms charge carries a maximum potential sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 27, 2017.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Latin Kings Gang Member Pleads Guilty to Drug DistributionRead the Press Release
BOSTON – A member of the Latin Kings street gang pleaded guilty today to distributing drugs in New Bedford.
Virgilio Adorno a/k/a “Trigga” a/k/a “Goyo,” 30, of New Bedford, pleaded guilty to one count of distribution of cocaine base, also known as crack cocaine. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 2, 2017.
In March 2017, federal authorities charged Adorno along with Rafael Reyes, Jonathan Garcia, and Avimael Ortiz in a series of cases brought following a long-term investigation into drug trafficking in the New Bedford area. Among other things, the investigation revealed that the Bonneau Court area of New Bedford had been overwhelmed by drug dealing and violent crime. Latin Kings gang members and associates were observed regularly using a section of Bonneau Court known as “The Pit” as a site for drug trafficking and other illegal activity. As part of the investigation, Adorno was caught selling crack cocaine to a cooperating witness in the Bonneau Court area. A subsequent search warrant executed at Adorno’s residence resulted in the seizure of additional crack cocaine.
Garcia and Ortiz previously pleaded guilty and are awaiting sentencing. Reyes has pleaded not guilty and is awaiting trial. He is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charge of distribution of cocaine base provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; New Bedford Police Chief Joseph C. Cordeiro; and Bristol County District Attorney Thomas Quinn made the announcement today. Assistant U.S. Attorneys Kunal Pasricha and Glenn A. MacKinlay of Weinreb’s Organized Crime & Gang Unit are prosecuting the case.
Justin Wayne Pierce Sentenced Following Guilty Plea to a Federal Fiream ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Justin Wayne Pierce of Semmes, Alabama was sentenced to 63 months imprisonment. Pierce’s sentencing followed entry of a April 2017 guilty plea to a charge of prohibited person in possession of a firearm. In imposing the sentence Chief United States District Court Judge Kristi K. Dubose found that Pierce was in the highest criminal history category due to his prior criminal convictions. Pierce’s criminal history includes prior convictions in Mobile County for Possession/Receipt of a Controlled Substance, Breaking and Entering a Motor Vehicle, and Burglary, Second Degree. Pierce’s guilty plea included his admission that on September 12, 2016, he was in knowing possession of three firearms which had been recently stolen in a residential burglary.
Possession of a firearm by a prohibited person, in this instance a convicted felon, is a violation of Title 18, United States Code Section 922(g)(1). Pierce’s term of imprisonment will be followed by a three (3) year term of supervised release.
This case arose from a collaborative investigation by the Jackson, Alabama Police Department, the Clarke County Sheriff’s Office, and the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.Jefferson County Man Guilty of Beaumont Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 36-year-old Beaumont man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Kevin Lee Husband pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Mar. 7, 2017, law enforcement officers pulled over Husband in Beaumont for a traffic violation. During the traffic stop, Husband provided consent to search the vehicle which resulted in officers discovering a fully loaded firearm, methamphetamine, marijuana, and over $5000 in cash. Husband admitted the firearm was his and told officers there was an additional eight ounces of marijuana and another firearm at his residence. Deputies obtained a search warrant for the residence where they found the drugs and gun. Husband was indicted by a federal grand jury on July 6, 2017 and charged with federal gun and drug violations.
Under federal statutes, Husband faces a minimum of 10 years and up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Isleta Pueblo Man Sentenced for Assaulting an Indian Woman and a Federal OfficerRead the Press Release
ALBUQUERQUE – Jonathan Abeita, 24, an enrolled member of the Isleta Pueblo who resides in Albuquerque, N.M., was sentenced today in federal court in Santa Fe, N.M., to 17 months in prison followed by three years of supervised release for his conviction on assault charges, including an assault on a federal officer charge.
Abeita was arrested on March 8, 2017, on an indictment charging him with assault resulting in serious bodily injury and assault on a federal officer. According to the indictment, Abeita committed the crimes on Aug. 13, 2016, on Isleta Pueblo in Valencia County, N.M.
On May 19, 2017, Abeita pled guilty to the indictment. In his plea agreement, Abeita admitted that on Aug. 13, 2016, he assaulted one victim, an Indian woman, by threatening her and punching her, causing her bottom teeth to become loose. Abeita also admitted that when tribal police officers responded to a call from the victim, he assaulted a tribal police officer who was commissioned as a Special Federal Officer by the BIA with a hatchet.
This case was investigated by the Isleta Pueblo Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney Lucy B. Solimon 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.
Indictment: Child Pornography Found on Employee’s Company PhoneRead the Press Release
KANSAS CITY, KAN. - A federal grand jury returned an indictment today charging a Kansas City, Kan., man with producing child pornography, U.S. Attorney Tom Beall said.
Ronny D. Peters, 39, Kansas City, Kan., is charged with two counts of producing child pornography. According to court records, the investigation began when Peters’ former employers called the FBI to report finding child pornography on a company cell phone Peters turned in after he was fired. The phone belonged to Pop-A-Lock, a locksmith company based in Lafayette, La. The company has franchise operations across the United States and Canada, including Kansas City.
The indictment alleges Peters sexually exploited a minor child to produce videos that investigators found on the phone.
If convicted, he faces not less than 15 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
OTHER INDICTMENTS
Kenneth William Clark, III, 35, Scott City, Kan., is charged with receipt and possession of stolen mail. The crime is alleged to have occurred Aug. 2, 2016, in Sedgwick County.
The indictment alleges Clark possessed stolen mail from senders including Discover Financial, Gold MasterCard, H&R Block, Bank of America, Intrust Bank, Fidelity Bank, the Kansas Department of Revenue and others. The stolen mail was addressed to recipients in Wichita and Park City.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Ran Wells, 39, Wichita, Kan., is charged with one count of counterfeiting U.S. currency. The crime is alleged to have occurred in March and April 2017 in Sedgwick County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Ronald L. Phillips, 25, Wichita, Kan., is charged with one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred July 27, 2017, in Sedgwick County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $1 million on the marijuana charge, up to 10 years on the charge of felon in possession of a firearm and not less than five years on the charge of possessing a firearm in furtherance of drug trafficking. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Jose A. Hernandez-Diaz, 23, Lucio Cabanas, Mexico, is charged with one count of possession with intent to distribute approximately six pounds of methamphetamine and one count of possession with intent to distribute approximately two pounds of heroin. The crime is alleged to have occurred July 14, 2017, in Ford County, Kan.
If convicted, he faces not less than10 years and a fine up to $10 million on the methamphetamine charge and not less than five years and a fine up to $5 million on the heroin charge. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Anthony Carrasco, 40, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 6, 2017, in Sedgwick County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Carlos Salas-Lopez, 45, Kansas City, Kan., is charged with one count of misusing a Social Security number, one count of possessing a counterfeit Permanent Resident card, and one count of making a false statement on an I-9 employment eligibility verification form. The crimes are alleged to have occurred June 8, 2016, in Johnson County, Kan.
If convicted, he faces up to five years and a fine up to $250,000 on the Social Security count, 10 years and a fine up to $250,000 on the document fraud count, and five years and a fine up to $250,000 on the false statement count. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Habraham Altamirano-Jeronimo, 29, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found July 14, 2017, in Lawrence, Kan.
If convicted he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Oscar Vallejo-Tolentino, 25, Hays, Kan., a citizen of Mexico who has been living in Hays, Kan., is charged with five counts of unlawful possession of a firearm or ammunition by an alien illegally in the United States. The crime is alleged to have occurred in 2017 and 2015 in Ellis County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on each count. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Carlos Jimenez-Caraveo, 26, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 28, 2017, in Sedgwick County, Kan.
If convicted he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Clay Don McElroy, 40, is charged with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute marijuana. The crimes are alleged to have occurred April 16 2017, in Finney County, Kan.
If convicted, he faces not less than five years and not more than 40 years and a fine up to $5 million on the methamphetamine charge, and up to five years and a fine up to $250,000 on the marijuana charge. The Garden City Police Department investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Former Attorney with Defrauding Clients, Family Members, FriendsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury sitting in New Haven returned an indictment today charging THOMAS M. MURTHA, 61, of Newtown, Connecticut, and Birmingham, Michigan, with four counts of wire fraud. MURTHA previously operated a law practice in Bridgeport.
As alleged in the indictment, between approximately November 2011 and April 2017, MURTHA fraudulently obtained and converted hundreds of thousands of dollars from his victims, including clients of his law practice, family members and friends. MURTHA falsely represented to client-victims that he had safeguarded and disbursed the proceeds from legal representations when, in fact, he had used their money for his own benefit, including making payments to other victims. In furtherance of the fraud, MURTHA used false and forged documents, including at least one mortgage and a trust document.
It is alleged that MURTHA used some of the stolen funds to purchase a $725,000 house in Michigan, a 2.11 carat diamond engagement ring, and other items.
If convicted, MURTHA faces a maximum term of imprisonment of 20 years on each count of the indictment.
The indictment seeks the forfeiture of the Michigan house and the engagement ring, as well as a money judgment of at least $1,991,628.83, which constitutes proceeds of the alleged fraud scheme.
MURTHA was arrested on a criminal complaint on April 5, 2017, and is released on a $10,000 bond. His arraignment is not yet scheduled.
In September 2016, MURTHA resigned from the bar after three grievance complaints were filed against him.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Daly noted that the investigation is ongoing. Anyone with information that may be helpful to the investigation, or those who believe they have been victimized by this alleged scheme, are encouraged to contact Detective Robert McKiernan at (203) 382-6660.
This matter is being investigated by the Federal Bureau of Investigation and the Greenwich Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Huang.
Hyannis Man Sentenced for Firearm OffenseRead the Press Release
BOSTON – A Hyannis man was sentenced today in federal court in Boston for conspiring to possess a firearm in furtherance of a drug trafficking crime.
Benjamin Roderick, 21, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 14 months in prison and two years of supervised release. In September 2016, Roderick pleaded guilty to conspiracy to possess a firearm in furtherance of a drug trafficking crime.
Roderick was one of 19 members and associates of the Cape Cod-based Nauti Block gang named in an October 2016 superseding indictment with various drug trafficking, money laundering and firearms offenses.
On March 7, 2016, during an investigation into the gang’s operations, federal investigators intercepted telephone calls and text messages in which Roderick was planning to supply co-defendant Christopher Wilkins with a .38 caliber firearm in exchange for approximately 10 grams of heroin. Law enforcement officers followed Roderick and stopped his vehicle as he went to meet Wilkins to conduct the trade. The officers arrested Roderick and seized the firearm loaded with five rounds of ammunition.
In May 2017, Wilkins pleaded guilty to 15 counts of drug, money laundering, and firearm offenses and is scheduled to be sentenced on Sept. 18, 2017.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Houston Residents Sentenced to Federal Prison for Trafficking Cocaine into Southern IllinoisRead the Press Release
Two more Houston residents were sentenced to federal prison on Friday, August 11, 2017, for their roles in a drug trafficking conspiracy resulting in the seizure of $1.2 million dollars in cash, $72,000 in jewelry, and several kilos of cocaine.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant Nahum Shibeshi, 29, was sentenced to 48 months in prison, four years of supervised release, a $1500 fine, and a $200 special assessment. Dana Bell, 51, was sentenced to 87 months in prison, 3 years supervised release, a $750 fine, and a $100 special assessment.
An indictment filed on February 18, 2016, charged Shibeshi and Bell as drug couriers who transported drugs for other suppliers. The indictment charged eight co-defendants for participating in a conspiracy to distribute large amounts of cocaine into the Southern District of Illinois from Texas. In addition to the drug crimes, the indictment sought forfeiture of $1,212,934 in U.S. currency seized on December 2 and 3, 2015, along with jewelry appraised at $72,000.
Earlier this summer, co-defendants Sammy Monroe and Rodney Smith were sentenced to prison for 168 months and 147 months, respectively, after it was determined that they were responsible for trafficking approximately 120 kilos of cocaine into Southern Illinois.
Houston Pair Charged with Intent to Distribute MethamphetamineRead the Press Release
Norma Ibarra-Gonzalez, age 48, of Houston, Texas, and Marta Ibarra-Castillo, age 36, of Houston, Texas, were charged today by Indictment with possession with intent to distribute 500 grams or more of methamphetamine on July 2, 2017. The case involves the seizure of approximately 13 pounds of methamphetamine announced Acting United States Attorney Louis D. Lappen.
If convicted the defendants face a mandatory minimum sentence of at least 10 years in prison and a maximum of life in prison, a special assessment of $100, at least 5 years of supervised release and a potential fine.
The case was investigated by the Federal Bureau of Investigation, Immigration and Customs Enforcement, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Man Admits Illegally Possessing a Gun and Ammo at Beaver County Movie TheaterRead the Press Release
PITTSBURGH - A resident of Covington, Georgia, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
William D. Gossett, 22, pleaded guilty yesterday to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on July 23, 2016, William D. Gossett, a convicted felon, was in possession of a Phoenix Arms, .25 caliber, semi-automatic handgun, that had been reported stolen from Columbiana, Ohio, and ammunition. On July 23, 2016, officers from the Center Township Police Department were called to the Cinemark Theater where their attention was drawn to a young male wearing full length and full sleeved army fatigues and carrying a large backpack. It was approximately 94 degrees outside that day. The young man had been wandering around the theater for about two hours. As officers began to approach him, he quickly ducked into the restroom. An officer was able to make contact with him there, and to obtain consent to search his backpack. The male, who identified himself as William Glanton, but was later identified by Law Enforcement as William Gossett, had a ticket for the movie, “The Purge”, which was to begin in 20 minutes. The officer pulled out all of the items in the backpack and located the following: a firearm, a box of .25 caliber ammunition, four knives, a painter’s respirator mask, multiple handkerchiefs, two first-aid kits, paracord rope, gloves, black spray paint, multiple small rations of food, and a few articles of clothing. Gossett stated that he found the box of ammunition “on the road” and that he received the firearm from his uncle four weeks prior. Gosseet has a prior felony conviction for Identity Theft Fraud. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms.
Judge Fischer scheduled sentencing for December 14, 2017 at 9 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Center Township Police Department conducted the investigation that led to the prosecution of William D. Gossett.
Fredericksburg Gas Station Owner Sentenced for Cigarette TraffickingRead the Press Release
RICHMOND, Va. – A Fredericksburg man was sentenced today to two years in prison, ordered to pay $3 million in restitution, and ordered to forfeit $1.42 million for participating in a conspiracy to traffic contraband cigarettes.
According to the statement of facts filed with the plea agreement, Bernard Ekelemu, 60, directed another individual to purchase a Gulf gas station in Fredericksburg in November 2013. Ekelemu then registered a Virginia corporation to operate that gas station, and obtained a “Certificate of Registration for the Collection of Virginia Sales and Use Tax” that exempted Ekelemu from paying the Virginia sales and use tax when making business purchases. Ekelemu opened business memberships at various wholesale clubs and with wholesale cigarette distributors in Virginia, and subsequently used those business memberships to make sales-tax-free purchases of more than $7.1 million worth of Virginia-stamped cigarettes between March 2014 and November 2016. Ekelemu stored those cigarettes at several locations, to include storage units in Fredericksburg and Springfield, where Ekelemu would sell those cigarettes to cigarette traffickers. The traffickers thereafter smuggled the cigarettes to New York State (among other locations), where they were sold as contraband cigarettes on the black market.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Thomas A. Garnett 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-46.
Four Charged in Fentanyl Analogue Distribution SchemeRead the Press Release
PITTSBURGH, Pa. – Three residents of Pittsburgh, Pa., and one resident of Mercer County, have been indicted by a federal grand jury in Pittsburgh on a charges of violating the federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The four-count indictment named Lynell Guyton, age 27, of Pittsburgh; Calvin Armstrong, age 31, of Pittsburgh; Anthony Lozito, age 38, of Pittsburgh; and Kristen Shearer, age 22, of Mercer County.
According to the indictment, Guyton, Armstrong, Lozito and Shearer conspired to distribute and possess with intent to distribute 10 grams or more of an analogue of fentanyl, from August 8, 2017 to August 9, 2017, and possessed with intent to distribute the same. According to a criminal complaint filed prior to the indictment, U.S. Immigration and Customs Enforcement’s (ICE)/ Homeland Security Investigations (HSI), assisted by the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, executed a federal search warrant at 7 Bond Street in Pittsburgh’s West End. Upon arrival, Pittsburgh SWAT made entry into the home and observed Anthony Lozito attempting to exit the residence through a back window. During the entry, a table located near where the individuals were present inside the residence was overturned causing the powder narcotics to become airborne.
In the kitchen of the residence, law enforcement located a plate with a significant quantity of white power on it and a number of packaged stamp bags and empty stamp bags. Officers observed stamp bags bearing both the “Ferrari” stamp and the “Louis Vuitton” stamp.
In addition, the indictment charges that Guyton possessed with intent to distribute a fentanyl analogue on July 20, 2017, and that he attempted to possess with intent to distribute 10 grams or more of a fentanyl analogue on June 1, 2017.
The law provides for a maximum total sentence of not less than five and up to 40 years in prison, a fine of $5,000,000 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. All four individuals are currently detained pending resolution of these charges.
Assistant United States Attorney Rachael L. Dizard is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE)/ Homeland Security Investigations (HSI), assisted by the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, 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.
Former Springfield YMCA Employee Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Springfield YMCA employee has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Benjamin Goodwin, 28, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, Aug. 15, 2017. Goodwin, an employee of the Springfield YMCA at the time of the offense, was arrested this morning.
The federal indictment alleges that Goodwin received and distributed child pornography over the Internet between June 11, 2016, and Aug. 3, 2017.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Secret Service Agent Pleads Guilty to Money LaunderingRead the Press Release
A former Special Agent with the U.S. Secret Service pleaded guilty on Tuesday to charges of money laundering, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Brian Stretch of the Northern District of California, Special Agent in Charge Kimberly A. Lappin of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office Cyber Crimes Unit, Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division, and Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General, Houston Field Office.
Shaun W. Bridges, 35, of Laurel, Md., pleaded guilty to one count of money laundering before U.S. District Court Judge Richard Seeborg of the Northern District of California. Sentencing has been set for November 7.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Silk Road Task Force, including Ross Ulbricht, aka “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California. In 2015, Bridges pleaded guilty to one count of money laundering and one count of obstruction of justice related to his theft and diversion of over $800,000 in digital currency over which he gained control as part of his role on the Baltimore Silk Road Task Force. In December 2015, Bridges was sentenced to 71 months in prison on those charges.
Prior to reporting to prison to begin serving his sentence for the 2015 conviction, Bridges was arrested and taken into custody on new charges related to another theft of approximately 1,600 bitcoin, valued at the time of the theft at approximately $359,005, from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea in this case, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
The case is being investigated by the FBI’s San Francisco Division, the IRS-CI’s Washington, D.C. Field Office Cyber Crimes Unit and the Department of Homeland Security Office of the Inspector General, Houston Field Office. The case is being prosecuted by Assistant U.S. Attorney William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section. Assistant U.S. Attorney David Countryman is handling the Asset Forfeiture aspects of the case.
Former School Janitor Pleads Guilty to Felony Charge in 2005 Sexual Assault of 12-Year-Old GirlRead the Press Release
WASHINGTON – Mandell L. Whitted, 50, of Capitol Heights, Md., pled guilty today to a felony charge stemming from the sexual abuse of a 12-year-old girl, which took place in 2005 while he was a janitor at an elementary school in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Whitted pled guilty in the Superior Court of the District of Columbia to a charge of attempted first-degree child sexual abuse. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of five years in prison. Following his release, Whitted will be required to register as a sex offender for 10 years. The Honorable Hiram E. Puig-Lugo scheduled sentencing for Nov. 16, 2017.
According to a proffer of facts submitted at today’s hearing, Whitted worked in 2005 as a janitor at J.C. Nalle Elementary School, in the 200 block of 50th Street SE. During the summer between her fifth grade at that school and her sixth grade at another school, the 12-year-old girl worked at J.C. Nalle Elementary on a cleaning crew. Then, in the fall of 2005, she returned to the school to work at an after-school program. In the period between May 2005 through November 2005, according to the proffer, Whitted sexually assaulted the girl on numerous occasions at various locations, including the janitor’s office.
Whitted was arrested in February 2017, following an investigation by the Metropolitan Police Department (MPD). He has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Supervisor Dr. Lorraine Chase, Paralegal Specialist T.J. McPhail, and Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the matter.
Former Credit Union Employee Convicted of TheftRead the Press Release
GALVESTON, Texas – A former employee of Electrical Workers 527 Federal Credit Union in Texas City has entered a guilty plea to bank fraud, announced Acting U.S. Attorney Abe Martinez.
As part of her plea today, Susan Margaret Garza, 60, of Galveston, admitted she issued a credit union check on Sept. 9, 2001, which was debited from the account of a credit union member without that person’s consent. Garza made the check payable to her landlord’s daughter.
Garza was employed at the Electrical Workers 527 Federal Credit Union in Texas City from February 1996 through on or about April 24, 2013. During that time, Garza devised and executed a scheme to defraud the credit union by making unauthorized withdrawals from credit union members’ accounts and also making unauthorized loans in the names of credit union members.
U.S. District Judge George C. Hanks accepted the plea today and has set sentencing for Oct. 25, 2017. At that time, she faces up to 30 years in federal prison and a possible $1 million maximum fine.
She was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Florida Man Pleads Guilty to Hate Crime and Weapons of Mass Destruction Charges for Attempting to Attack Florida SynagogueRead the Press Release
James Gonzalo Medina pleaded guilty today to a federal hate crime for attempting to attack an Aventura, Florida synagogue, and to a charge of attempting to use a weapon of mass destruction, announced Attorney General Jeff Sessions and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
During the plea proceedings, Medina admitted that in March and April 2016, he planned to conduct a firearms or explosives attack on the Aventura Turnberry Jewish Center. Medina took steps to prepare for this attack including conducting surveillance of the Jewish Center. On April 29, 2016, Medina took possession of what he believed to be an explosive device, obtained from a Southern Florida Joint Terrorism Task Force agent, and approached the Jewish Center on foot with the device in hand, intending to commit the attack.
"Acts of bigotry and hatred are evil and have no place in our society," Attorney General Sessions said. "One of the top priorities of this Department of Justice is reducing violent crime, and you can be sure that this includes hate crime. We will not tolerate this repugnant lawlessness, and we will be vigilant in prosecuting hate crime offenders to the fullest extent of the law. I want to thank the Federal Bureau of Investigation, the Southern Florida Joint Terrorism Task Force, and all of the Department of Justice attorneys and staff who worked to bring this criminal to justice, and I assure every American that the Department of Justice is committed to protecting their rights."
“Today’s guilty plea demonstrates how hate often motivates acts of domestic terror,” stated Acting U.S. Attorney Greenberg for the Southern District of Florida. “Prosecuting terrorism and violent crimes inspired by a victim’s race, religion, ethnicity, sexual preference, or gender identity remains a top priority for the U.S. Attorney’s Office for the Southern District of Florida and our dedicated partners at the Federal Bureau of Investigation.”
A sentencing hearing has not yet been set.
This matter was investigated by the Federal Bureau of Investigation and Southern Florida Joint Terrorism Task Force. It is being prosecuted by Assistant U.S. Attorneys Marc Anton and Michael Thakur of the Southern District of Florida, with the assistance of the Civil Rights Division’s Special Litigation Counsel Steve Curran and National Security Division’s Trial Attorney Taryn Meeks.
Florida Man Pleads Guilty to Hate Crime and Weapons of Mass Destruction Charges for Attempting to Attack Florida SynagogueRead the Press Release
WASHINGTON – James Gonzalo Medina pleaded guilty today to a federal hate crime for attempting to attack an Aventura, Florida synagogue, and to a charge of attempting to use a weapon of mass destruction, announced Attorney General Jeff Sessions and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
During the plea proceedings, Medina admitted that in March and April 2016, he planned to conduct a firearms or explosives attack on the Aventura Turnberry Jewish Center. Medina took steps to prepare for this attack including conducting surveillance of the Jewish Center. On April 29, 2016, Medina took possession of what he believed to be an explosive device, obtained from a Southern Florida Joint Terrorism Task Force agent, and approached the Jewish Center on foot with the device in hand, intending to commit the attack.
"Acts of bigotry and hatred are evil and have no place in our society," Attorney General Sessions said. "One of the top priorities of this Department of Justice is reducing violent crime, and you can be sure that this includes hate crime. We will not tolerate this repugnant lawlessness, and we will be vigilant in prosecuting hate crime offenders to the fullest extent of the law. I want to thank the Federal Bureau of Investigation, the Southern Florida Joint Terrorism Task Force, and all of the Department of Justice attorneys and staff who worked to bring this criminal to justice, and I assure every American that the Department of Justice is committed to protecting their rights."
“Today’s guilty plea demonstrates how hate often motivates acts of domestic terror,” stated Acting U.S. Attorney Greenberg for the Southern District of Florida. “Prosecuting terrorism and violent crimes inspired by a victim’s race, religion, ethnicity, sexual preference, or gender identity remains a top priority for the U.S. Attorney’s Office for the Southern District of Florida and our dedicated partners at the Federal Bureau of Investigation.”
A sentencing hearing has not yet been set.
This matter was investigated by the Federal Bureau of Investigation and Southern Florida Joint Terrorism Task Force. It is being prosecuted by Assistant U.S. Attorneys Marc Anton and Michael Thakur of the Southern District of Florida, with the assistance of the Civil Rights Division’s Special Litigation Counsel Steve Curran and National Security Division’s Trial Attorney Taryn Meeks.
Five Individuals Indicted in August 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
CAROL LYNN BEEN, age 59, of Henryetta, Oklahoma
Credit Union Theft, Embezzlement, And MisapplicationThe Indictment alleges that from in or about 2014, the exact date unknown to the Grand Jury, until on or about June 18, 2017, in the Eastern District of Oklahoma, defendant CAROL LYNN BEEN, being an officer, director, agent, or employee of, or connected in a capacity with, OSU-IT Federal Credit Union of Okmulgee, Oklahoma, a credit union whose deposits are insured by the National Credit Union Administration, with intent to injure and defraud the said OSU-IT Federal Credit Union of Okmulgee, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of OSU-IT Federal Credit Union of Okmulgee, Oklahoma, in that the defendant withdrew cash from the vault of the credit union and misapplied, embezzled, abstracted and purloined the funds, in violation of Title 18, United States Code, Section 657, punishable by no more than 30 years imprisonment, a fine up to $1,000,000.00 or both.
The charge arose from an investigation by the Federal Bureau of Investigation.
Acting United States Attorney Douglas A. Horn
ROBERT MONROE WILSON III, age 48, of Baxter Springs, Kansas
Destruction Of Government PropertyThe Indictment alleges that on or about the July 22, 2017, in the Eastern District of Oklahoma, the defendant, ROBERT MONROE WILSON III, at a place within the special maritime and territorial jurisdiction of the United States, namely the United States District Courthouse for the Eastern District of Oklahoma, willfully and maliciously did destroy and injure the gate and fence at the United States District Courthouse for the Eastern District of Oklahoma, in violation of Title 18, United States Code, Sections 1363 and 7(3), punishable by no more than 5 years imprisonment.
The charge arose from an investigation by the Muskogee Police Department, and the Federal Bureau of Investigation.
Assistant United States Attorney Kristin Harrington
BLAKE ALAN MILLER, age 34, of Muskogee, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime
Felon In Possession Of A Firearm
Possession Of Unregistered Firearm (Sawed-Off Shotgun)The Indictment alleges that on or about March 7, 2017, within the Eastern District of Oklahoma, the defendant, BLAKE ALAN MILLER, did knowingly and intentionally possess with intent to distribute in excess of 50 grams of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years imprisonment, a fine up to $5,000,000.00 or both.
The Indictment further alleges that on or about March 7, 2017, within the Eastern District of Oklahoma, the defendant, BLAKE ALAN MILLER, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, in violation of Title 18, United States Code, Section 924(c)(1)(A) and 924(c)(1)(B), punishable by not less than 5 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about March 7, 2017, within the Eastern District of Oklahoma, the defendant, BLAKE ALAN MILLER, 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, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about March 7, 2017, within the Eastern District of Oklahoma, the defendant, BLAKE ALAN MILLER, did knowingly possess a shotgun having a barrel less than 18 inches in length, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871, punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Muskogee Police Department, the United States Marshal’s Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dean Burris
DENISE TAYLOR, age 55, of Ardmore, Oklahoma
Embezzlement And Theft From Indian Tribal OrganizationThe Indictment alleges that from on or about March 19, 2017, to on or about March 29, 2017, in the Eastern District of Oklahoma, the defendant, DENISE TAYLOR, did steal, embezzle and knowingly and willfully convert to her own use moneys, funds and assets, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Chickasaw Nation’s Ardmore Smoke Shop # 1, an Indian tribal organization, in violation of Title 18, United States Code, Section 1163, punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Bureau of Indian Affairs.
Assistant United States Attorney Edward Snow
JOHN CARL BERRYHILL, age 53, of Okmulgee, Oklahoma
Possession Of Certain Material Involving Sexual Exploitation Of Minors
Attempted Distribution Of Certain Material Involving Sexual Exploitation Of MinorsThe Superseding Indictment alleges that between on or about January 8, 2014 to on or about February 2, 2017, in the Eastern District of Oklahoma, the defendant, JOHN CARL BERRYHILL, did knowingly possess, attempt to possess and access with intent to view, matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), which said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by up to 10 years imprisonment, a fine up to $250,000.00 or both.
The Superseding Indictment further alleges that between on or about September 14, 2015, and on or about October 8, 2015, in the Eastern District of Oklahoma, the defendant, JOHN CARL BERRYHILL, did knowingly attempt to distribute, by a means or facility of interstate commerce, matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), which said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce, in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(b)(1), punishable by not less than 5 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Edward Snow
Five Individuals Charged with Participating in Three Insider Trading Schemes Generating More Than $5 Million in Profits on Inside Information Misappropriated from an Investment BankRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of MICHAEL SIVA, ROBERTO RODRIGUEZ, RODOLFO SABLON, a/k/a “Rudy,” JHONATAN ZOQUIER, and JEFFREY ROGIERS for their roles in three overlapping insider trading schemes based on material, nonpublic information (the “Inside Information”) misappropriated from an investment bank (the “Investment Bank”) by a corporate insider. These schemes resulted in more than $5 million in illicit profits between August 2014 and April 2017.
In a 54-count Indictment unsealed today, SIVA, RODRIGUEZ, SABLON, ZOQUIER, and ROGIERS were each charged with conspiracy, wire fraud, and multiple counts of securities fraud and fraud in connection with a tender offer. In addition, Mr. Kim announced the unsealing of guilty pleas on August 9, 2017, by DANIEL RIVAS and JAMES MOODHE, who admitted to their own involvement in the fraudulent schemes and are cooperating with the Government in this investigation. RIVAS, the corporate insider who exploited his role as a technology consultant at the Investment Bank to misappropriate Inside Information, pled guilty before the Honorable Valerie E. Caproni. MOODHE, who received Inside Information from RIVAS, pled guilty before Magistrate Judge Ronald Ellis. Both RIVAS and MOODHE pled guilty to conspiracy, securities fraud, fraud in connection with a tender offer, wire fraud, and making false statements to law enforcement officials.
SIVA was arrested this morning in West Orange, New Jersey. ZOQUIER was arrested this morning in Englewood, New Jersey. SIVA and ZOQUIER are expected to be presented this afternoon in federal court in Manhattan before United States Magistrate Judge Barbara Moses.
RODRIGUEZ and SABLON were arrested this morning in Miami, Florida, and are expected to be presented later today in federal court in the Southern District of Florida.
ROGIERS was arrested this morning in Oakland, California, and is expected to be presented later today in federal court in the Northern District of Califorina.
The case is before United States District Judge Alison J. Nathan.
In a separate action, the SEC filed civil charges against RIVAS, MOODHE, SIVA, RODRIGUEZ, SABLON, ZOQUIER, and ROGIERS.
Acting Manhattan U.S. Joon H. Kim said: “As alleged, the defendants took advantage of an insider at an investment bank to make millions in illegal profits, trading over 50 times in advance of confidential corporate information. The defendants allegedly used code words and encrypted messages to try to avoid law enforcement detection. But despite their efforts to hide their crimes, the defendants’ insider trading schemes have been exposed, and two have already pled guilty federal crimes. Those who seek to cheat the markets by trading on stolen inside information corrupt the integrity of our nation’s securities markets, and we are committed to stopping them and holding them accountable.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “In an industry where confidentiality is key, the defendants allegedly showed no regard. During the years they allegedly passed inside information from one person to another, they tried to work under the radar, but their illegal activity did not go unnoticed. These arrests show our commitment to investigating illicit schemes and bringing conspirators to justice.”
According to the allegations contained in the indictment (the “Indictment”):[1]
The Investment Bank and the Insider
From in or about August 2013 through in or about May 2017, RIVAS was employed as a technology consultant in the Research and Capital Markets Technology Group of the Investment Bank. In this role, RIVAS had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing Inside Information about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information. RIVAS had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information. During his tenure at the Investment Bank, RIVAS reviewed and certified his duties of loyalty and confidentiality to the Investment Bank.
Overview of Insider Trading Schemes
From at least August 2014 through at least in or about April 2017, RIVAS violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, RIVAS provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by RIVAS resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
Tipping Chain Number 1: Moodhe-Siva Insider Trading
Until June 2017, MOODHE worked as the treasurer and assistant controller for a global interdealer brokerage firm. MOODHE has three adult children, including a daughter not identified by name herein (the “Daughter”). In or about 2013, the Daughter, who at the time lived with MOODHE, entered into a romantic relationship with RIVAS. As the romantic relationship between the Daughter and RIVAS became more serious, MOODHE also developed a close relationship with RIVAS. For more than a decade, SIVA has worked as a broker and financial adviser for a global commercial and investment bank headquartered in Manhattan, New York (the “New York Bank”). By 2014, SIVA and MOODHE had known each other for more than a decade and had a close relationship. In approximately June 2016, MOODHE moved his brokerage accounts to the New York Bank and SIVA became MOODHE’s broker. Prior to that date, MOODHE maintained or controlled several self-directed online brokerage accounts.
Between at least in or about 2014 and 2017, RIVAS repeatedly provided MOODHE with Inside Information misappropriated from the Investment Bank so that MOODHE could execute profitable trades, which MOODHE repeatedly did. RIVAS shared the Inside Information with MOODHE because of their close relationship, including their shared connection with the Daughter. Beginning in at least January 2015, MOODHE began sharing the Inside Information he received from RIVAS with SIVA so that SIVA could execute profitable trades on behalf of his financial advisory clients and himself, which he repeatedly did. Throughout 2015 and 2016, and up through April 2017, MOODHE continued to pass Inside Information he obtained from RIVAS onto SIVA. Throughout this time, SIVA understood that the source of the stock tips provided by MOODHE was a corporate insider at an investment bank with whom MOODHE was friends. In order to keep their scheme from being exposed, including by the New York Bank, MOODHE and SIVA developed code phrases to use on the telephone so that MOODHE could surreptitiously provide SIVA with updated Inside Information. MOODHE and SIVA also began going to various diners outside of New York City so that MOODHE could provide stock tips to SIVA in person. During these meetings, MOODHE read from pieces of paper provided to him by RIVAS, which contained detailed information about confidential impending deals, including ticker symbols, deal values, and expected announcement dates. After SIVA officially became MOODHE’s broker, in June 2016, SIVA instructed MOODHE to mark his illicit trades as “solicited” in the New York Bank’s online trading platform, so that it would appear that SIVA had directed the trades as opposed to the suggestion coming from MOODHE. On occasion, SIVA also instructed MOODHE to wait to trade on a tip from RIVAS until SIVA could first trade in the security on behalf of his financial advisory clients, thereby making it look like SIVA had originated the idea.
SIVA and MOODHE’s illicit trading generated in excess of $3 million in profits. SIVA also earned thousands of dollars in commissions on the illegal trades entered on behalf of his clients.
Tipping Chain Number 2: Rivas to Rodriguez and Sablon Insider Trading
RODRIGUEZ and RIVAS were childhood friends in New York City and have maintained a close relationship as adults. Since at least 2014, RODRIGUEZ lived and worked in Miami, Florida, with SABLON, with whom he was also friends. In or about 2015, RODRIGUEZ introduced RIVAS to SABLON. RIVAS and SABLON then communicated with each other directly and developed an independent relationship.
In or about the fall of 2015, RIVAS disclosed to RODRIGUEZ that RIVAS had access to Inside Information by virtue of his position as a corporate insider at the Investment Bank. At RODRIGUEZ’s request, RIVAS also agreed to share Inside Information with SABLON. While RIVAS had originally agreed to divulge Inside Information to RODRIGUEZ because of their history of friendship, RIVAS also learned that RODRIGUEZ and SABLON intended to start an investment fund with the proceeds of the insider trading scheme. RIVAS understood that in exchange for the Inside Information RIVAS was providing to RODRIGUEZ and SABLON, RIVAS would be invited to join the investment fund as a partner once it was successfully launched.
At first, RIVAS communicated with RODRIGUEZ and SABLON primarily via phone and text message. As the scheme progressed, however, so did the methods used by RODRIGUEZ and SABLON to hide their illegal activity. On several occasions, RIVAS met personally with RODRIGUEZ and/or SABLON in Miami, Florida, in order to provide them with Inside Information. RIVAS also provided RODRIGUEZ and SABLON with Inside Information using an encrypted mobile messaging application (the “Messaging App”), which allows users to set a timer to messages to irretrievably “self-destruct.”
In order to maximize the illicit profits that could be earned using RIVAS’s Inside Information, RODRIGUEZ and SABLON, in consultation with RIVAS, initiated an aggressive strategy of purchasing short-term, out-of-the-money call options. In total, from at least in or about 2015 through at least in or about April 2017, RODRIGUEZ and SABLON earned more than $2 million in illicit profits through insider trading in more than two dozen securities based on Inside Information divulged by RIVAS.
Tipping Chain Number 3: Zoquier-Rogiers Insider Trading
For at least the last several years, RIVAS and ZOQUIER, who lives and works in New Jersey, have had a close relationship. ROGIERS lived and worked in California as a computer and network security analyst and had a close relationship with ZOQUIER. In or about 2013, ZOQUIER introduced RIVAS to ROGIERS. Between at least in or about March 2016 and in or about April 2017, RIVAS repeatedly provided ZOQUIER with Inside Information misappropriated from the Investment Bank so that ZOQUIER could execute profitable trades, which ZOQUIER repeatedly did. ZOQUIER was aware that RIVAS was employed by the Investment Bank and had access to Inside Information by virtue of this position. RIVAS shared the Inside Information with ZOQUIER because of their close personal friendship. Beginning in approximately March 2016, ZOQUIER began sharing the Inside Information he received from RIVAS with his close friend ROGIERS so that ROGIERS could execute profitable trades for himself. Throughout the time that ROGIERS was obtaining Inside Information from ZOQUIER, ROGIERS understood that RIVAS was the source of the Inside Information, to which RIVAS had access as a result of his position as a corporate insider at an Investment Bank. In fact, previously, in or about 2015, at ZOQUIER’s request, RIVAS agreed to meet with ROGIERS and explain the nature of the Inside Information to which he had access. ROGIERS understood that RIVAS was supplying the Inside Information to ZOQUIER because they were friends.
ROGIERS also caused other individuals to execute profitable trades based on Inside Information. In total, ZOQUIER and/or ROGIERS caused trades generating nearly $500,000 based on RIVAS’s Inside Information.
* * *
Mr. Kim praised the investigative work of the FBI, and thanked the Securities and Exchange Commission for their assistance. Mr. Kim also thanked the Investment Bank for their assistance during the course of the investigation. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendants and Charges
SIVA, RODRIGUEZ, SABLON, ZOQUIER, and ROGIERS are charged with the following offenses, which carry the maximum prison terms listed below:
Count
Defendants
Charge
Maximum Prison Term
One
SIVA
Conspiracy to Commit Securities Fraud and Fraud in Connection with a Tender Offer
5 years
Two
SIVA
Conspiracy to Commit Wire Fraud
20 years
Three
SIVA
Securities Fraud: Thoratec
20 years
Four
SIVA
Securities Fraud: ADT
20 years
Five
SIVA
Securities Fraud: St. Jude
20 years
Six
SIVA
Securities Fraud: Monsanto
20 years
Seven
SIVA
Securities Fraud: Cabela’s
20 years
Eight
SIVA
Securities Fraud: Mead Johnson
20 years
Nine
SIVA
Securities Fraud: NPS Pharma
20 years
Ten
SIVA
Securities Fraud: ZS Pharma
20 years
Eleven
SIVA
Securities Fraud: AUSPEX
20 years
Twelve
SIVA
Securities Fraud: Diamond Resorts
20 years
Thirteen
SIVA
Securities Fraud: Outerwall
20 years
Fourteen
SIVA
Securities Fraud: Raptor
20 years
Fifteen
SIVA
Fraud In Connection with a Tender Offer: NPS Pharma
20 years
Sixteen
SIVA
Fraud In Connection with a Tender Offer: ZS Pharma
20 years
Seventeen
SIVA
Fraud In Connection with a Tender Offer: AUSPEX
20 years
Eighteen
SIVA
Fraud In Connection with a Tender Offer: DRII
20 years
Nineteen
SIVA
Fraud In Connection with a Tender Offer: Outerwall
20 years
Twenty
SIVA
Fraud In Connection with a Tender Offer: Raptor
20 years
Twenty-One
RODRIGUEZ and SABLON
Conspiracy to Commit Securities Fraud and Fraud in Connection with a Tender Offer
5 years
Twenty-Two
RODRIGUEZ and SABLON
Conspiracy to Commit Wire Fraud
20 years
Twenty-Three
RODRIGUEZ and SABLON
Securities Fraud: Monsanto
20 years
Twenty-Four
RODRIGUEZ and SABLON
Securities Fraud: Twitter
20 years
Twenty-Five
RODRIGUEZ and SABLON
Securities Fraud: Brocade
20 years
Twenty-Six
RODRIGUEZ and SABLON
Securities Fraud: LifeLock
20 years
Twenty-Seven
RODRIGUEZ and SABLON
Securities Fraud: Mead Johnson
20 years
Twenty-Eight
RODRIGUEZ and SABLON
Securities Fraud: Panera
20 years
Twenty-Nine
RODRIGUEZ and SABLON
Securities Fraud: Diamond Resorts
20 years
Thirty
RODRIGUEZ and SABLON
Securities Fraud: Outerwall
20 years
Thirty-One
RODRIGUEZ and SABLON
Securities Fraud: Medivation
20 years
Thirty-Two
RODRIGUEZ and SABLON
Securities Fraud: Raptor
20 years
Thirty-Three
RODRIGUEZ and SABLON
Securities Fraud: Nimble
20 years
Thirty-Four
RODRIGUEZ and SABLON
Fraud In Connection with a Tender Offer: Diamond Resorts
20 years
Thirty-Five
RODRIGUEZ and SABLON
Fraud In Connection with a Tender Offer: Outerwall
20 years
Thirty-Six
RODRIGUEZ and SABLON
Fraud In Connection with a Tender Offer: Medivation
20 years
Thirty-Seven
RODRIGUEZ and SABLON
Fraud In Connection with a Tender Offer: Raptor
20 years
Thirty-Eight
RODRIGUEZ and SABLON
Fraud In Connection with a Tender Offer: Nimble
20 years
Thirty-Nine
ZOQUIER and ROGIERS
Conspiracy to Commit Securities Fraud and Fraud in Connection with a Tender Offer
5 years
Forty
ZOQUIER and ROGIERS
Conspiracy to Commit Wire Fraud
20 years
Forty-One
ZOQUIER
Securities Fraud: St. Jude
20 years
Forty-Two
ZOQUIER
Securities Fraud: Twitter
20 years
Forty-Three
ROGIERS
Securities Fraud: Cabelo
20 years
Forty-Four
ROGIERS
Securities Fraud: Macy’s
20 years
Forty-Five
ZOQUIER
Securities Fraud: Diamond Resorts
20 years
Forty-Six
ZOQUIER
Securities Fraud: Outerwall
20 years
Forty-Seven
ROGIERS
Securities Fraud: Outerwall
20 years
Forty-Eight
ZOQUIER
Securities Fraud: Medivation
20 years
Forty-Nine
ROGIERS
Securities Fraud: Medivation
20 years
Fifty
ZOQUIER
Fraud In Connection with a Tender Offer: Diamond Resorts
20 years
Fifty-One
ZOQUIER
Fraud In Connection with a Tender Offer: Outerwall
20 years
Fifty-Two
ROGIERS
Fraud In Connection with a Tender Offer: Outerwall
20 years
Fifty-Three
ZOQUIER
Fraud In Connection with a Tender Offer: Medivation
20 years
Fifty-Four
ROGIERS
Fraud In Connection with a Tender Offer: Medivation
20 years
[1] The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Federal Judge Dismisses Negligence Case Brought Against the United StatesRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that, on August 16, 2017, District Judge Rosanna Malouf Peterson dismissed a lawsuit brought by a logging truck driver injured in a motor vehicle accident on the Yakama Indian Reservation.
According to information disclosed during the court proceedings, on January 27, 2014, Plaintiff Jose Vera was driving a logging truck on the Signal Peak Road on the Yakama Indian Reservation when he failed to negotiate a curve and his logging truck went off the road and down an embankment. A passenger in the logging truck was killed in the accident. Vera alleged that the United States, through the Bureau of Indian Affairs, improperly designed the road, failed to maintain the road, and failed to properly erect warning signs or guardrails.
The United States asked the Court to dismiss the case, arguing that the United States had no duty to maintain a road that was located in the Closed Area of the Yakama Indian Reservation. Court records showed that the area where the accident occurred had been closed by the Yakama Nation since at least the early 1990’s and that since the mid-1990’s, the Yakama Nation had taken over complete control of the roads in the Closed Area of the Reservation.
Judge Peterson found that despite the fact that the land on which the accident occurred is owned by the Federal Government and held in trust for the Yakama Nation, control of the Signal Peak Road had been turned over to the Yakama Nation. Judge Peterson concluded “ownership of the land under the circumstances present here does not amount to control or any responsibility for the relevant roadway, or give rise to the duties that Plaintiff alleges.”
This case was defended by Rudy J. Verschoor, Assistant United States Attorney in the Civil Division of the United States Attorney’s Office for the Eastern District of Washington.
Federal Indictments Result in Charges against 32 in Jefferson CountyRead the Press Release
BEAUMONT, Texas – Acting U.S. Attorney Brit Featherston announced today that 32 individuals have been charged in federal firearms related cases this month in the Eastern District of Texas.
A federal grand jury in Beaumont returned 26 federal indictments on Aug. 9, 2017. Law enforcement agencies began arresting defendants today. The following 16 defendants are in custody and will make initial appearances before federal magistrate judges in Beaumont:
-
-
Robert Lee Johnson, 43, of Port Arthur, Texas
-
Desmond Harper, 31, of Beaumont, Texas
-
Carlos Rodriguez-Torres, 35, of Lumberton, Texas
-
Ernest Gatlin, 38, of Beaumont, Texas
-
Harvey Davis, 38, of Bon Weir, Texas
-
David Wells, 38, of Lumberton, Texas
-
Kionte Hawkins, 29, of Beaumont, Texas
-
Damon Hargrave, 37, of Beaumont, Texas
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Jakorian Sanderson, 20, of Beaumont, Texas
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LeeJaray Smith, 40, of Beaumont
-
Joseph Carter, 39, of Beaumont, Texas
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Dwayne Morgan, 25, of Vidor, Texas
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Dacqure Holmes, 38, of Port Arthur, Texas
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Corey Stone, 35, of Beaumont, Texas
-
Arne Koenig, 43, of Buna, Texas; and
-
Eric Martin, 32, of Port Arthur, Texas
-
The defendants are alleged to have participated in multiple violent crimes in Southeast Texas, including Jefferson, Hardin, Orange, and Jasper counties. Those crimes include bank robbery, firearms violations, drug trafficking violations, money laundering, immigration violations, and conspiracy to commit robberies interfering with interstate commerce. Many defendants are also alleged to have gang affiliations. If convicted, they face penalties of from five years to Life in federal prison.
These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the Port Arthur Police Department, the Orange Police Department, the Jasper County Sheriff’s Office and the Jefferson County Sheriff’s Office.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Indictment Handed Down in Clandestine Pill Laboratory CaseRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Eric Hughes, 35, of Bluffton, South Carolina; Taylor Place, 23, of Bluffton, South Carolina; and Willie Rice, 25, of Bluffton, South Carolina were charged in a five-count indictment, alleging conspiracy to: a.) distribute U-47700; b.) to distribute Alprazolam, c.) rent property to manufacture counterfeit pills, and d.) manufacturing a controlled substance with reckless disregard for human life, all in violation of Title 21, United States Code, 846.
Hughes and Place are also charged with conspiracy to commit money laundering, a violations of Title 18, United States Code, Section 1956(h); and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Additionally, Place is charged with felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g). Hughes and Place face a maximum of life in prison while Rice faces a maximum penalty of up to twenty years.
The case was investigated by agents of the DEA in South Carolina and Georgia. Assistant United States Attorney Jim May is assigned to prosecute the case.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Returns Indictment Charging Columbia Heights Restaurant Owner in Labor Trafficking CaseRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment in an ongoing investigation charging PISANU SUKHTIPYAROGE, a/k/a “Pat,” 71, owner of a Thai restaurant in Columbia Heights, Minn., with one count of forced labor.[1] SUKHTIPYAROGE is scheduled to make an initial appearance on August 18, 2017, in U.S. District Court in Minneapolis, Minn.
According to the indictment and a law enforcement affidavit, on July 21, 2017, law enforcement received a report from the National Human Trafficking Hotline of a labor and sex trafficking victim. Law enforcement agents made contact with the victim who said he was brought by SUKHTIPYAROGE to the United States from the Dominican Republic with the promise of education opportunities and a better life for the victim and his family. Upon arrival to the United States, the victim reported that the arrangements changed dramatically. SUKHTIPYAROGE did not allow the victim to attend high school classes, he imposed a debt for the victim’s travel expenses, and forced the victim to work in his restaurant as well as engage in sexual acts. The victim lived in a basement storage room of the restaurant and received an hourly wage of approximately $0.78 per hour.
According to the indictment and a law enforcement affidavit, from October 15, 2015 through July 23, 2017, SUKHTIPYAROGE used coercion, physical threats, debt bondage, psychological abuse, intimidation and threats of legal process to maintain control of the victim as a forced laborer and as a victim of continued sexual assaults.
SUKHTIPYAROGE has also been charged in Anoka County with one felony count of third degree criminal sexual conduct and one felony count of labor trafficking.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Homeland Security Investigations and the U.S. Department of Labor Office of the Inspector General are leading the ongoing investigation with assistance from the Anoka County Sheriff’s Office.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case.
Defendant Information:
PISANU SUKHTIPYAROGE, a/k/a “Pat,” 71
Maplewood, Minn.
Charges:
- Forced labor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Federal Grand Jury Charges James Matthew Bradley, Jr., with Transporting Undocumented Aliens for Financial Gain Resulting in DeathRead the Press Release
In San Antonio this afternoon, a federal grand jury indicted 60–year-old James Matthew Bradley, Jr., for his role in a smuggling operation which resulted in the deaths of ten undocumented aliens last month announced United States Attorney Richard L. Durbin, Jr., and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
The five-count indictment charges Bradley with one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in death; one count of transportation of undocumented aliens resulting in death; one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in serious bodily injury and placing lives in jeopardy; one count of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy; and, one count of possession of a firearm by a convicted felon.
Upon conviction of the conspiracy and transportation-resulting-in-death charges, Bradley faces up to life imprisonment or death. Upon conviction of the conspiracy and transportation-resulting-in-serious-bodily-injury charges, Bradley faces up to 20 years in federal prison. Upon conviction of the felon-in-possession charge, Bradley faces up to ten years in federal prison.
According to court documents, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. According to court records, the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported. Authorities also recovered a .38 caliber pistol from inside the cab of the tractor-trailer. Bradley, who was arrested at the scene, has remained in federal custody.
Of the 39 undocumented aliens discovered, ten are deceased, two remain hospitalized, 22 are in federal custody charged as material witnesses; and, five individuals (four juveniles and one adult) have since been released from the hospital and turned over to Immigration authorities. The four juveniles are currently under the supervision of the Office of Refugee Resettlement (ORR). The adult is pending administrative processing through the U.S. Immigration Court.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol. Assistant United States Attorneys Christina Playton and Matthew Lathrop are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Easley Woman Pleads Guilty to $400,000 TheftRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Janna B. Shelby, age 54, of Easley, pled guilty in federal court in Greenville, to wire fraud, a violation of Title 18, United States Code, Section 1343. United States District Judge Bruce H. Hendricks, of Greenville, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Shelby worked for McLaughlin Manufacturing as an accounts payable specialist in Greenville, South Carolina. Shelby devised a scheme and artifice to defraud whereby she would submit requests for payment to McLaughlin Manufacturing for personal bills that she disguised to appear to be requests for payment from legitimate vendors. Shelby would cause McLaughlin Manufacturing to cut and mail checks to creditors of Shelby. She also misused the company credit card to order expensive items that were shipped to her home. Law enforcement estimates that Shelby stole over $400,000 from her employer.
Ms. Drake stated the maximum penalty Shelby can receive is a fine of $250,000 and/or imprisonment for no more than 20 years, plus a special assessment of $100.
The case was investigated by the Greenville County Sheriff’s Office and the U.S. Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Cranston Resident Indicted, Detained on Firearms, Drug Trafficking ChargesRead the Press Release
PROVIDENCE – Derek Plomaritis, 26, of Cranston, was ordered detained following his arraignment in U.S. District Court on Tuesday on a 5-count federal indictment charging him with making false statements to licensed firearms dealers and on Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) forms when purchasing a total of four firearms; being in possession of firearms in furtherance of drug trafficking crimes; being in possession of a firearm while being an unlawful user of a controlled substance; and possession with the intent to distribute marijuana.
During the November 2016 acquisition of a 9mm semi-automatic pistol and a 7.62 mm semi-automatic pistol from a federally licensed firearms dealer, and the January 2017 acquisition of a Glock 9mm semi-automatic pistol and a Beretta 9mm semi-automatic pistol from a second licensed firearms dealer, it is alleged that Plomaritis falsely answered a question on ATF forms about unlawful use of marijuana, narcotics or any other controlled substance.
The indictment and arraignment of Plomaritis are announced by Acting United States Attorney Stephen G. Dambruch; Cranston Police Chief Colonel Michael J. Winquist; and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
According to information presented to the court, on June 6, 2017, an ATF agent contacted Plomaritis to meet and discuss his purchase of the firearms. Plomaritis agreed to meet at the ATF office to speak with the agent, and said that he was on his way. He failed to appear. Rather, a Cranston Police detective assisting ATF with the investigation observed Plomaritis leaving the area of his residence, speeding and running stop signs in a Mercedes. A short time later, Plomaritis was observed by the same detective on a motorbike, speeding and running stop signs before returning to the driveway of his residence. The detective followed behind and identified himself in the driveway of Plomaritis’ residence. Plomaritis tried to leave on the motorbike, but was blocked by the detective.
The detective allegedly detected an odor of marijuana on and around Plomaritis. It is alleged that the detective discovered marijuana and one of the firearms purchased by Plomaritis inside a backpack carried by Plomaritis. The detective also smelled marijuana coming from the residence and observed from the basement window of the residence, a marijuana grow. A search of Plomaritis’ residence with Plomaritis’ consent allegedly resulted in the seizure of 13 adult marijuana plants, 24 seedlings, and more than 700 grams of marijuana in plastic bags stashed in attic space above a hallway closet. The three other firearms purchased by Plomaritis, along with approximately 11 magazines and a substantial amount of ammunition, were also seized from the residence. One of the two loaded firearms found inside the residence was found on a dining room chair feet away from a child’s high chair.
An indictment is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Construction Company Sentenced for Clean Air Act Violations in Puerto RicoRead the Press Release
A construction company was sentenced today to a fine of $1.5 million dollars and three years of probation for violating the federal Clean Air Act, announced the Justice Department.
AIREKO Construction Company failed to comply with the asbestos National Emission Standards for Hazardous Air Pollutants during the illegal removal of asbestos containing materials from the Minillas North Tower in May 2012, according to court documents. As part of a plea agreement with the government, AIREKO was also ordered to pay $172,020 to cover a baseline medical examination and follow up medical examination for victims exposed to asbestos fibers in the aftermath of the illegal activity.
“This prosecution reflects the commitment of the Department of Justice to enforce federal clean air laws,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “We will continue to hold companies such as AIREKO Construction accountable in order to protect the lives and safety of the public.”
“The Clean Air Act requires that construction companies follow specific protocols designed to safely remove asbestos prior to any renovation or demolition activity, so as not to expose anyone to the risk of deadly respiratory diseases; and AIREKO Construction Company failed to do so by exposing those who worked at Minillas to asbestos materials,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “The US Attorney’s Office will continue to work with all victims who were exposed to the asbestos.”
“Asbestos exposure can cause cancer, lung disease and other serious respiratory diseases,” said Special Agent-in-Charge Tyler Amon for the Environmental Protection Agency’s Criminal Investigation Division in New York. “In this case, AIREKO Construction avoided hiring trained and certified asbestos abatement professionals. AIREKO did the work 'on the cheap', willfully putting workers and others at risk. We will not allow businesses to cut corners on environmental protection at the expense of people’s health.”
Over the weekend of Saturday, May 11, 2012, to Sunday, May 13, 2012, a sub-contractor of AIREKO removed asbestos containing material from the ceiling of the 9th floor of Minillas North Tower. The asbestos containing material was removed without following any of the Asbestos Work Practice Standards required by federal regulation. A significant portion of the asbestos containing material was taken from the 9th floor and was placed in the trash area behind the building. Approximately 550 square feet of asbestos-containing stucco ceiling material was removed from the 9th floor. The sub-contractor was hired to do general demolition and on Saturday, May 12, 2012, and Sunday, May 13, 2012, were working within the scope of their employment and at least, in part, for the benefit of Defendant AIREKO.
The asbestos containing material was discovered by AIREKO employees on Monday May 14, 2012, and AIREKO failed to immediately report the release of the asbestos to the National Response Center (NRC) as required by law. The EPA initiated an investigation into the release and received sampling results later that week showing asbestos throughout the building and the agency issued a notice to the Puerto Rico Building Authority that then closed the building. Clean-up of the Minillas North Tower took approximately one year.
Congress has found that medical science has determined that there is no minimal level of exposure to asbestos which is safe for unprotected persons. The government identified approximately 450 persons who were exposed to asbestos fibers between the illegal removal and the order by the Public Building Authority to close the building.
AIREKO Vice President Edgardo Albino previously pleaded guilty to failing to notify immediately the NRC of the release of asbestos. Mr. Albino was sentenced to pay a fine and serve a six month term of probation.
The investigation was conducted by the Environmental Protection Agency Criminal Investigation Division in New York. The cases were prosecuted by Howard P. Stewart, Senior Litigation Counsel Environmental Crimes Section of the Department of Justice and Assistant United States Attorney Carmen M. Marquez.
Columbia Man Pleads Guilty to Smuggling K2 from ChinaRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to smuggle chemicals into the United States from the People’s Republic of China, which were used to manufacture synthetic cannabinoids, commonly referred to as K2.
Wesley Adam Upchurch, 30, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to conspiracy to smuggle goods into the United States.
By pleading guilty today, Upchurch admitted that he and other conspirators purchased various synthetic cannabinoids in powder form from China between March 1, 2011, to March 27, 2014. The packages containing these imported chemicals often bore misleading labeling, including manifests or declarations, regarding the contents, in order to avoid detection by law enforcement officers. These chemicals were combined with other ingredients, such as generic potpourri, then packaged and sold at various retail outlets.
Upchurch admitted that he wire transferred a total of $250,500 to vendors in China as payment for the illegal shipments. Periodically, Upchurch and others ordered new chemicals in an attempt to avoid federal drug scheduling regulations, while still producing synthetic cannabinoids which created a “high” and had similar physiological effects as controlled substances.
Upchurch is among 18 defendants who have pleaded guilty in this case, four of whom have been sentenced.
Co-defendant Kent Allen Holtz, 46, of Kaiser, Mo., pleaded guilty to participating in a conspiracy to commit mail fraud and awaits sentencing. Holtz admitted that he distributed synthetic cannabinoids through Artistic Impressions, Fat Tobes Tattoo and Straight Aces. Holtz distributed approximately 310,500 grams (3.1 kilograms) of synthetic cannabinoids. Holtz charged his customers an average price of $2 per gram. Between April 30, 2010, and Dec. 31, 2012, Holtz deposited proceeds from these sales in the aggregate amount of approximately $534,093.
Holtz and others solicited and filled wholesale orders of Kryp2nite, Jolly Roger, Aces & Eights and other packaged synthetic drugs to Dynamic Scents, owned by co-defendants Alexander Vladimir McMillin, also known as “Shasha,” 33, Matthew Ashby Hawkins, 42, Patrick Ross Hawkins, 35, and Molly Jane (Hawkins) Charmichael, 40, all of Columbia – who have also pleaded guilty to the mail fraud conspiracy and await sentencing. Dynamic Scents then resold those products throughout the state of Missouri and elsewhere, to retailers who sold those products to end users.
Holtz also sold synthetic cannabinoids to numerous businesses, including Bocomo Bay, Inc., Puff-n-Snuff, Smellgoodz, and Mozark Products.
Between Feb. 2, 2010, and May 25, 2012, Holtz caused ThirdEye (and its successor entities, Thirdeye, Inc., and 3RDI, LLC) to mail 86 parcels containing Kryp2nite, a synthetic cannabinoid product. Payments for these Kryp2nite shipments totaled $194,700.
The synthetic drugs manufactured by Holtz were labeled as “incense,” “herbal incense,” “potpourri,” “therapeutic potpourri” and other misleading substances that were “not for human consumption” when, in fact, these products were synthetic drugs intended for consumption in order to obtain a physiological “high.” When sold at retail stores, these products were often located next to products and paraphernalia used for smoking the substances.
Under the terms of today’s plea agreement, Upchurch is subject to a sentence of five years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
Cleveland men indicted for firearms crimesRead the Press Release
Two Cleveland men were indicted on federal firearms charges, said Acting U.S. Attorney David A. Sierleja.
Kwoquan Scott, 28, had a Charter Arms AR-7 .22-caliber rifle on June 23, despite prior convictions for involuntary manslaughter, aggravated robbery, robbery with a firearms specification and multiple convictions for robbery between 2007 and 2014, according to the indictment.
Davonte Carter, 26, had a Smith & Wesson .40-caliber pistol and ammunition on June 28, despite prior convictions for robbery and having a weapon under disability, according to the indictment.
These cases are unrelated. They are being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police.
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.
Cleveland man charge for having images of sexual exploitation of childrenRead the Press Release
Aa grand jury returned a one-count indictment charging Matthew Taylor Hadlock, 19, of Cleveland, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child pornography, said Acting U.S. Attorney David A. Sierleja.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by Homeland Security Investigations Cleveland.
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.
Cheshire Man Charged with Distributing Heroin to Southington Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that THOMAS J. HALLERAN, 36, of Cheshire, was arrested today on a federal criminal complaint charging him with distributing heroin.
HALLERAN appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained pending a detention hearing that is scheduled for August 23.
As alleged in court documents, on July 25, 2017, Southington Police and emergency medical personnel responded to a residence in Southington where they encountered an unresponsive 31-year-old female on the floor. The female was pronounced deceased. Investigators seized two folds of suspected heroin and/or fentanyl, other drug paraphernalia, and the victim’s cellphone. Analysis of the seized cellphone revealed that HALLERAN supplied heroin/fentanyl to the victim shortly before the victim’s death.
The complaint charges HALLERAN with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and Southington Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Central Falls Residents Indicted in Alleged Fraud, Stolen ID SchemeRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Tuesday returned a 10-count superseding indictment charging Reynaldo Martinez, 25, of Central Falls, with participating in a conspiracy to use stolen personal identifying information to open or attempt to open retail store credit cards and lines of credits used to purchase tens of thousands of dollars worth of goods and services in Rhode Island and Massachusetts.
Acting United States Attorney Stephen G. Dambruch and Brian Deck, Resident Agent in Charge of the United States Secret Service, announced the indictment, which charges Martinez with four counts of aggravated identity theft, two counts of access fraud, and one count each of bank fraud, conspiracy to commit fraud, attempted access fraud and interstate transportation of stolen goods.
According to court documents, it is alleged that for nearly one year beginning in June 2016, Martinez used stolen identities, fraudulent driver’s licenses and fraudulent ID cards to open or attempt to open retail store credit cards and lines of credit in stores in Rhode Island and Massachusetts to purchase or attempt to purchase among other items electronic goods, iPhones, clothing and furniture, and to pay for approximately $14,000 in auto repairs. According to court documents, it is alleged that the stolen identities and personal information belonged to individuals from at least nine states.
The investigation into this alleged conspiracy is continuing.
Reynaldo Martinez was first charged in this matter by way of a criminal complaint on May 17, 2017. He was arrested on May 24 and ordered detained in federal custody. A federal grand jury returned an indictment in this matter on June 20. The grand jury returned a superseding indictment on Tuesday. Martinez remains detained in federal custody.
An indictment is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Middletown, Warwick, Richmond and Central Falls, R.I., Police Departments; Rhode Island State Police; Mansfield and Seekonk, Mass, Police Departments; West Hartford and Hamden, Conn., Police Departments; and the Richardson, Texas, Police Department for their assistance in gathering and providing information to the United States Attorney’s Office in Rhode Island and the United States Secret Service New England Electronic Crimes Task Force.
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Cardiologist Admits Billing Veterans Affairs for Hundreds of Bogus Medical ProceduresRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man today admitted defrauding the Veterans Affairs program by billing for services he had not actually performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Apostolos Voudouris, 44, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with health care fraud. Voudouris also entered into a civil settlement agreement with the government, under which he will pay $476,460 to resolve the government’s claims under the False Claims Act.
According to the documents filed in the case and statements made in court:
Voudouris is a physician specializing in cardiology and electrophysiology. Beginning in 2006, Voudouris provided services to eligible veterans at the Veterans Affairs Medical Center in East Orange, New Jersey, pursuant to his contract with the Department of Veterans Affairs (VA).
Voudouris admitted that on more than 350 occasions between 2011 and 2015, he submitted documentation to the VA claiming to have performed procedures he had not actually performed. By doing so, Apostolos Voudouris fraudulently received $238,230 from the VA.
Voudouris faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is currently scheduled for Dec. 12, 2017. As part of his plea agreement, Voudouris must pay restitution of $238,230 to the VA in addition to the $476,460 civil settlement, for a total of $714,690.
Acting U.S. Attorney Fitzpatrick credited special agents of the Northeast Field Office, U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Donna L. Neves; the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation.
The government is represented by Assistant U.S. Attorney Jacob T. Elberg, Chief of the U.S. Attorney’s Health Care and Government Fraud Unit, and by Assistant U.S. Attorney Susan Pappy of the U.S. Attorney’s Health Care and Government Fraud Unit.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Defense counsel: Kristen Santillo Esq., Newark
Canadian man charged with flying to Atlanta in an attempt to have sex with 13-year-old Marietta girl he met on the InternetRead the Press Release
ATLANTA - Yves Joseph Legault has been arraigned on federal charges of using the internet to entice a child for sexual activity and enticing the 13-year-old to engage in sexually explicit conduct over the internet. Legault traveled to Atlanta from his home in Canada with the alleged expectation of having sex with a minor.
“Legault is accused of communicating with a young girl on the internet for the purpose of engaging in illegal sexual activity with her,” said U. S. Attorney John Horn. “The FBI successfully intercepted Legault after he flew into the United States and before he could carry out his plan. Cases like this one demonstrate the continued importance for parents to engage with their kids about their activities on the Internet including the app’s they are using to chat, and the people with whom they are chatting.”
“The FBI stands ready to aggressively pursue those who would prey on our nation’s children. The FBI’s Violent Crimes Against Children (VCAC) program, which consists of a network of specially trained FBI agents working with various local, state, federal, and even international partners, collectively carries out the important mission of protecting our children from those who would harm them. The investigation, arrest, and resulting federal charges involving Mr. Legault, a Canadian national, is an example of the great partnership and responsiveness of Canadian law enforcement authorities in helping the FBI carry out this mission,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Beginning in approximately July of this year, Legault met a 13-year-old girl on Omegle, a free online and anonymous text and video chat tool. After moving their communications to another site, the defendant allegedly asked the teen to perform sexual acts on live video-streaming for him. Legault eventually arranged to travel from Canada to Atlanta, Georgia, in order to have sex with the girl.
On August 4, 2017, after crossing from Canada into the United States at the Buffalo-Niagra Falls Port of Entry, Legault’s flight from Buffalo, New York, was cancelled, forcing him to reschedule his trip to Atlanta. On August 11, 2017, Legault was arrested after flying from Toronto, Canada into Atlanta’s Hartsfield Jackson Airport allegedly for the purpose of engaging in sex with the teen. The 13-year-old girl’s mother had alerted agents with the FBI to the relationship after she intercepted a package Legault had sent her daughter from Canada.
Yves Joseph Legault, 53, of Ontario, Canada, was indicted by a federal grand jury on August 15, 2017, and was arraigned before U.S. Magistrate Judge Janet F. King.
Members of the public are reminded that the indictment and criminal complaint only contain charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. The FBI is extremely grateful for the help of our international partners in bringing this indictment to fruition: the Ontario Provincial Police, York Regional Police, and Canada Border Services Agency.
Assistant U.S. Attorney Skye Davis is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is https://www.justice.gov/usao-ndga.
Canadian Man Sentenced in Connection with Trafficking More Than $130,000,000.00 Worth of Cocaine and Other Illegal DrugsRead 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 Harinder Dhaliwal, 47, of Brampton, Ontario, Canada, who was convicted of conspiracy to export from the United States five kilograms or more of cocaine, was sentenced to 240 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handling the case, stated that between 2006 and May 2011, Dhaliwal conspired with others to smuggle cocaine into Canada from the United States and marijuana and ecstasy into the United States from Canada via several international bridges including those in the Buffalo-Niagara region. As part of his plea agreement, Dhaliwal admitted to being part of an international conspiracy that trafficked more than 3,000 kilograms of cocaine, most of it through the Western District of New York, worth an estimated $120,000,000.00.
Through the course of the investigation, United States law enforcement officers recovered a combined 230 kilograms of cocaine. Of that amount, 123 kilograms of cocaine, which represents the largest seizure arising from a single investigation in the District’s history, were obtained through two separate seizures occurring at the Lewiston-Queenston Bridge and in Geneva, NY. The remaining 107 kilograms were seized in California. In addition, law enforcement officers seized approximately 690,000 ecstasy pills during the course of the investigation with an estimated street value of $12,000,000.00.
Also charged in the conspiracy and convicted were Ravinder Arora, Michael Bagri, Parminder Sidhu, Alvin Randhawa, Gursharan Singh, and Huy Hoang Nguyen.
The defendants utilized tractor-trailers that contained false compartments within the floor of tractor-trailers. Dhaliwal and others purchased steel tubing, kick plates and other supplies to fabricate the false compartments in several tractor-trailers. In addition to cocaine, the tractor-trailers were used to transport ecstasy and hundreds of pounds of marijuana into the United States from Canada. Drug ledgers seized during the investigation detailed approximately a dozen smuggling trips, during late 2009 to September 2010, involving approximately 1,617 kilograms of cocaine being transported from the United States, through the Western District of New York, into Canada.
“The rigorous efforts of our law enforcement partners both here in the United States and Canada shut down this dangerous pipeline of drug activity that flowed from California to Buffalo and across the border,” said Acting U.S. Attorney Kennedy. “Those efforts kept literally thousands of kilograms of cocaine and more than half a million ecstasy pills off the streets in both our community and elsewhere.”
“Today’s sentencing is a significant development in a years-long investigation that resulted in significant seizures of narcotics, weapons and arrests in the U.S. and Canada,” said ICE-HSI Special Agent-in-Charge Kevin Kelly. “Transnational investigations like this one help ensure that our shared border with our Canadian partners remains transparent to law enforcement and simultaneously a hindrance to criminal groups.”
Today’s sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Officers from the United States Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
Bushland Man Admits to Committing Health Care FraudRead the Press Release
AMARILLO, Texas — Thomas Roy Clark, 52, of Bushland, Texas, pleaded guilty today to one count of health care fraud stemming from a scheme to defraud insurance companies through the submission of improper billing. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Clark, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Sentencing is scheduled for November 29, 2017, before U.S. District Judge Sidney A. Fitzwater.
According to documents filed in the case, from July 1, 2012 through July 31, 2015, Clark operated Panhandle Chiropractic Clinic (PCC) in Amarillo, Texas, without a license issued by the Texas Board of Chiropractic Examiners. Clark devised a scheme to defraud a health-care benefit program, to obtain money by billing for services properly billable only by a licensed chiropractor, services not rendered and for services rendered in lesser quantities billed.
Clark also billed insurance companies for services under the name of a licensed chiropractor for services allegedly rendered by Clark. Clark would omit his name on PCC’s itemized billing statements, which prevented insurance companies from knowing they were being billed for services provided by a chiropractor without a license. Clark also listed the specific type of procedure or service PCC provided by specifying a Current Procedural Terminology (CPT) code. By using CPT codes, this misrepresented to insurance companies that the procedures being billed were performed by a licensed health care provider in good standing with their state board.
As a result of the scheme Clark fraudulently induced health care providers to issue monetary payments to PCC, resulting in billing and payment for approximately $524,547.89 from 12 insurance companies.
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Joshua Frausto is prosecuting.
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Bridgeport Man Who Distributed Heroin Involved in Stratford Woman's Overdose Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAMON L. KILLINGS, also known as “Blade,” 39, of Bridgeport, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 30 months of imprisonment, followed by three years of supervised release for distributing heroin involved in a Stratford woman’s overdose late last year.
This matter stems from 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 morning of December 4, 2016, Stratford Police responding to a 911 call encountered a 33-year-old female who had died from a suspected drug overdose in the bedroom of a residence in Stratford. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. The investigation revealed that the victim’s boyfriend purchased heroin from KILLINGS the previous evening, and then he and the victim injected the heroin he had purchased.
In December 2016 and January 2017, law enforcement made controlled purchases of heroin from KILLINGS.
On January 18, 2017, KILLINGS was arrested on a federal criminal complaint. At the time of his arrest, he possessed quantities of heroin and crack cocaine.
On May 24, 2017, KILLINGS pleaded guilty to one count of distribution of heroin.
KILLINGS, who is released on bond, was ordered to report to prison on September 8.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Atlanta man who engaged in a public shootout sentenced to Federal Prison for unlawfully possessing a firearmRead the Press Release
ATLANTA - Cory Jones, a/k/a Corey Jones has been sentenced to four years, three months in federal prison for being a felon in possession of a firearm. The defendant attempted to rob a citizen and afterward exchanged gunfire with security guards and another citizen at that location.
“As a convicted felon, Jones should never have been in possession of the gun he used to rob and fire at the victim,” said U.S. Attorney John A. Horn. “This defendant jeopardized the lives of so many others and is a perfect example of why the aggressive enforcement of federal firearms laws remains a critical priority for this office and our law enforcement partners.”
“Getting guns out of the hands of violent criminals has been one of my top priorities,” said Atlanta Police Chief Erika Shields. “I’m grateful to U.S. Attorney Horn for his support of our efforts and for prosecuting someone who has very clearly posed a threat to public safety.”
According to U.S. Attorney Horn, the charges and other information presented in court: On March 15, 2016, Jones approached a car in the parking lot of the Blue Ivory Restaurant and Lounge in Atlanta, Georgia. After speaking with the driver through an open passenger window, Jones pulled out a firearm and demanded the driver’s watch. Although the victim handed over his watch, Jones fired his weapon at the victim, but fortunately did not strike the victim. The victim then quickly accelerated out of the parking lot. Jones continued firing at the victim’s car as it pulled away, and the victim stopped, returning fire with his own weapon. A security guard that witnessed the unfolding scene fired at Jones as well.
Jones fled the parking lot on foot with two security guards in pursuit. The security guards caught him as he attempted to hide in bushes on a nearby exit ramp for I-20, with his firearm lying at his feet. Shortly thereafter, Atlanta Police Department (APD) officers took into custody without further incident. The officers checked ’s criminal history, and learned that he was a convicted felon, and thus prohibited from possessing firearms.
Cory Jones, a/k/a Corey Jones, 29, of Atlanta, Georgia, has been sentenced to four years, three months in prison to be followed by three years of supervised release. Jones was convicted on these charges on May 15, 2017, after he pleaded guilty.
This case was investigated by the Atlanta Police Department.
Assistant U.S. Attorneys Bret R. Hobson and Mary Webb prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ashtabula man indicted for having heroin, methamphetamine and a firearmRead the Press Release
An Ashtabula man was indicted for distributing heroin and methamphetamine and having a firearm, said Acting U.S. Attorney David A. Sierleja.
A federal grand jury returned a four-count indictment charging Michael H. Sheffey, 52, with distribution of narcotics, possession with the intent to distribute narcotics and with being a felon in possession of a firearm and ammunition.
Sheffey distributed methamphetamine and heroin on several occasions in April 2017, according to the indictment.
Sheffey possessed an FEG, Model PA63, 9mm pistol, and ammunition on April 12, despite prior convictions in 1983 and 1984 for robbery and in 1992 for aggravated robbery in the Ashtabula County Court of Common Pleas, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Trumbull-Ashtabula Group and the Ashtabula Police Department. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
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.
Albuquerque Woman Sentenced for Prescription Drug Trafficking and Money Laundering ConvictionRead the Press Release
ALBUQUERQUE – Yvonne Garcia, 55, of Albuquerque, N.M., was sentenced today in federal court to 46 months in prison followed by three years of supervised release for her conviction on prescription drug trafficking and money laundering charges. Garcia also was ordered to forfeit her interest in the proceeds of her criminal activities, including $71,674.92 seized from bank accounts and a safe deposit box, a 2016 Toyota Camry, a 2016 Toyota Tacoma truck, a 2013 BMW motorcycle, and to pay a money judgment in the amount of $15,500.
Garcia and her husband and co-defendant Gerald Roberts, 49, were arrested in Sept. 2016, on an eight-count indictment charging them with trafficking controlled substances in Bernalillo County, N.M. Garcia and Roberts were charged with conspiring to distribute oxycodone, oxymorphone and alprazolam from May 2016 through Sept. 2016. The indictment also charged the couple with distributing oxycodone on three separate occasions in May, June and July 2016; distributing oxymorphone on four occasions in May, June, July and Sept. 2016; and distributing alprazolam in July 2016.
On March 29, 2017, Garcia and Roberts each pled guilty to the conspiracy charged in the indictment and to felony informations charging them with conspiring to launder drug proceeds. According to the plea agreements, between May 2016 and Sept. 2016, Garcia and Roberts sold oxycodone, oxymorphone and alprazolam to an individual who unbeknownst to them was an undercover DEA agent. Garcia and Roberts deposited the proceeds of their illegal drug transactions into Wells Fargo checking and savings accounts in amounts that would not trigger currency-reporting requirements that could alert law enforcement authorities to their illegal activities. Garcia and Roberts used the drug proceeds in the bank accounts to make payments on their residential mortgage and vehicle loans.
Under the terms of his plea agreement, Roberts will be sentenced to 51 months in prison followed by a term of supervised release to be determined by the court. The plea agreement also requires Roberts to forfeit the proceeds of his criminal conduct to the United States. A sentencing hearing for Roberts has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA, the Albuquerque Police Department and the Santa Fe Police Department. Assistant U.S. Attorneys Shana B. Long and Peter J. Eicker are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.