Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 9 August 2017
Investigation of Gang-Related Shootings in New Haven Results in Federal Charges against 6 MenRead the Press Release
U.S. Attorney Deirdre M. Daly, ATF Special Agent in Charge Mickey D. Leadingham and New Haven Police Chief Anthony Campbell today announced that a long-term investigation into numerous shooting incidents in New Haven has resulted in federal racketeering, attempted murder, firearm and narcotics trafficking offenses against alleged members and associates of a local New Haven street gang.
According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives have been investigating approximately 40 unsolved shootings in New Haven and Hamden. Ballistic examination of recovered cartridge cases has determined that three firearms were used in 18 shootings committed in or around New Haven last year. It is alleged that the three firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging the following six New Haven residents with conspiring to engage in a pattern of racketeering activity that includes multiple shootings and narcotics trafficking:
MILTON WESTLEY, a.k.a. “Reese,” 19
CLIFFORD BRODIE, a.k.a. “Cliff G,” 20
SEDALE PERVIS, a.k.a. “Scope,” 25
DEJUAN WARD, a.k.a. “Hot Boi,” 20
MICHAEL BELLE, a.k.a. “MB,” 18
MICHAEL VIA, a.k.a. “Mike Live” 20WESTLEY, BRODIE, BELLE and VIA were arrested today. They appeared before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and were ordered detained.
PERVIS and WARD were previously arrested and are detained in federal custody.
The indictment alleges that the six defendants have been affiliated with “GSB,” which has ties to Goodrich Street in the Newhallville area of New Haven and currently has members and associates living throughout the city of New Haven. Recently, GSB has aligned with Fruit Town Piru (a Bloods sect) against rival criminal organizations in New Haven including an alliance of street gangs known as Starrblock, West Read Street (“WR2”), Read St. (“R2”), and Slutwave. GSB members and associates have been engaged in the distribution of heroin, crack cocaine and marijuana and, as a part of its criminal enterprise, have committed acts of violence, including assaults and attempted murder.
The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals. The indictment further alleges that GSB members and associates also distributed heroin, crack cocaine and marijuana.
“This investigation, which has been a great collaboration between our Office, ATF and the New Haven Police Department, has utilized cutting-edge ballistic analysis to connect 18 recent shootings to three handguns that, we allege, were possessed by GSB members and associates,” said U.S. Attorney Daly. “The indictment specifically alleges that GSB members were involved in multiple shootings and, as a result, five individuals suffered gunshot wounds. Studies show, and this investigation seems to confirm, that an incredibly small percentage of a city’s population is responsible for most of the gun violence that occurs there. The murder rate in New Haven has plummeted in recent years, and we will continue to identify and root out violent actors to ensure that this positive trend continues.”
“These arrests demonstrate the outstanding partnership between the ATF, the New Haven and Hamden Police Departments, and the United States Attorney’s Office,” said ATF Special Agent in Charge Leadingham. “We share a strong commitment to working together to remove illegal firearms, drugs and violent criminals that compromise the safety of our communities.”
“This investigation in another example of terrific collaboration between the New Haven Police Department, ATF and U.S. Attorney’s Office to reduce violent crime in New Haven,” said Chief Campbell. “We believe that members of this gang were responsible for a large percentage of the shootings that occurred in our city in 2016. Together with our federal law enforcement partners we will continue to remove violent individuals from the community and make New Haven a safe place to live.”
U.S. Attorney Daly noted that this prosecution is a Project Longevity enforcement action. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
“Project Longevity aims to deter violence and not simply react to it,” said U.S. Attorney Daly. “However, if a group or gang, such as GSB, engages in gun violence, they will become the focus of all the law enforcement partners who participate in the Project Longevity Intelligence meetings held at the NHPD four days a week, and appropriate federal and state criminal violations will be charged.”
In addition to the racketeering conspiracy charge, the indictment charges each of the defendants with carrying a firearm during and in relation to a crime of violence and/or drug trafficking crime. WARD and BRODIE are also charged with committing a violent crime in aid of racketeering (VCAR), specifically attempted murder, and using a firearm during and in relation to a crime of violence. PERVIS is charged with knowing transfer of a firearm for use in a crime of violence, possession with intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime. WARD is charged with receipt of a firearm by an individual who is addicted to a controlled substance, and possession of a firearm with an obliterated serial number. WESTLEY and BRODIE are charged with possession with intent to distribute, and distribution of, heroin and cocaine base (“crack”). Finally, BRODIE and BELLE are charged with possession with intent to distribute, and distribution of, marijuana.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Peter D. Markle and Rahul Kale.
Individual Who Compromised over 1,000 Email Accounts at A New York City University Pleads GuiltyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JONATHAN POWELL pled guilty today to one count of fraud in connection with his scheme to obtain unauthorized access to more than 1,000 email accounts maintained by a New York City area university in order to download sexually explicit photos and videos. POWELL pled guilty earlier today in Manhattan federal court before United States District Judge Alison J. Nathan.
Acting U.S. Attorney Joon H. Kim said: “From a computer in Arizona, Jonathan Powell wreaked havoc on the email servers of a New York area university. To feed his perverse desire for personal photos and videos, Powell hacked into hundreds of student and faculty email accounts by surreptitiously changing their passwords. Cybercrime is a threat to organizations large and small, from big companies to local universities. Luckily, the FBI was able to stop Powell before he victimized others.”
According to the allegations in the Information to which POWELL pled guilty, a criminal complaint filed against POWELL, as well as statements made during the plea and other proceedings in the case:
From October 2015 up to September 2016, POWELL obtained unauthorized access to email accounts hosted by a U.S.-based university which has its primary campus in New York, New York (“University-1”). POWELL obtained unauthorized access to these accounts by accessing the password reset utility maintained by the email servers at Univeristy-1, which was designed to allow authorized users to reset forgotten passwords to accounts. POWELL utilized the password reset utility to change the email account passwords of students and others affiliated with University-1. Once POWELL gained access to the compromised email accounts (the “Compromised Accounts”), he obtained unauthorized access to other password-protected email, social media, and online accounts to which the Compromised Accounts were registered, including, but not limited to, Apple iCloud, Facebook, Google, LinkedIn, and Yahoo! accounts.
Specifically, using the Compromised Accounts, POWELL requested password resets for linked accounts hosted by those websites (the “Linked Accounts”), resulting in password reset emails being sent to the Compromised Accounts, which allowed POWELL to change the passwords for the Linked Accounts. POWELL then logged into the Linked Accounts and searched within the Linked Accounts, gaining access to private and confidential content stored in the Linked Accounts. In one instance, POWELL searched a University-1 student’s linked Gmail account for digital photographs and for various lewd terms. The Government’s investigation ultimately revealed that POWELL accessed the Compromised and Linked Accounts at least in part to download sexually explicit photographs and videos of college-aged women.
An analysis of University-1 password reset utility logs and other data revealed that POWELL accessed the University-1 password reset utility approximately 18,640 different times between October 2015 and September 2016. During that timeframe, POWELL attempted approximately 18,600 password changes in connection with approximately 2,054 unique University-1 email accounts, and succeeded in making 1,378 password changes in connection with approximately 1,035 unique University-1 email accounts, in some cases compromising the same email accounts multiple times.
* * *
POWELL, 30, of Phoenix, Arizona, was arrested on November 2, 2016. POWELL pled guilty today to one count of fraud in connection with computers, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.
POWELL is scheduled to be sentenced on December 1, 2017, at 12 p.m.
Mr. Kim praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Christopher J. DiMase is in charge of the prosecution.
Hyannis Woman Sentenced for Heroin DistributionRead the Press Release
BOSTON - A Hyannis woman was sentenced today in federal court in Boston for distributing heroin in connection with the Nauti-Block gang.
Brooke Cotell, 23, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 months in prison and three years of supervised release. In December 2016, Cotell pleaded guilty to two counts of possession of heroin with intent to distribute.
In October 2015, federal investigators determined that Nauti-Block leader Denzel Chisholm and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. Cotell, specifically, purchased heroin from Chisholm, which she redistributed to other dealers and users. In November 2015, investigators conducted a traffic stop after watching Cotell and co-defendant Shaun Miller meet with Chisholm. After a low-speed chase, Cotell and Miller eventually came to a halt. Miller was in the process of attempting to destroy heroin he had in his possession at the time of the stop when he was searched by law enforcement officers. In addition, text messages recovered during the investigation revealed that Cotell had purchased 100 grams of heroin from Chisholm.
In April 2016, 13 members and affiliates of the Nauti-Block gang were charged with federal drug trafficking and firearms offenses. In total, 19 defendants have been charged with narcotics and firearms offenses as part of the federal investigation. 18 have been convicted, including Chisholm, who was convicted by a federal jury, and Miller, who pleaded guilty in October 2016. The final defendant, Bethanne Hutchings, is scheduled for trial in October.
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 are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hazleton Man Charged with Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Theodore O. Wing, age 50, of Hazleton, Pennsylvania, was indicted on August 8, 2017, by a federal grand jury on various firearms offenses.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Theodore Wing conspired to have his daughter, Jasmine Wing, purchase five firearms while making false representations that she was the actual buyer, when in fact Theodore Wing and his co-conspirators selected, paid for, and took possession of the firearms. Theodore Wing also was charged with aiding and abetting the false statements on all five occasions that the firearms were purchased from Bob’s Sporting Goods in Hazleton, and from Dave’s Gun Shop in Drums, between September 19, 2014 and March 19, 2015. The firearms were:
-
Glock 19 9mm;
-
Glock 23 .40 caliber;
-
Taurus PT745Pro .45acp;
-
Extar EXP556 5.56; and
-
CAI/Romarm Micro Draco 7.62x39 (a semiautomatic firearm that is capable of accepting a large capacity magazine).
As Theodore Wing is a convicted felon, and thus prohibited from owning or possessing firearms, he also was charged with being a prohibited person in possession of a firearm. Theodore Wing currently is serving a state sentence for a narcotics trafficking conviction. A date for his federal arraignment has not yet been set.
The government previously filed a criminal information and plea agreement with Jasmine Wing, who was charged with making false statements in the course of purchasing six firearms (including the five charged against Theodore Wing). Jasmine Wing pleaded guilty on August 9, 2017, and is awaiting sentencing.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
-
Gulf Cartel Drug Broker Convicted at TrialRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Juan Escudero (36, Weslaco, Texas) guilty of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine; and distributing and possessing with intent to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for November 17, 2017.
Escudero was indicted on November 29, 2016.
According to evidence presented at trial, Escudero brokered a deal on behalf of the Gulf Cartel to mail approximately one kilogram of methamphetamine and one kilogram of cocaine from Texas to Tampa. Unbeknownst to Escudero, he sent those drugs to a confidential source (CS) of the Drug Enforcement Administration (DEA). DEA agents intercepted the package of drugs, which Escudero believed had been delivered. Escudero then instructed the CS to pay for the drugs by depositing money into his wife’s and others’ bank accounts. Escudero also sent a money courier from Texas to pick up $30,000 from the DEA source. When the courier met the undercover detective to retrieve the money, he was arrested. Escudero subsequently sold additional methamphetamine to an undercover DEA agent over several additional months.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Taylor G. Stout and Christopher Murray.
Gregg County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 31-year-old Longview, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Desmond Denard Brown pleaded guilty on Mar. 23, 2017, to possessing with intent to distribute and distribution of crack cocaine and was sentenced to 65 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on June 13, 2016, Brown distributed approximately 28 grams of crack cocaine in Gregg County, Texas. Brown was indicted by a federal grand jury on Jan. 18, 2017.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Four Pittsburgh Residents Face Drug Trafficking ChargesRead the Press Release
PITTSBURGH – Four Pittsburgh-area residents have been arrested and charged in federal court with violating conspiracy to traffic in fentanyl, Acting United States Attorney Soo C. Song announced today.
The criminal complaint charges Lynell Guyton, 27, Calvin Armstrong, 31, Anthony Lozito, 38, and Kristen Shearer, 21, with conspiring to possess with intent to distribute a quantity of fentanyl, a Schedule II controlled substance on or about August 9, 2017.
“Fentanyl exposure is an all too real risk to law enforcement as we learned this morning,” said Acting U.S. Attorney Song. “During the search of the Bond Street residence pursuant to the search warrant, a table where the drugs were being bagged was overturned causing the suspected fentanyl to become airborne. Several SWAT operators experienced dizziness and numbness. In all, 18 officers were transported to UPMC-Mercy for evaluation before being medically cleared. Quick and professional action by first responders helped avert a potential catastrophe.”
According to the complaint, on August 9, 2017, at 6 a.m., 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 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. On August 2, 2017, Pittsburgh Police arrested and charged Lynell Guyton locally for possession of both Louis Vuitton and Ferrari stamp bags. Guyton was also charged via criminal complaint on August 8 with attempting to possess with intent to distribute 10 grams of more a detectable amount of an analogue of fentanyl on or about June 1, 2017. In that instance Guyton attempted to receive a package shipped from Hong Kong containing approximately 100 grams of two fentanyl analogues.
The defendants are scheduled to appear in federal court in Pittsburgh on Wednesday before U.S. Magistrate Judge Cynthia R. Eddy. The government is seeking detention of the defendants.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rachel L. Dizard is prosecuting this case. U.S. ICE/HSI, with assistance from the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, conducted the investigation that led to the complaint against these individuals.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Former Registered Broker Sentenced to 15 Months in Prison for Securities Fraud in A $131 Million Market Manipulation SchemeRead the Press Release
Herschel C. Knippa III, also known as “Tres,” a former registered broker and owner of a commodities trading firm who regularly appeared on television news networks to discuss investment strategies, was sentenced earlier today at the federal courthouse in Brooklyn, New York, to 15 months in prison, three years of supervised release, $3,570,000 in restitution, and $120,000 in forfeiture. Knippa had previously pled guilty to securities fraud conspiracy for his role in the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly traded company previously listed on the NASDAQ under the ticker symbol “FNRG.”
The sentencing was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented at the sentencing hearing, between 2009 and 2015, the defendant and others engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField. Knippa and others committed this crime by, among other means: (1) secretly using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the misleading appearance of genuine trading volume and interest in the stock; and (3) concealing secret payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while falsely claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between July 2014 and March 2015, Knippa received kickbacks from a ForceField executive for promoting the purchase of ForceField stock to investors, including by recommending the purchase of ForceField stock at investor conferences and during television appearances on the Fox Business and Business News Network channels. Knippa did not disclose his secret compensation during those conferences and television appearances, and falsely claimed that he owned ForceField stock when he did not. For example, in one television appearance at which he urged viewers to purchase them, Knippa was asked if he personally owned ForceField shares. In response, he falsely stated, “You bet I do. I put my money where my mouth is.” Knippa and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash during in-person meetings.
Today’s proceeding, which took place before United States District Court Judge Brian M. Cogan, is the fifth sentencing to take place in connection with the ForceField securities fraud. Three other defendants who pleaded guilty in this matter, and one defendant convicted after trial, remain to be sentenced.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.The Defendant:
HERSCHEL C. KNIPPA III
Age: 47
Residence: Dallas, Texas
E.D.N.Y. Docket No. 16-CR-234 (S-1) (BMC)
Former Miami-Dade County Public School Employee Charged in Bribery SchemeRead the Press Release
A former employee of Miami-Dade County Public Schools has been charged with accepting bribery payments.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Andres Barroso, 52, of Hialeah, Florida, a former electrical foreman for Miami-Dade County Public Schools, was charged in by criminal information with conspiracy to commit bribery in programs receiving federal funds, in violation of Title 18, United States Code, Sections 666 and 371.
As set forth in the charging document, as an electrical foreman for Miami-Dade County Public Schools, Barroso had the authority to order lighting products, including lamps and ballasts, on behalf of the school system. If the order exceeded $1,000, it was required to be a competitive bid and was awarded to the winning vendor. A co-conspirator owned a company that provided, among other items, lighting products, including lamps and ballasts.
Beginning in or about 2013, Barroso authorized the purchase of lighting products, including lamps and ballasts, on behalf of Miami-Dade County Public Schools, from the co-conspirator. If the order exceeded $1,000 and the order was required to be competitively bid, Barroso informed the co-conspirator of the amounts of the bids submitted by other vendors so that the co-conspirator could be able to submit the lowest bid.
The co-conspirator was awarded over 70 contracts to provide lighting products to Miami-Dade Public Schools. The co-conspirator provided some, but not all, of the ordered lighting products to the school system. Barroso falsely confirmed that all lighting products were received and submitted the invoice for payment to Miami-Dade Public Schools. As a result, Miami-Dade Public Schools paid the co-conspirator for products that were not actually provided.
Barroso and the co-conspirator split the money received from Miami-Dade Public Schools. From in or about 2013 and continuing through in or about 2015, Barroso accepted approximately $66,166 in U.S. currency intending to be influenced and rewarded for utilizing his official position.
Andres Barroso faces a statutory maximum term of 5 years in prison and a fine of $250,000.
Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A criminal information or complaint merely contain accusations and a defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Metropolitan Police Officer Indicted on Charges of Sex Trafficking of Minors and Enticement of Minors to Engage in ProstitutionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury indicted Chukwuemeka Ekwonna, age 28, of Glenn Dale, Maryland, on charges related to sex trafficking of minors and use of interstate commerce facilities to entice minors to engage in prostitution.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Chief Tim Altomare of Anne Arundel County Police and Wes Adams of Anne Arundel State’s Attorney’s Office.
According to the 10-count indictment, beginning on or about January 24, 2016, Ekwonna worked as a police officer with the Metropolitan Police Department (MPD), in Washington, District of Columbia, where he was issued a Glock 17 handgun for use in connection with his duties as a police officer. On or about June 7, 2010, Ekwonna created a Tagged social media account entitled “E-man aka wateva u want me 2 be.” Tagged is a social media platform that allows members to create profiles, post status updates, upload photos, and send and receive messages. Tagged provides a mobile version of the platform that allows users to search for others based on location and engage in real-time chat.
Between June 1, 2011, and on or about April 6, 2017, Ekwonna exchanged approximately 53,000 messages with thousands of other Tagged users. Ekwonna used his Tagged account to send messages to many other users offering to pay them to engage in specific sex acts with him and to negotiate over the prices he would pay for sex.
Between December 19, 2016, and April 5, 2017, Ekwonna exchanged approximately 200 text and Tagged messages with a 14-year-old girl. In the messages, on several occasions Ekwonna offered to pay the victim to engage in sex acts with him. On January 9, 2017, Ekwonna exchanged approximately 54 Tagged messages with a 15-year-old girl. In the messages, Ekwonna also offered to pay the second victim to engage in sex acts with him. In both exchanges, Ekwonna discussed the sex acts they would engage in, and where they would meet. Both victims were students in the ninth grade at the time of the offenses.
On January 9, 2017, in the back seat of his vehicle, Ekwonna pointed a handgun at the second victim and demanded that she give him the money he had just paid her.
Ekwonna faces a minimum of 10 years in prison and maximum of life in prison and a fine of $250,000. An initial appearance is expected in U.S. District Court in Baltimore on August 11, 2017.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the HSI, the Anne Arundel County Police Department and the Anne Arundel States Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Zachary A. Myers who is prosecuting the case.
Former Leawood Business Owner Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Leawood, Kan., business owner has been indicted by a federal grand jury for tax evasion.
Barrett Prelogar, 46, of Leawood, was charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Aug. 8, 2017. That indictment was unsealed and made public upon Prelogar’s arrest and initial court appearance today.
Prelogar was a partner in now-defunct Winntech Digital Systems, Inc. The federal indictment charges Prelogar with one count of tax evasion and one count of corruptly endeavoring to impede the due administration of the internal revenue laws.
According to the indictment, Prelogar engaged in several strategies from May 2011 to March 28, 2016, to avoid paying taxes and penalties he owed to the government. Prelogar allegedly used corporate funds to pay his personal expenses, structured cash withdrawals from Winntech’s bank account to avoid federal reporting requirements, and cashed his payroll checks from his wife’s company, Bareskull Innovation, LLC, rather than placing the money into a personal bank account. Prelogar, the indictment says, willfully attempted to evade paying the Trust Fund Recovery Penalty, which had been assessed against him personally for the unpaid trust fund taxes of Winntech, and the payment of income tax due and owing by him for the calendar year 2008.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker and Trial Attorney David Zisserson of the U.S. Department of Justice, Tax Division. It was investigated by IRS-Criminal Investigation.
Former Jail Administrator Sentenced for Depriving Inmate of Medical CareRead the Press Release
Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Mark A. Yancey of the Western District of Oklahoma jointly announced that a former McClain County, Oklahoma, Jail Administrator, Wayne Barnes was sentenced today by U.S. District Court Judge Stephen P. Friot to 51 months in prison and ordered to pay a $10,000 fine for his conviction on a charge that he violated an inmate’s civil rights by depriving him of medical care, resulting in the inmate’s death. Barnes pleaded guilty to the charge on February 9, 2017.
Barnes was indicted by a grand jury in October 2016 and charged with a one-count federal criminal civil rights violation arising out of the death of K.W., a detainee who was housed at the jail in June 2013. The indictment alleged that K.W. was an insulin-dependent diabetic who received neither insulin nor medical evaluation between June 16, 2013 until the afternoon of June 19, 2013. On that day, according to the indictment, Barnes observed K.W. lying on the floor of his cell, unresponsive. Only then did Barnes direct a corrections officer to call emergency medical services, who found K.W.’s pupils fixed and dilated upon their arrival. K.W. died on June 21, 2013, having never regained consciousness. The indictment alleged that Barnes knew that K.W. had a serious medical condition and willfully failed to provide him with necessary medical care, and that his failure to do so resulted in K.W.’s death.
At his change of plea hearing, Barnes admitted that he was made aware between June 16 and June 19, 2013, that K.W. had been booked into the McClain County Jail, and that K.W. represented that he was a Type-1 diabetic who required insulin. Barnes further admitted that he failed to obtain medical care for K.W. and that, in doing so, he willfully denied K.W.’s Constitutional right to medical care. Barnes also admitted that his failure to obtain the required medical care resulted in K.W.’s death.
“Every law enforcement officer in this country takes an oath to uphold the United States Constitution,” said Acting Assistant Attorney General Gore. “The Constitution ensures that persons detained pending the adjudication of charges against them are entitled to necessary medical care. This sentence affirms the importance of that right and underscores the continuing commitment of the Civil Rights Division to hold officers accountable to their oaths.”
“Inmates deserve and the law requires that adequate medical care be provided by penal institutions,” said U.S. Attorney Yancey. “Denying necessary medical treatment is inhuman and unconstitutional.”
This case was investigated by the Oklahoma City Division of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Julia Barry of the Western District of Oklahoma and Deputy Chief Kristy Parker of the Civil Rights Division of the Department of Justice.
Former Jail Administrator Sentenced for Depriving Inmate of Medical CareRead the Press Release
WASHINGTON – Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Mark A. Yancey of the Western District of Oklahoma jointly announced that a former McClain County, Oklahoma, Jail Administrator, Wayne Barnes, was sentenced today by U.S. District Court Judge Stephen P. Friot to 51 months in prison and ordered to pay a $10,000 fine for his conviction on a charge that he violated an inmate’s civil rights by depriving him of medical care, resulting in the inmate’s death. Barnes pleaded guilty to the charge on February 9, 2017.
Barnes was indicted by a grand jury in October 2016 and charged with a one-count federal criminal civil rights violation arising out of the death of K.W., a detainee who was housed at the jail in June 2013. The indictment alleged that K.W. was an insulin-dependent diabetic who received neither insulin nor medical evaluation between June 16, 2013, until the afternoon of June 19, 2013. On that day, according to the Indictment, Barnes observed K.W. lying on the floor of his cell, unresponsive. Only then did Barnes direct a corrections officer to call emergency medical services, who found K.W.’s pupils fixed and dilated upon their arrival. K.W. died on June 21, 2013, having never regained consciousness. The indictment alleged that Barnes knew that K.W. had a serious medical condition and willfully failed to provide him with necessary medical care, and that his failure to do so resulted in K.W.’s death.
At his change of plea hearing, Barnes admitted that he was made aware between June 16 and June 19, 2013, that K.W. had been booked into the McClain County Jail, and that K.W. represented that he was a Type-1 diabetic who required insulin. Barnes further admitted that he failed to obtain medical care for K.W. and that, in doing so, he willfully denied K.W.’s Constitutional right to medical care. Barnes also admitted that his failure to obtain the required medical care resulted in K.W.’s death.
"Every law enforcement officer in this country takes an oath to uphold the United States Constitution," said Acting Assistant Attorney General Gore. "The Constitution ensures that persons detained pending the adjudication of charges against them are entitled to necessary medical care. This sentence affirms the importance of that right and underscores the continuing commitment of the Civil Rights Division to hold officers accountable to their oaths."
"Inmates deserve and the law requires that adequate medical care be provided by penal institutions," said U.S. Attorney Yancey. "Denying necessary medical treatment is inhuman and unconstitutional."
This case was investigated by the Oklahoma City Division of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Julia Barry of the Western District of Oklahoma and Deputy Chief Kristy Parker of the Civil Rights Division of the Department of Justice.
Former Hospital Worker Convicted in Attack at Fort LeavenworthRead the Press Release
KANSAS CITY, KAN. - A former civilian hospital employee was convicted today on federal charges of attacking a woman who he set on fire and attacked with a straight razor, U.S. Attorney Tom Beall said.
A jury found Clifford Currie, 55, Leavenworth, Kan., guilty on one count of assault with intent to commit murder.
During trial, prosecutors presented evidence that on Sept. 7, 2016, Currie threw gasoline or some other inflammable liquid on his supervisor, Katie Ann Blanchard, lit her on fire and assaulted her with a straight edge razor and scissors. A co-worker came to the Blanchard’s aid when she heard screams and saw Blanchard on fire from the chest up. Currie was subdued by hospital employees and then arrested
Sentencing is set for Oct. 31. He faces a penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the U.S. Army Military Police investigated. Assistant U.S. Attorney Kim Flannigan and Special Assistant U.S. Attorney James Ward are prosecuting.
Former Felon Indicted for Armed CarjackingRead the Press Release
RENO, Nev. – A former felon was indicted today for using a firearm during a carjacking in Sparks, Nev., announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Andrew Brigman, 28, of Layton, Utah, was charged with one count each of carjacking, use of a firearm during and in relation to a crime of violence, and felon in possession of a firearm.
According to allegations in the indictment, on July 6, 2017, Brigman brandished a semiautomatic pistol and used force and violence to steal a 2012 Nissan Altima from a person. He is also charged with illegal possession of the firearm used during the alleged carjacking after a prior felony conviction.
The maximum statutory penalty is 15 years in prison and a $250,000 fine for carjacking; the maximum statutory penalty is life in prison with a mandatory minimum sentence of seven years that must run consecutive to the carjacking charge and a $250,000 fine for use of a firearm during and in relation to a crime of violence; and a maximum statutory penalty of 10 years in prison and a $250,000 fine for felon in possession of a firearm.
The case is being investigated by the Sparks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Megan Rachow.
An indictment is merely an allegation and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
###
Former Department of Energy Employee Sentenced to Serve Time in Federal PrisonRead the Press Release
KNOXVILLE, Tenn. – On August 8, 2017, Henry M. Love, II, 51, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve seven months in federal prison followed by six months home detention for his convictions involving wire fraud, false claims and a false statement against his former employer, the Department of Energy (DOE). Love was also ordered to pay $40,111.95 in restitution to the DOE.
After an August 2016 jury trial, Love was convicted of 11 counts of wire fraud, 11 counts of false claims and one count of making a false statement. While employed as a program specialist with DOE, Love submitted falsified time sheets to his supervisor in New Mexico. Additionally, he falsified records and made a false statement about an on-the-job injury. Records submitted during the trial showed that Love was not even present in the office on the day his injury was alleged to have occurred.
This case was investigated this case. Assistant U.S. Attorneys Cynthia Davidson and Jennifer Kolman represented the United States.
###
Florida Man Sentenced to Four Months for Making Illegal CampaignRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, announced that Michael A. Liberty, 56, of Windermere, Florida was sentenced today in U.S. District Court by Judge D. Brock Hornby to four months in prison and one year of supervised release for illegally making political contributions in the names of others to a presidential candidate’s primary campaign committee. He was also ordered to pay a $100,000 fine. Liberty pled guilty to the charge on November 28, 2016.
According to admissions made in connection with his guilty plea, between May and June 2011, Liberty made $22,500 in primary contributions through nine employees, associates and family members to the principal campaign committee of a candidate for President of the United States. In fact, Liberty paid for all of the contributions.
This case was investigated by the Federal Bureau of Investigation.
Five Men Charged with Defrauding Xerox of $25,000,000Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Lee Fisher; Bryan Day; Jason Haynes; Kyle Haynes; and David Haynes, all of Daytona Beach, Florida, were charged by criminal complaint with mail and wire fraud, conspiracy to commit mail and wire fraud, and money laundering conspiracy in connection with a scheme to defraud Xerox. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, Fisher owned RBM Imaging, Inc., which was an authorized reseller of the Xerox Corporation’s office equipment. The other defendants own Haynes Brothers Furniture in Volusia County, Florida, and two sham companies, HDH Graphics LLC (“HDH”) and Aldar Securities (“Aldar”), which were used to defraud Xerox Company in Webster, New York.
Under Fisher’s contract with Xerox, purchasers of Xerox printers would order Xerox consumables, consisting primarily of toner, to use in their printers. The purchasers, rather than pay Xerox for the toner, would pay Xerox based on the number of prints made with the toner. At all times, the toner belonged to Xerox until consumed by the purchasers. At no time could the purchasers sell the toner.
Between 2008 through 2013, Fisher, as an authorized reseller of Xerox printers, sold more than 60 printers to the sham companies, HDH Graphics and Aldar Securities. The Haynes and Day, using the sham companies, and with the assistance of Fisher, over ordered approximately $25,000,000 worth of the toner from Xerox, which they never used to make prints or for legitimate business purposes. To justify the large orders of toner, the Haynes’s and Day falsely reported to Xerox that their companies made 61,174,896 prints during the scheme, when in fact, their companies made few, if any, prints with their Xerox printers.The Haynes’s and Day then illegally sold the toner to a Miami, Florida individual for approximately $9,400,000. The defendants split the proceeds from the illegal sale of the toner.
The defendant will make an initial appearance on August 11, 2017, before U.S. Magistrate Judge Jonathan W. Feldman.
Today’s plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Federal jury finds Texas man guilty of conspiring to transport illegal drugsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a federal jury found a Texas man guilty of conspiring to transport methamphetamine and cocaine.
Erasmo Aviles Jr., 35, of Spring, Texas, was found guilty of one count of conspiracy to possess with intent to distribute a controlled substance, one count of possession of methamphetamine with intent to distribute and one count of possession of cocaine with intent to distribute a controlled substance. United States District Judge S. Maurice Hicks Jr. presided over the trial, which started Monday and ended today. The jury returned a guilty verdict after deliberating for approximately 2.75 hours.
Evidence admitted at trial revealed that Aviles was traveling east on Interstate 20 in Bossier Parish in one car that was traveling in tandem with another vehicle driven by Francisco Guardiola, 25, of Spring, Texas, on May 12, 2016. Louisiana State Troopers conducted a traffic stop on the vehicles. Aviles denied any wrongdoing and a search of his vehicle produced a camouflaged two-way radio set to channel two. The vehicle Guardiola was driving was searched. Troopers found 1,048 gross grams of methamphetamine and 361.8 grams of powder cocaine. They also found a camouflaged two-way radio of the same type found in Aviles’ vehicle that was also set to channel two.
Aviles faces up to 20 years to life in prison, 10 years of supervised release and a $20 million fine for the conspiracy count; up to 20 years in prison, five years of supervised release and a $10 million fine for the methamphetamine and cocaine distribution counts. Guardiola pleaded guilty on March 15, 2017 to all three counts.
The DEA and Louisiana State Police conducted the investigation.
Assistant U.S. Attorneys Allison D. Bushnell and Tennille M. Gilreath are prosecuting the case.
Federal inmate found guilty of murder of fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal inmate at the U.S. Penitentiary in Hazelton, West Virginia, was convicted by a jury in federal court today for murdering another inmate, announced Acting U.S. Attorney Betsy Steinfeld Jividen.
Kevin Marquette Bellinger, 36, formerly of Washington, D.C., was found guilty of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris.
Bellinger and fellow inmate, Patrick Andrews, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s trial, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.Bellinger was convicted in this case by a federal jury on June 16, 2014 and sentenced to life in prison. That conviction was overturned on appeal in June 2016.
Assistant U.S. Attorneys Andrew R. Cogar and Sarah W. Montoro prosecuted the case on behalf of the government. This case was investigated by the FBI and the U.S. Bureau of Prisons.
U.S. District Judge Irene M. Keeley presided.Federal Jury Convicts Metairie Resident for Drug, Gun, and Obstruction-Related OffensesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday, a federal jury convicted ANTONIO NEVEAUX, age 44, a Metairie resident, for his role in distributing cocaine base (“crack”) in the New Orleans area. Following a two-day trial, the jury found NEVEAUX guilty of possession with intent to distribute 28 grams or more of crack cocaine, conspiracy to distribute and to possess with intent to distribute 28 grams or more of crack cocaine; possession of a firearm in furtherance of drug trafficking crimes, and conspiracy to obstruct an official proceeding.
According to the evidence presented at trial, NEVEAUX was a known mid-level crack dealer in the Iberville Housing Development. On March 21, 2012, two hand-to-hand transactions were caught on surveillance video, and NEVEAUX was immediately arrested with over 90 grams of crack, $4,000 cash, and two loaded firearms. After he was indicted on the drug and gun charges, NEVEAUX attempted to convince one of his customers to lie to investigators about the nature of their interaction.
NEVEAUX faces a mandatory minimum sentence of ten years in prison—five years for the crack offenses, and five additional years for possessing firearms in furtherance of those offenses. Sentencing before Judge Susie Morgan is scheduled for November 15, 2017.
Co-defendant ANTHONY WASHINGTON previously pled guilty to conspiring to obstruct an official proceeding and is scheduled to be sentenced on November 15, 2017. Co-defendant TERRENCE SMITH is scheduled for rearraignment for the drug conspiracy charge on August 11, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Housing Authority of New Orleans Police Department. Assistant United States Attorneys Michael E. McMahon, Jeffrey Sandman, and David Howard Sinkman were responsible for the prosecution.
Federal Grand Jury Indicts Seattle Man for Causing Damage to the Website of Leagle.comRead the Press Release
DALLAS — A Seattle man has been charged in a federal indictment, returned late yesterday, with one count of knowingly causing the transmission of a command to a protected computer, announced U.S. Attorney John Parker of the Northern District of Texas (NDTX).
Kamyar Jahanrakhshan, aka “Kamyar Jahan Rakhshan,” “Andy or Andrew Rakhshan,” “Andy or Andrew Kamyar,” and “Kamiar or Kamier Rakhshan,” 37, of Seattle, Washington, was arrested late last month in the Western District of Washington (WDWA) on a related federal criminal complaint, filed on July 29, 2016, in the U.S. District Court for the NDTX. He made his initial appearance before a U.S. Magistrate Judge in federal court in the WDWA on July 26, 2017, and was detained. The U.S. Magistrate Judge set Rakhshan’s identity hearing in WDWA on August 14, 2017, after which, Rakhshan should be transported to Dallas to appear in a federal court in the NDTX.
The indictment alleges that between December 30, 2014 and January 25, 2015, Jahanrakhshan knowingly caused the transmission of a program, information, code, and command, and, as a result of such conduct, intentionally caused a denial of service attack on the website Leagle.com without authorization to a protected computer causing a loss of at least $5,000 during a one-year period.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Jahanrakhshan faces the maximum statutory penalty of ten years in federal prison and a $250,000 fine. Restitution may be ordered.
The Federal Bureau of Investigation investigated the case, with assistance from the FBI Dallas cyber squad, Seattle cyber task force, Toronto police department, and the Australian federal police. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
# # #
Federal Grand Jury Indicts Five North Texas Men Affiliated with Bloods Street Gang for Several Violent RobberiesRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment yesterday charging five violent north Texas men with multiple charges related to violent robberies that occurred in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Each of the below-listed defendants, mostly from Cedar Hill, Texas, is charged with at least one count of interference with commerce by robbery:
Charles Lampkins, aka “K3” and “Kc,” 20
Justin Gilbert, aka “Slim,” 21
Jahad Givens, aka “Had,” 21
Terance Ross Johnson, aka “TJ,” 21
Jaala Dill, 19, of Dallas
The defendants will make their initial appearances in federal court later this week.
According to documents filed in the case, between October 2016 and May 2017, the defendants committed a series of at least seven and up to twenty-one robberies at various motels, hotels, and other commercial establishments throughout the Dallas-Fort Worth metroplex. The robbery crew performed surveillance of victims and targeted locations and utilized firearms to intimidate their victims, often pointing guns at the heads of tellers and cashiers during the robberies.
The robbers often disguised themselves during the robberies by wearing dark clothes, hoodies, and other items meant to conceal their true identity, including a distinguishable fake blue beard connected to a stocking cap.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each interference with commerce by robbery count in the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Lampkins is also charged with two counts of using, carrying, brandishing, and discharging a firearm in furtherance of a crime of violence. The firearm count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigations, Plano Police Department, Carrollton Police Department, Addison Police Department, Farmers Branch Police Department, Grand Prairie Police Department, Arlington Police Department, Lewisville Police Department, Sulphur Springs Police Department, Dallas Police Department, and Cedar Hill Police Department. Assistant U.S. Attorney P.J. Meitl in charge of the prosecution.
# # #
Eunice company’s former IT manager pleads guilty to defrauding employer more than $2.6 millionRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Duson pleaded guilty to wire fraud in connection to a scheme to defraud a Eunice pipeline company out of more than $2.6 million.
Richard Walter Borek Jr., 43, of Duson, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of wire fraud. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, Borek worked as the information technology (IT) manager for a Eunice pipeline company from 2012 to 2016. He conducted a scheme where he bought cell phones and electronic tablets using company funds from two nationwide cellular phone companies. He then sold them online to another company and kept the money for his own personal use. He also sold web hosting services and computer equipment to the pipeline company through his own company called Statix even though the web hosting services were being provided by another company and the computer equipment was never delivered to the pipeline company’s office. The loss from both schemes resulted in both cell phone companies charging the pipeline company $2,436,487 and Statix charging the pipeline company $236,234.14 for a total loss to the pipeline company of $2,672,721.14.
Borek faces 20 years in prison, three years of supervised release, restitution and a $250,000 fine. The court set a December 7, 2017 sentencing date.
The FBI conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Dark web investigation leads to conviction of Indianapolis drug traffickerRead the Press Release
Leader of nation-wide heroin and cocaine distribution ring receives 188-month sentence.
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis night club manager for conspiracy to distribute heroin and cocaine, distribution of heroin and cocaine, and conspiracy to commit money laundering. Pierre Burnett, Jr., 44, manager of Epic Ultra Lounge (formerly Tantrum), was sentenced to 188 months imprisonment by U.S. District Judge Tanya Walton Pratt in federal court.
“Gone are the days when criminals could cloak their drug trafficking activity behind the anonymity of the Dark Web,” Minkler said. “Our office is committed to ferreting out and prosecuting individuals engaged in cybercrime in all its many forms.”
What began as an investigation into drug trafficking on the Dark Web led to the ultimate arrest and conviction of Burnett, a/k/a “Doe,” the leader of a major heroin and cocaine distribution ring in the Indianapolis area and elsewhere. In October 2013, federal law enforcement agencies shut down the Dark Web site Silk Road. Through a joint investigation by Drug Enforcement Administration (DEA), U.S. Postal Inspection Service (USPIS), and Internal Revenue Service (IRS), law enforcement learned that Lee Gray, a Camby, Indiana, resident at the time, was selling heroin and cocaine in exchange for bitcoins on Silk Road, and later other Dark Web sites such as Black Bank. Gray shipped the drugs to customers located throughout the United States using the U.S. mail. Gray then laundered his bitcoins using foreign bitcoin-exchange companies to wire U.S. currency into multiple bank accounts in his own and other names. He also sold bitcoins on the Dark Web to other users in exchange for cash that the other users mailed to him.
Gray was indicted on July 7, 2015, and pleaded guilty on December 22, 2015, to conspiring to distribute heroin, possession with intent to distribute heroin, and money laundering. He will be sentenced on October 4, 2017, before U.S. District Judge Sarah Evans Barker.
Gray obtained his supply of heroin and cocaine from Burnett. From at least 2012 through August 18, 2015, Burnett obtained heroin and cocaine directly from a Mexican source of supply, and would pay the Mexican source by delivering large bags of money to Mexican couriers. Burnett distributed the drugs to drug distributers, including Gray and Alan Duncan (a/k/a “Al Gore”), another drug distributor in the Southern District of Ohio, who sold these drugs within and outside of their local communities. Gore received a sentence of 150 months imprisonment in Ohio. Burnett is responsible for distributing at least 17 kilograms of heroin and 25 kilograms of cocaine during the course of the conspiracy.
This case highlights the collaborative efforts by multiple organizations. This case was investigated by the Drug Enforcement Administration (DEA) Indianapolis Office, United States Postal Inspection Service (USPIS) and the Internal Revenue Service (IRS). The U.S. Attorney’s Office for the Southern District of Ohio and the DEA Dayton Office assisted in the investigation.
“DEA is committed to saving lives by identifying, disrupting and dismantling those criminal drug organizations who poison our communities with heroin and fentanyl,” said Greg Westfall DEA Assistant Special Agent in Charge. “DEA will exhaust all resources and work with our partners to bring those to justice who try and find ways to elude law enforcement detection to hide their criminal activities. Law enforcement and other partnerships working together will prevail.”
“The U.S. Postal Inspection Service takes very seriously its mission to deter the illegal use of the mails for any criminal activity,” said Acting Special Agent in Charge Cynthia Mormon, Detroit Division. “These crimes negatively impact each and every community and household, and we stand committed to working together to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail thereby violating the sanctity of the seal.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Cindy J. Cho, who prosecuted this case for the government, Burnett must serve five years of supervised release following completion of incarceration.
###
Dallas Doctor Sentenced on Health Care Fraud ConvictionRead the Press Release
DALLAS — A 60-year-old doctor from Rockwall, Texas, Jacques Roy, who was convicted in April 2016 of various health care fraud charges following a six-week-long trial, was sentenced today by U.S. District Judge Sam A. Lindsay to 420 months in federal prison and ordered to pay $268,147,699.15 in restitution, joint and several with all codefendants to Medicare and Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.
Roy was convicted of one count of conspiracy to commit health care fraud, eight counts of health care fraud, two counts of making a false statement relating to healthcare matters and one count of obstruction of justice. Roy has been in custody since the time of his arrest in February 2012.
“The only thing more stunning than Jacques Roy and his co-conspirators’ shameless methods, said U.S. Attorney Parker, is the staggering dollar amounts involved in this fraud scheme. This takes brazen to a whole new level.”
The following defendants have also been sentence for their role in the health care fraud scheme:
Wilbert James Vesey, Jr., 210 months in federal prison and $23 million in restitution
Cyprian Akamnonu, 120 months in federal prison and $25 million in restitution
Patricia Akamnonu, 120 months in federal prison and $25 million in restitution
Charity Eleda, 48 months in federal prison and $397,294.51 in restitution
Teri Sivils, 3 years probation and $885,714.05 in restitution
Cynthia Stiger will be sentenced October 26, 2017.
The government presented evidence at trial that Dr. Roy, Stiger, Veasey and Eleda engaged in a large-scale, sophisticated health care fraud scheme in which they conspired together and with others to defraud Medicare and Medicaid through companies they owned/controlled: Medistat Group Associates, P.A., Apple of Your Eye Health Care Services, Inc., Ultimate Care Home Health Services and Charry Home Care Services.
As part of the conspiracy, Stiger, Veasey and Eleda, along with others, improperly recruited individuals with Medicare coverage to sign up for Medicare home health care services. Eleda recruited patients from The Bridge homeless shelter in Dallas, sometimes paying recruiters $50 per beneficiary they found and directed to her vehicle parked outside the shelter’s gates. Eleda and other nurses would falsify medical documents to make it appear as though those beneficiaries qualified for home health care services that were not medically necessary. Eleda and the nurses prepared Plans of Care (POC), also known as 485’s, which were not medically necessary, and these POCs were delivered to Dr. Roy’s office and not properly reviewed by any physician.
Dr. Roy instructed his staff to certify these POCs, which indicated to Medicare and Medicaid that a doctor, typically Dr. Roy, had reviewed the treatment plan and deemed it medically necessary. That certifying doctor, typically Dr. Roy, certified that the patient required home health services, which were only permitted to be provided to those individuals who were homebound and required, among other things, skilled nursing. This process was repeated for thousands of POCs, and, in fact, Medistat’s office included a “485 Department,” essentially a “boiler room” to affix fraudulent signatures and certifications.
Once an individual was certified for home health care services, Eleda, nurses who worked for Stiger and Veasey, and other nurses falsified visit notes to make it appear as though skilled nursing services were being provided and continued to be necessary. Dr. Roy would also visit the patients, perform unnecessary home visits, and then order unnecessary medical services for the recruited beneficiaries. Then, at Dr. Roy’s instruction, Medistat employees would submit fraudulent claims to Medicare for the certification and recertification of unnecessary home health care services and other unnecessary medical services.
The government presented further evidence at trial that the scope of Dr. Roy’s fraud was massive; Medistat processed and approved POCs for 11,000 unique Medicare beneficiaries from more than 500 different home health agencies. Dr. Roy entered into formal and informal fraudulent arrangements with Apple, Charry, Ultimate and other home health agencies to ensure his fraudulent business model worked and that he maintained a steady stream of Medicare beneficiaries.
Regarding Dr. Roy’s conviction for obstruction of justice, the government presented evidence that when the Centers for Medicare and Medicaid Services (CMS) suspended Dr. Roy and Medistat from receiving Medicare payments after June 2, 2011, because of suspected fraud, Dr. Roy sought an “end-run” around the suspension through the use of another company, Medcare House Calls. Dr. Roy directed the medical providers he employed to be re-credentialed and to bill Medicare under Medcare House Calls, instead of Medistat. Nonetheless, the money that Medicare paid was circumvented back to Medistat and Dr. Roy.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys P.J. Meitl and Nicole Dana and First Assistant U.S. Attorney Chad Meacham prosecuted the case.
# # #
Cybercriminal Convicted of Computer Hacking and Sentenced to Statutory MaximumRead the Press Release
Earlier today, Fabio Gasperini, an Italian citizen, was sentenced by United States District Judge Nicholas G. Garaufis following his conviction by a federal jury in Brooklyn of one count of computer intrusion. The defendant was sentenced to the statutory maximum sentence of one year of imprisonment, a $100,000 fine, and one year of supervised release following incarceration. The Court also directed the forfeiture of the defendant’s botnet, the infrastructure used to manage and run the botnet (including computers, command-and-control servers, and domains), and the backdoor that the defendant installed on victim computers worldwide.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As proven at trial, Gasperini spread malicious software onto computer servers in the United States and around the world and thereby covertly hacked into them. Gasperini’s scheme specifically targeted a type of computer server that companies and individuals typically use for large-scale data storage and transfer. Gasperini obtained control over the servers and the sensitive data and files they contained. Gasperini also created an exclusive backdoor that enabled him to access the data and computing power of those servers in perpetuity. In so doing, Gasperini created a botnet. A botnet is a network of computers (such as servers) infected with malicious software without the true owners’ knowledge or permission; a hacker can remotely control and use a botnet for malicious purposes.
Gasperini used the servers in his botnet to scan the internet, identify additional vulnerable servers for infection, and expand his botnet. ’s botnet encompassed over 100,000 computers around the world. Gasperini used specialized command-and-control servers in the United States to manage the botnet and to provide instructions and resources to the servers in the botnet.
In announcing the sentencing, Acting United States Attorney Rohde expressed her grateful appreciation to the Netherlands Ministry of Security and Justice, for their assistance in effecting the defendant’s arrest and extradition; the Italian Postal and Telecommunications Service, for their assistance in the investigation; the United States Marshals Service, for their assistance in transporting the defendant to the United States; and the U.S. Department of State Regional Security Officer in the Netherlands, for their assistance in facilitating the defendant’s extradition.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy and Melody Wells are in charge of the prosecution, and Assistant United States Attorney Brian D. Morris is in charge of forfeiture in the case.
The Defendant:
FABIO GASPERINI
Age: 35
Residence: Rome, Italy
E.D.N.Y. Docket No. 16-CR-441
Crockett County Deputy Sentenced in West Tennessee on Federal Drug Trafficking ViolationsRead the Press Release
Memphis, TN – A former Crockett County Sheriff’s Deputy has been sentenced to 87 months in federal prison on cocaine trafficking and firearms charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to the indictment, on February 13, 2017, Calvin Fields aided and abetted others in the distribution of a mixture of substance containing a detectable amount of cocaine. Mr. Fields was in possession of a Glock. 40 caliber pistol in furtherance of the drug trafficking crime.
Federal agents arranged surveillance and saw Calvin Fields stationed in his patrol vehicle while on duty, providing security while cocaine was being delivered by an undercover cooperating source.
"No one is above the law. It is especially disheartening when those entrusted to protect and serve our communities commit criminal acts. Those who do so should know: We will use all our resources to come after you." said Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee.
The suspect was arrested on Friday, February 17, 2017, on a federal complaint. The federal grand jury in Jackson returned the indictment on February 21, 2017.
Johnie Carter, Special Agent in Charge, Violent Crime and Drug Task Force, 28th Judicial District said: "When a Law Enforcement Officer commits a criminal act, they violate the trust of the community as well as their fellow Law Enforcement Officers. It angers everyone involved and tarnishes the badge that 99% of officers work so hard at keeping polished. The West Tennessee Drug Task Force works very hard at ridding West
Tennessee of the dangerous drugs and violent crime and those who are responsible. A Law Enforcement Officer is no different and must face the same justice as anyone else."
On August 8, 2017, Chief United States District Judge S. Thomas Anderson sentenced Fields to 87 months’ imprisonment and 3 years supervised release. While sentencing Fields, Judge Anderson said "this case was one of the most troublesome cases of official corruption he had seen my time on the bench."
This case was investigated by members of the FBI Memphis Division’s Jackson Resident Agency, the Crockett County Sheriff’s Office and the 28th Judicial District Violent Crime and Drug Task Force. Assistant U.S. Attorney Matt Wilson prosecuted this case on the government’s behalf.
###
Council Bluffs Man Sentenced to 110 Months in Prison for Methamphetamine DistributionRead the Press Release
COUNCIL BLUFFS, IA - On August 9, 2017, Ronald Lance Hulme, 55, of Council Bluffs, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 110 months in prison for distribution of methamphetamine, announced United States Attorney Kevin E. VanderSchel. Hulme will serve five years of supervised release following his imprisonment.
On April 3, 2017, Hulme pleaded guilty to this charge and admitted he distributed methamphetamine in the Southern District of Iowa during the summer of 2016. The charge resulted from a drug trafficking investigation by law enforcement in Council Bluffs.
Southwest Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department and United States Marshals Service conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Convicted Felon Who Fired Handgun near Wrigley Field Sentenced to 7 Years in Federal PrisonRead the Press Release
CHICAGO — A convicted felon who fired a handgun near Wrigley Field was sentenced today to seven years in federal prison.
HOYTUAN PIERCE discharged the handgun on Oct. 13, 2015, during a dispute with several individuals in the 3400 block of North Clark Street in Chicago. No one was injured. Pierce had previously been convicted of a felony and was not legally allowed to possess the gun.
The incident occurred at approximately 11:30 p.m., while the area was crowded with baseball fans. Earlier that evening at nearby Wrigley Field, the Chicago Cubs defeated the St. Louis Cardinals to clinch the National League Division Series.
Pierce, 33, of Chicago, pleaded guilty last year to one count of illegal possession of a firearm by a felon. U.S. District Judge Elaine E. Bucklo imposed the 84-month sentence in federal court in Chicago.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and Eddie Johnson, Chicago Police Superintendent.
“Gun-related deaths and injuries have taken an immeasurable toll on the citizens of the Northern District of Illinois over the past couple of years,” Assistant U.S. Attorney Cornelius Vandenberg argued in the government’s sentencing memorandum. “Defendant’s actions on October 13, 2015, showed a blatant disregard for the safety of those around him.”
Mr. Vandenberg represented the government along with Assistant U.S. Attorney Ankur Srivastava.
Cibola County Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Benjamin F. Chavez, 55, of Cubero, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Chavez’s plea agreement recommends a sentence of up to 87 months in prison followed by four years of supervised release. Chavez will also be required to forfeit five firearms.
Chavez was arrested on Feb. 22, 2016, on an indictment charging him with distributing methamphetamine on April 21, 2015, in Cibola County, N.M. The indictment includes a forfeiture provision requiring Chavez to forfeit $1,600 to the United States.
During today’s proceedings, Chavez pled guilty to a felony information charging him with distribution of methamphetamine and admitted that on April 21, 2015, he distributed approximately 55.74 grams of pure methamphetamine to an undercover law enforcement agent. Chavez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Alexander M. Uballez.
Charleston County Sex Offender Sentenced to 10 Years in Prison for Failing to RegisterRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Andre Youngblood, age 42, formerly of Hollywood (Charleston County), South Carolina, was sentenced today in federal court in Charleston, South Carolina, for Failure to Register as a Sex Offender, a violation of 18 U.S.C. § 2250(a). United States District Judge Richard M. Gergel, of Charleston, sentenced Youngblood to 10 years of imprisonment, followed by a lifetime of supervised release.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
Evidence presented at the change of plea hearing established that in 2003 Youngblood was convicted and sentenced in New York for two counts of Sexual Abuse in the First Degree. As a result of those convictions, Youngblood is required to register for life as a sex offender pursuant to SORNA. Upon his release from prison, Youngblood registered as a sex offender in New York until March 2013. Youngblood later left New York and traveled in interstate commerce to South Carolina, where he lived between June 2014 and January 2015. However, Youngblood never registered in South Carolina as a sex offender as required by SORNA. Youngblood was located and arrested in New York in March 2016. Youngblood has been in custody since his arrest.
The case was investigated by the United States Marshals Service. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
#####
Burleson Man Admits to Attempting to Meet a 13-Year-Old for Sex at a Fort Worth HotelRead the Press Release
FORT WORTH, Texas — Preston Anthony King, 23, of Burleson, Texas, appeared today in federal court before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of enticement of a minor, announced John Parker, U.S. Attorney for the Northern District of Texas.
King, who has been in custody since November 2016 on a related complaint, faces not less than 10 years and not more than life in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is scheduled for December 12, 2017.
According to documents filed in the case, on March 14, 2016, a Fort Worth Police Officer acting in an undercover capacity and posing as a 13-year-old girl responded to an advertisement that King posted on Craigslist. The description of the advertisement indicated that King was looking to engage in sexual intercourse. During the conversation, the officer told King that she was 13 years old, and later in the conversation King told the officer that he wanted to engage in sexual intercourse with her. King agreed to meet, who he thought was a 13-year-old girl, on March 15, 2016, at a hotel room in Fort Worth, Texas, to engage in sexual intercourse. When King arrived at the agreed location the Fort Worth Police Department took King into custody.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department investigated the case. Assistant U.S. Attorney Megan Fahey is in charge of the prosecution.
# # #
Buffalo Man Sentenced for Conspiracy to Commit ArsonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today Michael Fijal, 64, of Buffalo, NY, who was convicted of conspiracy to commit arson, was sentenced to 12 months home detention by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $119,312.05.According to Assistant U.S. Attorney Timothy C. Lynch, who handled the case, in May 2011, Fijal, a local bank employee, conspired with others to burn down a duplex at 179 Mackinaw Street, which is located in Buffalo's Old First Ward neighborhood. The defendant withdrew money from a local bank for the purpose of paying an accomplice to burn the building and paying the accomplice both before and after the fire on May 22, 2011.
The sentencing is the result of investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; and Investigators with the Buffalo Fire Department.
Buffalo Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Daniel Molina Rios, a/k/a Ponce, 43, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and distribution of 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between March 2014, and June 2015, the defendant conspired with Orlando Rios, Luis Montanez, and Jose Andujar, and others to distribute heroin on the West Side of Buffalo. Rios headed a wide-scale drug trafficking organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin.
During the conspiracy, the defendant made at least six trips to the New York City area to purchase large quantities of heroin from a source of supply, purchasing at least 300 grams of heroin on each trip. In addition, during the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
Rios exercised ultimate decision making authority and had complete authority over five or more other participants, including at least 10 drug “runners” who were responsible for coordinating sales for incoming customers who contacted the drug trafficking organization on a “runner” phone each day. The defendant also maintained a premise at 74 Fillmore Avenue in Buffalo for distributing the heroin that was sold. A search of the residence on June 18, 2015, recovered six cell phones, packaging materials for heroin, and $14,293.00, in U.S. currency representing the proceeds from heroin distribution.
A total of 14 defendants have been indicted in connection with this case, and Rios is the eighth to be convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Rios is scheduled to be sentenced on November 2, 2017, at 2:00 p.m. before Judge Geraci.
Boston-Area Restaurant Manager Charged in Tax Fraud SchemeRead the Press Release
BOSTON – A manager of two Boston-area restaurants was charged today in federal court in Boston with tax fraud.
Burhan Ud Din, 48, of Watertown, was indicted on one count of conspiring to defraud the Internal Revenue Service and 12 counts of failing to withhold and pay employee taxes to the IRS. Two of Din’s co-conspirators, Hazrat Khan, 57, of Middletown, NY, and Khurshed Iqbal, 57, both Pakistani nationals, were charged in an April 2017 18-count superseding indictment with conspiracy and willful failure to pay over taxes. Khan previously pleaded guilty and will be sentenced later this year. Iqbal’s whereabouts are unknown.
According to the indictment, Din and his co-conspirators defrauded the government and avoided paying payroll and income taxes owed by Crown Fried Chicken in Chelsea and Kennedy Fried Chicken in Boston. The indictment alleges that Din, Khan, and Iqbal took steps to conceal Khan’s ownership interests in one of the stores, and that Din provided the tax preparer for both stores with false information about the restaurants’ payroll and income, causing the tax preparer to file false tax returns.
Federal law requires employers to withhold payroll taxes and then pay them to the IRS. To avoid paying taxes, Din, Khan, and Iqbal are alleged to have falsely reported the number of employees—some of whom were undocumented workers—and wages paid to the IRS. They are also alleged to have paid employees under the table and filed income tax returns that falsely described the sales, total income, compensation of officers, salaries and wages, and taxable income for the Chelsea and Boston stores.
The charge of conspiracy to defraud the IRS provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. The tax charges against Din provide for a sentence of no greater than five years in prison, three years of supervised release, a fine of $10,000, restitution, and payment of the costs of prosecution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Atlantic County, New Jersey, Man Sentenced to Five Years in Prison for Scheme to Defraud Women over Telephone Dating ServicesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man who was sentenced in 2007 in connection with a scheme to defraud women over telephone dating services and in 2015 for violating the conditions of his federal supervised release was sentenced today to 60 months in prison for traveling to launder money in connection with a similar scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
Patrick Giblin, 53, formerly of Ventnor, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of interstate travel and use of a facility in interstate and foreign commerce with the intent to launder money. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2013 to Dec. 16, 2014, Giblin allegedly posted advertisements and messages on telephone dating services throughout the United States. Giblin cultivated a telephone rapport with the women he spoke to on these services, falsely claimed that he would be relocating or travelling to the woman’s geographic area, and falsely represented that he wished to pursue a committed, romantic relationship with each woman. He then lied to the women about needing a loan, which he never intended to repay, for relocation or travel expenses. Giblin received money from the women he spoke to on the dating services via interstate wire services such as Western Union and MoneyGram. Giblin also directed women to transfer money through one of these services onto a payroll/debit card that he used. Giblin used some of his victims’ money in order to purchase airtime minutes for cellular telephones, which he in turn used to defraud additional women.
In October 2014, Giblin travelled from Atlantic County, New Jersey, to Albany County, New York. Giblin, who was on federal supervised release from a previous conviction, was not allowed to leave the state. While traveling in New York, Giblin continued to defraud women and used money he received from women to purchase additional airtime minutes and contact more women. Giblin victimized more than 10 women in various states, causing losses of $15,000 to $40,000.
Giblin was previously convicted of 10 counts of wire fraud in 2007 in connection with a similar scheme. In 2015, Giblin was imprisoned for violating the terms of his supervised release imposed in connection with the 2007 sentence. Giblin was also sentenced in 2013 in the Eastern District of Pennsylvania for escaping from a halfway house in Philadelphia, where he was living following the completion of the 2007 sentence. Giblin initiated the scheme in this current case at about the time that he escaped from the halfway house and resumed the scheme following the service of his sentence on the escape conviction.
In addition to the prison term, Judge Kugler sentenced Giblin to three years of supervised release and ordered him to pay $39,130 in restitution.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender (Camden)
Alaska Sex Offender Sentenced for Failure to RegisterRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Sterling Bolima, 43, of Seattle, Washington, was sentenced yesterday by U.S. District Judge Timothy M. Burgess to 18 months in prison, to be followed by a five-year term of supervised release, for failing to register as a sex offender.
According to documents filed in this case and arguments made at yesterday’s sentencing, Bolima was convicted in 1998 by the State of Alaska for Sexual Abuse of a Minor. As a result of this conviction, the defendant was required to register as a sex offender in Alaska and any other location in which he lived, worked, or attended school.
Between 1998 and 2011, while living in Juneau and Nome, the defendant failed to register on three separate occasions. In 2012, Bolima flew to Seattle and took up residence in Washington State. The defendant failed to update Alaskan authorities with his new address, nor did he register with Washington officials upon his arrival. The defendant lived in an unregistered status until August 2016, when he was indicted by a federal Grand Jury and arrested by United States Marshals.
In pronouncing his sentence, Judge Burgess sought to “provide some sort of deterrence to criminal conduct.” According to Judge Burgess, “[this sentence is intended to] make sure Mr. Bolima understands what he has to do as far as registration goes. And to understand that there are serious consequences if he doesn’t.” Judge Burgess warned the defendant about the failure to register in the future. “If you don’t, you’re going to spend a lot more time in jail,” said Judge Burgess.
The case was the product of an investigation by the United States Marshal’s Service. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska and ask to speak with the PSC coordinator.
Accountant Sentenced for Stealing $3.5 Million from EmployerRead the Press Release
BOSTON – A former accountant for an investment advising company was sentenced today in federal court in Boston in connection with a fraud scheme in which he stole more than $3.5 million from his employer.
Gary Tiffany II, 33, of Boston, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 51 months in prison, three years of supervised release, and ordered to pay restitution of $3,450,304 . In October 2016, he pleaded guilty to two counts of wire fraud and one count of monetary transactions in property derived from specified unlawful activity.
Tiffany was responsible for maintaining his employer’s checkbook and making electronic payments on the company’s account to vendors and for office expenses and reimbursements. He was also responsible for downloading monthly bank statements and emailing them to his supervisor to be used to reconcile his employer’s accounts. From about April 2011 through November 2015, Tiffany made wire transfers totaling more than $3 million from his employer’s accounts to his personal accounts, and he forged signatures on about 46 checks payable to himself totaling about $456,000. Tiffany concealed his scheme by making false entries in his employer’s electronic accounting system and altering bank statements he obtained online before forwarding them to his supervisor. Tiffany obtained a total of about $3,557,304 from his employer’s accounts, nearly all of which he used for his own benefit.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation Boston Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuted the case.
Tuesday 8 August 2017
Woman Pleads Guilty to Domestic Violence Resulting in Maryland MurderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Dolores Delgado, age 32, of San Antonio, Texas, pled guilty in federal court for interstate travel to commit domestic violence resulting in death, in connection with the death of Karlyn Ramirez.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commanding General Mark S. Inch of the U.S. Army Criminal Investigation Command; and Anne Arundel County Police Chief Tim Altomare.
According to the statement of facts supporting the plea agreement, Karlyn Ramirez was an active duty soldier of the United States Army assigned to Fort Meade, Maryland. She was found shot to death in her off-post residence on the morning of August 25, 2015. Her four-month old daughter had been placed in her arms. Forensic evidence estimates the likely time of death was during the late evening hours of August 24, 2015.
At the time of her death, Ramirez was married to another active duty soldier and they had a four-month old daughter. They had recently separated and Ramirez had obtained a protective order through the Army prohibiting all contact between Ramirez and her husband.
Ramirez’s husband was stationed at Fort Jackson, South Carolina. On August 24, 2015, he finished work in the early afternoon and traveled from South Carolina to Severn, Maryland. He entered Ramirez’s townhouse using his key and brandishing a Taurus .357 caliber revolver. Ramirez attempted to calm her husband but she reiterated that she did not want to see him again. The husband shot Ramirez three times, killing her. He then took off her pants and pulled down her underwear in an attempt to make it look like a sexual assault. He also placed their 4-month old daughter in Ramirez’s arm.
Delgado provided the firearm that killed Ramirez and allowed her co-conspirator to drive her car from South Carolina to Maryland to commit the murder. Delgado also purchased large gas cans to take with him, so that he would not have to stop for gas and risk being seen. During the murder, (who lived in Florida at the time) stayed at Ramirez’s husband’s apartment in South Carolina with his phone and vehicle so that it would appear that he was in South Carolina at the time of the murder. After the murder, and a third party went to a waterway in Florida and disposed of the firearm, shell casings, the co-conspirators clothing worn during the murder, and the key he used to enter the townhouse. also dismantled the revolver and took steps to obliterate the serial number. The firearm was subsequently recovered by law enforcement divers and forensic testing determined that it was indeed the gun used by the co-conspirator to shoot Karlyn Ramirez to death.
Delgado faces a maximum sentence of life in prison. remains detained pending her sentencing, which is scheduled for November 20, 2017 at 11am. The case against ’s codefendant is still pending.
Acting United States Attorney Stephen M. Schenning commended the FBI Baltimore, Army CID, and Anne Arundel County Police Department for their work in the investigation, and thanked the U.S. Attorney’s Office for the Western District of Texas and FBI San Antonio for their assistance. Mr. Schenning also thanked Assistant U.S. Attorneys James G. Warwick, Kenneth S. Clark, who are prosecuting the case.
West Haven Woman Sentenced to 4 Years in Prison for Fraud and Identity Theft SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMILA WILLIAMS-STEVENSON, 37, of West Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for operating a fraud and identity theft scheme.
According to court documents and statements made in court, between approximately 2012 and July 2016, WILLIAMS-STEVENSON and Lorena Coburn worked together to steal personal identifying information from victims and commit fraud using the stolen information. The sources of the personal identifying information included patients at Yale New Haven Hospital, where WILLIAMS-STEVENSON worked as a care companion.
As part of the scheme, WILLIAMS-STEVENSON and Coburn submitted to the U.S. Postal Service change of address applications for their victims so that the victims’ mail, including checks that were intended for the victims, would be diverted from the victims’ true addresses to addresses that were controlled by WILLIAMS-STEVENSON and Coburn. WILLIAMS-STEVENSON and Coburn also stole checks from residential and business mailboxes and then counterfeited the checks so that they were payable to their identity theft victims. They then opened bank accounts in the names of identity theft victims, deposited the stolen and counterfeit checks into those accounts, and then withdrew the funds from those accounts.
WILLIAMS-STEVENSON and Coburn also obtained a life insurance policy in the amount of $75,000 in the name of an identity theft victim, and WILLIAMS-STEVENSON was named as the beneficiary on the policy. Forensic analysis of WILLIAMS-STEVENSON’s iPhone, which was seized at the time of her arrest, revealed a series of text messages between WILLIAMS-STEVENSON and Coburn discussing how they might be able to cause the death of this victim in order to collect on the life insurance policy.
More than 30 individuals were victimized through this scheme, resulting in an attempted loss of more than $150,000 to banks and victims.
WILLIAMS-STEVENSON was arrested on July 21, 2016. On that date, agents executed searches at WILLIAMS-STEVENSON’s house and storage unit and found more than 200 unique credit and debit cards in the names of various identity theft victims.
Judge Bolden ordered WILLIAMS-STEVENSON to pay restitution of $53,365.37 to various financial institutions and a university that suffered financial losses.
WILLIAMS-STEVENSON has been detained since her arrest. On December 12, 2016, she pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
Coburn, of West Haven, pleaded guilty to the same charges on November 30, 2016, and is released on a $100,000 bond pending sentencing.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the Connecticut Financial Crimes Task Force and the West Haven, New Haven and Orange Police Departments. This case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Warren County Man Indicted for Possessing, Receiving Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Grand Valley, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Thomas John Cox, 59, of Grand Valley, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Cox received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Verona Man Charged with Violating Federal Drug LawsRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count Indictment named Terence Starr, 44, as the sole defendant.
According to the Indictment, on or about July 12, 2017, Starr possessed with the intent to distribute a quantity of fentanyl.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
Operation NightStalker is a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United Sates Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Plead Guilty to Possession of MarijuanaRead the Press Release
LAREDO, Texas – A Laredoan and a Mexican National have been convicted for their roles in possessing with the intent to distribute 100 kilograms or more of marijuana, announced Acting U.S. Attorney Abe Martinez.
Alan Gonzalez, 28, of Laredo, and Juan Galvan-Hernandez, 40, of Nuevo Laredo, Mexico, admitted they knowingly possessed with the intent to distribute 178 kilograms of marijuana.
On May 18, 2017, Border Patrol (BP) agents observed vehicles acting in a suspicious manner, suggesting they were on the lookout for law enforcement. Gonzalez then drove a vehicle into a tractor-trailer shipping yard near the Rio Grande River in Laredo. Moments later, five individuals jumped out of nearby foliage and ran in the direction of his vehicle. Each individual was carrying a large bundle of marijuana over their heads. One of those people was apprehended and identified as Galvan-Hernandez.
U.S. District Judge Marina Garcia Marmolejo accepted the plea today and set sentencing for Dec. 5, 2017. At that time, Gonzalez and Galvan-Hernandez each face a mandatory minimum of five and up to 40 years in federal prison and a possible $5 million maximum fine. Both have been and will remain in custody pending that hearing.
BP and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Two Iranian Nationals Charged in Credit Card Fraud and Computer Hacking ConspiracyRead the Press Release
WASHINGTON – A superseding indictment was unsealed today charging Arash Amiri Abedian, 31, and Danial Jeloudar, 27, with aggravated identity theft; wire fraud; and criminal conspiracy and other charges relating to access device fraud, unauthorized access to, and theft of information from, computers, and threatening to damage a computer.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Beth Drake of the District of South Carolina, Assistant Director Scott Smith of the FBI’s Cyber Division and Special Agent in Charge Alphonso Norris of the FBI’s Columbia, South Carolina Field Office made the announcement.
According to the allegations in the superseding indictment filed in Columbia, South Carolina, beginning in or around October 2007, Abedian and Jeloudar, residing in the Islamic Republic of Iran, conspired together to violate multiple U.S. criminal statutes. Specifically, the indictment alleges they obtained stolen credit card numbers and related personal information by hacking and otherwise, and used that information to fraudulently and by extortion obtain money, goods and services from U.S.-based and foreign victims.
As part of the conspiracy, between 2011 and 2016, Abedian used malicious software, or “malware,” to capture the credit card and other personal information of individuals who had transacted with certain merchants’ websites. Abedian then used that information to commit identity theft and to obtain goods and services by fraud, and, on some occasions, Abedian then transmitted the stolen information to Jeloudar. For example, on or about Feb. 21, 2012, Abedian sent Jeloudar approximately 30,000 names and numbers, which he said were unauthorized credit card numbers and associated information. As part of the conspiracy, in or around March 2012 and April 2012, Jeloudar ordered and obtained various equipment, servers, and internet hosting services from a provider in South Carolina using stolen credit card numbers and other personal identifiers.
The superseding indictment further alleges that, in January 2017, Jeloudar contacted a California-based online merchant and threatened to disclose its customers’ credit card numbers and other related information previously obtained by hacking the merchant‘s website, unless it made a Bitcoin payment to Jeloudar. Jeloudar also threatened to disclose to the company’s customers that their private information had been compromised and launched a denial-of-service attack on the company’s website.
The charges in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The FBI’s Columbia, South Carolina Cyber Squad investigated the case. The case is being prosecuted by Assistant U.S. Attorney Eric Klumb of the District of South Carolina and Trial Attorney Heather Alpino of the National Security Division’s Counterintelligence and Export Control Section.
###
17-888
Two Iranian Nationals Charged in Credit Card Fraud and Computer Hacking ConspiracyRead the Press Release
A superseding indictment was unsealed today charging Arash Amiri Abedian, 31, and Danial Jeloudar, 27, with aggravated identity theft; wire fraud; and criminal conspiracy and other charges relating to access device fraud, unauthorized access to, and theft of information from, computers, and threatening to damage a computer.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Beth Drake of the District of South Carolina, Assistant Director Scott Smith of the FBI’s Cyber Division and Special Agent in Charge Alphonso Norris of the FBI’s Columbia, South Carolina Field Office made the announcement.
According to the allegations in the superseding indictment filed in Columbia, South Carolina, beginning in or around October 2007, Abedian and Jeloudar, residing in the Islamic Republic of Iran, conspired together to violate multiple U.S. criminal statutes. Specifically, the indictment alleges they obtained stolen credit card numbers and related personal information by hacking and otherwise, and used that information to fraudulently and by extortion obtain money, goods and services from U.S.-based and foreign victims.
As part of the conspiracy, between 2011 and 2016, Abedian used malicious software, or “malware,” to capture the credit card and other personal information of individuals who had transacted with certain merchants’ websites. Abedian then used that information to commit identity theft and to obtain goods and services by fraud, and, on some occasions, Abedian then transmitted the stolen information to Jeloudar. For example, on or about Feb. 21, 2012, Abedian sent Jeloudar approximately 30,000 names and numbers, which he said were unauthorized credit card numbers and associated information. As part of the conspiracy, in or around March 2012 and April 2012, Jeloudar ordered and obtained various equipment, servers, and internet hosting services from a provider in South Carolina using stolen credit card numbers and other personal identifiers.
The superseding indictment further alleges that, in January 2017, Jeloudar contacted a California-based online merchant and threatened to disclose its customers’ credit card numbers and other related information previously obtained by hacking the merchant‘s website, unless it made a Bitcoin payment to Jeloudar. Jeloudar also threatened to disclose to the company’s customers that their private information had been compromised and launched a denial-of-service attack on the company’s website.
The charges in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The FBI’s Columbia, South Carolina Cyber Squad investigated the case. The case is being prosecuted by Assistant U.S. Attorney Eric Klumb of the District of South Carolina and Trial Attorney Heather Alpino of the National Security Division’s Counterintelligence and Export Control Section.
Tax Preparer Sentenced to PrisonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 1, 2017, Lesley E. Anzures, (age: 35) of Sheboygan, was sentenced to two years in prison, followed by one year of supervised release. On January 17, 2017, Anzures pleaded guilty to assisting in the preparation and filing of a false federal income tax return, in violation of Title 26, United States Code, Section 7206(2). Anzures was also ordered to pay restitution of $496,533 to the Internal Revenue Service.
According to documents released in court, on or about April 15, 2011, Anzures, who operated Lesley’s Tax Service, electronically filed a tax return she prepared for a customer. The return listed six dependents and called for additional Child Tax Credit for those dependents. Under United States tax law, dependents can only be claimed if they live with the taxpayer. Five of the six dependents lived in Mexico.
This fraudulent return represented that the client was entitled under the provisions of the Internal Revenue laws to claim deductions in the total sum of $25,550, and claimed a refund of $3,772, whereas, as the defendant knew the total deductions the client was entitled to claim were in the total sum of $7,300 for exemptions, $1,000 for a child tax credit, and $400 for a making work pay credit, and so a correctly prepared return would have showed the client in fact, owed the United States Treasury the total sum of $1,156.
Other public court documents indicated that an IRS review of tax returns that Anzures prepared and filed for her customers for the years 2010 through 2013 claimed false tax funds of approximately $500,000.
United States Attorney Gregory J. Haanstad said, “This case shows that the IRS keeps a close watch on people who prepare taxes for a living, and that such tax preparers who commit fraud will be sent to prison.”
This case resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Stephen A. Ingraham prosecuted the case.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig (414) 297-1700
St. Thomas Man Sentenced to 12 Months and a Day in Prison for Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
St. Thomas, USVI- Jashawn Bailey, 30, of St. Thomas, was sentenced today to 12 months and a day in prison for possession of a firearm with an obliterated serial number, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced Bailey to serve three years of supervised release, pay a $100 special assessment, and perform 350 hours of community service.
On April 3, 2017, Bailey pleaded guilty to possession of a firearm with an obliterated serial number. According to the plea agreement, on December 14, 2016, Virgin Islands Police Department (VIPD) officers, while processing a crime scene, discovered a .45 Taurus firearm with an obliterated serial number wrapped in a T-shirt and hat. The investigation revealed that those items belonged to Bailey. Further, the firearm was deemed to be operable and had traveled in interstate commerce. Bailey does not possess a license for the firearm in the Virgin Islands.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the VIPD. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
St. Thomas Man Detained after Arrest for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – Caheem Johnson, 22, of St. Thomas, was detained today pending further proceedings after his arrest Saturday for possession with intent to distribute marijuana, Acting United States Attorney, Joycelyn Hewlett announced. Johnson made his initial appearance before U.S. Magistrate Judge Ruth Miller on Sunday after being charged in a criminal complaint.
According to the criminal complaint, on Saturday at the Cyril E. King Airport on St. Thomas, a U.S. Customs and Border Protection K-9 detected narcotics in Johnson’s carry-on luggage. CBP officers examined the contents of the luggage, which revealed six sealed bags containing a green leafy substance. CBP officers seized and field tested the green leafy substance and determined it to be approximately 2.2 kilograms of marijuana.
If convicted, Johnson faces a maximum sentence of not more than five years in prison, a fine of up to $250,000, and three years of supervised release.
This case is being investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant U.S. Attorney Anna A. Vlasova.
Acting United States Attorney Hewlett reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Shelby County Woman Pleads Guilty to Fraud for Raising Money on False Cancer ClaimRead the Press Release
BIRMINGHAM – A Shelby County woman pleaded guilty today in federal court to fraud charges for falsely claiming she had terminal cancer in order to get money from family and friends and to solicit donations through an online fund-raising site, announced Acting U.S. Attorney Robert Posey, FBI Special Agent in Charge Johnnie Sharp and Alabama Attorney General Steve Marshall.
JENNIFER FLYNN CATALDO, 37, of Sterrett, entered her guilty pleas before U.S. District Court Judge Virginia Emerson Hopkins to one count of wire fraud and one count of bank fraud. The judge scheduled Cataldo’s sentencing for Nov. 8. As part of Cataldo’s plea agreement with the government, she pledges to pay $79,629 in restitution to victims of her fraud who have been identified and verified. Cataldo fraudulently collected a total of $264,163 in checks and cash deposited into her personal checking account, according to the plea agreement.
A federal grand jury indicted Cataldo in May. According to the indictment and her plea agreement, she carried out her fraud as follows:
From 2014 to about May 2017, Cataldo misrepresented to friends and family that she had been diagnosed with terminal cancer. In person, online and via text messages, she solicited contributions from friends, family and others and received the more than $200,000 in donations for expenses including utilities and living, medical, insurance and funeral costs. In January 2016, Cataldo also created an account on the GoFundMe website titled, “Mom has Terminal Cancer Disney Trip,” with the stated goal of raising $4,000 to take her young child to visit Disney before she died. The account featured a photo of the child on the cover and a statement from Cataldo that she had “had cancer for two years and was just told it was inoperable! I would like to experience this with my [minor child] before I die within the year.” That account raised more than $10,000.
In September 2016, a friend who believed Cataldo was suffering from terminal cancer created a second GoFundMe account titled, “Jenny Flynn Cataldo Medical Care,” with a $20,000 fund-raising goal. The medical GoFundMe account featured a photo of Cataldo, her husband and their child. The accompanying story related that Cataldo had been battling cancer for three years, that it was no longer treatable and “the primary goal of medical care at this point is to give Jenny as much time as possible” with her husband and child.
Between September 2016 through May 2017, Cataldo repeatedly re-posted the medical GoFundMe account link to her Facebook page with messages thanking people for their contributions, giving false updates on her condition, and requesting more donations. The medical account raised more than $25,000. Cataldo withdrew $27,755 and deposited it into her personal banking account.
In addition to the two GoFundMe accounts, Cataldo solicited funds on Facebook, in person, and by phone, e-mail and text message to friends, family and organizations, including churches. Some of those individuals paid third-party vendors on Cataldo’s behalf.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years in prison and a $1 million fine.
The FBI and the Alabama Attorney General’s Office investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
###