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Friday 4 August 2017
Essex County Man Sentenced to 212 Months in Prison for Possessing Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Kirkland Smith, 55, of Witherbee, New York, was sentenced yesterday to serve 212 months in prison for possessing child pornography, announced Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II; and James C. Spero, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his guilty plea, Smith admitted to possessing hundreds of videos and images of child pornography on a memory card seized from his car and on five hard drives seized from his home. Smith was discovered passed out at the wheel of his car on Rt. 73 in Keene, New York by a New York State Trooper on October 30, 2014, and arrested for driving while intoxicated. Seized from Smith’s vehicle was a memory card containing child pornography inserted in an electronic tablet device. A court-authorized search warrant of the defendant’s residence resulted in the seizure of additional media containing child pornography. Smith, who was previously convicted of second-degree child molestation in Rhode Island, admitted that the child pornography involved prepubescent minors and minors under the age of 12.
At sentencing, Senior United States District Judge Norman A. Mordue determined that the defendant had engaged in a pattern of activity involving the sexual abuse or exploitation of minors by sexually abusing two children under the age of 12. Judge Mordue also imposed a lifetime term of supervised release and ordered the defendant to pay $4,000 in restitution.
“Thanks to the vigilance of a New York State Trooper, Kirkland Smith will spend the next 17 years in prison. We will continue to work with our federal, state, and local law enforcement partners to hold those who view child pornography accountable and make sure our communities are safe for our children," said Acting United States Attorney Grant C. Jaquith.
"I want to commend the outstanding work of our state police members and our federal partners in bringing this case to a successful conclusion. Thanks to this collaboration, we have taken a dangerous individual off the streets. We will not tolerate this type of illegal behavior," said State Police Superintendent George P. Beach II.
“As a convicted sex offender, this defendant has demonstrated a depraved predilection for child exploitation,” said Russell Linstad, Resident Agent in Charge of the Massena, New York office of Homeland Security Investigations. “This prison term will ensure he no longer has access to children or to child exploitative materials.”
This case was investigated by the New York State Police and Homeland Securities Investigations, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Ecuadorian Man Arrested in North Hudson, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Jamie Paredes Lojano, 29, of Ecuador (currently living in Colonie, New York), was sentenced today to time served (57 days in jail), followed by a one year period of supervised release, for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Paredes Lojano admitted that he is an alien, a citizen of Ecuador, and that he illegally returned to the United States after he was previously removed to Ecuador on July 21, 2010.
On June 8, 2017, Paredes Lojano was stopped and arrested by Border Patrol Agents on Interstate 87 near North Hudson, in Essex County New York.
Following the sentencing, Paredes Lojano was remanded to the custody of the Department of Homeland Security, which will place him into removal/deportation proceedings.
The case was investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Dominican National Sentenced for Fraud and Identity Theft OffensesRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Worcester for passport fraud and aggravated identity theft.
Carlos Morillo, 46, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison. Morillo will be subject to deportation proceedings upon completion of his sentence. In April 2016, Morillo pleaded guilty to three counts of passport fraud and one count of aggravated identity theft.
Between 2007 and 2012, Morillo submitted at least six United States passport applications under three different identities. The State Department denied all of the applications. Investigators identified Morillo as the person responsible after he was arrested on drug charges in 2012.
Morillo will serve the two-year sentence consecutively to a five-to-six-year state prison sentence he is currently serving as a result of the 2012 arrest.
Acting United States Attorney William D. Weinreb and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Dominican National Pleads Guilty to Trafficking HeroinRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to drug trafficking charges.
Luis Jose Mejia Arias, 24, pleaded guilty to eight counts of possession with intent to distribute heroin, cocaine, and fentanyl. On eight occasions between September 2015 and May 2016, Mejia Arias distributed heroin, cocaine, and/or fentanyl to an undercover officer in Waltham.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of $1 million. Mejia Arias will be subject to deportation upon completion of his sentence. Sentences are imported by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
District Court Enters Permanent Injunctions Against New York Companies and Individuals Banning Importation of Dangerous Children's Products and ToysRead the Press Release
The Department of Justice announced that the U.S. District Court for the Eastern District of New York entered two separate consent decrees of permanent injunction against New York company Everbright Trading Inc., its owner Yuan Xiang Gao, and its operator/manager Rong Qing Xu, and New York companies Lily Popular Varieties & Gifts Inc., Great Great Corporation, and their owners and operators Li Jing and Cheng Feng You. The injunctions generally prohibit the defendants from importing and selling toys and other children’s products until certain remedial measures are implemented.
On June 21, the Department filed two separate civil actions in the U.S. District Court for the Eastern District of New York at the request of the U.S. Consumer Product Safety Commission (CPSC). The complaints in each case alleged that the defendants were responsible for importing children’s products containing, among other things, lead, phthalates and small parts posing a choking hazard for children under the age of three.
According to the complaints, the CPSC found that the defendants in both cases imported toys and other children’s products in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. Since March 2013, the CPSC has collected from the Everbright defendants 97 samples of toys and other non-compliant children’s products from their import shipments at the Port of New York/Newark and the Port of Los Angeles/Long Beach. Since December 2013, the CPSC has collected from the Lily Popular Varieties & Gifts defendants 72 samples of non-compliant toys and other children’s products from their facility in Maspeth, New York, and import shipments at the Ports of New York/Newark and Los Angeles. The violations in both cases include toys with illegal levels of lead, illegal levels of phthalates, and small parts that present a choking hazard for children under the age of three, as well as toys for small children that contain accessible batteries. Based on their findings, the CPSC has issued 41 letters to the Everbright defendants and 13 letters to the Lily Popular Varieties & Gifts defendants notifying them that their products violated federal standards.
“Companies who do not comply with CPSC’s statutes and regulations regarding toys put American children at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Parents have a right to expect that the toys their children play with are safe.”
“Consumers across the country rely on our agency to protect their children from unsafe and dangerous children’s products,” said CPSC Acting Chairman Ann Marie Buerkle. “We take this responsibility very seriously and will take the necessary action to keep unsafe products out of the hands of our children. I appreciate and value the support from and collaboration with the Department of Justice.”
“There is no greater responsibility of the Department of Justice than to protect our nation’s children,” said Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York. “The actions demonstrate the Department’s commitment to keeping our children safe from potentially harmful products.”
The consent decrees resolve both cases brought by the Department. The decrees generally require the defendants to stop importing, selling, or distributing toys and other children’s products until they implement numerous remedial measures that will bring their operations into compliance with the law. These include, among other measures, implementing a product safety and testing program, hiring a product safety coordinator, having products tested by accredited testing bodies, and submitting to monitoring by the CPSC. In general, the defendants will be permitted to resume selling toys and other children’s products only after implementing these measures and demonstrating that their operations fully comply with the law.
The case against Everbright Trading Inc., Yuan Xiang Gao, and Rong Qing Xu is being handled by Trial Attorney Timothy T. Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Renee McCune of the CPSC’s Office of the General Counsel.
The case against Lily Popular Varieties & Gifts Inc., Great Great Corporation, Li Jing, and Cheng Feng You is being handled by Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Amy Colvin of the CPSC’s Office of the General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
District Court Enters Permanent Injunctions Against New York Companies and Individuals Banning Importation of Dangerous Children's Products and ToysRead the Press Release
WASHINGTON - The Department of Justice announced today that the U.S. District Court for the Eastern District of New York entered two separate consent decrees of permanent injunction against New York company Everbright Trading Inc., its owner Yuan Xiang Gao, and its operator/manager Rong Qing Xu, and New York companies Lily Popular Varieties & Gifts Inc., Great Great Corporation, and their owners and operators Li Jing and Cheng Feng You. The injunctions generally prohibit the defendants from importing and selling toys and other children’s products until certain remedial measures are implemented.
On June 21, the Department filed two separate civil actions in the U.S. District Court for the Eastern District of New York at the request of the U.S. Consumer Product Safety Commission (CPSC). The complaints in each case alleged that the defendants were responsible for importing children’s products containing, among other things, lead, phthalates and small parts posing a choking hazard for children under the age of three.
According to the complaints, the CPSC found that the defendants in both cases imported toys and other children’s products in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. Since March 2013, the CPSC has collected from the Everbright defendants 97 samples of toys and other non-compliant children’s products from their import shipments at the Port of New York/Newark and the Port of Los Angeles/Long Beach. Since December 2013, the CPSC has collected from the Lily Popular Varieties & Gifts defendants 72 samples of non-compliant toys and other children’s products from their facility in Maspeth, New York, and import shipments at the Ports of New York/Newark and Los Angeles. The violations in both cases include toys with illegal levels of lead, illegal levels of phthalates, and small parts that present a choking hazard for children under the age of three, as well as toys for small children that contain accessible batteries. Based on their findings, the CPSC has issued 41 letters to the Everbright defendants and 13 letters to the Lily Popular Varieties & Gifts defendants notifying them that their products violated federal standards.
“There is no greater responsibility of the Department of Justice than to protect our nation’s children,” said Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York. “Today’s actions demonstrate the Department’s commitment to keeping our children safe from potentially harmful products.”
“Companies who do not comply with CPSC’s statutes and regulations regarding toys put American children at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Parents have a right to expect that the toys their children play with are safe.”
“Consumers across the country rely on our agency to protect their children from unsafe and dangerous children’s products,” said CPSC Acting Chairman Ann Marie Buerkle. “We take this responsibility very seriously and will take the necessary action to keep unsafe products out of the hands of our children. I appreciate and value the support from and collaboration with the Department of Justice.”
The consent decrees entered today resolve both cases brought by the Department. The decrees generally require the defendants to stop importing, selling, or distributing toys and other children’s products until they implement numerous remedial measures that will bring their operations into compliance with the law. These include, among other measures, implementing a product safety and testing program, hiring a product safety coordinator, having products tested by accredited testing bodies, and submitting to monitoring by the CPSC. In general, the defendants will be permitted to resume selling toys and other children’s products only after implementing these measures and demonstrating that their operations fully comply with the law.
The case against Everbright Trading Inc., Yuan Xiang Gao, and Rong Qing Xu is being handled by Assistant U.S. Attorney Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Timothy T. Finley of the Civil Division’s Consumer Protection Branch, with the assistance of Renee McCune of the CPSC’s Office of the General Counsel.
The case against Lily Popular Varieties & Gifts Inc., Great Great Corporation, Li Jing, and Cheng Feng You is being handled by Assistant U.S. Attorney Dara Olds of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch, with the assistance of Amy Colvin of the CPSC’s Office of the General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
PHOTOS
Product collected at the Port of New York/Newark, NJ, on November 12, 2015, containing small parts violating U.S. safety regulations.
Product collected at the Port of New York/Newark, NJ, on October 3, 2016, containing accessible batteries and small parts violating U.S. safety regulations.
Product collected at the Port of New York/JFK area, NY, on September 21, 2015, containing lead and lead paint violating U.S. safety regulations.
Developer Sentenced to 4 Years in Prison for Defrauding Investors seeking Permanent Residency under Federal Immigration ProgramRead the Press Release
A Bellevue developer who fraudulently obtained over $235 million dollars during his real estate investment scheme, including over $140 million from immigrant investors, was sentenced today in U.S. District Court in Seattle to four years in prison, announced U.S. Attorney Annette L. Hayes. LOBSANG DARGEY, 43, entered guilty pleas in January 2017 to two federal felonies, admitting that he defrauded immigrant investors, federal regulators, and institutional investors. DARGEY promised to use the immigrant investors’ investment funds in compliance with a federal immigration program designed to stimulate growth and create jobs. Instead, he secretly diverted tens of millions of dollars of investor funds to unauthorized uses and used falsified financial records in an attempt to obtain additional funding to make up the shortfall. At the sentencing hearing, U. S. District Judge Robert S. Lasnik said DARGEY engaged in “reckless behavior . . . putting these people in jeopardy of never achieving their immigration dreams.”
“This defendant stole not just money but something that he knew from personal experience was much more valuable – the right to come to the United States and live the American dream,” said U. S. Attorney Annette L. Hayes. “Many of the investors that the defendant defrauded sold everything they had in China in reliance on his promises. They now live in limbo – with their money tied up in litigation and no idea of whether their dream to live in this country will come true.”
According to records filed in the case, between 2012 and 2015, DARGEY recruited overseas investors, primarily in China, to fund two development projects – one in Everett, Washington known as the “Path American Farmer’s Market” and one in Seattle’s Belltown neighborhood known as the “Potala Tower.” DARGEY promoted the projects under the federal “EB-5” program, which allows immigrant investors to qualify for permanent residency if they create American jobs by investing $500,000 in a qualifying American business project. DARGEY represented to the immigrant investors and to the U.S. Department of Homeland Security that he was investing all of investors’ funds in the Everett and Seattle projects in compliance with program requirements.
Contrary to his promises, DARGEY used tens of millions of investor dollars for uses not allowed under the federal program and not disclosed to investors. This included approximately $11.5 million of investor funds that DARGEY secretly used to pay unauthorized sales expenses, including sales commissions to Asian brokers. The money also went for lavish meals, expensive gifts, and cash withdrawals at casinos, and the purchase of a $1.4 million Bellevue home for a DARGEY business associate. DARGEY withdrew over $10 million in investor funds from the project as developer fees to fund his lavish lifestyle, including his purchase of a $2.5 million home in Bellevue.
In addition, DARGEY told investors and the United States government that DARGEY would contribute $32.5 million of his own money toward the projects. In fact, DARGEY admitted that he did not contribute any funds to the projects. DARGEY’s fraud resulted in tens of millions of dollars in funding shortfalls for the EB-5 approved projects. DARGEY attempted to fill these shortfalls by using a falsified bank statement to obtain a $25 million construction loan, and by using altered financial statements to obtain $60 million in additional funding from a private institutional investor.
Of the 281 foreign investors defrauded by DARGEY, none has received permanent resident status in the United States. A majority of the investors have had their applications denied because of DARGEY’s fraud, and are appealing the denials. Some wrote to the court explaining the damage DARGEY’s conduct caused:
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Investor Y.Y. wrote: In order to provide our children with better lives and study environments, we sold our one and only real estate so as to accumulate money for the American EB-5 investment immigration [program]…. Lobsang’s illegal behavior has destroyed our immigration dream.
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Investor Y.W. wrote: Many younger investors like me had to dramatically alter their life path. Some adults were forced to return to China without finishing their college degree.
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Investor Z.C. wrote: “…because of defendant’s illegal behavior, it led us to live in fear and suffer huge mental damage because our lives can be cancelled at any moment…. My wife is so afraid that she dares not pick up the mail for fear of receiving a deportation notification.”
“Mr. Dargey’s selfish greed twice robbed his investors as he seized both their funds and jeopardized their dreams for a future life in the United States,” said Acting Director of U.S. Citizenship and Immigration Services James McCament. “We are grateful to our many law enforcement partners who helped to deliver justice in this case and uphold the integrity of the EB-5 Program.”
U.S. Citizenship and Immigration Services administers the EB-5 Program. Under this program, entrepreneurs (and their spouses and unmarried children under 21) are eligible to apply for permanent residence if they make the required investment in a commercial enterprise in the United States and plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.
DARGEY’s fraudulent conduct came to an end in August 2015, when the Securities and Exchange Commission filed a civil suit and won a court order freezing his assets. The FBI simultaneously executed search warrants at DARGEY’s offices in Bellevue and Everett.
As part of his plea agreement in this case, DARGEY agreed to provide restitution of more than $24 million to the investors.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorneys Justin Arnold and Seth Wilkinson. The Department of Justice appreciates the assistance of the Securities and Exchange Commission and U.S. Citizenship and Immigration Services in connection with this matter.
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Defendant Sentenced in Tribal Theft CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced today that U.S. District Judge William H. Steele sentenced Carolyn Dortch, 54, of Atmore, Alabama, to five years of probation for embezzling funds from the Poarch Band of Creek Indians. The Court ordered that Dortch serve the first six months of her sentence on home confinement with electronic monitoring and imposed a credit restriction. The court also ordered Dortch to make restitution totaling $502,173.35 and to pay a $100 special assessment.
From around 2010 until October 2016, Dortch was employed as the Senior Services Director for the Poarch Band of Creek Indians. She led the Seniors Active in Learning Center, which provided numerous activities for seniors such as meals on wheels, games, crafts, and trips. Dortch was responsible for purchasing food and supplies and for handling tribal money on senior trips. In October 2016, the tribe discovered Dortch had been misusing her position of employment and submitting falsified receipts representing fictitious purchases. An investigation revealed that Dortch had been embezzling funds from the tribe and using these funds for personal gain.
In January 2017, the United States Attorney for the Southern District of Alabama charged Dortch in a one-count information, alleging that over a four-year period ending in 2016, Dortch embezzled tribal funds. On February 23, 2017, Dortch pled guilty to the offense in a hearing before Judge Steele.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Dallas Man Who Ran A Dallas Drug House Sentenced to 151 Months in Federal PrisonRead the Press Release
DALLAS — Michael Johnson, aka “Psych” and “Syke,” 34, of Dallas, Texas, was sentenced yesterday by Chief U.S. District Judge Barbara M.G. Lynn to 151 months in federal prison following his guilty plea earlier this year to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
A federal grand jury indicted Johnson and seventeen others in August 2016 on conspiracy drug trafficking charges. Johnson has been in custody since the time of his arrest in August 2016.
According to documents filed in the case, beginning in January 2015, Johnson supplied cocaine and marijuana to co-conspirators on several occasions in exchange for payment. During the conspiracy the defendants utilized North Texas residences to cut, package and distribute cocaine to numerous customers.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Phelesa Guy prosecuted.
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Dallas Attorney Admits to Role in $26 Million Fraud ConspiracyRead the Press Release
DALLAS — Tshombe Anderson, 54, of Grand Prairie, Texas, appeared today before Chief U.S. District Judge Barbara M.G. Lynn and pleaded guilty to a scheme he ran along with four of his family members from July 2011 to September 2015 to fraudulently obtain more than $26 million from the Department of Labor (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Anderson pleaded guilty to one count of conspiracy to commit health care fraud. He faces a maximum penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Anderson agrees to forfeit $375,000 seized from his residence, a 2015 Mercedes, and his share of the $8,383,075 that was seized from 25 bank accounts. Anderson will remain in custody pending sentencing which is set for November 29, 2017.
In addition to Anderson, his sister Lydia Bankhead, 63, his wife Brenda Anderson, 47, his sister-in-law Janet Anderson, 43, and his niece Lydia Taylor, 30, were also charged in the indictment returned in September 2015. A trial date of September 25, 2017 has been set for the four co-defendants.
According to plea documents in the case, Tshombe Anderson worked as an attorney for Union Treatment Centers (“UTC”). Anderson and his wife, Brenda Anderson, opened a durable medical equipment company called Best First Administration (“BFA”). BFA was formed, initially, to provide durable medical equipment to patients referred to BFA from UTC. In July 2011, Tshombe Anderson and Brenda Anderson disassociated from UTC.
In April 2013, Tshombe Anderson agreed with Bankhead to open Union Medical Supplies and Equipment (“UMSE”). In August 2013, Tshombe Anderson agreed with Janet Anderson to open Skycare Medical Supplies and Equipment (“SMSE”). Both companies were created in order to submit claims that were inappropriate to OWCP. The same medical information that BFA had received from UTC was used and billed to the same universe of claimants for duplicate, unwanted durable medical equipment that was not medically necessary, using outdated medical information. Tshombe Anderson continued to do so despite knowing that they were billing OWCP for items that were not associated with the claimant’s injuries and that claimants were often refusing or rejecting the durable medical equipment for which their company had billed.
Tshombe Anderson had access to the operating accounts for UMSE and routinely transferred large sums of cash from those accounts for his personal use or to launder through business accounts for a shell company called American Federal Union Claims Advocates, as well as accounts associated with his law office.
The total amount paid to OWCP for UMSE and SMSE was $26,572,458.93.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorneys Nicole Dana and P.J. Meitl are in charge of the prosecution.
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Cross Lanes man pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pleaded guilty today a federal gun charge, announced United States Attorney Carol Casto. Tristen Paxton, 21, entered his guilty plea to possessing firearms after being convicted of a misdemeanor crime of domestic violence.
Paxton admitted that on March 27, 2017, during a traffic stop conducted by the Sheriff’s Tactical Operations Patrol (STOP) Team of the Kanawha County Sheriff’s Department, he possessed two firearms in the vehicle. Law enforcement recovered a loaded Taurus Judge .45 caliber/410 gauge handgun from the passenger seat and a Poly Technologies AK-47 rifle with a loaded high capacity magazine in the trunk. As part of his plea agreement, Paxton also admitted that he was responsible for selling two other firearms and methamphetamine.
Paxton faces up to 10 years in federal prison when he is sentenced on November 2, 2017.
The Kanawha County Sheriff’s Department’s STOP Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Convicted Sex Offender Sentenced to 18 Months in Prison for Illegal Reentry, Failure to RegisterRead the Press Release
Tampa, Florida – Senior U.S. District Judge Susan C. Bucklew has sentenced Victoriano Ruyan-Juarez (36), a Guatemalan national, to 18 months in federal prison for illegal reentry after deportation for a felony, and for failure to register as a sex offender, as required by the Sex Offender Registration and Notification Act.
Ruyan-Juarez pleaded guilty on April 27, 2017.
According to court documents, in April 2014, Ruyan-Juarez was convicted in Manatee County for traveling to entice a child to commit a sex act, as well as using a computer to do the same. Following the completion of his state sentence in February 2015, immigration officials deported him to Guatemala. He illegally reentered the United States in August 2015, settling in Florida, but he failed to register as a sex offender as required by state and federal law.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Frank Murray.
Convicted Felon Pleads Guilty to Possessing and Selling Firearms and NarcoticsRead the Press Release
On July 28, 2017, a convicted felon from Miami-Dade pled guilty to selling firearms and narcotics.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Maxo Ducler, 34, of Miami, pled guilty to participating in a conspiracy to possess with the intent to deliver controlled substances, possession with the intent to deliver controlled substances, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Dulcer faces maximum statutory sentences of up to life in prison for the charges of conviction. Ducler is scheduled to be sentenced before U.S. District Court Judge Donald M. Middlebrooks on October 13, 2017.
According to the court record, including the agreed upon factual proffer, on February 28, 2017, Ducler sold cocaine; on March 8, 2017, he sold a loaded firearm and additional ammunition; and on March 22, 2017, he sold cocaine and a firearm. Widner Gabriel, 37, of Miami, was present for the March 22, 2017 firearm sale and helped Ducler to unload the firearm before the transaction was complete. On May 3, 2017, law enforcement executed a search warrant on the “stash house” used to facilitate the drug and firearm sales. Gabriel was found inside the stash house with the keys to the residence and approximately $3,000. Law enforcement seized four firearms, approximately two hundred rounds of ammunition and narcotics such as cocaine, fentanyl, MDMA, and Oxycodone from the stash house.
Gabriel pled guilty on July 12, 2017, to possession with the intent to deliver controlled substances, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Gabriel faces maximum statutory sentences of up to life in prison for the charges of conviction. He is scheduled to be sentenced before Judge Middlebrooks on September 12, 2017.
Mr. Greenberg commends the investigative efforts of the ATF and MDPD. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.
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.
Colombian National Sentenced for Drug, Immigration OffensesRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Worcester for drug and immigration offenses.
Leonardo Franco, 45, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison, three years of supervised release, and will be subject to deportation proceedings upon completion of his sentence. In May 2017, Franco pleaded guilty to one count of possession of cocaine with intent to distribute and one count of illegal re-entry of a deported alien.
On Nov. 3, 2016, Franco was traveling to Oxford, Mass., with the intent of selling cocaine to a repeat customer. Law enforcement confronted Franco and found him in possession of more than a half-pound of cocaine contained in several clear baggies.
Franco has previously been removed from the United States on four occasions, including once in 2005, twice in 2010, and once in 2011 after being convicted of a federal immigration crime. Sometime after his removal in 2011, Franco illegally re-entered the United States again.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office prosecuted the case.
Co-Conspirator Sentenced to 192 Months in Federal Prison for Two Armed Robberies of Local BusinessesRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated today that Demiriao Trione Bonds, age 27, of Greenville, South Carolina, was sentenced in federal court in Greenville, for two armed robberies, committed in violation of Title 18, United States Code, Section 1951(a). United States District Judge Henry M. Herlong, Jr. sentenced Bonds to 192 months imprisonment and three years of supervised release and ordered that he pay $1400.00 in restitution.
Evidence presented at the change of plea hearing established that Bonds conspired with Delmar Deshion Jackson, on October 26, 2015 and November 13, 2015, to rob two area businesses. Bonds committed both robberies with a firearm, which he brandished during the course of each. Bonds took from the targeted businesses cash, retail inventory, personal effects, and store cellular devices.
The case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney D. Josev Brewer of the Greenville office handled the case.
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Chelsea Man Sentenced for Cocaine TraffickingRead the Press Release
BOSTON – A Chelsea man was sentenced today in federal court in Boston for distributing crack cocaine.
Jose Muniz, 28, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to five years in prison and four years of supervised release. In April 2017, Muniz pleaded guilty to two counts of possession with intent to distribute cocaine base and distribution of cocaine base and one count of possession with intent to distribute cocaine base and cocaine.
In 2015 and 2016, a federal investigation identified a network of street gangs, which had created alliances to traffic weapons and drugs throughout Massachusetts and generate violence against rival gang members. Based on the investigation, 53 defendants were indicted in June 2016 on federal firearms and drug charges, including defendants who are allegedly leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Street Gang. These gangs operated primarily in the East Boston, Boston, Chelsea, Brockton, Malden, Revere and Everett areas. During the course of the investigation, over 70 firearms, cocaine, cocaine base (crack), heroin and fentanyl were seized.
During the investigation, Muniz sold cocaine base to a cooperating witness in Chelsea on two separate occasions in July and August of 2015. On Feb. 18, 2016, Muniz was stopped by law enforcement officers in Chelsea, who subsequently seized cocaine base, cocaine, other drugs, and a 9mm handgun from Muniz.
Muniz is one of 13 defendants to plead guilty.
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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canadian Man Convicted of Using Counterfeit PassportRead the Press Release
LAREDO, Texas – A 50-year-old Calgary, Alberta, Canada, man has entered a guilty plea to using a false Israeli passport, announced Acting U.S. Attorney Abe Martinez.
On May 30, 2017, Alexander Fiodor Levin aka Alexander Berezovski approached the Lincoln-Juarez International Bridge in Laredo. At that time, he presented a false Israeli passport under the name of Alexander Berezovski to Customs and Border Protection (CBP) officers. During a subsequent inspection of Levin’s luggage, authorities discovered multiple Belarus passports, a perforating machine, a laminating machine, stamps and other blank documents which could be used to manufacture passports.
Sentencing has been set for Nov. 27, 2017, before U.S. District Judge Marina Garcia Marmolejo. At the time, Levin faces up to 10 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The Department of State - Diplomatic Security Service and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of CBP. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Bronx, NY Man faces Charges of Illict Sexual Conduct and Child PornographyRead the Press Release
Jose R. Flores, 39, of Bronx, New York, was charged today by Indictment with travel to engage in illicit sexual conduct, and the production and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum fifteen years’ imprisonment, a mandatory minimum five years’ supervised release up to lifetime supervised release, a $1,250,000,000 fine, a $500 special assessment and an additional $25,000 Justice for Victims special assessment.
The case was investigated by Bethlehem Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bradenton Man Pleads Guilty to Firearm and Drug Trafficking Related OffensesRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that Anthony Sanchez (25, Bradenton) today pleaded guilty to possessing with intent to distribute carfentanil and possessing a firearm in furtherance of a drug-trafficking crime. He faces a mandatory minimum penalty of five years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Sanchez sold an undercover agent a stolen Sig-Sauer 9mm caliber pistol and ammunition at the Desoto Square Mall, in Bradenton, Florida. He also sold the agent 10.85 grams of carfentanil. During the sale, Sanchez possessed a loaded .22 caliber revolver.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Attorney General Jeff Sessions Delivers Remarks at Briefing on Leaks of Classified Materials Threatening National SecurityRead the Press Release
I want to thank Director Coats for being here. Together, we lead the National Insider Threat Task Force that was established in 2011. This task force has an important role to play and one we are taking seriously. Progress has been made and we intend to reach a new level of effectiveness.
First, let me say I strongly agree with the President and condemn in the strongest terms the staggering number of leaks undermining the ability of our government to protect this country. Just yesterday, we saw reports in the media about conversations the President had with foreign leaders. No one is entitled to surreptitiously fight their battles in the media by revealing sensitive government information. No government can be effective when its leaders cannot discuss sensitive matters in confidence or to talk freely in confidence with foreign leaders.
We are here today to talk about the dramatic growth in the number of unauthorized disclosures of classified national security information in the past several months. This includes leaks to both the media and in some cases even unauthorized disclosures to our foreign adversaries. Referrals for investigations of classified leaks to the Department of Justice from our intelligence agencies have exploded. In the first six months of this Administration, DOJ has already received nearly as many criminal referrals involving unauthorized disclosures of classified information as we received in the last three years combined.
Classified information, by definition, is information that if disclosed would do harm to our national security. As Director Coats will discuss, these leaks are incredibly damaging to our intelligence mission and capabilities. Simply put—these leaks hurt our country. All of us in government can do better. The first requirement is for discipline within all agencies of the government. To prevent these leaks, every agency and Congress has to do better.
We are taking a stand. This culture of leaking must stop.
Furthering this goal, today, we are here to announce some of the steps being taken and underway by the National Insider Threat Task Force to ensure that this government’s first priority—to protect this country and her citizens—is not undermined by the very people who have been entrusted to protect it.
While the Department of Justice does not discuss ongoing investigations or confirm specific matters, it is important for the American people—and for those who might be thinking about leaking sensitive or classified information—to know that criminals who would illegally use their access to our most sensitive information to endanger our national security are, in fact, being investigated and prosecuted. Since January, the Department has more than tripled the number of active leak investigations compared to the number pending at the end of the last Administration. And we have already charged four people with unlawfully disclosing classified material or with concealing contacts with foreign intelligence officers.
Soon after I arrived here in February, I initiated a review of our leak investigations and prosecutions. I reviewed how these cases were being referred and handled and was concerned with what we found—too few referrals, too few investigations with insufficient resources dedicated to them. I concluded the unprecedented rise in leaks required a surge of additional support for more investigations and to speed up our existing investigations.
Our system here relies on the intelligence community making a determination of whether classified material has been improperly handled or released and then sending referrals to the Department of Justice. This means it is vital for the intelligence community to know that the Department of Justice is committed to investigating and prosecuting these referrals. And when few investigations take place, criminal leaks may occur more often and a culture of leaking takes hold.
So, today, I have this message for the intelligence community: The Department of Justice is open for business.
And I have this warning for would-be leakers: Don’t do it.
For the past several months, we have already made changes and are seriously ramping up our efforts.
First, I directed my Deputy Attorney General Rod Rosenstein—whose district in Maryland encompassed the NSA headquarters and who has personally led these kinds of investigations— and FBI Director Christopher Wray to oversee all classified leak investigations and actively monitor the progress of each and every case.
Second, I directed the National Security Division and U.S. Attorneys to prioritize cases involving unauthorized disclosures. The Department will not hesitate to bring lawful and appropriate criminal charges against those who abuse the nation’s trust.
Third, as I said, we tripled the number of active leak investigations. In response, the FBI has increased resources devoted to leak cases and created a new counterintelligence unit to manage these cases. Simultaneously, the Department is reviewing policies that impact leak investigations.
I have listened to career investigators and prosecutors about how to most successfully investigate and prosecute these matters. At their suggestion, one of the things we are doing is reviewing policies affecting media subpoenas. We respect the important role that the press plays and will give them respect, but it is not unlimited. They cannot place lives at risk with impunity. We must balance their role with protecting our national security and the lives of those who serve in our intelligence community, the armed forces, and all law abiding Americans.
Finally, here is what I want to tell every American today: This nation must end the culture of leaks. We will investigate and seek to bring criminals to justice. We will not allow rogue anonymous sources with security clearances to sell out our country any longer.
These cases are never easy. But cases will be made, and leakers will be held accountable.
All of us in government and in every agency and in Congress must do better. The first requirement is personal discipline. Education and repetition will make a difference. Prevention is what’s required. An investigation of a leak is too late, the danger is done.
Acting U.S. Attorney Jack Smith Announces Depature from DOJRead the Press Release
Acting U.S. Attorney Jack Smith today, announced his departure from the Department of Justice, effective in September. Smith has been the Acing U.S. Attorney since David Rivera resigned in March of this year.
Smith has been a prosecutor with the Department of Justice for 16 years, having served as the head of the Public Integrity Section in D.C. for 5 years, prior to coming to Nashville in 2015 to serve as the First Assistant U.S. Attorney.
Though not looking to leave the department of Justice, Smith said he had been offered an incredible opportunity and after much consideration, he had decided to leave the DOJ.
“This was one of the most difficult professional decisions that I have ever been faced with,” said Smith. “I truly love representing the American people and seeking justice on their behalf. I will profoundly miss the close relationships I have developed with the exceptional public servants in our office, as well as the consummate professionals of our law enforcement community. While I am leaving the Department of Justice, I remain committed to our serving our community here in Nashville in other ways in the coming years.”
Smith will remain in the office until early September.
36 Defendants Indicted in Massive South Georgia Drug Trafficking SchemeRead the Press Release
WAYCROSS, GA – Two federal indictments were unsealed yesterday and today which charged 36 South Georgia, North Florida and California residents with conspiring to traffic large amounts of methamphetamine, cocaine and other drugs. The indictments follow a joint federal and state investigation into violent gang and drug trafficking activities in Ware, Pierce and Glynn Counties, Georgia. The drug trafficking activities are alleged to have occurred throughout Georgia, Florida and elsewhere. The more than one-year undercover investigation was led by the FBI, the Waycross Police Department and the Ware County Sheriff’s Office. The Glynn County Police Department, the Brunswick Police Department, the Blackshear Police Department, the U. S. Marshal Service, the U. S. Probation Office and the Georgia Department of Community Supervision also assisted.
The 36 Defendants charged are:
CEDRIC L. KING (37, Waycross, GA),
A/K/A “Ced” and “Sanchez,”
CARLOS RUELAS (35, Bakersfield, CA),
GIOVANNI ESQUIVEL (36, Bakersfield, CA),
A/K/A “Worm” and “Gio,”
TERRACA PARKER (24, Jacksonville, FL),
MARKEY PITTMAN (28, Jacksonville, FL),
A/K/A “Jap,”
PAUL DIXON (45, Waycross, GA),
BEN DUKES (80, Waycross, GA),
A/K/A “Pops,”
CALVIN IVEY (61, Waycross, GA),
A/K/A “Tex,”
JOHN HOWARD (54, Waycross, GA),
TARENCE WASHINGTON (40, Waycross, GA),
A/K/A “T,”
QUANSHARD DUKES (27, Waycross/Brunswick, GA),
A/K/A “Shad,”
SHAMPOIRE ORANGE (35, Waycross, GA),
A/K/A “Po,”
WILBUR HIGHTOWER (38, Waycross, GA),
ISHMIL STRICKLAND (26, Blackshear, GA),
A/K/A “Ish,” and “Convertible Ish,”
STEFAN WILLIAMS (33, Waycross, GA)
MYRON BOLDEN (36, Waycross/Homerville, GA),
A/K/A “Snap,” and “Snapp Paid,”
COREY RIGGS (32, Waycross, GA),
ELMO ROBINSON (33, Waycross, GA),
A/K/A “Gutta Kolombo” and “Macon MO,”
ESQUADRICK WILLIAMS, (35, Waycross, GA),
A/K/A “Lamon,”
LASHADRE SMITH (26, Waycross, GA),
A/K/A “Shafa” and “Shaffa Billythekid Smith,”
JASON COOPER (24, Waycross, GA),
ANTWAN CLARK, (32, Waycross, GA),
DUSTIN STEEDLEY (31, Waycross, GA),
TYLER COUNCIL (22, Blackshear, GA),
CHRISTOPHER WELLS (29, Alma, GA),
A/K/A “Jugg,”
PHILLIP JOHNSON (25, Waycross, GA),
A/K/A “Gunplay,”
CLARENCE KELLY (29, Waycross, GA),
A/K/A “Buckshot,”
RANDY HAWKINS (45, Waycross, GA),
JOSHUA BEVERLY (28, Blackshear, GA),
ALVERTIS GEDDIS (27, Waycross, GA),
AKA “Man Man” and “Draco,”
JA’LYN KINCEY (22, Waycross, GA),
A/K/A “Monk,”
JERONE MARTIN (26, Waycross, GA),
A/K/A “Rome” and “Jermone,”
ZYTREVIS ROBINSON (27, Waycross, GA),
A/K/A “Webbie,”
IKEYA JONES (21, Waycross, GA),
A/K/A “Juvie Mona,”
LAKENDRA NORTON (28, Waycross, GA),
AND
TANYA JOHNSON (29, Blackshear, GA).
Most of the Defendants have been arrested and were brought yesterday and today before a federal Magistrate Judge sitting in Waycross, Georgia for their initial appearances. Defendants Esquadrick Williams, Quanshard Dukes, Jason Cooper, Anyway Clark, Giovanni Esquivel and Zytrevis Robinson remain at large. Upon conviction, many of the Defendants face up to life in a federal prison. Acting United States Attorney James Durham emphasized that the indictments are only accusations and are not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Marcela C. Mateo and Jennifer J. Kirkland are prosecuting the cases on behalf of the United States. Please contact the United States Attorney’s Office for any questions at (912) 201-2522.
Thursday 3 August 2017
Youngsville man sentenced to 8 years in prison for receiving sexually explicit image from minorRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Youngsville was sentenced to 96 months in prison for receiving sexually explicit material from a minor and then asking her travel to Louisiana.
Gary Joseph Vincent, 26, of Youngsville, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of receiving child pornography. He was also sentenced to 20 years of supervised release and is required to register as sex offender. According to the April 13, 2017 guilty plea, Vincent admitted that he received a sexually explicit image via the internet of a minor female who lived in another state on December 17, 2015. Vincent also asked the minor to travel to Louisiana, but law enforcement agents intercepted the minor before she could make the trip.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security, Louisiana State Police and Chatham Police Department in Illinois conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Dominic Rossetti prosecuted the case.
West Hartford Man Sentenced to 34 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SAMUEL CORTES, 28, of West Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2014, the Drug Enforcement Administration’s Hartford Task Force received information that David Alvarado, also known as “Flaco,” was distributing heroin to street-level dealers and drug customers in the vicinity of his residence on Wethersfield Avenue in Hartford. Between August 2014 and May 2015, investigators made eight controlled purchases of heroin from Alvarado. A wiretap investigation revealed that Alvarado was being supplied with heroin by CORTES and other individuals.
On May 26, 2015, investigators conducted a court-authorized search of Alvarado’s residence and seized raw heroin, bagged heroin, heroin stamps, digital scales, thousands of wax folds, and other items used to process and package heroin. Investigators also seized a 9mm Beretta pistol with a loaded magazine, and numerous rounds of ammunition.
CORTES has been detained since his arrest on November 30, 2016. On May 8, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Webster County Man Sentenced to Federal PrisonRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on August 2, 2017, to more than 15 years in federal prison.
Andrew Smith, 32, from Fort Dodge, Iowa, received the prison term after an April 7, 2017, guilty plea.
In a plea agreement, Smith admitted to having conspired to distribute over 5 kilograms of methamphetamine from 2012 through 2016. In or around August 2014, Smith received approximately 6.5 pounds of methamphetamine from his source. From the summer to fall of 2015, Smith received quantities ranging from an ounce to a half-pound of methamphetamine on numerous occasions, and distributed the methamphetamine to multiple customers in the Fort Dodge area.
Smith was sentenced in Sioux City by United States District Court Senior Judge Mark W. Bennett. Smith was sentenced to 188 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn Wehde and Special Assistant United States Attorney Ajay Alexander and investigated by the Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, Iowa Division of Criminal Division, and the Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3048.
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Uptown Meth Dealers SentencedRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PAUL MCNEARY, age 34, of New Orleans, and OSCAR GUEVARA-MARTIN, age 35, of Lake Charles, were sentenced yesterday after previously pleading guilty to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
Judge Kurt D. Engelhardt sentenced MCNEARY to 100 months of imprisonment, 5 years of supervised release, and a mandatory special assessment of $100. Judge Engelhardt sentenced GUEVARA-MARTIN to 54 months of imprisonment, 5 years of supervised release, and a mandatory special assessment of $100.
According to court documents, MCNEARY and GUEVARA-MARTIN were arrested on January 9, 2015 when a United States Postal Inspector intercepted two packages sent through the Postal Service found to contain methamphetamine. The Inspector posed as a letter carrier to deliver the packages to the suspect’s uptown apartments and then executed a search warrant on the residence, finding additional drugs and drug paraphernalia. The arrests led to an operation against the sources of the methamphetamine in California who were ultimately indicted and pled guilty to the conspiracy.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service and the Drug Enforcement Administration for investigating this matter. Assistant United States Attorneys James S. C. Baehr and Matthew Payne and Special Assistant United States Attorney Ryan McLaren were in charge of the prosecution.
Two Salamanca Men Indicted on Multiple Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 54-count superseding indictment charging Sergiy Bezrukov, 33, and Mark Farnham, 24, both of Salamanca, NY, with conspiracy to commit mail fraud, wire fraud, bank fraud, and money laundering. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Trini Ross and Stephanie Lamarque, who are handling the case, stated that according to the superseding and a previously filed indictment, the defendants opened two offices in the Western New York area to operate fraudulent debt restructuring businesses.
Bezrukov and Farnham sent solicitation letters under various false and fictitious names, offering to assist small businesses with restructuring high interest loans. After the small businesses agreed to work with the defendants and their company, Bezrukov and Farnham would withdrawal sums of money from the small businesses accounts and use those funds for purposes not associated with assisting the small businesses. When the small business owners attempted to contact the defendants or others at the fraudulent company, they would get no response.
The defendants used the fraudulent debt restructuring business to defraud approximately 200 victims out of $1,200,000.00.
Defendant Farnham will be arraigned on August 4, 2017, before U.S. Magistrate Judge H. Kenneth Schroeder. Defendant Bezrukov will be arraigned at a later date.
The superseding indictment is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; 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.
Two More Plead Guilty in McDonald’s Restaurant Armed RobberyRead the Press Release
St. Thomas, USVI – Betel Rosario Paulino, 18, of the Dominican Republic pleaded guilty on July 27, and Helwood Paris, 20, of Puerto Rico, pleaded guilty on Monday in District Court for their roles in the armed robbery of the McDonald’s restaurant on St. Thomas, Acting United States Attorney Joycelyn Hewlett announced. Paris pleaded guilty to conspiracy to commit Hobbs Act robbery and the territorial charge of robbery in the first degree and Paulino pleaded guilty to conspiracy to commit Hobbs Act robbery and discharge of a firearm during a federal crime of violence. Sentencing is set for November 30, 2017.
According to the plea agreement filed with the court, on March 25, 2017, members of the Virgin Islands Police Department (VIPD) responded to reports of a robbery in progress at the McDonald’s restaurant in the Lockhart Shopping Center. Paris and Paulino were arrested after the investigation revealed that they were involved in the planning, execution and attempt at covering up the robbery. Two other men, Junior Feliz and Hanselo Recio, previously entered guilty pleas based on their roles in the robbery. Their sentencing hearing is set for October 5, 2017.
Paris faces up to 20 years in prison for each of the two counts: conspiracy to commit Hobbs Act robbery and the territorial charge of robbery in the first degree.
Paulino faces up to 20 years in prison for conspiracy to commit Hobbs Act robbery and a mandatory 10-year consecutive sentence for discharge of a firearm during a federal crime of violence.
The case was investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco and Firearms and VIPD. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte and Criminal Chief Christian A. Fisanick.
Two Men Indicted for Mortgage FraudRead the Press Release
LAS VEGAS, Nev. – Two men made their initial appearances today in federal court for bank fraud charges arising from a real estate scheme, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Dustin M. Lewis, 42, of Henderson, Nev., and Brian Sorensen, 49, of Las Vegas, were each charged with one count of conspiracy to commit bank fraud and one count of bank fraud. If convicted, Lewis and Sorenson each face a statutory maximum penalty of 30 years in prison and up to a $1,000,000 fine.
According to allegations made in the indictment, from about August 15, 2011 to about January 17, 2014, Lewis and Sorensen conspired with each other to defraud OneWest Bank. The defendants allegedly devised and executed a scheme to avoid foreclosure so that Lewis could retain ownership of a 5,331 square foot, five-bedroom Henderson, Nev. home. As part of the scheme, Lewis submitted a fraudulent short sale application to the bank, which induced the bank to allow Lewis to sell the property to Sorensen’s family member for much less than Lewis owed under the existing mortgage loan. It is further alleged that Lewis did not disclose that he and Sorensen agreed that Lewis would continue to reside at the property and Sorensen would later cause the property to be sold back to Lewis free of the bank’s mortgage loan. It is further alleged that on or about July 21, 2017, Lewis then listed the property for sale at a price of $1,195,000.
The case is being investigated by the FBI, the IRS-Criminal Investigation, with assistance from the U.S. Department of Interior-Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment is merely an allegation and is not evidence of guilty. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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Two Men from New York Plead Guilty to Identity TheftRead the Press Release
BOISE – Jason Morel, 22, and Kenith Quesada, 23, of Bronx, New York pleaded guilty yesterday in United States District Court to aggravated identity theft, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreements, Morel and Quesada traveled to Idaho to defraud AT&T stores and AT&T customers. Morel and Quesada fraudulently impersonated real AT&T customers, presented counterfeit driver’s licenses and credit cards, and purchased iPhones using other customers’ accounts. When they were arrested, law enforcement found 15 fake driver’s licenses bearing Morel’s and Quesada’s photographs, as well as 15 fake credit cards. Law enforcement verified that the names on the fake driver’s licenses and credit cards were real AT&T customers. Law enforcement also found 19 fraudulently-purchased iPhones still in their original packaging.
Sentencing is set for October 19, 2017, before Senior U.S. District Judge Edward J. Lodge.
Aggravated identity theft is punishable by a mandatory two years of imprisonment, up to a $250,000 fine, a term of supervised release of up to one year, and a $100 special assessment.
The case was investigated by the Boise Police Department and the United States Secret Service.
Two Charged with Attempting to Sell 2 Kilograms of Heroin in BakersfieldRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Omar Felix-Corrales, 38, and Valeria Silvas Villarreal, 23, both of Mexico, charging them with conspiracy to distribute and possess with intent to distribute heroin, and Felix-Corrales alone with possession of a firearm in relation to a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, On July 28, 2017, the defendants met with a law enforcement informant in a home improvement store parking lot in Bakersfield to sell the informant two kilograms of China-white heroin for $56,000. When the informant gave a pre‑arranged signal to nearby agents that drugs were present, agents rushed to the scene and arrested the defendants. At the time of his arrest, Felix-Corrales was found to have a loaded 9 mm Berretta pistol tucked into the waistband of his pants.
This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, and the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Trucker Arrested with 33 Kilograms of Cocaine Pleads GuiltyRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Edinburg man has been convicted of conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez.
Hugo Morales admitted to conspiring with others to distribute more than five kilograms of cocaine.
On Feb. 11, 2017, authorities conducted a roadside inspection of the tractor-trailer Morales was driving. At that time, more than 33 kilograms of cocaine was found hidden inside tarps strapped on his flatbed trailer.
As part of his plea today, Morales also agreed to the forfeiture of five vehicles including a Hummer H2, a Chevrolet Corvette, a Chevrolet Camaro and a Harley Davidson Motorcycle as well as cash and jewelry.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for Nov. 16, 2017. At that time, Morales faces a minimum of 10 years and up to life in prison as well as a $10 million fine.
The Drug Enforcement Administration conducted the investigations with assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Three Sentenced for String of Armed RobberiesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced to prison two men and a woman responsible for committing a string of armed robberies in North and South Carolina, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Rose in making today’s is Chief J. Bryan Gilliard of the Monroe Police Department
Jerfrontys Clyburn, 22, of Pageland, S.C. was sentenced to 276 months in prison; Detrez Lamar Timmons, 21, of Wingate, N.C., was sentenced to 144 months in prison; and Yamilez Matos, 21, of Pageland, S.C., was sentenced to 84 months in prison. The defendants were also each ordered to serve three years of supervised release and to pay $2,465 as restitution.
In January 2016, Clyburn, Timmons and Matos pleaded guilty one count of conspiracy to commit robbery of businesses affecting interstate commerce or “Hobbs Act” robbery. Clyburn also pleaded guilty to five counts of Hobbs Act robbery and one count of carrying and brandishing a firearm.
According to filed documents and statements made in court, between July 5, and July 12, 2015, Clyburn, Matos and Timmons robbed six convenience stores located in North and South Carolina. Court records show that Clyburn and Timmons were primarily responsible for robbing the stores at gunpoint and Matos was the get-away driver. According to court records, over a seven-day period, the defendants robbed four businesses in Monroe, N.C., including an On-the-Run gas station, a Marathon gas station, a T&M Foodmart, and a Stop-n-shop convenience store. The co-conspirators also robbed at gun point the M&R Minimart convenience store located in Lancaster, S.C. and the Kountry Korner convenience store located in Pageland, S.C. According to court records, when Clyburn entered the M&R Mini Mart he was carrying a 9mm handgun, which he used to shoot a victim who was inside the store when the robbery occurred.
All three defendants have been in local federal custody. Upon designation of a federal facility they will be transferred to the custody of the Federal Bureau of
Three Men Indicted for Bribing Garden City OfficialsRead the Press Release
An indictment was unsealed charging three Dearborn Heights men with bribing officials from Garden City, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Charged are Mike Baydoun, 54, Ali Baydoun, 52, and Jalal Baydoun, 38.
The indictment charges that in 2016, the Baydouns conspired with each other to bribe the Mayor of Garden City, Police Chief, and three council members to obtain authorization to open a medical marijuana dispensary in Garden City, and to obtain authorization for a medical marijuana plant grow.
The indictment also charges that in furtherance of this conspiracy, on December 2, 2016, the Baydouns delivered to a Garden City official an envelope containing $15,000 cash, representing three individual bribes in the amount of $5,000 each for three Garden City Council members. The indictment also contains a forfeiture count pertaining to the $150,000 the Baydouns conspired to place into escrow to fund future bribes of officials.
Acting United States Attorney Daniel L. Lemisch said, “Citizens deserve elected officials to make decisions in the best interests of their constituents, not on who’s lining their pockets. Public servants who sell their votes will be held accountable to the fullest extent of the law.”
This prosecution is being handled by Assistant United States Attorneys J. Michael Buckley and Frances Lee Carlson.
Texas Man Pleads Guilty to Conspiring to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
Peter Zuccarelli, 62, of Plano, Texas pleaded guilty today to conspiring to smuggle and illegally export from the U.S., radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA).
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Brit Featherston for the Eastern District of Texas made the announcement. The plea was entered before U.S. Magistrate Judge Kimberly Priest-Johnson.
Zuccarelli pleaded guilty to engaging in a conspiracy to smuggle and illegally export from the U.S. items subject to IEEPA, without obtaining licenses from the Department of Commerce. According to the allegations contained in the Information filed against Zuccarelli and statements made in court filings and proceedings, including today’s guilty plea:
Between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled.
In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
At sentencing, Zuccarelli faces a maximum statutory term of five years imprisonment and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the defendant’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Department of Defense, Defense Criminal Investigative Service. This case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas together with the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
State Parolee Sentenced for Distributing HeroinRead the Press Release
PITTSBURGH – Demetrius Brown was sentenced to 30 months in federal prison for conspiring to distribute heroin while on state parole following prior convictions for trafficking crack cocaine, Acting United States Attorney Soo C. Song announced today.
Brown, age 29, formerly of Pittsburgh, Pa., was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that the prison sentence be served consecutively to any state parole revocation sentence. Judge Fischer also ordered that Brown serve three years of supervised release after he is released from prison.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Police Department led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Six People Sentenced in Heroin Trafficking ConspiracyRead the Press Release
GAINESVILLE, FLORIDA – The last of six defendants was sentenced this week for conspiring to distribute heroin and other drug-related charges. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants are:
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Joe Lee McQuay, 39, Ocala, 240 months in prison (180 months for the heroin conspiracy to be served consecutively to a 60-month sentence for a prior narcotics trafficking offense);
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Ivan Jermaine Wims, 41, Gainesville, 144 months in prison;
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Jordan Christopher Wims (Ivan’s son), 22, Gainesville, 36 months in prison;
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Albert Devon Kitchen, 35, Gainesville, 240 months in prison;
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Ticco Earl Wright, 33, Gainesville, 120 months in prison; and
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Danielle Nicole Duncan, 36, Gainesville, 24 months in prison;
The DEA began this drug trafficking investigation in June 2013. The investigation revealed that McQuay supplied heroin to distributor Ivan Wims. After Ivan Wims was arrested on an unrelated case in April 2014, he continued to coordinate his drug activities from custody, directing his son Jordan Wims and Albert Kitchen how to obtain, process, and distribute heroin to the customers. Duncan and Wright were two of these customers. The undercover agent purchased heroin from Jordan Wims, Kitchen, Duncan, and Wright on multiple occasions.
In the fall of 2016, Ivan and Jordan Wims, Kitchen, Wright, and Duncan pled guilty to charges of conspiracy to distribute heroin and distribution of heroin. Ivan Wims and Jordan Wims and Kitchen were responsible for more than one kilogram (2.2 pounds) of heroin in the conspiracy, and Wright and Duncan were responsible for quantities of 100 grams or more of heroin. Additionally, Wright pled guilty to possessing a firearm while trafficking in heroin. In January 2017, McQuay pled guilty to conspiracy to distribute more than one kilogram of heroin.
These cases resulted from an investigation by the Drug Enforcement Administration and the Gainesville Alachua County Drug Task Force, comprised of the Alachua County Sheriff’s Office, the Gainesville Police Department, and the University of Florida Police Department. Assistant United States Attorney Gregory P. McMahon prosecuted the cases.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Sioux Falls Man Sentenced on Use of Interstate Facilities to Transmit Information about a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota man convicted of Use of Interstate Facilities to Transmit Information about a Minor was sentenced on July 31, 2017, by U.S. District Judge Karen E. Schrier.
Kevin Dolejsi, (pronounced “Dole – ish”), age 31, was sentenced to 50 months in custody and 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund and will have to register as a sex offender.
Dolejsi was indicted for Attempted Transfer of Obscene Material to a Minor and Attempted Enticement of a Minor Using the Internet by a federal grand jury on September 7, 2016. He pled guilty to Use of Interstate Facilities to Transmit Information about a Minor on April 20, 2017.
On August 15, 2016, Kevin Dolejsi, used his cell phone to respond to an advertisement on the internet website Backpage. Dolejsi, sent a number of messages to a female he believed to be 13 years-old to entice her to engage in sexual contact with him. Unknown to Dolejsi, the messages were sent to an undercover law enforcement officer as part of a sting operation. In addition to transmitting the name of the minor, Dolejsi paid for a hotel room and arranged a meeting with the 13 year old girl.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Dolejsi was immediately turned over to the custody of the U.S. Marshals Service.Sentencings for July 31 - August 3, 2017Read the Press Release
Jose Ulices Valenzuela-Gradiz, 35, of San Marcos de Colon, Choluteca, Honduras, was sentenced by Federal District Court Judge Alan B. Johnson on August 3, 2017, for illegal re-entry of a previously deported alien into the United States. Valenzuela-Gradiz was arrested in Worland, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Fermin Fidencio Fausto, 38, of Evanston, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 1, 2017, for being a felon in possession of a firearm. Fausto was arrested in Evanston, Wyoming. He received 72 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chase Mckay Stagner, 21, of Chico, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 1, 2017, for two counts of production of child pornography. Stagner was arrested in California. He received 180 months of imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $200.00 special assessment and a $5,000.00 Justice for Victims Trafficking Act assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Christian Alberto Zamorano-Duran, 25, of Cajeme, Sonora, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 31, 2017, for illegal re-entry of a previously deported alien into the United States. Zamorano-Duran was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Savannah Convicted Murderer and 19 Others Indicted for Drug Trafficking Conspiracy and Firearm OffensesRead the Press Release
Savannah, GA- Eugene Allen (aka “Poncho”), 41, who is currently serving a life sentence for murder, was one of 20 defendants indicted earlier this week by a federal grand jury sitting in Savannah, Georgia for allegedly operating a drug trafficking organization in Chatham County and elsewhere.
The 22-count indictment alleged that the defendants conspired to traffick powder cocaine, crack cocaine, heroin and marijuana. The indictment also charges numerous firearm offenses. According to allegations in the indictment, members of the conspiracy used drones to smuggle cellular telephones to other conspirators incarcerated in a Georgia Department of Corrections facility. The phones were then used from state prison to facilitate drug trafficking crimes. Members of the conspiracy also allegedly used cotton candy machines and other packages to transfer money for the payment of drugs and to transfer proceeds made from the drug trafficking activities. Publically available records reveal that Eugene Allen is serving life without parole in a Georgia prison for a murder that he committed in Savannah.
The following people were indicted in this case:
EUGENE ALLEN, (41, Savannah)
A/K/A “PONCHO,”
A/K/A “JIG,”
AARON CRAIG HUBBARD, (29, Savannah)
A/KA/ “YUP,”
A/K/A “YAP,”
A/K/A “RED,”
KARTEU OMAR JENKINS, (40, Atlanta)
A/K/A “YAY,”
DANIEL MARTIN, (36, California)
A/K/A “WHITEBOY,”
A/K/A “STACKS,”
RAYMOND NEIL WALLEN, (37, California)
A/K/A “ADDY MAN,”
CHARMAINE NICOLE SIMS, (34, Savannah)
RON BERNARD ALLEN, (41, Savannah)
A/K/A “RON LOW,”
A/K/A “LOW,”
KEITH JAMAL BRIGHAM, (43, Savannah)
A/K/A “GLOCK,”
EDWARD MAURICE TYLER, (41, Savannah)
A/K/A “SKIP,”
ORANDA RASHEED WALKER, (36, Savannah)
A/K/A “ROCK,”
CARLOS EDJUAN ELDER, (40, Savannah)
DEVIN RENARD DABNEY, (39, Savannah)
BRITTANY LATISHA JAMES, (31, Atlanta)
A/K/A “KB,”
TASHA GOODWIN, (36, Savannah)
COLIS JERMAINE ALLEN,
A/K/A “KARLIS JERMAINE,” (39, Savannah)
A/K/A “BUTCH,”
TASHA FELICIA GARDNER, (43, Savannah)
SHAUNTE STAFFORD, (35, Lithonia)
MIA WILLIAMS,
A/K/A “MIA HALL,”
TATONYA SHARI HAILES, (45, Atlanta) andTINA MARIE ADKINS, (34, Savannah)
The Defendants face up to life in prison upon conviction of the crimes charged in the indictment. Acting U. S. Attorney James Durham cautioned that an indictment is only an accusation and is not evidence of guilt. A defendant is entitled to a fair trial, during which it is the Government’s burden to prove a defendant’s guilt beyond a reasonable doubt.
This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, which is comprised of federal, state and local law enforcement. Agents with the FBI and the Chatham County Counter Narcotics Team (CNT), as well and members of the Savannah-Chatham Metropolitan Police Department (SCMPD) conducted the investigation. Special Assistant U. S. Attorney Noah Abrams and Assistant U. S. Attorney E. Greg Gilluly, Jr. are prosecuting the case on behalf of the United States. For questions, please contact the U. S. Attorney’s Office at (912) 201-2522.
Russian Citizen Sentenced to 46 Months in Prison for Involvement in Global Botnet ConspiracyRead the Press Release
A Russian citizen was sentenced today for his participation in a criminal enterprise that installed and exploited malicious computer software (malware) on tens of thousands of computer servers throughout the world to generate millions of dollars in fraudulent payments. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI's Minneapolis Field Office made the announcement.
“The defendant and his co-conspirators sought to turn a network of thousands of infected computers in the United States and around the world into their personal cash machines,” said Acting Assistant Attorney General Blanco. “But cybercriminals like Mr. Senakh should take heed: they are not immune from U.S. prosecution just because they operate from afar or behind a veil of technology. We have the ability and the determination to identify them, find them, and bring them to justice.”
“Working within a massive criminal enterprise, Maxim Senakh helped create a sophisticated infrastructure that victimized thousands of Internet users across the world,” said Acting U.S. Attorney Brooker. “As society becomes more reliant on computers, cybercriminals like Senakh pose a serious threat. This Office, along with our law enforcement partners, are committed to detecting and prosecuting cybercriminals no matter where they reside.”
“The sentence handed down today sends a strong message to international cyber criminals who mistakenly believe they can prey on the American people with impunity,” said Special Agent in Charge Thornton. “The FBI is committed to working closely with our global law enforcement partners to investigate criminal enterprises such as this and hold those responsible to account for their crimes wherever they may be.”
Maxim Senakh, 41, of Veliky Novgorod, Russia, was sentenced to 46 months in prison and will be deported following his release from prison. Senakh pleaded guilty on March 28, to conspiracy to commit wire fraud and to violate the Computer Fraud and Abuse Act. He was indicted on Jan. 13, 2015, and was subsequently arrested by Finnish authorities, who extradited him to the U.S. in February 2016.
According to admissions made in connection with the plea agreement, the malware, which is known as Ebury, harvested log-on credentials from infected computer servers, allowing Senakh and his co-conspirators to create and operate a botnet comprising tens of thousands of infected servers throughout the world, including thousands in the U.S. Senakh and his co-conspirators used the Ebury botnet to generate and redirect internet traffic in furtherance of various click-fraud and spam e-mail schemes, which fraudulently generated millions of dollars in revenue. As part of his plea, Senakh admitted that he supported the criminal enterprise by creating accounts with domain registrars that helped develop the Ebury botnet infrastructure and personally profited from traffic generated by the Ebury botnet.
The FBI Minneapolis Field Office investigated this case. Senior Counsels Aaron Cooper and Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section and former Assistant U.S. Attorney Kevin Ueland of the District of Minnesota prosecuted the case. The government of Finland, the Bundeskriminalamt (BKA), CERT-Bund and the cyber security firm ESET all provided substantial assistance in this case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Russian Citizen Sentenced to 46 Months in Prison for Involvement in Global Botnet ConspiracyRead the Press Release
A Russian citizen was sentenced today for his participation in a criminal enterprise that installed and exploited malicious computer software (“malware”) on tens of thousands of computer servers throughout the world to generate millions of dollars in fraudulent payments. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI's Minneapolis Field Office made the announcement.
U.S. District Judge Patrick J. Schlitz of the District of Minnesota sentenced Maxim Senakh, 41, of Veliky Novgorod, Russia, to 46 months’ imprisonment. Senakh pleaded guilty on March 28, to conspiracy to commit wire fraud and to violate the Computer Fraud and Abuse Act. He was indicted on Jan. 13, 2015, and was subsequently arrested by Finnish authorities, who extradited him to the U.S. in February 2016.
According to admissions made in connection with the plea agreement, the malware, which is known as Ebury, harvested log-on credentials from infected computer servers, allowing Senakh and his co-conspirators to create and operate a botnet comprising tens of thousands of infected servers throughout the world, including thousands in the U.S. Senakh and his co-conspirators used the Ebury botnet to generate and redirect internet traffic in furtherance of various click-fraud and spam e-mail schemes, which fraudulently generated millions of dollars in revenue. As part of his plea, Senakh admitted that he supported the criminal enterprise by creating accounts with domain registrars that helped develop the Ebury botnet infrastructure and personally profited from traffic generated by the Ebury botnet.
“The defendant and his co-conspirators sought to turn a network of thousands of infected computers in the United States and around the world into their personal cash machines,” said Acting Assistant Attorney General Blanco. “But cybercriminals like Mr. Senakh should take heed: they are not immune from U.S. prosecution just because they operate from afar or behind a veil of technology. We have the ability and the determination to identify them, find them, and bring them to justice.”
“Working within a massive criminal enterprise, Maxim Senakh helped create a sophisticated infrastructure that victimized thousands of Internet users across the world,” said Acting U.S. Attorney Brooker. “As society becomes more reliant on computers, cybercriminals like Senakh pose a serious threat. This Office, along with our law enforcement partners, are committed to detecting and prosecuting cybercriminals no matter where they reside.”
“The sentence handed down today sends a strong message to international cyber criminals who mistakenly believe they can prey on the American people with impunity,” said Special Agent in Charge Thornton. “The FBI is committed to working closely with our global law enforcement partners to investigate criminal enterprises such as this and hold those responsible to account for their crimes wherever they may be.”
The FBI Minneapolis Field Office investigated this case. Former Assistant U.S. Attorney Kevin Ueland of the District of Minnesota and Senior Counsels Aaron Cooper and Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. The government of Finland, the Bundeskriminalamt (BKA), CERT-Bund and the cyber security firm ESET all provided substantial assistance in this case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Defendant Information:
MAXIM SENAKH, 41
Veliky Novgorod, Russia
Convicted:
- Conspiracy to Violate the Computer Fraud and Abuse Act, and to Commit Wire Fraud, 1 count
Sentenced:
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46 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rowan Co. Man Sentenced for Online Enticement of A MinorRead the Press Release
CHARLOTTE, N.C. – Timothy Alan Overcash, 52, of Gold Hill, N.C. was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to 150 months in prison for enticement of a minor using a means and facility of interstate commerce, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Overcash to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to court documents and today’s court proceedings, Overcash responded to an online posting soliciting individuals interested in engaging in sexual contact with a minor. From August to September 2016, Overcash had multiple communications with an FBI undercover employee posing as the minor’s parent, during which Overcash discussed his interest in engaging in sexual contact with the minor and made arrangements to meet the minor. Law enforcement arrested Overcash when he arrived at the agreed-upon location to meet whom he thought was an 11-year-old girl, for the purpose of engaging in sexual activities.
Overcash pleaded guilty in February 2017 to one count of online enticement of a minor. He is currently in federal custody and he will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was led by the FBI. The U.S. Attorney’s Office is in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rio Rancho Man Facing Federal Arson Charge Arising Out of July 31, 2017 Fire at Rio Rancho ChurchRead the Press Release
ALBUQUERQUE – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has filed a criminal complaint charging Gordon Schuler, 23, of Rio Rancho, N.M., with using fire to damage or destroy a building used in interstate commerce. The charge against Schuler arises out of a fire that was ignited at the Peace Lutheran Church in Rio Rancho, causing extensive damage to the church.
According to the criminal complaint, in the early hours of July 31, 2017, the Rio Rancho Fire Department observed and responded to a fire at the church. After extinguishing the fire, firefighters determined that the fire had caused extensive damage to the church’s sanctuary and heavy smoke damage to the rest of the church. During a neighborhood canvass of the area, ATF Special Agents learned that a business located near the church had surveillance cameras that allegedly recorded Schuler, who was wearing a backpack and carrying a hammer, as he walked through the business’s courtyard in the early hours of the morning. During their investigation, fire investigators allegedly found a backpack and a hammer in the church that appeared to be the ones in Schuler’s possession in the surveillance video footage.
The criminal complaint alleges that fire investigators determined that the fire at the church was purposely caused and the result of arson. It alleges also that the church engages in interstate commerce by donating a percentage of its income to an ecclesiastic council based in Wisconsin.
The Rio Rancho Police Department arrested Schuler on Aug. 1, 2017, on an outstanding state arrest warrant for absconding from probation on a state conviction. Schuler currently is in state custody and will be transferred into federal custody to face the charge in the criminal complaint.
If convicted on the crime charged in the criminal complaint, Schuler faces a statutory penalty of not less than five years nor more than 20 years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the ATF office in Albuquerque, Rio Rancho Police Department, Rio Rancho Fire Department, Bernalillo County Fire Department, and the State Fire Marshal’s Office of the New Mexico Public Regulation Commission. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case.
Schuler ComplaintRayne man sentenced to 210 months in prison for recording sexually explicit images of a juvenileRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Rayne was sentenced to 17 and a half years in prison for taking video and photographs of a juvenile girl and sending them to his laptop.
Raylin Richard, 37, of Rayne, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of transportation of child pornography using any means or facility in interstate commerce. The court also sentenced him to 15 years of supervised release, fined him $20,000 and requires him to register as sex offender. According to the March 7, 2017 guilty plea, the mother of a juvenile found sexually explicit videos and images of her daughter on Richard’s cell phone on May 16, 2015. Acadia Parish Sheriff’s Office deputies took possession of the phone and found that Richard had taken the video and images while he lived in Crowley, La. After further investigation, Richard’s MacBookAir was searched and the same videos and images were found there as well. Richard later admitted that he knowingly transported the video and images from his phone on April 2, 2015 to his computer.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
The FBI and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Robert C. Abendroth and John Luke Walker prosecuted the case.
Philadelphia, PA Man Charged with Illgeal Reentry After DeportationRead the Press Release
Amauris Ventura Alberto Castro, a/k/a “Amauris Castro,” a/k/a “Edison Hernandez,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about June 29, 2017, Alberto Castro, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about March 18, 2014.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – A resident of Philadelphia, Pa., was sentenced to 24 months in prison for conspiring to distribute cocaine as part of a group that operated in several locations throughout the country, Acting United States Attorney Soo C. Song announced today.
Brenda Mendez, 37, was sentenced by Chief United States District Judge Joy Flowers Conti. Judge Conti also sentenced Mendez to serve four years of supervised release following her prison sentence.
Assistant United States Attorneys Katherine A. King and Craig W. Haller prosecuted this case on behalf of the United States.
A task force led by the Drug Enforcement Administration conducted the investigation leading to the conviction and sentence in this case. The task force also included several other federal, state, and local agencies from multiple states, including the Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Pennsylvania State Police, the Allegheny County District Attorney’s Office, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Penn Hills Police Department, the Monroeville Police Department, and the McKees Rocks Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Owner of Environmental Training Company Admits to Falsely Certifying Lead Abatement Course CompletionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that STEPHEN CRAIG, 66, of Essex, pleaded guilty today in Hartford federal court to one count of making a false statement to the federal government.
According to court documents and statements made in court, STEPHEN CRAIG owned Boston Lead Company LLC (BLC), a Connecticut corporation that provided industrial hygiene and safety services. Doing business as Environmental Training and Assessment (ETA), BLC offered a variety of training courses to individuals working with lead paint and asbestos. STEPHEN CRAIG was the training manager and a primary instructor for those courses, and his son, Matthew Craig, provided hands-on instruction and assisted with course administration, including the grading of examinations.
ETA’s lead and asbestos training courses were subject to regulation under the training provider accreditation requirements of the federal Toxic Substances Control Act (TSCA). TSCA allowed states to obtain U.S. Environmental Protection Agency (EPA) authorization to administer and enforce the standards, regulations and other requirements of the TSCA’s lead and asbestos programs, including the approval of training courses. The State of Connecticut received such authorization for all lead and asbestos programs except the lead program that covered renovations, repairs and painting. Individuals in Connecticut who perform lead abatement activities must be certified by the Connecticut Department of Public Health (CT DPH). To obtain certification, an individual must successfully complete an approved 32-hour lead abatement worker initial training course. ETA applied for and received approval from CT DPH to offer a wide range of lead and asbestos training courses, including lead abatement worker initial and refresher courses.
In August 2011, ETA offered a lead abatement training course at its Middletown facility. STEPHEN CRAIG was the training manager and primary course instructor, and Matthew Craig provided the hands-on training and graded the exams. An undercover EPA agent attended the course under the fictitious identity, seeking a lead abatement worker initial course completion certificate. The agent skipped the first two days of the course, and was two hours late on the third day. Thereafter, the agent attended the course for a total of approximately 15 hours, including approximately three hours of hands-on training. STEPHEN CRAIG was aware that agent did not attend the full training course.
At the conclusion of the course, the agent paid STEPHEN CRAIG $525 in cash and was allowed to sit for the lead abatement worker examination, which was proctored and graded by Matthew Craig. The agent intentionally failed the examination. Although Matthew Craig knew that the agent had failed the examination, Matthew Craig completed questions that the agent had left blank and corrected a sufficient number of incorrectly answered questions to bring the examination grade to a passing grade of 80 percent.
On August 12, 2011, ETA issued a false Certificate of Completion to the agent that stated that the agent had successfully completed a 32-hour lead abatement worker initial training course and passed an examination in accordance with CT DPH standards.
“Asbestos and Lead removal training providers, like Stephen Craig’s businesses, are entrusted with keeping safe the supervisors, workers and the public that hire them,” stated Special Agent in Charge Amon. “Sham trainers will continue to be a focus for EPA enforcement since they pose too great a risk to the public health.”
STEPHEN CRAIG is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on November 2, 2017, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000.
Matthew Craig previously pleaded guilty to one count of making a false statement and, on March 14, 2013, was sentenced to two years of probation and ordered to perform 100 hours of community service.
This matter has been investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Operators of Bogus Medical Clinics Charged in Conspiracy to Divert Massive Amounts of Prescription Narcotics to the Black MarketRead the Press Release
LOS ANGELES – The operators of seven sham medical clinics were among 12 defendants taken into custody this morning on federal drug trafficking charges that allege they diverted at least 2 million prescription pills – including oxycodone and other addictive and dangerous narcotics – to the black market.
Two indictments returned late last month by a federal grand jury alleges that members of the conspiracy profited from illicit prescriptions that were issued without any legitimate medical purpose through a series of clinics that periodically opened and closed in a “nomadic” style. The fraudulent prescriptions allegedly allowed the conspirators to obtain bulk quantities of prescription drugs that were sold on the street.
Those arrested this morning include Minas Matosyan, an Encino man also known as “Maserati Mike,” who is charged with leading the scheme and controlling six of the sham clinics. Matosyan allegedly hired corrupt doctors who allowed the conspirators to issue fraudulent prescriptions under their names in exchange for kickbacks.
“The two indictments charge 14 defendants who allegedly participated in an elaborate scheme they mistakenly hoped would conceal a high-volume drug trafficking operation,” said Acting United States Attorney Sandra R. Brown. “In addition to generating illicit profits, this scheme helped drive the prescription drug epidemic that is causing so much harm across our nation.”
“This investigation targeted a financially motivated racket that diverted deadly and addictive prescription painkillers to the black market,” said DEA Special Agent in Charge David Downing. “Today’s arrests underscore our resolve – DEA and its law enforcement partners will not tolerate criminal enterprises that fuel and exploit the opioid epidemic.”
The indictments unsealed today and search warrants executed this morning describe how Matosyan would “rent out recruited doctors to sham clinics.” Matosyan allegedly supplied corrupt doctors in exchange for kickbacks derived from proceeds generated when the other sham clinics created fraudulent prescriptions or submitted fraudulent bills to health care programs. In one example described in the court documents, Matosyan provided a corrupt doctor to a clinic owner in exchange for $120,000. When the clinic failed to pay the money and suggested instead that Matosyan “take back” the corrupt doctor, Matosyan demanded his money and said, “Doctors are like underwear to me. I don’t take back used things.”
In a recorded conversation described in court documents, Matosyan discussed how one doctor was paid “for sitting at home,” while thousands of narcotic pills were prescribed in that doctor’s name and Medicare was billed more than $500,000 for purported patient care.
The conspirators also allegedly stole the identities of doctors who refused to participate in the scheme. In an intercepted telephone conversation described in court documents, Matosyan offered a doctor a deal to “sit home making $20,000 a month doing nothing.” When the doctor refused the offer, the conspirators nevertheless created prescription pads in the doctor’s name and allegedly began selling fraudulent prescriptions for oxycodone without the doctor’s knowledge or consent.
According to court documents, the conspirators also issued prescriptions and submitted fraudulent billings in the name of a doctor who at the time was hospitalized and later died.
“The defendants in this scheme heartlessly lined their pockets with cash from the sale of thousands of addictive prescription drugs sold through the black market,” stated IRS Criminal Investigation’s Special Agent in Charge, R. Damon Rowe. “IRS Criminal Investigation, along with our law enforcement partners, will continue to aggressively pursue those who seek to profit from the sale and distribution of illegitimate prescription narcotics creating a drug crisis of epic portions in our country.”
“For the sake of mere profit, the operators of these medical clinics spewed deadly prescription drugs onto our streets. The opioid epidemic gripping this country is well documented and our communities in the Los Angeles area have been impacted,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Too often those ill-gotten gains came at the expense of innocent Americans. It has been a pleasure working with our law enforcement colleagues to bring these people to justice.”
“Today’s enforcement actions, and the long-term multiagency investigation that preceded them, have dealt a major blow to a sophisticated healthcare fraud and identity theft scheme that posed a double threat. Not only did the defendants in this case use physicians’ names to write fraudulent prescriptions and fleece Medicare out of millions of dollars, but they’re also accused of funneling large quantities of dangerous prescription opiates, including oxycodone and hydrocodone, into the community,” said Joseph Macias, special agent in charge for Homeland Security Investigations in Los Angeles. “In collaboration with our law enforcement partners, HSI will continue to aggressively target those who compromise the integrity of our healthcare system and public safety to satisfy their own greed.”
The indictment also charges Matosyan and others – including Glendale-based criminal defense attorney Fred Minassian – with obstruction of justice for allegedly creating fraudulent medical records in an effort to deter the investigation.
After a load of Vicodin was seized from one of the conspiracy’s major customers, Matosyan allegedly oversaw the creation of fake medical paperwork in an effort to make it appear the drugs had been legitimately prescribed. The indictment describes intercepted conversations in which Minassian strategized on how to deceive law enforcement, which included a plan to bribe a doctor to lie to authorities.
The 12 defendants arrested this morning are:
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Minas Matosyan, 36, of Encino, who is accused of leading the scheme by recruiting corrupt doctors, overseeing the theft of other doctors’ identities, and negotiating the sale of fraudulent prescriptions and narcotic pills;
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Armen Simonyan, 52, of Burbank, who allegedly managed the operations at some of the fraudulent clinics;
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Grisha Sayadyan, 66, of Burbank, who allegedly managed the operations at various clinics and sold oxycodone and Vicodin pills directly to black market customers;
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Sabrina Guberman, 45, of Encino, who, while working at the sham clinics, allegedly lied to pharmacies seeking to verify the fraudulent narcotic prescriptions, which included creating and sending fake medical paperwork;
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Frederick Manning Jr., 47, of Santa Ana, allegedly one of the major drug customers of the clinics, who is charged with agreeing to purchase as many as 1,000 pills per week of narcotics from Matosyan;
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Fred Minassian, 50, of Glendale, the criminal defense attorney who allegedly spearheaded the scheme to lie to law enforcement by making it falsely appear that Vicodin seized from Freddie Manning Jr. had been legitimately prescribed by a doctor;
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Ralph Manning, 49, of North Hills (no relation to Frederick Manning Jr.), who is charged with being one of the principal couriers Matosyan used to deliver fraudulent prescriptions and “bulk quantities” of narcotic pills;
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Hayk Matosyan, 30, of Granada Hills, Matosyan’s brother, who allegedly filled fraudulent narcotic prescriptions at pharmacies and sold the resulting narcotics pills to black-market customers.
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Marisa Montenegro, 54, of West Hills, who allegedly filled fraudulent prescriptions;
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Elizabeth Gurumdzhyan, 25, of Hollywood, who allegedly filled fraudulent prescriptons;
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Anait Guyumzhyan, 27, of Hollywood, who allegedly filled prescriptions for oxycodone and returned the drugs to Matosyan-operated clinics in exchange for cash payment; and
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James Wilson, 54, of Venice, who alone is charged in the second indictment with illegally selling oxycodone prescriptions out of a Long Beach clinic that he controlled.
The 12 defendants arrested this morning are expected to be arraigned on the indictment this afternoon in United States District Court.
Authorities are continuing to seek two defendants named in the main indictment. Those fugitives are: Gary Henderson, 62, of Lancaster, who allegedly purchased fraudulent oxycodone prescriptions from Matosyan; and an unidentified conspirator known only by the name “Cindy.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
All of the defendants face significant terms in federal prison if they are convicted. For example, if convicted of the nine counts in which he is charged, Matosyan would face a statutory maximum sentence of 165 years in prison.
The investigation in this case was conducted by the Drug Enforcement Administration; IRS Criminal Investigation; the U.S. Department of Health and Human Services - Office of Inspector General; the Ventura County Sheriff’s Office, Pharmaceutical Crimes Unit; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The primary investigative agencies received substantial assistance from the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the California Department of Justice, and the Orange Police Department.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Jamie Lang of the Organized Crime Drug Enforcement Task Force.
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One Gangster Disciple Sentenced on RICO Conspiracy Charges While Two Other Gangster Disciples Plead GuiltyRead the Press Release
Jackson, TN – A Jackson, Tennessee Gangster Disciple was sentenced to 292 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
On July 31, 2017, Daniel Lee Cole, a/k/a "D-Money," 38, was sentenced to 292 months in federal prison for conspiracy to participate in racketeering activities. As part of his plea of guilty entered in December 2016, Cole admitted that he was a past Governor of the 731 region (Jackson, TN) and was also Literature Coordinator. Cole admitted to conspiring to distribute narcotics with the other 15 Gangster Disciples who were included in the indictment.
Cole further admitted to attacking and injuring a rival gang member in 2002; to pointing a handgun at a victim in 2014, while another Gangster Disciples struck the victim with a beer bottle and threatened to kill that victim for witnessing Gangster Disciples criminal activity; and to being involved in an incident where Gangster Disciples assaulted a victim for refusing to recant prior statements made to law enforcement that incriminated a senior member of the gang in 2015. During this last incident, Cole admitted that one of the gang members shot at a vehicle containing the witness and several passengers.
The Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. The indictment alleges that the Gangster Disciples members and associates participated directly in the criminal activities of the enterprise – including murder,
kidnapping, assault, intimidation of witnesses and victims, narcotics distribution and weapons trafficking.
On the same day that Cole was sentenced, two other Gangster Disciples, Tommy Lee Wilkins, a/k/a "Tommy Gunz" and Byron Montrail Purdy, a/k/a "Ghetto," who were charged in the same indictment, pleaded guilty before U.S. District Judge John T. Fowlkes Jr., to conspiracy to participate in a racketeering enterprise. Wilkins and Purdy are the third and fourth of the 16 indicted defendants to plead guilty. Wilkins is scheduled to be sentenced by the Honorable John T. Fowlkes Jr., on November 17, 2017, at 9:30 a.m. and Purdy will be sentenced before the same Judge on December 1, 2017, at 9:30 a.m.
This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; JPD Gang Enforcement Team; Memphis Police Department; Shelby County Sheriff’s Office; 28th District West Tennessee Drug Task Force; 26th, 25th, and 30th Judicial District Attorney’s General’s Offices; Sheriff’s Offices for Tipton, Desoto, Madison, and Fayette Counties; and the Police Departments of Bartlett, Germantown and Columbia.
Assistant U.S. Attorney Beth Boswell and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
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