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Thursday 3 August 2017
Bakersfield Man with Sex Offense Priors Found Guilty of Receiving and Possessing Child PornographyRead the Press Release
FRESNO, Calif. — After a three-day trial, a federal jury found Colin Lovette Bosby, 50, of Bakersfield, guilty today of one count of receiving child pornography and two counts of possessing child pornography, U.S. Attorney Phillip A. Talbert announced. The trial was held before Chief U.S. District Judge Lawrence J. O'Neill.
According to evidence presented at trial, Bosby received child pornography through a peer-to-peer file-sharing program and possessed child pornography on thumb drives. Evidence at trial showed that the defendant sought out the child pornography by using search terms that are associated with the material.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Megan A. S. Richards and Vincenza Rabenn are prosecuting the case.
Bosby is scheduled to be sentenced by Chief Judge O'Neill on October 25, 2017. Bosby faces a maximum statutory penalty of 40 years in prison and a $250,000 fine for receipt and distribution of child pornography, and 20 years for each count of possession of child pornography. In addition, because Bosby has a prior sex offense, he faces mandatory minimum prison sentences of 15 years for receipt and 10 years for possession of child pornography. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Albuquerque Man Sentenced to Five Years for Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 68 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 31 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Dwayne Cunningham, 49, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison followed by five years of supervised release for his conviction on a methamphetamine trafficking charge.
Cunningham and his co-defendants, Devell Devoual, 35, and Cedric Laneham, 39, were arrested in July 2016, on an indictment charging them with conspiring to distribute methamphetamine between May 16, 2016 and June 2, 2016; Devoual and Laneham with distributing methamphetamine on May 17, 2016; and Devoual and Cunningham with possessing methamphetamine with intent to distribute on June 2, 2016. According to the indictment, the defendants committed the offenses in Bernalillo County, N.M.
On May 2, 2017, Cunningham pled guilty to distributing more than 50 grams of methamphetamine on May 17, 2016. Co-defendant Devoual also has entered a guilty plea and remains in custody pending his sentencing hearing.
Co-defendant Laneham has entered a not guilty plea and remains in custody pending his trial, which is scheduled for Sept. 1, 2017. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns.
Albuquerque Man Pleads Guilty to Federal Fraud, Identity Theft and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Ralph Eastman, 48, of Albuquerque, N.M., pled guilty yesterday in federal court to conspiracy, fraud, identify theft and theft of mail charges. Under the terms of Eastman’s plea agreement, he will be sentenced to 36 months in prison followed by a term of supervised release to be determined by the court.
Eastman and co-defendant Katie Carrillo, 26, also of Albuquerque, were charged in a 16-count indictment on Aug. 23, 2016, with conspiracy, ten counts of bank fraud, three counts of aggravated identity theft, and two counts of theft of mail. According to the indictment, the defendants committed the offenses from Dec. 2015 through April 2016, in Bernalillo County, N.M., by stealing mail and packages from cluster mailboxes located in apartment complexes. The mail stolen included checkbooks, checks, ATM cards, PIN numbers and personal identifiers of victims, which the defendants allegedly used to commit further crimes.
During yesterday’s change of plea hearing, Eastman pled guilty to the charges against him in the indictment, namely, conspiracy, eight counts of bank fraud, and two counts of theft of mail. Eastman also pled guilty to a felony information charging him with aggravated identify theft. In entering the guilty plea, Eastman admitted that from Dec. 2015 through April 2016, he conspired with others to steal mail and packages specifically to obtain financial information and forms of identification. Eastman further admitted that he and others altered checks and used them at local businesses in exchange for goods, services and online transactions. Eastman also admitted that he and others used stolen identifications and personal information to facilitate fraudulent transactions.
In his plea agreement, Eastman also acknowledged that he and others stole mail and packages from authorized depositories for the U.S. Postal Service through mailboxes located at an Albuquerque apartment complex on March 9, 2016 and March 12, 2016.
Carrillo has entered a plea of not guilty to the charges in the indictment. Charges in indictments are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The U.S. Postal Service, the Albuquerque Police Department and the Sandoval County Sheriff’s Office investigated this case, which is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei and Paul Mysliwiec.
Acting Manhattan U.S. Attorney Announces Fraud Charges Against Former New York City Police Officer and Staten Island ManRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the United States Department of Homeland Security’s Homeland Security Investigations, announced today the unsealing of a criminal Complaint charging MICHAEL RIZZI and EDWARD MONAHAN with bank fraud and conspiracy to commit bank fraud, in connection with a scheme to submit false documentation to a bank to make RIZZI’s sale of property to his friend and business partner look like an “arm’s length” transaction. MONAHAN was arrested in Staten Island, New York, and is was presented in federal court. RIZZI is currently incarcerated in Federal Correctional Institute, Loretto in Pennsylvania, and is expected to be presented in federal court early next week.
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
RIZZI purchased a property (the “Rizzi Property”) in 2007 with the assistance of a mortgage (the “Mortgage”) The Mortgage was acquired by a bank (“Bank-1”) that same year. Over time, RIZZI stopped paying the Mortgage and, in 2009, the Mortgage fell delinquent. In 2015, RIZZI contacted Bank-1 and requested a short sale due to financial hardship (the “Short Sale”). Bank-1 advised RIZZI that the Short Sale was required to be an “arm’s length” transaction, meaning that the buyer could not have any personal, familial, or business connections with RIZZI.
Later that year, MONAHAN agreed to buy the Rizzi Property from RIZZI. In connection with the sale and closing of the Rizzi Property, RIZZI and MONAHAN both executed various documents in which they affirmed that the buyer and the seller were engaged in an “arm’s length” transaction, and the seller and buyer of the Rizzi Property did not have a personal or business relationship. RIZZI and MONAHAN were, in fact, friends and business partners. Among other things, RIZZI and MONAHAN were partners in the ownership of Nitecap Megastore, a Staten Island adult sex and smoke shop. MONAHAN also has posted photos and videos on social media, which depict RIZZI and MONAHAN socializing with each other.
As a result of this scheme, Bank-1 suffered more than $250,000 in losses.
* * *
RIZZI, 45, of Brooklyn, New York, and MONAHAN, 45, of Staten Island, New York, are each charged in the Complaint with one count of bank fraud and one count of conspiracy to commit bank fraud. Each charge carries a maximum sentence of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of HSI’s El Dorado Task Force in this case, and thanked the New York City Police Department for its assistance.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Wednesday 2 August 2017
Wyoming County man sentenced to federal prison for possessing child pornographyRead the Press Release
BECKLEY, W.Va. - A Wyoming County man was sentenced today to three years and four months in federal prison and 15 years of federal supervised release for a child pornography crime, announced United States Attorney Carol Casto. Eddie Dwaine Justice, Jr., 30, of Hanover, previously pleaded guilty to possession of child pornography. After finishing his prison sentence, Justice will also be required to register as a sex offender.
Justice admitted that in July 2016, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer found in his residence. The investigation also revealed that Justice was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“Those who choose to exploit children should be aware of the serious consequences associated with these crimes,” stated United States Attorney Carol Casto. “Protecting the children of our communities is a top priority of this office, and we will keep working with our law enforcement partners to hold these predators accountable.”
The FBI conducted the investigation. Assistant United States Attorney Eric Bacaj is in charge of the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case was brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Wisconsin Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Carson Sibley, age 26, of LaCrosse, Wisconsin, has been charged with sexual exploitation of a child, enticement of a minor, travel for the purpose of engaging in illicit sexual conduct, and the commission of these offenses while being required to register as a sex offender. The charges are contained in an Indictment filed on July 19, 2017 in United States District Court in Cedar Rapids.
The Indictment alleges that, between April and June 2017, Sibley persuaded, induced, and enticed a minor to engage in sexual activity and to produce depictions of sexually explicit conduct, and that he traveled across a state line to engage in illicit sexual conduct. The Indictment also alleges that Sibley was convicted of offenses relating to the distribution and possession of child pornography in Hawaii in 2013, and it alleges that he was required to register as a sex offender this year.
If convicted, Sibley faces a possible maximum sentence of life imprisonment, a $1,000,000 fine, $20,400 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Sibley appeared on July 31 in federal court in Cedar Rapids and was held without bond. Sibley’s next appearance for trial is set for September 18, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, the Black Hawk County Sheriff’s Office, the Cedar Rapids Police Department, the LaCrosse Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-53.
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U.S. Attorney’s Office for Northern District of Texas Hosts 20th Annual Drug Education for Youth (DEFY) Summer CampRead the Press Release
DALLAS — The 20th Annual Drug Education for Youth (DEFY) Summer Camp was held last week at the Naval Air Station Joint Reserve Base (NAS JRB) in Fort Worth, Texas, where members of the U.S. Attorney’s Office for the Northern District of Texas, members of the military and local law enforcement worked together to host the one-week residential camp for at-risk youth. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
First Assistant U.S. Attorney Chad Meacham and Captain Jonathan R. Townsend of NAS JRB presented certificates to the 28 youth who attended this year’s DEFY summer camp at a graduation ceremony held Saturday morning, July 29, 2017, at NAS JRB. Camp attendees included at-risk youth from high crime and low income communities in the Dallas/Fort Worth Metroplex.
DEFY is a year-long, unique, comprehensive, and multi-phased program that reduces risk and strengthens protective factors that research has directly linked to adolescent alcohol and drug abuse, school failure, delinquency, and violence.
DEFY begins each year with the week-long, residential summer camp for selected at-risk youth, ages 10 - 11. At DEFY camp, the youth participate in a curriculum focused on healthy lifestyles to prevent drug abuse and gang involvement and resist negative peer pressure. To reinforce good practices learned at DEFY camp, DEFY continues throughout the year with classroom sessions, educational workshops and continued mentoring designed to provide the youth with additional life skills, training and tools to resist drugs and gangs.
The DEFY program is just another example of the partnerships that community groups and law enforcement undertake to build mutual trust and make our communities a safer place for all of us to live.
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Suburban Man Charged with Arson for Allegedly Setting Fire to His Employer’s Auto DealershipRead the Press Release
CHICAGO — An employee of a Rosemont auto dealership has been charged with arson for allegedly setting a fire that heavily damaged the dealership’s vehicles and office equipment.
BRYANT CAMERON set the fire at Epic Motorsports, 9739 Farragut St. in Rosemont, on the evening of July 24, 2017, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Cameron poured gasoline in the front office, reception and warehouse areas, and lit it on fire with the embers from his cigarette, the complaint states. He then quickly drove away from the scene, according to the complaint.
Fire departments from five different municipalities worked to extinguish the blaze. One firefighter suffered injuries consistent with dehydration, the complaint states. The fire damaged multiple vehicles, tools, office equipment, files and miscellaneous goods, according to the complaint.
Cameron, 28, of Broadview, was arrested on July 27, 2017. The complaint charges him with one count of arson. The charge is punishable by a minimum sentence of seven years in prison and a maximum of 40 years. A detention hearing is set for Aug. 7, 2017, at 1:30 p.m. before U.S. Magistrate Judge Michael T. Mason in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Rosemont Public Safety Department; Chicago Police Department’s Bomb and Arson Unit; Chicago Fire Department’s Office of Fire Investigation; and the Broadview Police Department.
The government is represented by Assistant U.S. Attorney Aaron R. Bond.
According to the complaint, Cameron’s duties at Epic Motorsports involved cleaning and moving cars, and picking up vehicles from neighboring states. Cameron was the last person to leave the facility on the night of the fire, the complaint states. A court-authorized search of Cameron’s vehicle on July 27, 2017, revealed items that had been reported stolen from Epic Motorsports, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Storm Lake Tax Return Preparer Sentenced in Federal Court for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
A woman who formerly operated her own tax return preparation business and prepared and filed fraudulent federal tax returns was sentenced to four years’ probation and ordered to pay a fine and restitution in federal court yesterday.
Toui Lo, age 56, from Storm Lake, received the sentence after a April 3, 2017, guilty plea to one count of aiding and assisting the preparation and filing of a false and fraudulent tax return.
In a plea agreement, Lo, who operated a tax return preparation business in Storm Lake, admitted she prepared and filed a false tax return on behalf of a client, fraudulently increasing the amount of the client’s refund by falsely claiming business expenses and various itemized deductions. Lo further admitted she filed multiple other similarly false tax returns between 2009 and 2013. Finally, at sentencing, Lo admitted that the false and fraudulent tax returns she prepared and filed resulted in more than $60,000 in unwarranted refunds for her clients.
Lo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lo was sentenced to four years’ probation and fined $3,000. A special assessment of $100 was imposed, and she was ordered to make $61,137 in restitution to the Internal Revenue Service.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Internal Revenue Service Criminal Investigation Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4017.
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Staten Island Woman Sentenced to 12 Years’ Imprisonment for Illegal Distribution of OxycodoneRead the Press Release
Earlier today before United States District Judge I. Leo Glasser in Brooklyn, New York, Carolyn Richardson was sentenced to 12 years’ imprisonment, to be followed by three years of supervised release, for operating a sophisticated scheme to fraudulently obtain and distribute thousands of Schedule II controlled substances, particularly opioids such as oxycodone, without a medical license. Richardson had previously pled guilty to conspiring to distribute and possess with intent to distribute oxycodone. Her co-defendant, Doraymus Robinson, who also previously pled guilty, was sentenced to eight years’ imprisonment for his role in the conspiracy on June 28, 2017.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
Between January 2015 and July 2016, Richardson and Robinson operated a fraudulent scheme to illegally obtain oxycodone and other prescription narcotics using the DEA registration number of an active practicing physician. Richardson had the physician’s prescriber information printed on fraudulent prescription pads, along with a fake address and a phone number that routed back to Richardson’s cell phone. The defendants wrote false prescriptions, which contained fake patient identification information and signatures, and used the prescriptions to fraudulently obtain oxycodone from pharmacies. If a pharmacy called to verify a prescription, Richardson answered the phone feigning to be an employee at the doctor’s office. Additionally, the defendants sold the fraudulent prescription pads for cash. Prior to arresting the defendants, law enforcement executed a search warrant on the defendants’ storage unit and recovered thousands of prescription pills filled in false names, fake prescription pads, dozens of identifications and health care cards, and a firearm.
“Carolyn Richardson and Doraymus Robinson used fraud and deceit to fuel the opioid epidemic for their own gain and at immeasurable cost to the community,” stated Acting United States Attorney Rohde. “This Office and our partners at the DEA will continue to use all the tools at our disposal to solve the opioid crisis, including by holding offenders, like Richardson and Robinson, accountable to the fullest extent under the law.”
“This sentencing highlights how drug dealers infiltrate medical practices in order to divert controlled substances to street sales, increasing the supply of opioids in our communities,” stated DEA Special Agent-in-Charge Hunt. “However, law enforcement is doubling down on opioid traffickers; targeting traditional street dealers selling heroin and tracking down white collar criminals diverting prescription medication.”
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 19 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
Statement by Attorney General Sessions on the Swearing in of FBI Director Chris WrayRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the swearing in of the new Federal Bureau of Investigation Director Chris Wray:
"Moments ago I had the honor of swearing in Chris Wray as our new Director of the Federal Bureau of Investigation.
"Chris has the experience and the strength of character that the American people want in an FBI Director and I congratulate him for being overwhelmingly confirmed to that post and look forward to working with him every day to keep America safe.
“As a former federal prosecutor and head of the Department of Justice's Criminal Division, Chris Wray has successfully prosecuted terrorists, drug kingpins, and white-collar criminals. He has earned the respect of his colleagues at DOJ, receiving our highest honor, the Edmund Randolph award, and bipartisan support in the Senate.
"I am confident that the FBI, the premier investigative agency in the world, is in great hands with Director Chris Wray at the helm."
Statement by Attorney General Sessions on the RAISE ActRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the RAISE Act:
“This proposal will help the Department of Justice perform its duties to uphold our nation's immigration law and end the unlawful abuse of our public benefits program that undermine U.S. taxpayers. The higher entry standards established in this proposal will allow authorities to do a more thorough job reviewing applicants for entry, therefore protecting the security of the U.S. homeland. The additional time spent on vetting each application as a result of this legislation will also ensure that each application serves the national interest.
“The American people deserve a lawful immigration system that promotes our national interest. The RAISE Act would give us a more merit-based immigration system that admits the best and the brightest around the world while making it harder for people to come here illegally. The bill would end programs known to be rife with fraud and abuse and finally improve the vetting process, making our country--and working-class wages--much safer and stronger."
Springfield Woman Sentenced for Stolen Mail, FraudRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman responsible for mail thefts from at least 40 victims in three counties, was sentenced in federal court today.
Lisa Beatrice Gee, 29, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole. The court also ordered Gee to pay $10,994 in restitution to her victims.
On March 15, 2017, Gee pleaded guilty to passing a forged check, credit card fraud and stealing mail. Gee admitted that she was in possession of stolen mail between Jan. 8 and March 17, 2016. When Gee was arrested on March 17, 2016, she was in possession of mail stolen by herself, or others at her direction, from at least 40 different individuals in Greene, Christian and Polk Counties. Gee admitted that she took checks, credit cards, Social Security cards and personal identification cards belonging to those mail theft victims. Gee used the contents of the stolen mail to engage in fraudulent criminal acts.
Gee admitted that she fraudulently conducted financial transactions with credit cards, debit cards, identification cards and personal identification numbers. Gee also passed a forged check on Jan. 23, 2016. Gee altered the check, which had been mailed from one person to another, to make it payable to a third person and deposited the check in that person’s bank account. Shortly thereafter, Gee withdrew the same amount of money from the account in the form of ATM cash withdrawals.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department, the Nixa, Mo., Police Department and the Ozark, Mo., Police Department.
Springfield Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for using a minor to produce child pornography.
Tyler Coons, 26, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Coons to 15 years of supervised release following his incarceration.
On Jan. 30, 2017, Coons pleaded guilty to one count of using a minor to produce child pornography and one count of receiving and distributing child pornography.
The investigation began when the father of an 11-year-old girl filed a report with the Greene County Sheriff’s Department on June 3, 2014, after his daughter received inappropriate Facebook messages from Coons. When he signed into his daughter’s Facebook account, he saw messages from Coons and set up a meeting with him, pretending to be his daughter. The father met Coons on the playground of a local elementary school and told him to have no further contact with his daughter.
On June 20, 2014, a search warrant was obtained for Coons’s Facebook account and Facebook provided investigators with more than 8,000 pages of private messages exchanged between Coons and others. Many of the messages were from young girls between the ages of 11 and 17. Coons asked several of the girls to send him pictures of themselves without clothes on.
During numerous Facebook conversations with girls claiming to be under the age of 18, Coons refers to exchanging naked pictures via social media, including Snapchat, Instagram and Kik. Frequently, during the conversations, Coons refers to the females as “jailbait” and indicates that he is aware he is engaging in illegal activity.
On July 10, 2014, detectives from the Greene County Sheriff’s Department executed a search warrant at Coons’s residence. Coons was inside the residence with a 17-year-old female, who was identified as one of the minors who had sent him several pornographic images of herself. Coons admitted that he and the 17-year-old victim were sexually active, and that they could have been sexually active while she was still 16 years old. Coons also admitted that he sent a naked picture of himself to her.
In an interview with investigators, the 17-year-old victim said that she and another minor, whom she believed to be 15 years old, had engaged in sexual activity with Coons at his residence on the night before the search warrant was executed.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Six Indicted on Federal Drug ChargesRead the Press Release
BOSTON – Six individuals were charged in an indictment unsealed today for their roles in a Worcester-based heroin and cocaine distribution operation.
Vito Nuzzolilo, 44, of Worcester; Kristin Little, 33, of Worcester; Thomas Walker, 43, of Pemaquid, Maine; Melissa Rock, 39, of Pemaquid, Maine; and Ricardo Ortega-Vasquez, 42, a Dominican national residing in New York City, were each charged on Thursday, July 27, in an indictment unsealed today with one count of conspiring to distribute, or to possess with the intent to distribute, heroin and cocaine. Nuzzolilo and Little were arrested on May 23, 2017, on a criminal complaint, and the three other defendants were already in custody on state charges.
Ryan Flynn, 35, of Leicester, was charged in a separate indictment with conspiring with Nuzzolilo to distribute cocaine and with possessing marijuana with intent to distribute. Flynn was arrested today and will be detained pending a hearing on Aug. 7, 2017.
According to court documents, Nuzzolilo and Little distributed heroin and cocaine from their apartment on Grafton Street in Worcester, where someone suffered a fatal heroin overdose. A federal wiretap revealed numerous communications in which Nuzzolilo directed various customers to the Grafton Street apartment, or to a separate space that Nuzzolilo maintained on Webster Street in Worcester, for the purpose of obtaining heroin or cocaine.
The wiretap further revealed that Nuzzolilo coordinated with a New York-based source of supply for the delivery of significant quantities of narcotics to Worcester, including an order of a kilogram of cocaine and 400 grams of heroin in April 2017. On May 7, 2017, law enforcement seized approximately 300 grams of cocaine from Ortega-Vasquez, who was riding in Nuzzolilo’s vehicle after Nuzzolilo ordered additional cocaine from his New York source. In addition, Walker and Rock arranged for the purchase of cocaine from Nuzzolilo and Little on credit, with Walker explaining that his “workers” had the cash to pay for it.
Flynn and Nuzzolilo also allegedly discussed a substantial drug debt owed by Nuzzolilo to Flynn, with Nuzzolilo explaining that he had given cocaine to Walker and was expecting cash in return, but that his timetable was disrupted when Walker was arrested. Nuzzolilo conveyed to Flynn that he had plenty or heroin but was out of cocaine, and then acquired additional cocaine from Flynn at Flynn’s residence in Leicester on May 1, 2017. Court records also show large cash deposits into Flynn’s bank account dating back to 2014. At least $8,110 was deposited in April 2017, at least $6,400 was deposited in March 2017, and at least $12,258 was deposited in February 2017.
Nuzzolilo faces a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. The remaining defendants face sentences of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Flynn also faces a charge of possession with intent to distribute marijuana, which provides for a sentence of up to five years in prison, a minimum of two years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Additional defendants involved with this drug trafficking organization are being prosecuted by the Massachusetts Attorney General’s Office.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Arrested in Registry of Motor Vehicles Identity Theft SchemeRead the Press Release
BOSTON –Six individuals, including four RMV clerks, were arrested today in connection with a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles. Some of the false identities and addresses were used to fraudulently register to vote in the City of Boston.
Evelyn Medina, 56, of Boston; Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; Bivian Yohanny Brea, 41, of Boston; and John Doe, a/k/a Flako, a/k/a Miguel, a/k/a Pablo D. Gonzalez Lopez, a/k/a Rafael R. Bonano, 32, whose identity and nationality has yet to be determined, were charged today in federal court in Boston with aggravated identity theft. The defendants are expected to appear in federal court this afternoon.
At the time of their arrest, Medina, Gracia, Jordan, and Brimage were employed as clerks at the Haymarket Registry of Motor Vehicles. Brea and Flako conspired with the RMV clerks to operate the scheme.
In October 2015, the Massachusetts State Police received an anonymous letter alleging that a corrupt RMV employee was providing stolen identifications and drivers’ licenses to individuals seeking false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were allegedly working with Brea, who acted as the document vendor, and Flako, who acted as the document dealer, to provide licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. First, it is alleged that Flako, the document dealer, sold a Puerto Rican birth certificate and U.S. Social Security card to Brea, the document vendor, for approximately $900. Brea, in turn, sold the stolen identities for over $2,000 to clients seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges.
After Flako sold Brea the false identification papers, Brea typically used the counterfeit documents and false identities and addresses to fraudulently register the clients to vote in the City of Boston. Then, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted cash to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
The charge of aggravated identity theft provides for a mandatory minimum of two years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation into the corruption and identity theft scheme is ongoing.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux City Man Sentenced to Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced August 2, 2017, to more than one year in federal prison.
Daniel Virgil Kleve, age 32, from Sioux City received the prison term after a March 20, 2017, guilty plea to one count of failure to register as a sex offender.
At the guilty plea, Kleve admitted that as the result of a 2007 conviction for possession of child pornography by a United States Army Court Martial, he was required to register as a sex offender under federal law. Between October 2015, and May 2016, he traveled in interstate commerce from Nebraska to Iowa, and failed to update his sex offender registration to reflect his employment in Iowa, as required by federal law.
Kleve was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Kleve was sentenced to 12 months’ and 1 day imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Kleve 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 Timothy Duax and investigated by United States Marshals’ Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4081.
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Seven Aliens Indicted on Illegal Reentry Charges, Passport Fraud, Social Security Fraud, and Illegal Possession of FirearmsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging EDUARDO AREVOLO, age 40, of Honduras, JOSE DAGOBERTO FUNEZ-PAGOADA, age 40, of Honduras, FELICIANO PACHECO-BAUTISTO, age 47, of Mexico, and JOSE SEVILLA-CRUZ, age 35, of Honduras, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned indictments charging MARIA MAGDALENA FRANCISCO-ABREU, age 55, of the Dominican Republic, with Passport Fraud, LUIS ANTONIO OSORIO-CEVALLOS, age 38, of Mexico, with Illegal and Unlawful Alien in Possession of Firearms, and ESAU RODRIGUEZ-CALDERON, age 34, of Honduras, with False Representation of a Social Security Account Number, and Fraud and Misuse of Visas, Permits, and other Documents.
If convicted of Illegal Reentry of a Deported Alien, FUNEZ-PAGOADA and SEVILLA-CRUZ, both found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
AREVOLO, found in Johnston County, and PACHECO-BAUTISTO, found in Wake County, are alleged to have been previously deported subsequent to aggravated felony convictions (sexual misconduct, and possession of counterfeit documents and document-making implements, respectively). Therefore, if convicted, they would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal and Unlawful Alien in Possession of Firearms, OSORIO-CEVALLOS, found in Robeson County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, and Fraud and Misuse of Visas, Permits, and other Documents, RODRIGUEZ-CALDERON, found in New Hanover County, would face maximum penalties of thirty years’ imprisonment, a $500,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations, Homeland Security Investigations, and the Department of State’s Diplomatic Security Service.
Schenectady Man Sentenced to 67 Months on Firearms ChargesRead the Press Release
NEW YORK – Keeshawn Nesbitt, a/k/a Keesshawn A. Nesbitt, a/k/a Big Homie, age 37, of Schenectady, New York, was sentenced today to 67 months in prison for unlawfully possessing three firearms and ammunition.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
The sentence arose out of three separate incidents in which Nesbitt, who was legally prohibited from possessing firearms because of prior felony convictions, unlawfully possessed and sold firearms in Schenectady and unlawfully possessed ammunition in the Bronx. Specifically, on May 2, 2014, Nesbitt unlawfully possessed and sold two firearms, a Springfield Armory, Model XD, .40-caliber pistol and a Raven Arms Model MP25, .25-caliber pistol, and on May 14, 2014, Nesbitt unlawfully possessed and sold a Norinco Model 54-1, .762-caliber pistol in Schenectady. On March 8, 2015, Nesbitt unlawfully possessed seven 9-millimeter ammunition cartridges in the Bronx.
Nesbitt pled guilty to the Bronx conduct on July 7, 2016 and to the Schenectady conduct on March 15, 2017. The Bronx case was brought by the United States Attorney’s Office for the Southern District of New York, and was transferred to the Northern District of New York to be resolved with the Schenectady case.
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, which will start after Nesbitt is released from prison.
The case was investigated by the Federal Bureau of Investigation, the Schenectady Police Department, the Schenectady County District Attorney’s Office, and the New York City Police Department, and was prosecuted by Assistant United States Attorney Sean O’Dowd in the Northern District of New York and Assistant United States Attorney David Zhou in the Southern District of New York.
Rosebud Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Annie Rose Gassman, age 33, was indicted on June 14, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2015, and June 14, 2017, Gasman knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled Substance, within South Dakota.
The charge is merely an accusation and Gassman is presumed innocent until and unless proven guilty.
This case is being investigated by the Rosebud Sioux Tribe Law Enforcement. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Gassman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.Richmond Man Sentenced to 108 Months in Prison for Possession of Child PornographyRead the Press Release
OAKLAND– Dumaka Hammond was sentenced to 9 years in prison for possession of child pornography, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable James Donato, U.S. District Judge.
According to papers filed with the court, Hammond, 40, of Richmond, admitted using an internet tool known as Tor to access and download child pornography. Hammond acknowledged that some of the images he downloaded depicted sadistic or masochistic content and some images and videos involved prepubescent children. Additionally, Hammond acknowledged that law enforcement found and removed from his home a laptop computer that contained more than 300 child pornographic images. On March 10, 2016, a federal grand jury indicted Hammond, charging him with possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Hammond pled guilty to the charge on March 8, 2017.
In addition to the prison term, Judge Donato ordered Hammond to serve a fifteen year period of supervised release to follow his custodial sentence. Hammond was also ordered to pay $3,000 in restitution to a child victim depicted in his collection. Hammond has been in custody since his arrest in March 2016.
Assistant U.S. Attorney Thomas Green is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the FBI.
Members of the public with information regarding suspected child predators or suspicious activity may contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Rapid City Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on July 17, 2017, by U.S. District Judge Roberto A. Lange.
Jonah Burning Breast, a/k/a Jonah Jarrett Burning Breast, a/k/a Jonah Jared Burning Breast, a/k/a Jonah Jared Big Crow, age 23, was sentenced to 12 months and 1 day in custody, 3 years of supervised release, a fine of $500, forfeiture of $506, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Burning Breast was indicted by a federal grand jury on February 15, 2017. He pled guilty on April 25, 2017.
On September 2, 2016, in Todd County, South Dakota, Rosebud Sioux Tribe Law Enforcement Services performed a traffic stop on a vehicle driven by Burning Breast. Found in the vehicle during the stop was 8 grams of methamphetamine, a Schedule II controlled substance, separated into five small plastic baggies, two scales, baggies, a torch-style lighter, and syringes, one of which was filled with methamphetamine. Burning Breast admitted that he intended to distribute the methamphetamine. Also found during the traffic stop was $506 in Burning Breast’s wallet.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Promise Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Promise, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 24, 2017, by U.S. District Judge Roberto A. Lange.
Emmett Delaine Traversie, age 21, was sentenced to 57 months in custody, 3 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on October 12, 2016, for Distribution of a Controlled Substance. A Superseding Indictment was returned on March 15, 2017, charging Traversie with Conspiracy to Distribute Methamphetamine. He pled guilty on May 2, 2017.
Between June 1, 2015 and March 15, 2017, Traversie knowingly and intentionally conspired with others to distribute methamphetamine in South Dakota. Traversie admitted he received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Traversie with methamphetamine knew that he intended to engage in further distribution. Traversie admitted that more than 350 grams of methamphetamine was distributed during the course of the conspiracy.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.Prior Felon from Albuquerque Sentenced to Eight and a Half Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Lucas James Maldonado, 35, of Albuquerque, N.M., was sentenced today in federal court to 102 months in prison for violating federal firearms laws. Maldonado will be on supervised release for three years after completing his prison sentence.
Maldonado was indicted on Dec. 3, 2014, and charged with being a felon in possession of a firearm on Feb. 20, 2014. The indictment was superseded on July 30, 2015, and charged Maldonado with a second felon in possession of a firearm and ammunition charge, and with being a violent felon in possession of body armor on June 10, 2015. The superseding indictment alleged that Maldonado committed the offenses in Bernalillo County, N.M. According to superseding indictment, Maldonado was prohibited from possessing firearms and ammunition because of his prior felony convictions for aggravated battery, false imprisonment, criminal damage to property and conspiracy to commit residential burglary.
On Feb. 9, 2017, Maldonado pled guilty to Count 2 of the superseding indictment charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Maldonado admitted that on June 10, 2015, law enforcement agents arrested him on several outstanding arrest warrants. Maldonado acknowledged that, during a search incident to arrest, the officer found a black semi-automatic handgun that was visible in the center console of his vehicle. Maldonado acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the New Mexico State Police. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Physician to Pay $120,000 to Resolve Comprehensive Drug Abuse Prevention Act Allegations Related to Controlled SubstancesRead the Press Release
Dr. George Cohlmia, a physician with offices in Tulsa and Tahlequah, entered into a settlement agreement to pay $120,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, announced Acting United States Attorney Loretta F. Radford of the Northern District of Oklahoma. The Comprehensive Drug Abuse Prevention Act of 1970 regulates the manufacture and distribution of controlled substances.
According to the settlement agreement, between April 2013 and June 2015, it was alleged that Dr. Cohlmia dispensed controlled substances outside of his DEA registered location and permitted employees to purchase and dispense controlled substances to themselves, other employees, and Dr. Cohlmia. It was further alleged that Dr. Cohlmia failed to keep an inventory and other required records concerning the ordering, receipt and dispensing of controlled substances.
This case was handled by Assistant United States Attorney Marianne Hardcastle. The claims asserted by the government are allegations only, and there has not been any determination of liability.
If you are aware of any illegal or unusual sales and/or distribution of prescription drugs, please contact the Drug Enforcement Administration at 1-877-792-2873.
Pennsylvania Man Pleads Guilty to Identity Theft and Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
A Pennsylvania man pleaded guilty to identity theft and conspiring to file fraudulent tax refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Despite not having a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this account. Zamor withdrew money from this account to provide to other co-conspirators, keeping a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.
Zamor is scheduled to be sentenced on Nov. 14 before U.S. District Court Judge John R. Padova. He faces a statutory maximum sentence of 10 years in prison on the conspiracy charge and 15 years in prison on the identity theft charge, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owners of Hudson County, New Jersey, Scrap Metal Company Charged with 17-Year Conspiracy to Defraud CustomersRead the Press Release
NEWARK, N.J. – The owners of Cinelli Iron & Metal Co. (CIMCO) were arrested today and charged with operating a 17-year conspiracy that defrauded customers out of millions of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Craig Cinelli, 47, of Allendale, New Jersey, and his brother, Joseph Cinelli Sr., 61, of Montvale, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud. They were arrested this morning and are expected to appear this afternoon before U.S. Magistrate Cathy L. Waldor in Newark federal court.
David Barteck, 53, of Wood Ridge, New Jersey, the former chief financial officer of CIMCO, pleaded guilty on July 26, 2017 before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Craig Cinelli, Joseph Cinelli Sr., Barteck and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul.
The wire fraud conspiracy and substantive wire fraud counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
During his plea hearing, Barteck admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million. His sentencing is scheduled for Oct. 30, 2017.
The charges and allegations contained in the indictment are merely accusations, and Craig Cinelli and Joseph Cinelli Sr. are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel:
Craig Cinelli: Ray Flood, Esq., Hackensack, New Jersey
Joseph Cinelli Sr.: Jonathan Goldstein, Esq., Newark, New Jersey
David Barteck: John J. Bruno Jr. Esq. and John F. Latoracca Esq., Rutherford, New Jersey
Owner of Hunting Guide Company Pleads Guilty to Lacey Act ViolationsRead the Press Release
WICHITA, KAN. – The owner of a hunting guide company in Elk County pleaded guilty and was sentenced Wednesday for violating state and federal laws while taking clients on hunting trips, U.S. Attorney Tom Beall said.
Josh Hedges, 35, Grenola, Kan., owner of Eagle Head Outfitters, LLC, pleaded guilty to one count of conspiracy to violate the Lacey Act and one count of violating the Migratory Bird Treaty Act. He was sentenced to five years on probation and ordered to pay $15,000 restitution to the Kansas Department of Wildlife, Parks and Tourism Restitution Fund. In addition, he was forbidden to hunt, trap or guide for 12 years. Hedges also agreed to divest himself of the company.
Hedges admitted directing his guides to:
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Place corn, wheat and soybeans around ponds as bait for waterfowl.
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Help hunters to exceed their daily bag limits by offering to say they shot some of the birds the hunters shot.
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Fail to tag, process and transport birds as required by state and federal law.
In addition, Hedges admitted that he shot a hawk from his vehicle while sitting on a county road near Grenola.
Beall commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
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Orange County Woman Guilty of Orange and Lake Charles Bank RobberiesRead the Press Release
BEAUMONT, Texas – A 51-year-old Vidor, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Eva Renee Powell pleaded guilty to bank robbery today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on May 20, 2016, Powell entered the Capital One Bank in Orange, Texas wearing sunglasses, a bulky coat and a dark hat. Powell gave a note to the teller demanding money and threatening to blow up the bank if bank personnel did not comply or alerted authorities. Powell fled with an unspecified amount of cash. She was not identified as the Capital One bank robber until nearly a year later, on March 18, 2017, she was caught fleeing a remarkably similar bank robbery in Lake Charles, Louisiana. Investigators with the Orange Police Department were able to connect her to the Orange, Texas bank robbery. In a combined proceeding in Beaumont federal court, Powell also pleaded guilty to the Lake Charles, LA, bank robbery. In that case, as she was fleeing the bank with an undisclosed amount of cash, a concerned citizen followed her get-away car and called authorities. He was then able to block her car's escape from a parking lot long enough for the Lake Charles police to arrive and make the arrest.
Under federal statutes, Powell faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, the Lake Charles Police Department, the Calcasieu Parish Sheriff’s Office, the Orange County Sheriff’s Office, and Orange Police Department and is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Operation “Real Time”: Greenville Man Pleads Guilty to Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated that Travis Sanchez Hunt, age 23, of Greenville, South Carolina, entered a guilty plea this morning in federal court in Greenville to Possessing Firearms in Furtherance of a Drug Trafficking Crime, in violation of Title 18 U.S.C. § 924(c). Senior United States District Judge Henry M. Herlong, Jr., accepted the guilty plea and will impose the sentence after United States Probation prepares a presentence report.
Evidence presented by First Assistant US Attorney Lance Crick at the change of plea hearing established that on Saturday, May 6, 2017, officers with the Greenville Police Department (GPD) responded to a dispute at a residence in Greenville. Witnesses alerted GPD that Hunt had a gun in his waistband before placing a firearm in a laundry hamper. A search of the hamper revealed two loaded 9mm pistols and multiple clear baggies containing substances that field-tested positive for cocaine and crack cocaine. GPD also found over $2600 in cash, two digital scales, and additional baggies in a stairwell leading to Hunt’s bedroom. In Hunt’s bedroom, GPD located additional baggies and another digital scale.
On Sunday, May 7, 2017, a GPD officer cross-designated as an ATF Task Force Officer pursuant to Operation “Real Time” interviewed Hunt in the Greenville County Detention Center. During the post-Miranda interview, Hunt stated that he moved a purple towel containing two firearms and “work” (a term referring to drugs) from a shelf in the laundry room to a laundry hamper. Hunt stated he did this because he knew the police were coming.
Hunt also stated that he placed one of the firearms into his waistband because he thought he may need to defend himself from the family. Hunt stated that moved the firearm from his waistband to the laundry basket as police arrived. Hunt, who was arrested on a number of state charges from this incident as well as on outstanding state bench warrants, said he knew he was going to jail because he had previously cut off his ankle monitor. A federal arrest warrant was signed for Hunt on Monday, May 8, 2017. Hunt remains in custody, detained since his arrest on May 6.
This case underscores GPD and ATF’s continuing “real time” identification of firearms cases for federal adoption by the US Attorney’s Office, working in concert with the 13th Circuit Solicitor’s Office. The goal of this partnership is to identify cases for federal prosecution involving individuals who continue to possess firearms despite significant criminal histories. Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 119 defendants and seizure of 163 firearms as well as assorted ammunition from prohibited persons.
In addition to GPD and ATF, Real Time’s core partners include the Greenville County Sheriff’s Office, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, United States Probation, Department of Homeland Security, FBI, DEA, 13th Circuit Solicitor’s Office, 7th Circuit Solicitor’s Office, and the US Attorney’s Office.
Hunt faces a mandatory minimum of five years in federal prison and a maximum of life. The case was investigated by ATF and the Greenville Police Department. First Assistant US Attorney Lance Crick is handling the prosecution.
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Ohio Man Sentenced to 20 Years in Prison for Soliciting Murder of U.S. Military MembersRead the Press Release
Terrence J. McNeil, 24, of Akron, Ohio, was sentenced today to 20 years in prison for soliciting the murder of members of the U.S. military. McNeil pleaded guilty earlier this year to five counts of solicitation to commit a crime of violence and five counts of making threatening interstate communications.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“With this sentence, McNeil is being held accountable for disseminating ISIS’s violent rhetoric, circulating U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities,” said Acting Assistant Attorney General Boente. “The National Security Division will continue to investigate and prosecute those who use social media to threaten acts of violence against our military members and their families, on behalf of terrorist organizations.”
“This defendant was dedicated to attacking members of the military here in the United States,” Acting U.S. Attorney Sierleja said. “This kind of fanaticism is dangerous and will be aggressively prosecuted.”
“It is reassuring knowing that Terrence McNeil will spend a significant amount of time behind bars for the crimes he committed. The FBI will continue to aggressively defend First Amendment rights, however in this case, McNeil went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “The FBI will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to documents filed in the case:
McNeil professed his support on social media on numerous occasions for the Islamic State of Iraq and al-Sham, a designated foreign terrorist organization. On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch. The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
The defendant posted multiple other kill lists in late 2015, all of which repeated the same refrain, calling on others to seek out and murder U.S. servicemen and women.
McNeil also researched the price online of firearms for sale and possessed detailed bomb-making instructions, according to court documents.
The FBI’s Joint Terrorism Task Force in Cleveland investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Christos Georgalis and Michelle Baeppler of the Northern District of Ohio, with assistance from Trial Attorney Jennifer Levy of the Counterterrorism Section of the Justice Department’s National Security Division.
Oglala Tribal Member Sentenced for Involuntary ManslaughterRead the Press Release
POCATELLO – Ruben Wounded Head, III, 20, of Chubbuck, Idaho, was sentenced today to a total of 46 months imprisonment for involuntary manslaughter resulting from a drunk driving crash, Acting U.S. Attorney Rafael Gonzalez, announced. Wounded Head will serve 34 months in federal prison in addition to the 12 months he already served in Fort Hall Tribal Jail on the same charge, for a total of 46 months. Wounded Head pleaded guilty to the charges in federal court in May 2017.
According to the plea agreement, on November 13, 2015, Wounded Head drove with friends to buy alcohol, and his friends left the store with two bottles of Bacardi rum and went to an area on the Fort Hall reservation known as Ferry Butte. There, Wounded Head drank one bottle of rum. Wounded Head then drove his friends back to a residence on the reservation and then proceeded to drive home. At approximately 2:50 a.m., at the intersection of Hawthorne Road and Cemetery Road, Wounded Head’s 2005 Chevrolet Avalanche crossed the centerline and crashed head-on into a Chevrolet Tahoe, killing both occupants of the Tahoe. Wounded Head’s Avalanche was traveling between 59 and 61 miles per hour at the time of crash. The posted speed limit in the area is 45 miles per hour. Wounded Head’s blood alcohol level at the hospital was 0.216 percent, far in excess of the legal limit.
Chief U.S. District Judge B. Lynn Winmill also ordered Wounded Head to pay $13,480 in restitution to the victims’ families and ordered that Wounded Head be on supervised release for three years following his prison sentence.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Tribal Police.
New York Man Pleads Guilty to Multi-State Biodiesel Fraud SchemeRead the Press Release
Andre Bernard, of Mount Kisco, New York, pleaded guilty today for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.
According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Sara C. Sweeney of the Middle District of Florida and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
New York Man Pleads Guilty to Multi-State Biodiesel Fraud SchemeRead the Press Release
Orlando, FL – Andre Bernard, of Mount Kisco, New York, pleaded guilty today for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney W. Stephen Muldrow.
According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Sara C. Sweeney of the Middle District of Florida and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
New York City Health and Hospitals Employee Charged with Possessing Child PornographyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Mark G. Peters, the Commissioner of the New York City Department of Investigation, announced the arrest of DANIEL SHERLOCK stemming from his possession of child pornography. SHERLOCK was arrested today and will be presented today before United States Magistrate Judge Henry Pitman in Manhattan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Daniel Sherlock, a city employee, had child pornography on his work computer, which he tried to conceal through a computer program designed to permanently delete files. Whatever efforts are made to avoid detection, we are committed to prosecuting child pornography offenses and protecting children from sexual exploitation.”
DOI Commissioner Mark G. Peters said: “This defendant allegedly used his access to NYC Health + Hospital computers to download child pornography, according to the criminal complaint. DOI’s comprehensive investigation recovered dozens of these disturbing images, and even before today’s arrest DOI quickly put protocols in place to prevent this defendant from accessing City hospital computers and properties. This charged crime is serious and the security of City facilities of paramount importance – there can be no tolerance for this type of grotesque behavior. We thank the United States Attorney’s Office for the Southern District of New York for their swift response and partnership on this investigation.”
According to the Complaint[1] unsealed today in federal court:
In June 2017, law enforcement agents searched SHERLOCK’s work computer and recovered 86 images of child pornography, many of which depicted prepubescent children engaged in sexual activity with adults. Law enforcement agents also discovered that a program named “CCleaner,” which is a privacy and cleaning tool for computers that removes files, cleans the computer registry, and cleans traces of online activities, had been installed on SHERLOCK’s computer. New York City Health and Hospitals’ records confirmed that SHERLOCK had been at work on the days the child pornography was created and “CCleaner” was installed.
* * *
DANIEL SHERLOCK, 28, of East Meadow, New York, is charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning DANIEL SHERLOCK that may be relevant to the investigation should contact the United States Attorney’s Office through its toll-free hotline at 212-637-0650.
Mr. Kim praised the Criminal Investigators of the U.S. Attorney’s Office, and the New York City Department of Investigation and its Office of the Inspector General for NYC Health + Hospitals for their outstanding investigative work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Alexandra N. Rothman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Navajo Man Sentenced to Ten Years in Federal Prison for Conviction on Involuntary Manslaughter ChargesRead the Press Release
ALBUQUERQUE – Tracey Beaver, 38, an enrolled member of the Navajo Nation who resides in Pinehill, N.M., was sentenced yesterday in federal court in Santa Fe, N.M., to 60 months of imprisonment on each of two counts of involuntary manslaughter to run consecutively for a total of 120 months of imprisonment. Beaver will be on supervised release for three years after completing his prison sentence.
Beaver was arrested on Sept. 24, 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Beaver killed two victims when he crashed his vehicle on Sept. 9, 2016, on the Ramah Navajo Indian Reservation in Cibola County, N.M. At the time of the crash, Beaver was driving under the influence of alcohol.
On Nov. 16, 2016, Beaver pled guilty to a felony information charging him with two counts of involuntary manslaughter. In entering the guilty plea, Beaver admitted killing the two victims by driving recklessly while under the influence of alcohol. Beaver acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Gallup office of the FBI, the New Mexico State Police and the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Nicholas Marshall.
Multi-Agency Investigation Dismantles Lea County-Based Drug Trafficking OrganizationRead the Press Release
ALBUQUERQUE – Seven residents of Lea County, N.M., including four Mexican nationals, and a resident of Yuma, Ariz., are facing federal narcotics trafficking and money laundering charges as the result of a multi-agency investigation led by the DEA into a significant drug trafficking organization based in Hobbs, N.M., that allegedly imported methamphetamine and cocaine into Lea County from Mexico through Arizona.
Acting U.S. Attorney James D. Tierney and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division announced the federal charges today following a law enforcement operation in Lea County that resulted in the arrest of seven of the eight defendants. Joining them in making the announcement were Special Agent in Charge Waldemar Rodriguez of HSI in El Paso, Commander Sean Roach of the Lea County Drug Task Force, Lea County Sheriff Byron Wester, and Hobbs Police Chief Chris McCall.
The charges in the 20-count indictment are the result of an investigation by the DEA, HSI and the Lea County Drug Task Force of HIDTA Region 6 into a Lea County-based drug trafficking organization allegedly led by Jose Raul Mendivil-Berrelleza, a Mexican national who resides in Hobbs. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
During the course of the investigation, law enforcement authorities seized 13 kilograms (28.6 pounds) of pure methamphetamine and 1.2 kilograms (2.6 pounds) of cocaine during a traffic stop in Lea County on Feb. 27, 2017. They also seized $14,000 in cash during a vehicle inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Dona Ana County, N.M., on July 5, 2017. During today’s law enforcement operation, law enforcement authorities executed federal search warrants at three residences and two travel trailers in Hobbs and seized approximately .25 kilograms (.55 pounds) of cocaine, a handgun and approximately $5000.
In announcing the results of the investigation, Acting U.S. Attorney James D. Tierney said, “This investigation was a coordinated effort to crackdown on drug trafficking in southeastern New Mexico. It is part of our statewide fight against illegal drugs and the cycle of violence that goes hand in hand with drug trafficking. Those who choose to engage in drug trafficking should be on notice that federal, state and local law enforcement are committed to working together to put them out of business and into prison cells.”
“Law enforcement at the local, state and federal levels have joined together to dismantle a criminal organization allegedly responsible for spreading poison on the streets of Hobbs and the surrounding area,” said Special Agent in Charge Will R. Glaspy of the DEA El Paso Division. “Today’s enforcement operation is part of DEA’s ongoing commitment to attack the drug trafficking that endangers our communities as well as the related violence that goes with it.”
“Today’s arrests and search warrants solidifies HSI’s cooperation with DEA and the U.S. Attorney’s Office to work jointly with our local law enforcement partners to identify transnational organizations that continue to poison our local communities with illegal narcotics,” said Special Agent in Charge Waldemar Rodriguez of HSI El Paso. “Our fight to bring those who violate narcotics trafficking laws to justice will continue unapologetically.”
The 20-count indictment charges alleged ringleader Mendivil-Berrelleza and seven co-defendants with conspiracy, methamphetamine and cocaine trafficking, and money laundering offenses. Count 1 of the indictment charges all eight defendants with participating in a conspiracy to traffic methamphetamine and cocaine in Lea County and elsewhere between Nov. 2016 and July 2017. Count 2 charges Mendivil-Berrelleza and Roberto Rendon-Duran, 70, of Yuma, Ariz., with participating in an international money-laundering conspiracy. Counts 3 through 5 charge certain defendants with methamphetamine trafficking offenses and Count 6 charges certain defendants with a cocaine trafficking offense. Counts 7 through 20 charge certain defendants with using communications devices to facilitate their drug trafficking activity.
Another defendant, who was arrested on June 13, 2017, also has been federally charged as the result of the investigation. Felipe T. Castillo, of Eunice, N.M., is charged in a criminal complaint with being a felon in possession of a firearm. The charge allegedly arises out of an incident during which Castillo, a convicted felon, pointed a firearm at an officer who was conducting surveillance in connection with the investigation.
Mendivil-Berrelleza and the other six defendants who were arrested yesterday and today as the result of the investigation are scheduled to make their initial appearances in federal court in Roswell, N.M., at 10:30 a.m. on Aug. 3, 2017. One defendant, Miguel Luna-Arredondo, has yet to be arrested and is considered a fugitive.
“This investigation has been a team effort between all agencies involved and it culminated with a safe takedown. Anytime you can take a large amount of narcotics off the streets is a good day,” said Commander Sean Roach of the Lea County Drug Task Force. “I cannot say thank you enough to all of the agencies that participated throughout the investigation. This investigation and arrests will have a major impact on the stream of narcotics coming into the Lea County area as well as the surrounding areas.”
“This investigation is an example of cooperation between local and federal law enforcement to combat the distribution of illegal narcotics within our community,” said Sheriff Byron Wester of the Lea County Sheriff’s Office. “The Lea County Drug Task Force and the Drug Enforcement Administration jointly completed a successful investigation and operation today that attempts to rid our community of illegal narcotics. I thoroughly appreciate their efforts to make our community a safer place.”
Chief Chris McCall of the Hobbs Police Department said, “The Hobbs Police Department was extremely happy to partner with the other agencies involved in this investigation and we appreciate the partnerships. The results of this investigation will undoubtedly slow the flow of drugs into our community and have a positive impact on the safety of our citizens.”
This case was investigated by the DEA and HSI offices in Las Cruces and the Lea County Drug Task Force with assistance from the Lea County Sheriff’s Office and the Hobbs Police Department. In addition, the following law enforcement agencies participated in today’s law enforcement operation: Hobbs Police Department, Jal Police Department, Lovington Police Department, New Mexico State Police, Dona Ana County Sheriff’s Office, IRS Criminal Investigation, U.S. Marshals Service and the U.S. Border Patrol. Assistant U.S. Attorneys Terri J. Abernathy and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Indictment in United States v. Jose Raul Mendivil-Berrelleza, et al., 17-CR-1913
Summary of the Charges
Count 1 of the Indictment charges the eight defendants with participating in a conspiracy to distribute methamphetamine and cocaine. The statutory penalty for a conviction on this count is imprisonment for not less than ten years nor more than life and a $10 million fine.
Count 2 charges two defendants with participating in an international money laundering conspiracy. The maximum statutory penalty for a conviction on this count is 20 years and a $500,000 fine.
Counts 3 and 4 charge certain defendants with possession with intent to distribute more than 50 grams of a mixture and substance containing methamphetamine. The maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years and a $5 million fine.
Count 5 charges certain defendants with possession with intent to distribute more than 50 grams of methamphetamine. The statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life and a $10 million fine.
Count 6 charges certain defendants with possession with intent to distribute more than 500 grams of cocaine. The maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years and a $5 million fine.
Counts 7 through 20 charge certain defendants with using communication facilities to facilitate drug trafficking crimes. The maximum statutory penalty for a conviction on each of these counts is imprisonment for four years and a $250,000 fine.
Charges against Defendants
Jose Raul Mendivil-Berrelleza, 33, a Mexican national residing in Hobbs, N.M., is charged in Counts 1, 2, 4-6, 8-14, 16, 18 and 19 of the indictment. Mendivil-Berrelleza was arrested this morning.
Daniel L. Perea, 37, of Hobbs, N.M., is charged in Counts 1, 4-8, 10, 11, 14, 15, 17 and 20 of the indictment. Perea was arrested this morning.
Jeremy W. Gough, 40, of Hobbs, N.M., is charged in Counts 1, 3, 15 and 20 of the indictment. Gough was arrested this morning.
Miguel Angel Luna-Arredondo, 24, a Mexican national, is charged in Counts 1 and 4-6 of the indictment. Luna-Arredondo has yet to be arrested and is considered a fugitive.
Carlos Espinoza-Perez, 27, a Mexican national residing in Hobbs, N.M., is charged in Counts 1, 9, 12, 13 and 19 of the indictment. Espinoza-Perez was arrested this morning.
David Torres-Arellanes, 28, a Mexican national residing in Hobbs, N.M., is charged in Counts 1 and 16-18 of the indictment. Torres-Arellanes was arrested this morning.
Roberto Rendon-Duran, 70, of Yuma, Ariz., is charged in Counts 1 and 2 of the indictment. Rendon-Duran was arrested this morning.
Reco Curry, 37, of Hobbs, N.M., is charged in Counts 1, 4 and 7 of the indictment. Curry was arrested last night.
Criminal Complaint in United States v. Felipe T. Castillo, 17-MJ-1492
Felipe T. Castillo, 38, of Eunice, N.M., is charged with being a felon in possession of a firearm and ammunition. The criminal complaint alleges that Castillo, who has two prior felony convictions, unlawfully possessed a firearm and ammunition on May 31, 2017, in Hobbs, N.M. According to the criminal complaint, on May 31, 2017, Castillo pointed a firearm at a law enforcement officer who was conducting surveillance in connection with this investigation. If convicted, Castillo faces a maximum statutory penalty of ten years of imprisonment and a $250,000 fine. Castillo was arrested on June 13, 2017, and remains in federal custody pending trial.
Charges in indictments and criminal complaints are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Mendivil Berrelleza et al IndictmentMississippi Tax Return Preparer Sentenced to Prison for Obstructing the IRS and Filing False ReturnsRead the Press Release
WASHINGTON – A Gulfport, Mississippi, tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents and information presented to the court, Doris Kelley, 65, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.
In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $519,635.72 in restitution, to include $357,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Mississippi Tax Return Preparer Sentenced to Prison for Obstructing the IRS and Filing False ReturnsRead the Press Release
A Gulfport, Mississippi, tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents and information presented to the court, Doris Kelley, 65, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.
In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $519,635.72 in restitution, to include $357,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Media Advisory: Effective Communications with Persons with Disabilities WorkshopRead the Press Release
SIOUX CITY, Iowa – The United States Attorney’s Office and Deaf Iowans Against Abuse (“DIAA”) will present the “Effective Communications with Persons with Disabilities Workshop” on Wednesday, August 16, 2017, 9:00 a.m. – 5:00 p.m. at the Sioux City Public Library, 529 Pierce Street, Gleeson Room, Sioux City, Iowa.
This conference will cover the purposes and goals of Title II and Title III of the Americans with Disabilities Act, specifically in the area of effective communications for those who interact with persons who are hard of hearing, deaf, or blind. The morning session will focus on those who work in law enforcement, the courts, city managers, ADA coordinators, and public safety entities. The afternoon session will focus on those who work in the health care industry including hospital administrators, medical facilities and offices.
Featured speakers include Jennifer Upah‑Kyes, Executive Director of Deaf Iowans Against Abuse, Inc.; Katie Hayden, Assistant United States Attorney, Northern District of Iowa, Sioux City, Iowa; and Stephanie Wright, Assistant U.S. Attorney, Northern District of Iowa, Cedar Rapids.
“Recent events on both the national and local levels involving members of the deaf and hard-of-hearing community have proven that effective communication is vital,” said Jennifer Upah-Kyes, Executive Director of Deaf Iowans Against Abuse, Inc.
Sean Berry, Acting U.S. Attorney, Northern District of Iowa, added, “The Americans with Disabilities Act requires state and local government and private entities to ensure their communications with people with disabilities are as effective as communications with those without disabilities. This important training will assist participating organizations in their efforts to effectively communicate with persons who are hard of hearing, deaf, or blind. The training will also help persons with these disabilities to understand their rights when communicating with public and private entities.”
The training is free and open to the public. RSVPs are requested by August 9, 2017, but not required. Interested parties may register by contacting Stephanie Wright at [email protected]. United States Department of Justice, U.S. Attorneys’ Offices, will provide reasonable accommodations to people with disabilities. Requests should be made to Stephanie Wright, toll-free at (877) 398-2842, TTY (319) 286-9258, or e-mail at [email protected], as early as possible, preferably, at least two weeks in advance of the conference. No attendee will be excluded from a presentation on the basis of a disability-related accommodation request.
Event Details
When: Wednesday, August 16, 2017
Where: Sioux City Public Library, 529 Pierce Street
Time: 9:00 a.m. – 5:00 p.m.
Follow us on Twitter @USAO_NDIA.
Manhattan U.S. Attorney’s Office Closes Criminal Investigation into the April 21, 2015 Death of Samuel Harrell at Fishkill Correctional FacilityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William V. Grady, the Dutchess County District Attorney, announced today that there is insufficient evidence to pursue criminal charges in connection with the death of Samuel Harrell. Mr. Harrell, who was an inmate at the Fishkill Correctional Facility in Beacon, New York, died on April 21, 2015, following an altercation with correctional officers. Mr. Harrell was 30 years old at the time. The Acting U.S. Attorney and the District Attorney met today with Mr. Harrell’s family and their representatives to inform them of this decision.
After conducting a thorough and independent investigation, career prosecutors determined that there is insufficient evidence to meet the high burden of proof required for a federal criminal civil rights prosecution. To prove a violation of the federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a federal criminal civil rights violation.
The Dutchess County District Attorney’s Office also finds that there is insufficient evidence to meet the high burden of proof necessary to support a prosecution under any State theory of homicide. Although there was a physical altercation with corrections officers, the theory of such a homicide prosecution would require that death occurred as a result of an intentional act, a reckless act, or a criminally negligent act. Any State law theory would require a direct causal connection between any injuries inflicted by the corrections officers and the resulting death. The uncontroverted findings of the autopsy in this case find no such connection.
The evidence developed during this investigation reveals the following: Mr. Harrell resided in Building 21 of the Fishkill Correctional Facility, which contains housing units for inmates, including inmates with mental health issues. On the evening of April 21, 2015, Mr. Harrell packed his personal belongings and told corrections officers that he was leaving the facility. Mr. Harrell had not yet completed his term of incarceration. A call was placed to the mental health unit for assistance. Mr. Harrell then ran from his housing unit and attempted to exit the facility. Mr. Harrell ran head-first into a locked exit door before a group of corrections officers used physical force to apprehend and handcuff him. Mr. Harrell was over six feet tall and weighed approximately 240 pounds.
There is no video evidence of the altercation between Mr. Harrell and the corrections officers and numerous eyewitness accounts of the incident, including those provided by inmates, are inconsistent and contradictory. After the altercation, Mr. Harrell and several officers were taken to the facility’s medical unit. One officer was transported to the medical unit on a stretcher and later treated at a hospital for bruised ribs. A group of officers transported Mr. Harrell to the medical unit in a wheelchair. Mr. Harrell had a faint pulse upon arrival, but shortly thereafter, his pulse could not be detected. Medical staff attempted to resuscitate Mr. Harrell. Mr. Harrell was transported to St. Luke’s Cornwall Hospital, in Orange County, where he was pronounced dead.
The Orange County Medical Examiner performed an autopsy on April 22, 2015. The Medical Examiner concluded that, although the manner of death was noted in the report as “homicide,” the cause of death was “cardiac arrhythmia due to hypertensive cardiovascular disease following physical altercation with corrections officers.” In addition, the Medical Examiner found that Mr. Harrell suffered from cardiac hypertrophy, or an enlarged heart. No bone fractures or other serious injuries were found. While the Medical Examiner identified soft-tissue injuries on Mr. Harrell’s arms and legs and one soft-tissue injury on the front of Mr. Harrell’s head, there is insufficient evidence to prove beyond a reasonable doubt that these injuries resulted from the use of excessive force. The Medical Examiner found no indication that Mr. Harrell was asphyxiated, and confirmed that none of the injuries, singularly or collectively, were a direct cause of Mr. Harrell's death.
In light of the absence of video evidence, the inconsistent eyewitness accounts, and the inconclusive medical evidence of excessive use of force, the Department of Justice could not prove beyond a reasonable doubt that any corrections officer willfully violated Mr. Harrell’s constitutional rights.
This Office analyzed these issues under the standard applicable to criminal cases, which is proof beyond a reasonable doubt. The Office expresses no view regarding any claims made against any party under the standard applicable to civil cases, which is proof by a preponderance of the evidence.
Accordingly, this Office’s investigation into Mr. Harrell’s death has been closed.
Mr. Kim thanked the Dutchess County District Attorney’s Office, the Federal Bureau of Investigation, Investigators from the U.S. Attorney’s Office, SDNY, and the New York State Department of Corrections and Community Supervision’s Office of Special Investigation for their assistance in this investigation.
Mr. Kim expressed his deep sympathy to the family of Mr. Harrell for their tragic loss.
Man Sentenced to over Eight Years in Prison for Jewelry Store Armed RobberyRead the Press Release
RENO, Nev. – A man was sentenced on Tuesday to 102 months in prison for armed robbery of a jewelry store located in the Summit Sierra mall, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Al Christopher Braxton Allen, 35, of Las Vegas, pleaded guilty on May 1, 2017, to one count of use of a firearm during and in relation to a crime of violence. United States District Judge Robert C. Jones presided over the sentencing hearing.
According to admissions made in the plea agreement, on Sept. 14, 2016, Braxton entered the DeVons Jewelry store in the Summit Sierra mall, brandished a Llama .357 caliber revolver, and demanded “All the Rolexes and Diamonds” several times to an employee. Allen stole a total of approximately 106 watches and jewelry with a value of $449,600. One of the stolen watches was equipped with a 3SI tracking device. After a review of the store’s surveillance video, law enforcement detained Allen, who matched the robbery suspect’s description, near the mall.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Reno Police Department. The case was prosecuted by Assistant U.S. Attorney Megan Rachow.
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Man Sentenced to 30 Years in Prison for 2010 Armed RobberiesRead the Press Release
A North St. Louis man will serve 30 years in federal prison for robbing two convenience stores and shooting a store clerk in 2010. Leslie Woods, 23, was sentenced yesterday in the U.S. District Court to 30 years in prison for his role in the June 17, 2010 armed robbery and shooting that that occurred at the Best Stop convenience store in Cahokia, Illinois and the July 8, 2010 robbery and shooting that occurred at D&D’s MiniMart, also located in Cahokia, Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Documents filed in the U.S. District Court establish that on June 17, 2010, Leslie Woods, Derek Marshall, Terrell McGee and James Smith robbed the Best Stop convenience store partially masked and armed with a rifle and two handguns, one of which was a .40 caliber pistol Marshall had stolen during a burglary of a St. Louis gun store earlier in June. Woods, acting as the getaway driver, drove Marshall, McGee and Smith to the store in a car they had stolen during a carjacking in South St. Louis earlier in the day. Woods waited in the car while Marshall, McGee and Smith went into the store, ordered a customer to the ground, pointed a gun to the owner’s head and took over $11,000 from the cash register. As they fled the store, Marshall shot the customer laying on the floor with a .40 caliber pistol and then fired four shots toward a woman sitting in her car parked outside the business. The entire robbery was captured on the store video surveillance.
Five hours after the robbery, the stolen car was recovered in St. Louis County and processed for fingerprints. Two fingerprints were recovered from the door of the gas tank, which were determined to be a match to Leslie Woods. Approximately a week and a half later, Marshall was found in possession of a .40 caliber handgun during a traffic stop in Brooklyn, Illinois. Testing by the Illinois State Police forensic lab revealed that the gun recovered from Marshall was a match to the .40 caliber fired cartridges recovered by a crime scene investigator from the shooting at Best Stop.
Three weeks later, on July 8, 2010, Leslie Woods, Derek Marshall, Terrell McGee, James Smith and Reshon Farmer robbed D&D’s Minimart partially masked and armed with two rifles and two handguns. Farmer drove Woods, Marshall, McGee and Smith to the store in a minivan they had stolen in North St. Louis earlier that day. Farmer waited in the van while Woods, Marshall, McGee and Smith went into the store and pointed their guns at the two employees behind the counter. While the male clerk was trying to open the register, Woods shot him with a .30/.30 caliber rifle, causing him to fall on top of the female clerk who was lying on the ground. Woods then fired two more shots at both employees. As the two employees laid motionless on the floor, Woods and his co-conspirators took the cash register and a .40 caliber handgun that belonged to the store owner. As a result of the shooting, the male clerk suffered severe injuries and has permanent loss of use of his right arm. The entire robbery was captured on the store video surveillance.
Several police officers from North St. Louis who knew Woods, Marshall, Smith and Farmer viewed the video surveillance of D&D’s MiniMart robbery and identified Marshall, Woods and Smith as three of the gunmen. They also identified Farmer as the getaway driver. During an interview with law enforcement officers, Smith and Farmer confessed to their involvement in the D&D’s MiniMart robbery and identified Marshall, Woods and McGee as the three other gunmen.
In 2015, McGee was arrested and interviewed about his involvement in the two robberies. McGee admitted that he was one of the three gunman in the Best Stop robbery. He also admitted that he was one of the four gunmen in the D&D’s MiniMart robbery.
Woods, Marshall and McGee pleaded guilty to all charges in federal court in April 2017. Marshall and McGee are awaiting sentencing. After completion of the 30-year term of imprisonment, Woods will then serve 3 years of federal supervised release. He was also ordered to pay $727,070 in restitution to the victims and a $600 special assessment. Smith and Farmer were prosecuted for these offenses by the St. Clair County State’s Attorney’s Office.
The case was investigated by the Cahokia Police Department, the St. Louis County Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Ali Summers, Dan Kapsak, and James Piper, Jr..
MS-13 Member Sentenced for Assaulting 18th Street Gang MembersRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea was sentenced today in federal court in Boston for RICO conspiracy involving the assault of two rival gang members.
Kevin Ayala, a/k/a “Gallito,” 23, a Salvadoran national residing in Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor to 42 months in prison and will be subject to deportation after completion of his sentence. In February 2017, Ayala pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as a RICO conspiracy.
Ayala was identified as a member of MS-13’s Enfermos Criminales Salvatrucha clique operating in Chelsea. Ayala admitted that in April 2014, he engaged in an aggravated assault upon two members of the rival 18th Street gang in Chelsea.
After a three-year, multi-agency investigation, Ayala was one of 61 individuals charged in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. In documents previously filed with the Court, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts, as well as in Central America. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group, such as attacking and murdering gang rivals and individuals believed to be cooperating with law enforcement.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Luzerne County Man Sentenced to 27 Months’ Imprisonment for Embezzling Nearly $395,000Read the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Richard P. Conaboy sentenced Scott Capparell, age 46, of Drums, Pennsylvania, to 27 months’ imprisonment and a two-year term of supervised release, for committing bank fraud.
According to United States Attorney Bruce D. Brandler, Capparell worked from April 2013 through July 2016, as the administrator of Heritage Mills Personal Care, Inc. (“HMPC”), which provides personal care services to its residents. Capparell admitted that during that time, he diverted $394,516.98 worth of HMPC residents’ monthly rent checks to an account at PNC Bank under Capparell’s control, instead of to the HMPC account maintained at Mid Penn Bank. Capparell and others withdrew all of the diverted funds for their personal use. To conceal the scheme, Capparell lied to HMPC’s owners, and falsified HMPC’s books and records.
As part of the sentence, Judge Conaboy ordered that Capparell repay the stolen $394,516.98 to the victims of his crimes.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Local Businesswoman Sentenced for Role in $70 Million Ponzi SchemeRead the Press Release
DAYTON – Connie Apostelos, also known as Connie Coleman, 51, formerly of Springboro, Ohio, was sentenced in U.S. District Court today to 30 months in prison for charges related to a $70 million Ponzi scheme that defrauded nearly 500 victims.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
Apostelos and her husband, William Apostelos, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. They received $70 million in investment funds in total.
Connie Apostelos pleaded guilty to one count of money laundering in April.
Connie Apostelos operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were operated through improper use of investor funds to William Apostelos’ companies.
William Apostelos also operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, the couple was spending $35,000 per month on Connie’s horse racing company and $400 per month on Victoria’s Secret lingerie.
When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
The government has seized two racehorses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.
William Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan and was sentenced in June to 180 months in prison.
Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court in January to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme. He was sentenced in June to 14 months in prison.
“Connie Apostelos used the money of hard working investors to pay for her extravagant personal expenses and is being held accountable for her actions,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Now, approximately 500 investors are in financial peril that could last a lifetime.”
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi, who is prosecuting the case.
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Lincoln Mother and Son Sentenced for Conspiracy to Distribute Misbranded Substances, Drug Paraphernalia, and Related Financial CrimesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Tuesday, August 1, 2017, co-defendants Allen E. Peithman, Jr., Sharon A. Elder, were sentenced, respectively, to 129 months and 63 months in prison and fined $500,000 each. They were both ordered to pay over $5,000 in restitution, and their corporations, Cornerstone Plaza, Inc., and AEP Properties, L.L.C., were also ordered to pay over 2.5 million dollars in fines. In addition to the prison sentences and fines, all four defendants were found jointly liable for a money judgment of $1,142,924.32 and ordered to forfeit a bank account and “potpourri” and drug paraphernalia seized during 2015 searches of their “head shops,” Dirt Cheap and Island Smokes.
In March, a federal jury convicted Peithman, Elder, and Elder’s corporation, Cornerstone Plaza, Inc. of conspiracy to distribute drug paraphernalia, investment of illicit drug proceeds, conspiracy to distribute misbranded substances, conspiracy to commit mail fraud and conspiracy to structure financial transactions. Peithman’s corporation, AEP Properties, was also convicted of conspiracy to structure. The jury also found that a bank account in the name of Cornerstone Plaza, Inc., as well as seized “potpourri” and drug paraphernalia should be forfeited. The money judgment was determined by U.S. District Judge Richard G. Kopf.
The defendants were sentenced as follows:
Peithman:
Conspiracy to distribute drug paraphernalia 36 months
Investment of illicit drug proceeds 115 months
Conspiracy to distribute misbranded substances 36 months
Conspiracy to commit mail fraud 115 months
Conspiracy to structure financial transactions 115 months – all sentences to run concurrently
Violation of supervised release 14 months – consecutive to above sentences
Fine $500,000.00
Special assessments $500.00
Restitution $5,186.56
Elder:
Conspiracy to distribute drug paraphernalia 36 months
Investment of illicit drug proceeds 63 months
Conspiracy to distribute misbranded substances 36 months
Conspiracy to commit mail fraud 63 months
Conspiracy to structure financial transactions 63 months – all sentences to run concurrently
Fine $500,000.00
Special assessments $500.00
Restitution $5,186.56
Cornerstone Plaza, Inc.:
Fine $2,060,000.00
Special assessments $2,000.00
AEP Properties, L.L.C:
Fine $450,000.00
Special Assessment $400.00
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Food and Drug Administration, Homeland Security Investigations, and the Nebraska State Patrol.
Lebanon and Berks County Men Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Andrew Miller, age 33, of Womelsdorf, Pennsylvania, Brian Blatt, age 21, of Lebanon, Pennsylvania, and Jacob Keiter, age 24, of Jonestown, Pennsylvania were indicted on July 26, 2017, by a federal grand jury for methamphetamine and heroin trafficking as well as possessing firearms in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Miller, Blatt, and Keiter conspired to distribute 50 grams or more of methamphetamine in February and March 2017, and possessed with the intent to distribute methamphetamine and heroin on March 5, 2017. The indictment also alleges that the three men possessed firearms in furtherance of their drug trafficking conspiracy. Miller is also charged with unlawfully possessing a Beretta pistol as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Cornwall Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Kittson County Man Sentenced for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of JAMES LESTER PARAMORE, 45, for distribution of child pornography. PARAMORE pleaded guilty on February 9, 2017, to one count of distribution of child pornography. On July 27, 2017, United States District Judge Donovan W. Frank sentenced PARAMORE to 136 months in federal prison and 25 years of supervised release.
According to the defendant’s guilty plea and documents filed in court, in June 2016, the Minnesota Bureau of Criminal Apprehension (BCA) received a cybertip from the National Center for Missing and Exploited Children (NCMEC) in reference to a Flickr account containing child pornography. After further investigation, the BCA was able to determine that PARAMORE was the account holder of the reported Flickr account and a search warrant was executed on the defendant’s home in Lake Bronson, Minn.
According to the defendant’s guilty plea and documents filed in court, PARAMORE admitted to being the Flickr account holder and to possessing, viewing and uploading child pornography using a VPN encryption in an attempt to prevent law enforcement from detecting his illegal activities. As a result of the search warrant, law enforcement agents found in PARAMORE’S home and on his computer and cell phone hundreds of images and video files containing child pornography, extensive Facebook conversations about child pornography websites, and electronic bookmarks and handwritten logs of child pornography websites. PARAMORE also kept detailed notes on how to prevent law enforcement from detecting his child pornography activities through the use of VPN, proxy servers, and encryption tools.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Kittson County Sheriff’s Office.
This case was prosecuted by Assistant United States Attorney Angela Munoz-Kaphing.
Defendant Information:
JAMES LESTER PARAMORE, 45
Lake Bronson, Minn.
Convicted:
- Distribution of Child Pornography, 1 count
Sentenced:
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136 months in prison
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25 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Judge Sentences Former U.S. Air Force Member to 4 Years in Prison for Stealing Personal Information of Service Members and Distributing It to OthersRead the Press Release
CHICAGO — A former member of the United States Air Force was sentenced today to four years in federal prison for stealing the personal identifying information of fellow service members and distributing it to others.
On the eve of his dismissal from the military, RONNIE ALLEN II stole a personnel roster containing the names, dates of birth, Social Security numbers and other personal identifying information of more than 1,400 Air Force members stationed at Mountain Home Air Force Base in Idaho. Hoping to make money, Allen distributed the stolen information to others, including co-defendant ANTORONDI BENION. The Air Force members’ information was then fraudulently used to open accounts at various financial institutions, and to file tax returns with the Internal Revenue Service in the names of the Air Force members.
A federal jury earlier this year convicted Allen, 28, of Greensboro, N.C., on two counts of identity theft, two counts of access device fraud, and two counts of aggravated identity theft. U.S. District Judge Matthew F. Kennelly imposed the 48-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Valuable assistance was provided by the Air Force Office of Special Investigations.
“Identity theft is a serious crime,” Special Assistant U.S. Attorney Jared Jodrey and Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “Allen betrayed his fellow service members and displayed an alarming indifference to the financial havoc they would experience.”
Allen was an enlisted member of the Air Force who held a clerical position in the maintenance group. The position gave him access to the Alpha Roster, a database of detailed personal identifying information for Air Force members assigned to the base. Evidence presented at trial showed that two weeks prior to his discharge on Jan. 31, 2013, Allen downloaded the Alpha Roster and sent a copy from his work e-mail account to his personal e-mail account. Allen then asked an acquaintance if he knew anyone who could help him make money using the Alpha Roster.
Eventually Allen was put in touch with Benion, and on April 30, 2014, Allen e-mailed Benion the entire Alpha Roster. In the email to Benion, Allen wrote, “Man here is the whole list i trust u if u make money off of it u will pay me for the info.”
Benion used the Alpha Roster identities to fraudulently open financial accounts and to conduct “account takeovers,” which involved adding himself and others as authorized users on existing accounts and causing the banks to issue credit cards in their names. From April 2013 to January 2016, Benion was involved in establishing at least 63 accounts at various financial institutions in the names of 35 Alpha Roster victims, which resulted in losses totaling approximately $163,389.
Benion, of Bellwood, Ill., pleaded guilty earlier this year to one count of access device fraud and one count of aggravated identity theft. On May 30, 2017, Judge Kennelly sentenced Benion to 70 months in prison.