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21 September 2017
Chief Financial Officer of Non-Profit Pleads Guilty to Theft of Federal Grant FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RICKEY ROBERSON, age 49, of New Orleans, pled guilty yesterday to one count of theft of federal grant funds.
According to court documents, from at least 2010 to the present, ROBERSON and his wife operated Alternatives Living, Inc., a non-profit that received federal funds from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grants (CDBG). Alternatives Living provided affordable housing to the elderly, families who were homeless, and individuals suffering from mental disabilities. As a condition to receiving federal funds, Alternatives Living agreed to comply with applicable rules and regulations governing the manner and use of the CDBG funds. Applicable program rules, including OMB Circular No. A-122, prohibited the use of CDBG funds for entertainment purposes (i.e., social activities and tickets to shows and sporting events), fundraising, personal tuition costs, and costs of goods or services for personal use. Rules allowed reimbursement for travel costs and conferences only if those costs were related to the mission of the organization and consistent with those costs normally allowed.
ROBERSON pled guilty to using CDBG federal grant funds to pay for his daughter’s cellphone bill in the amount of $4,663. As part of his plea agreement, ROBERSON agreed that he also used federal grant funds to pay for his son’s cellphone bill, personal travel, satellite radio, concert tickets, medical bills for his children, cruise expenses, and repairs to a personal Cadillac Escalade and Audi TT. ROBERSON agreed that the total amount of restitution that he owes exceeds $84,000.
ROBERSON faces a maximum penalty of ten years imprisonment, a maximum fine of $250,000 and a special assessment of $100.00. ROBERSON will owe restitution of more than $84,000 to the United States Department of Housing and Urban Development. U.S. District Judge Kurt D. Engelhardt set sentencing for December 20, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the United States Department of Housing and Urban Development, Office of Inspector General, the Office of State Inspector General, and Louisiana Legislative Auditor’s Office in investigating this matter. Assistant U. S. Attorneys Sharan E. Lieberman and Brian M. Klebba, both of the Fraud Section, are in charge of the prosecution.
Charlotte Jeweler Indicted on Fraud Charges in Connection with $3.5 Million Investment SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that a Charlotte area jeweler has been indicted on fraud charges in connection with a $3.5 million investment scheme involving jewelry, precious metals and gemstones. A federal grand jury returned the 18-count indictment against Benjamin Abraham, 59, on Tuesday, September 19, 2017, charging him with one count of wire fraud, and multiple counts of concealment money laundering and transactional money laundering. The indictment was unsealed today, following Abraham’s initial appearance.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Office and David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the indictment, Abraham operated a number of businesses engaged in the wholesale and retail sale of diamonds, precious metals and jewelry, including Benjamin Diamonds, LLC, Benjamin Jewelers, LLC, Global Trading LLC, G&I USA, LLC and other related entities. The indictment alleges that from at least December 2012 through at least May 2017, Abraham executed a financial fraud scheme involving investments in jewelry, precious metals and gemstones, among other things. During the course of the scheme, Abraham induced at least seven victim-investors to invest over $3.5 million, resulting in losses of more than $2 million. The indictment alleges that instead of investing the victims’ money as promised, Abraham used it to fund his lifestyle, to keep his struggling businesses afloat, to pay pre-existing debts, and to make Ponzi-style payments to other victim-investors.
According to court records, to induce his victims to part with their money, Abraham made a number of fraudulent representations, including that the victims’ money would be used for short-term investments in gold or other precious metals, to invest in diamonds and jewelry obtained from estates, and to buy other large diamonds which would be sold for profit. The indictment alleges that Abraham also lied to investors about his past successes and profits from engaging in such investments, misrepresented the security of the investments and made false representations about the rate of return and the duration of the investments. At times, Abraham also induced victims by falsely representing that he had unique access to estate sales due to his connections and that he would be also be investing his own money.
In order to continue the fraud scheme and to avoid detection, the indictment alleges that when victims asked about the status of their investments, Abraham gave numerous false explanations. He also provided victims with checks from accounts that Abraham knew did not have sufficient funds to cover the checks, and continued to lie when he was confronted about the dishonored checks.
According to allegations contained in the indictment, in or around early 2016, after a number of banks refused to maintain bank accounts over which Abraham had signatory authority, Abraham began using bank accounts not associated with his name. The indictment alleges that Abraham formed Global Trading LLC, and caused his wife and an employee to open several bank accounts in the name of that business. The charging document alleges that Abraham did not have signatory authority over the accounts but nevertheless caused financial transactions to be conducted in those accounts. The indictment also alleges that Abraham directed several financial transactions in one of those accounts to conceal information about the proceeds of the investment scheme, including the nature, ownership and source of the funds.
Abraham appeared today before U.S. Magistrate Judge David C. Keesler. The wire fraud count carries a maximum prison term of 20 years and a $250,000 fine. The concealment money laundering charges carry a maximum prison term of 20 years and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, per count. The transactional money laundering charges carry a maximum prison term of 10 years and a $250,000 fine per count.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked USPIS and the FBI for their investigation which led to today’s charges. Assistant United States Attorneys Daniel Ryan and Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Charleston heroin dealer sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to three years in federal prison for a heroin crime, announced United States Attorney Carol Casto. Joseph G. Withrow, 29, previously pleaded guilty to distribution of heroin.
Withrow admitted that on August 18, 2016, he sold nearly two grams of heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place at his apartment on Washington Avenue in Charleston. As part of his plea agreement, Withrow further admitted to all the drug trafficking activity charged in the indictment, including that he was responsible for distributing at least 25 grams of heroin in the area.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Buffalo Man Sentenced on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Carlos Laboy, 45, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, was sentenced to 180 months in prison by U.S. District Judge Elizabeth A, Wolford.
Assistant U.S. Attorney Patricia Astorga, who handled the prosecution of the case, stated that between February 2013 and February 2015, Laboy and co-defendant Amber Crouse participated in a heroin conspiracy. The two defendants sold heroin to confidential sources including one individual who claimed that Laboy and Crouse sold heroin to the individual every day for a year.
On February 5, 2015, a search warrant was executed at a residence on Gorton Street in Buffalo. Laboy and Crouse were both present. Officers recovered numerous baggies that contained heroin residue and three cellular telephones. One of the cellular telephones was a number that the confidential sources would contact to set up drug transactions.
Amber Crouse was convicted and sentenced to 17 months in prison.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Berkeley County woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Inwood, West Virginia woman pled guilty today to a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Julie Elizabeth Lipscomb, age 36, pled guilty to one count of “False Statement During the Purchase of a Firearm.” Lipscomb admitted to making a false statement wen purchasing two firearms. The crime occurred in August 2015 in Jefferson County.
Lipscomb faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Berkeley County man sentenced for illegally possessing a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia man was sentenced today to 84 months incarceration for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Anthony Jerome Addison, age 39, pled guilty to one count of “Unlawful Possession of a Firearm” in June 2017. Addison admitted to possession a rifle in Jefferson County in June 2016. Addison, having previously been convicted of distribution of cocaine base in United States District Court for the Northern District of West Virginia, is prohibited from possessing firearms.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.Berkeley County man sentenced for his role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Charles Wright, 37, of Martinsburg, West Virginia, was sentenced today to 48 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wright pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering” in June 2017. Wright admitted to traveling between Maryland and West Virginia to aid in a heroin distribution operation in March 2016.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bart M. Davis is Sworn in as United States AttorneyRead the Press Release
POCATELLO – Bart M. Davis has taken the oath of office to become the United States Attorney for the District of Idaho. Davis was nominated by President Donald J. Trump on July 20, 2017, and confirmed by the U.S. Senate on September 14, 2017. He took the oath of office from Ninth Circuit Judge N. Randy Smith.
“I am humbled and honored to continue to serve the great people of Idaho as United States Attorney,” Mr. Davis said. “I am grateful for the special trust and confidence shown me by President Trump, Attorney General Sessions, Senator Crapo, Senator Risch, and all of those who supported me throughout this process. I inherit a very capable office and look forward to joining them in continuing to do great things.”
As U.S. Attorney, Davis is the top-ranking federal law enforcement official in the state of Idaho, having prosecutorial responsibility over 44 counties in Idaho, encompassing more than 83,000 square miles and a population of nearly 1.5 million people. He leads three staffed offices located in Boise, Coeur d’Alene and Pocatello with 56 employees, including 28 attorneys. The office is responsible for prosecuting federal crimes in the district, including crimes related to immigration, terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Davis was born in Rapid City, South Dakota, and was raised in Idaho Falls, Idaho, where he began his legal practice focusing on commercial, regulatory, and transactional work. He also served in the Idaho State Senate for the past 19 years, including as Majority Leader for 15 years, and was a member of the Judiciary and Rules and the State Affairs committees. He represented Idaho as a commissioner to the Uniform Law Commission and is past chairman of The Council of State Governments. He graduated from Brigham Young University in 1978 and from the University of Idaho College of Law in 1980. Mr. Davis is married, has six children and 14 grandchildren.
Bakersfield Man Arrested for Conspiring with Law Enforcement Officers to Sell Methamphetamine and MarijuanaRead the Press Release
BAKERSFIELD, Calif. — Noel Carter, 44, of Bakersfield, was arrested today for conspiring with Bakersfield Police Department officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney Phillip A. Talbert announced.
On September 14, 2017, a federal grand jury returned a three-count indictment charging Carter with conspiracy to distribute methamphetamine and marijuana, and two counts of possession with intent to distribute methamphetamine. The indictment was initially sealed and was unsealed today.
The indictment alleges that from April 2012 to August 2015, Carter conspired with Mara and Diaz who deliberately failed to submit the seized drugs into the BPD evidence room, and instead provided the stolen narcotics to Carter so Carter could sell those narcotics for profit. The indictment also alleges that Mara took marijuana and provided it to Carter to process so it was suitable for sale. Finally, the indictment alleges that Carter conspired with Mara to unlawfully manufacture, process, and sell marijuana for profit.
Earlier court records indicate that in May 2016, Damacio Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Diaz was removed from active duty with the Bakersfield Police Department in approximately February 2015, as was Mara in the summer of 2015. Diaz and Mara are currently serving federal prison sentences.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
If convicted, Carter faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Amherst Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Connor Dempsey, 20, of Amherst, NY, who was convicted of conspiring to use and maintain a drug-involved premises, was sentenced to three years’ probation by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that on August 17, 2016, co-defendant Joel Jacob signed for a parcel during a controlled delivery by the U.S. Postal Inspection Service. The delivery was made to Jacob’s residence on Campus Drive in Buffalo, a residence he shared with Dempsey. The package, which was ordered over the internet using bitcoins, was sent from Munchen, Germany and contained over 180 grams of MDMA, also known as “Molly.”
During a search of the Campus Drive apartment, officers recovered quantities of: marijuana; LSD; cocaine; THC; Xanax; and ketamine. They also found a digital scale, baggies, empty capsules, other drug paraphernalia, and another mail parcel addressed to a third co-defendant.
Joel Jacob has been convicted and is scheduled to be sentenced on October 4, 2017.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Allen Tax Preparer Pleads GuiltyRead the Press Release
DALLAS — Christopher Lee DeLeon of Allen, Texas, who was one of several tax preparers at Tax Genius in Garland, Texas, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Sentencing is set for January 10, 2018, before Chief U.S. District Judge Barbara M.G. Lynn. DeLeon faces a statutory maximum penalty of three years in federal prison and a $100,000 fine. He may also be ordered to pay restitution.
On September 21, 2016, DeLeon and co-defendants Jimmy Luis Briseno, Rene N. Barrera, Sr. and Mike Cano were charged with conspiracy to defraud the IRS and other charges related to the filing of false tax returns. According to the factual resume filed in the case, from January 2011 through February 2012, DeLeon worked as a tax return preparer with Briseno, Barrera, and Cano at Tax Genius offices in Richardson and Garland, Texas. In his plea papers, DeLeon admitted that DeLeon, Briseno, Barrera and Cano all routinely prepared and caused to be electronically filed with the IRS individual income tax returns that contained one or more of the following falsely inflated or fictitious items: false Forms Schedule C; false and fabricated Education Credits, and false items used to inflate and maximize the Earned Income Tax Credit (EITC) on the tax return. DeLeon also stated that co-defendants Briseno and Barrera trained DeLeon in how to file false tax returns in 2011 and 2012. During this period, DeLeon and his co-defendants caused false and fraudulent information and documents to be submitted to the IRS with the intent to fraudulently cause the IRS to pay refunds based on this false tax information.
DeLeon caused the filing of eight false tax returns resulting in a tax loss of $60,618 due to false refunds claimed.
IRS Criminal Investigation is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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20 September 2017
Williamson County Resident Sentenced to 30 Years Imprisonment for Cocaine OffenseRead the Press Release
On September 19, 2017, Tyree M. Neal, Jr., 30, of Marion, was sentenced to federal prison for a cocaine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Neal, who had previously pled guilty to a one-count indictment charging conspiracy to distribute cocaine, was sentenced to 360 months’ imprisonment, to be followed by 6 years’ supervised release, and was fined $400.00. Evidence at the plea and sentencing hearings established that, from at least 2012, through August 2014, Neal was involved with others in the distribution of cocaine in Williamson County. On multiple occasions, Neal sold cocaine to confidential sources working for law enforcement. On September 12, 2014, federal and local law enforcement attempted to arrest Neal on a federal drug warrant. Neal fled from the police in his vehicle, almost striking a police officer and ramming into a police vehicle. Neal then led authorities on a 17 mile, high-speed pursuit, traveling at speeds in excess of 100 m.p.h. and forcing other vehicles off the road. After Neal crashed his vehicle in rural Williamson County, he carjacked a van that was occupied by a young female and three minor children. Additional evidence established that Neal tried to recruit other persons to kill certain witnesses that had cooperated against him. At sentencing, the district court found that Neal was responsible for the distribution of more than 13.4 kilograms of cocaine and 5.9 grams of crack cocaine. Neal’s sentence was enhanced based on his use of violence, obstruction of justice, and reckless endangerment to others while fleeing from the police. Neal has an extensive criminal history and was classified as a Career Offender.
The investigation was conducted by the Southern Illinois Enforcement Group. The Marion Police Department, Williamson County Sheriff’s Office, and United States Marshals Service also assisted in the investigation
Wellford Woman Indicted for Forged PrescriptionsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Felicia L. Prysock, age 41, of Wellford, South Carolina, was charged in a thirty-count Indictment by a Grand Jury in Columbia for Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A; False Statements Related to Health Care Matters, a violation of Title 18, United States Code, § 1035(a)(2); and Obtaining a Controlled Substance by Fraud, a violation of Title 21, United States Code, § 843(a)(3).
The indictment alleges that Prysock filled ten different prescriptions forged in the names of her children and had Medicaid pay for them. The conduct occurred between July 2016 and April 2017. The investigation revealed that these prescriptions were for Schedule II opioids, such as oxycodone, hydrocodone, and Adderall.
Prysock’s indictment coincides with Opioid and Heroin Epidemic Awareness Week. According to a White House press release, “approximately 64,000 Americans died last year of drug overdoses in the United States, the majority of them from opioids. The number of infants born with opioid dependence has more than quadrupled in the past decade. Nearly 100 Americans, on average, die each day from opioid overdoses, and overdose rates are highest among people between 25 to 54 years old, robbing so many of our young people of their potential.”
United States Attorney Beth Drake said, “Our office continues to vigorously prosecute those who deal prescription drugs to our most vulnerable citizens, many of whom suffer from debilitating addictions.”
Ms. Drake stated the statutorily mandated penalty faced by Prysock for a violation of Title 18, United States Code, § 1028A is imprisonment for two years, with a potential fine up to $250,000. The maximum penalty for a violation of Title 18, United States Code, § 1035(a)(2) is five years in prison and a fine of $250,000. The maximum penalty for a violation of Title 21, United States Code, § 843(a)(3) is four years in prison and a fine of $250,000.
The United States Department of Health and Human Services, Office of the Inspector General, along with the United States Drug Enforcement Administration, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
The United States Attorney stated that all charges in Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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U.S. Navy Sailor Pleads Guilty to Production of Child PornographyRead the Press Release
NORFOLK, Va. – A U.S. Navy Petty Officer pleaded guilty today to the production of child pornography.
According to the statement of facts filed with the plea agreement, Gregory Kyle Seerden, 31, currently stationed in San Diego, California, used his iPhone to record himself engaging in sexually explicit conduct with a sleeping child in January 2017.
Seerden faces a mandatory minimum of 15 years and a statutory maximum sentence of 30 years in prison when sentenced on January 18, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi and Special Assistant U.S. Attorney David A. Layne are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-67.
Two Real Estate Investors Plead Guilty to Bid Rigging in Northern CaliforniaRead the Press Release
Two real estate investors pleaded guilty for their role in conspiracies to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Joseph J. Giraudo pleaded guilty to two counts of bid rigging, and Kevin B. Cullinane pleaded guilty to one count of bid rigging. Both were charged in an indictment returned by a federal grand jury in the U.S. District Court for the Northern District of California on October 22, 2014.
According to court documents, Giraudo and Cullinane participated in conspiracies to rig bids by agreeing to refrain from bidding against other co-conspirators at public real estate foreclosure auctions. Giraudo participated in conspiracies in San Mateo and San Francisco counties, and Cullinane participated in a conspiracy in San Mateo County. The conspiracies began as early as August 2008 and continued until January 2011.
The primary purpose of the conspiracies was to suppress competition in order to obtain selected properties offered at San Mateo County and San Francisco County public foreclosure auctions at noncompetitive prices.
Today’s guilty pleas are the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. To date, 62 individuals have agreed to plead or have pleaded guilty.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Two Men Indicted on Federal Firearms ChargesRead the Press Release
Columbia, South Carolina ------ United States Attorney Beth Drake announced today that Cedric K. Reddick and Jonathan Donnell Thompson, a/k/a “Joe-Nae” were charged in a 4-count indictment with conspiracy to steal firearms, theft of firearms from a licensed federal firearms dealer, possession of a stolen firearm, and felon in possession of a firearm, all in violation of Title 18, United States Code, Sections 371, 922(g)(1), 922(j), and 922(u). The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Sumter County Sheriff’s Department, and the Richland County Sheriff’s Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Two Greenville Men Guilty of Fraud Involving ImmigrationRead the Press Release
Columbia, South Carolina –------- United States Attorney, Beth Drake, announced today the Michael Ruiz, age 53, and James Mondell, age 55, both of Greenville, South Carolina, entered pleas of guilty as charged in Greenville, South Carolina, before United States Senior District Judge Henry M. Herlong, Jr. Both defendants pled guilty to two counts of Wire Fraud which carries a penalty of up to 20 years in prison. Additionally, Ruiz pled guilty to three counts of impersonating an official of the United States Immigration Service, each count of which carries a penalty of up to three years in prison. A sentencing hearing has been set for December 5, 2017.
The facts presented by Assistant United States Attorney David C. Stephens at the guilty plea hearing established that Ruiz devised a scheme in which he pretended to be an Immigration Official and offered to take care of illegal aliens’ immigration problems in exchange for a fee. A number of aliens agreed to pay Ruiz such fees for his services. Ruiz did absolutely nothing for these aliens, however, he demanded more and more money ultimately threatening to have them deported if he did not receive further payments. Additionally, Ruiz told one alien that he could have his family in Guatemala enter the United States and gain legal status in exchange for a fee. This led to numerous international telephone calls which are the basis for the wire fraud charges. Mondell played a lesser role in the offense. Ruiz would have Mondell with him when he met with the aliens and due to Mondell’s size his presence alone served to intimidate the victims. Additionally, Mondell was involved in handling the payments which were often in the form of money orders which Mondell would cash for Ruiz. The known dollar loss is approximately $60,000.00.
United States Attorney Drake said that this was a significant case, particularly in light of the fact that Ruiz had been out of jail less than six months for committing the same type of offense in New Jersey. She commended agents of ICE-Homeland Security Investigations for their excellent work in the case along with Assistant United States Attorney David C. Stephens, of Greenville, who handled the investigation.
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Twenty-nine people indicted for stolen firearms and methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Twenty-nine people have been named in two indictments handed down by a federal grand jury sitting in Clarksburg on August 29, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
The first indictment was handed down alleging that a group of individuals from West Virginia conspired with one another to steal a large amount of firearms, sell those firearms, and barter those firearms for drugs in Upshur County, West Virginia and elsewhere from October 2016 to August 2017.
Those named in the 19-count firearms indictment are:• Michael Lynn Lough, 32, Buckhannon, West Virginia
• Timothy Glen Woods, 28, French Creek, West Virginia
• Lisa Kay Knight, 24, Upshur, West Virginia
• Johnny Lee Riley, 28, Ellamore, West Virginia
• Dustin Cain Anderson, 23, Buckhannon, West Virginia
• Benjamin Tyler Nazelrod, 26, Buckhannon, West Virginia
• Aaron Matthew McLain, 36, Volga, West Virginia
• Carla Denise Jones, 55, Volga, West Virginia
• Bobby Ray Johnson, Jr., 27, Buckhannon, West Virginia
• Roger Lee Clem, II, aka “Woody,” 30, Weston, West Virginia
• Kimberly A. Warner, aka “Kimmie,” 26, Buckhannon, West Virginia
• Danielle Paige Tanner, 22, Glen Allen, VirginiaThe second indictment was handed down, alleging another group of individuals from West Virginia conspired with one another to distribute methamphetamine in Upshur County from March 2016 to August 2017.
Those named in the 50-count methamphetamine distribution indictment are:
• Amanda Mae Bachman, aka “AB,” 33, Buckhannon, West Virginia
• Rocky Douglas Idleman,, 38, Clarksburg, West Virginia
• Thunderbolt Dean Whaley, 40, French Creek, West Virginia
• Cassandra Tahj Riffle, aka “Cassie Hickman,” 31, Buckhannon, West Virginia
• Melissa Ann Masuga, 33, Buckhannon, West Virginia
• Elizabeth Ellen Golden, aka “Liz,” 42, Buckhannon, West Virginia
• Steven Larry Harper, aka “Skip,” 39, Buckhannon, West Virginia
• Reggie Joe McLain, 37, Buckhannon, West Virginia
• Brett Allen Reed, 23, Buckhannon, West Virginia
• Jerry Lee Stewart, Jr., 27, Weston, West Virginia
• Angela Dawn White, 46, Buckhannon, West Virginia
• Clarrisa Michelle Adkins, 24, Wallace, West Virginia
• Michael Lewis Woodyard, 26, Clarksburg, West Virginia
• Crystal Michelle Haggarty, 34, Bridgeport, West Virginia
• Cassie Chase Poland, 18, Fairmont, West Virginia
• Casey Jo Richards, 28, Bridgeport, West Virginia
• Austin Jay Robinson, 18, Belington, West Virginia“This case is one more example of what can be achieved when law enforcement agencies collaborate and work together to rid our communities of illegally-obtained weapons and drugs. We will continue these efforts to prosecute those who continue to plague our state with methamphetamines and other harmful illegal substances,” said Betsy Steinfeld Jividen, Acting U.S. Attorney.
“Today’s round-up is the result of a comprehensive investigation of a regionally significant armed drug trafficking organization based in Upshur County, West Virginia, that not only distributed large amounts of methamphetamine, but also endangered the public through the illegal acquisition, use and transfer of firearms as part of their criminal activity. This case is an outstanding example of the success law enforcement can have when agencies work together to protect the public we serve,” said Stuart L. Lowrey, Special Agent in Charge, ATF Louisville Field Division (KY/WV).Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Trinitarios Gang Member Sentenced to 30 Years in Prison for Murder of 16-Year-Old BoyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JUAN MARTINEZ, a/k/a “KJ,” was sentenced today by United States District Judge Paul A. Engelmayer to a term of 30 years in prison for his participation in a racketeering conspiracy and in the murder of 16-year-old Ka’Shawn Phillips on September 5, 2005. MARTINEZ was a member of the Yonkers faction of the violent Trinitarios gang (the “Trinitarios Gang”).
Acting Manhattan U.S. Attorney Joon H. Kim said: “On a Labor Day weekend 12 years ago, Juan Martinez recruited a hit squad of his fellow Trinitarios Gang members to murder 16-year-old Ka’Shawn Phillips, who had earlier been involved in a fistfight with Martinez. The Trinitarios Gang members recruited by Martinez brutally shot, beat, and stabbed Phillips to death in the middle of the street. While nothing can bring Phillips back, we hope his family finds a measure of solace in the justice achieved by today’s sentence. Together with our law enforcement partners, we will continue to aggressively prosecute all those who engage in these senseless acts of violence in our communities.”
In imposing sentence, Judge Engelmayer noted the “savagery of the attack,” and observed that Martinez was “personally responsible for the slaughter” of Phillips and that Martinez’s crime was “as wrongful and evil as a crime can be.”
According to the Indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:
The Trinitarios Gang was a violent gang that was formed in the New York state prison system in the early 1990s and subsequently spread to the streets. JUAN MARTINEZ, a/k/a “KJ,” was a member of the Yonkers faction of the Trinitarios Gang. On September 5, 2005, MARTINEZ – who was 30 years old at the time – was involved in a fistfight with Ka’Shawn Phillips at a pickup basketball game in Yonkers. MARTINEZ retaliated first by attacking Phillips with a machete, and then by enlisting members of the Bronx faction of the Trinitarios Gang to attack Phillips. Armed with guns, knives, and swords, a mob of Trinitarios Gang members shot, beat, and stabbed Phillips to death. He was 16 years old.
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In addition to the prison term, MARTINEZ, 42, of Yonkers, New York, was sentenced to five years of supervised release.
Since 2009, as part of “Operation Patria” and “Operation Green Haze,” this Office has charged at least a combined 149 members and associates of the Trinitarios Gang.
Mr. Kim praised the work of the New York City Police Department’s Bronx Gang Squad, the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Joint Firearms Task Force, the Drug Enforcement Administration, and Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Rachel Maimin and Micah W.J. Smith are in charge of the prosecution.
Trial Date Scheduled for Defendant Charged with Distribution of Fentanyl That Resulted in the Death of AnotherRead the Press Release
LOUISVILLE, Ky. – The Louisville man recently charged by federal grand jury indictment with distribution of fentanyl that resulted in the death of another, is scheduled for jury trial on November 13, 2017, before Senior Judge Charles R. Simpson III, today announced United States Attorney John E. Kuhn, Jr.
Jihad A. Haqq, 37, remains in federal custody as ordered by Magistrate Judge Colin H. Lindsay on September 13, 2017.
According to the single-count indictment, on March 11, 2017, in Jefferson County, Kentucky, defendant Haqq knowingly and intentionally distributed a mixture and substance containing a detectable amount of fentanyl. Fentanyl is a schedule II controlled substance. The death and serious bodily injury of P.S. was the alleged result of the use of the substance distributed by Haqq.
If convicted of the offense at trial, defendant Haqq could be sentenced to at least 20 years in prison including life, fined $1,000,000 and ordered to serve up to and including a life period of supervised release.
This case is being prosecution by Assistant United States Attorneys Robert B. Bonar and Erin G. McKenzie. This case is being investigated by the United States Drug Enforcement Administration (DEA) and the Louisville Metro Police Department (LMPD).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
haqq_jihad_indictment.pdfTen Charged in Broome County Methamphetamine and Money Laundering ConspiraciesRead the Press Release
SYRACUSE, NEW YORK – Nine people arrested today are named in a federal methamphetamine and money laundering conspiracy indictment unsealed in court in Binghamton, New York, announced Acting United States Attorney Grant C. Jaquith, DEA Special Agent in Charge James J. Hunt, Postal Inspector in Charge Shelly Binkowski, and New York State Police Superintendent George P. Beach, II.
The Indictment alleges that the ten coconspirators engaged in a conspiracy from January 2015 to September 5, 2017, to possess with intent to distribute and distribute in excess of 50 grams of methamphetamine. Four of the defendants arrested today are alleged to have conspired to launder drug proceeds using Western Union wire transfers, bank transfers, and deposits. The indictment also contains forfeiture allegations.
The following defendants are charged in the indictment and made court appearances today:
Alonzo Lamar Harris, a/k/a “L” 42, of Youngstown, Arizona
Charles Green, a/k/a “C” 42, of Endicott, New York
Akuan Johnson, a/k/a “Bleek” 38, of Binghamton, New York
Vincent Harrell, a/k/a “VI” 39, of Endicott, New York
Kenneth Wilson, a/k/a “KB” 46, of Endicott, New York
Rachel Millard, a/k/a “R” 30, of Endicott, New York
Jolene Barrett, 41, of Johnson City, New York
Misti Evans, 37, of Endicott, New York
Amanda Kamp, 37, of Deposit, New York
One additional defendant is being sought in connection with this indictment.
The methamphetamine conspiracy charge filed against Alonzo Lamar Harris, Charles Green, Akuan Johnson, Vincent Harrell, Kenneth Wilson, Rachel Millard, Jolene Barrett and Misti Evans carries a minimum sentence of ten years and a maximum sentence of life imprisonment, a fine of up to $10 million dollars, and a term of supervised release of at least 5 years and up to life. Akuan Johnson, Vincent Harrell, and Kenneth Wilson could face enhanced penalties if convicted. Amanda Kamp faces a sentence of imprisonment of up to 20 years, a fine of up to $1 million dollars, and a term of supervised release of at least 3 years and up to life, if convicted.
Alonzo Lamar Harris, Charles Green, Akuan Johnson, and Rachel Millard are also charged with conspiracy to launder drug proceeds and face a maximum sentence of up to 20 years imprisonment, a fine of up to $500,000.00, and a term of supervised release of up to three years.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
“As the allegations in this indictment illustrate, we are committed to working with federal, state, and local law enforcement to dismantle drug trafficking organizations that prey on the people in our communities for profit. We must stop both the flow of methamphetamine from the southwest to our Southern Tier and the movement of drug proceeds back to perpetuate the peddling of this poison,” said Acting United States Attorney Grant C. Jaquith
DEA New York Special Agent in Charge James J. Hunt stated, “Mexican drug traffickers succeeded in flooding the market with opioids, and now they are trying to do the same with methamphetamine. These arrests demonstrate that DEA and our law enforcement partners are determined to not let that happen.”
U.S. Postal Inspection Service, Inspector in Charge Shelly Binkowski said, “We simply cannot and will not allow drug trafficking organizations to use our nation’s mail system to facilitate the transport of illegal drugs, which continue to destroy the lives of many through addiction. Today’s arrests should send a strong message to drug traffickers that the United States Postal Inspection Service will commit the resources necessary to protect our employees, customers, and the U.S. Mail. Together with our law enforcement partners we will put a stop to these criminal enterprises.”
“Once again strong law enforcement partnerships have disrupted another illegal narcotic and money laundering operation,” said New York State Police Superintendent George P. Beach II. “The arrests and indictments of these ten individuals will not only keep harmful narcotics such as methamphetamine off our streets, but they will also put an end to the dangerous cycle of criminal activities that threaten our neighborhoods as a result of these drugs. We will continue to work together to keep these harmful narcotics from infiltrating our communities.”
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the United States Drug Enforcement Administration (DEA)-Syracuse Resident Office, the United States Postal Inspection Service, the New York State Police, and the Broome County SIU Drug Task Force, including the Vestal Police Department, Endicott Police Department, Binghamton Police Department, Johnson City Police Department, Waverly Police Department, Broome County Sheriff’s Office, Tioga County Sherriff’s Office, and is being prosecuted by Assistant United States Attorney Nicolas Commandeur.
Stockton Man Sentenced to 12 Years in Prison for Dealing Firearms Without a LicenseRead the Press Release
SACRAMENTO, Calif. — Jason Prom, 23, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 12 years in prison for conspiring to deal firearms without a license, dealing firearms without a license, and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January and June 2016, Prom led a nine-person, interstate conspiracy to sell firearms without possessing the required federal license. During this time, members of the conspiracy illegally sold a total of 47 firearms to undercover agents in Stockton and Las Vegas. The firearms included five automatic weapons, a short-barreled rifle, and at least half a dozen guns with obliterated serial numbers. They also included two stolen guns and another half-dozen guns that had never been serialized. Many of these firearms were military-style assault weapons.
Prom himself sold the majority of the weapons and several high-capacity magazines to the undercover agents. He planned out-of-state supply trips, placed orders for semi-automatic Glocks to be converted to automatics, negotiated prices, and supervised the removal of serial numbers.
Prior to January 28, 2016, Prom had been convicted of two felonies and was prohibited from possessing any firearm. He was on parole for these felony convictions during the entirety of the conspiracy.
On July 21, 2016, Prom was indicted along with Kenny Prach, 22, of Las Vegas; Gary Loch, 28, of Oregon; Stockton residents Ariana Diaz, 22; Adam Nhem, 21; Hilberto Arevalos, 36; Sean Chaichanhda, 25; and Ronnie Dethvongsa, 26.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Stockton Police Department and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Amanda Beck and Richard Bender are prosecuting the case.
Prom and four co-defendants have pleaded guilty. They are scheduled to be sentenced as follows: Prach on September 27, Dethvongsa on October 11, Diaz on November 8, and Arevalos on December 6.
Charges are pending against Loch and Chaichanhda. Nhem has not been arrested. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Senior MARTA executive pleads guilty to false invoice scam causing MARTA to pay $500,000 for work never performedRead the Press Release
ATLANTA - Joseph J. Erves, MARTA’s former Senior Director of Operations, has pleaded guilty in federal court to orchestrating a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.
“Erves was entrusted to use taxpayer dollars to operate MARTA effectively and responsibly,” said U.S. Attorney John A. Horn. “His theft of $500,000 in MARTA funds was a blatant display of his desire for self-enrichment at the expense of the public interest.”
According to U.S. Attorney Horn, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.
From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.
Beginning in or about 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.
Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.
After being paid, the three vendors funneled most of the money received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no worked was actually performed.
On August 24, 2017, Erves, 52, of Lithonia, Georgia, was charged via criminal information with one count of Federal Program Theft. Erves has pleaded guilty to the information.
The Federal Bureau of Investigation and the MARTA Police Department are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Second Individual Charged with Smuggling Tiger CubRead the Press Release
Assistant U.S. Attorneys Melanie K. Pierson (619) 546-7976
and Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – September 18, 2017
SAN DIEGO – A second man, Perris resident Eriberto Paniagua, has been charged in the smuggling of a Bengal tiger cub into the United States from Mexico on August 23, 2017.
Paniagua, who allegedly told officials at the Otay Mesa Port of Entry that the Bengal tiger cub at his feet was merely a “cat,” was indicted by a federal grand jury and made his first court appearance today.
According to the indictment unsealed today, Paniagua conspired with the driver of the car, Luis Valencia, and others to knowingly import a tiger cub into the United States. Both defendants are charged with one count of conspiracy and one count of smuggling contrary to law.
All species of tigers are listed as endangered under the Endangered Species Act, and are protected under Appendix I of the Convention on International Trade in Endangered Species. To legally import an endangered species into the United States requires a permit from the U.S. Fish & Wildlife Service, and the importation must be accompanied by a Declaration Form 3-177 filed with Fish & Wildlife.
The Bengal tiger (Panthera tigris tigris) is the most populous subspecies of tiger. The Bengal tiger is native to India, Bangladesh, Nepal and Bhutan. According to the World Tiger Recovery Project, there are only 2,500 wild specimens on earth and the population of Bengal tigers is decreasing.
During today’s arraignment, Paniagua was released on a $25,000 personal surety bond and ordered to appear for a motion hearing/trial setting October 16, 2017 at 2:00 pm before U.S. District Judge Anthony J. Battaglia.
DEFENDANTS Criminal Case No. 17CR2856-AJB
Luis Eudoro Valencia Age: 18 Perris, California
Eriberto Paniagua Age: 21 Perris, California
SUMMARY OF CHARGES
Conspiracy 18 U.S.C. § 371
Maximum penalty: 5 years’ prison, fine of $250,000
Smuggling/Importation Contrary to Law, 18 U.S.C. § 545
Maximum penalty: 20 years’ prison, fine of $250,000, or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.
AGENCIES
U.S. Fish & Wildlife Service
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Santa Clara Luxury Insurance Broker Sentenced to Five Years in Prison for Theft from Widow’s Insurance PolicyRead the Press Release
SAN JOSE – Gary Thornhill was sentenced today to serve 60 months in prison for wire fraud and mail fraud in connection with a scheme to steal more than a million dollars from a client’s trust account, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy M. Koh, U.S. District Court Judge, after Thornhill pleaded guilty to the crimes on June 7, 2017.
Thornhill, 65, of Santa Clara, admitted he used his position in a boutique insurance brokerage to withdraw funds from a widow’s client trust account. As part of his plea, Thornhill admitted he is a licensed insurance broker who owned and operated a boutique insurance brokerage in Santa Clara. In 1998, he sold an insurance policy to a married couple and, after the husband passed away in 2005, the widow became the sole insured of the plan. In or about February 2008, Thornhill became the trustee of the entity that was the legal owner of the policy. Thornhill acknowledged that he owed a fiduciary duty to the widow both as his client and as the trustee for the entity that managed the insurance policy. Thornhill admitted that instead of acting in his client’s best interest, he transmitted written requests for funds to be drawn against the cash value of the widow’s insurance policy—he did so without the widow’s prior knowledge, consent, or authorization. Specifically, Thornhill admitted he faxed a request for disbursement from the existing cash value of the policy in the net amount of $800,000. After receiving the check in the mail, Thornhill deposited it into a bank account of which he was the only authorized signatory. Thornhill admitted he transferred all of the funds into a personal bank account and spent all of the funds he had obtained from the policy on personal expenses that were unrelated to his client. He then doctored the account statements before they were given to the client, in order to conceal his scheme.
As a result of his scheme, Thornhill obtained nearly $1.5 million in unauthorized funds from his client’s policy that he used for his own personal benefit and purposes. Thornhill pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of mail fraud, in violation of 18 U.S.C. § 1341.
During today’s sentencing, Judge Koh remarked that the defendant “really took advantage of this family,” and decided to steal from them despite, “a long-standing financial relationship with this family” that stretched back almost twenty years.
In addition to the prison term, Judge Koh sentenced Thornhill to three years of supervised release and ordered him to pay $1,409,843.90 in restitution. Judge Koh ordered the defendant to self-surrender and begin serving his sentence no later than November 15, 2017.
Assistant United States Attorney Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation the by the Federal Bureau of Investigation.
San Diego Finance Executive and Real Estate Broker Charged with $50 Million FraudRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Andrew P. Young (619) 546-7981
NEWS RELEASE SUMMARY – September 19, 2017
SAN DIEGO – Financial executive Peter Cash Doye and notary public and real estate broker Raquel Reid were indicted today for their alleged roles in a massive scheme that generated nearly $50 million in fraudulently-obtained loan proceeds.
According to the indictment, the defendants defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off – thereby enabling them to secure additional loans from new lenders who believed the mansions were owned “free and clear.”
According to the indictment, Doye, a senior executive at the real estate investment firm known both as Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans. To pull of the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, wreaking havoc on the chain of title for these homes. Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic.
Doye’s business partner Courtland Gettel and Arizona attorney Jeffrey Greenberg have each pleaded guilty to participating in the scheme. According to their plea agreements, Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.
As part of his guilty plea in 2016, Gettel admitted that he and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off. Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off, to help close the fraudulent deals.
In late 2014, the lenders uncovered the fraud, and began to discover that their secured interests in the properties were worthless. In response to questions from these lenders, Doye, Reid and Gettel agreed to falsely deny knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that it had been lost.
But the group defaulted on their obligations to repay the loans, leaving the lenders to dispute the validity of their interests and resulting in tens of millions of dollars in losses from unpaid loans. As part of their pleas, Gettel and Greenberg must forfeit the proceeds they stole from the various lenders and pay restitution to the victims. Doye and Reid were charged with criminal forfeiture as part of the indictment.
Gettel has also admitted that after his guilty plea and while he was awaiting sentencing, he arranged even more fraudulent real estate transactions. He has agreed to recommend a correspondingly higher sentence as a result of his ongoing fraud. Gettel is scheduled to be sentenced before U.S. District Judge William Q. Hayes on October 17, 2017, at 10:00 am. Greenberg was disbarred from practicing law in Arizona on October 6, 2016. Greenberg is scheduled to be sentenced before U.S. District Judge William Q. Hayes on October 2, 2017, at 9:00 am.
Doye and Reid are expected to make their initial appearances before U.S. Magistrate Judge Karen S. Crawford on September 21, 2017 at 2:00 pm.
*The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Peter Cash Doye Age: 41 San Diego, CA
Raquel Reid Age: 38 San Diego, CA
CHARGES
Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343
Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties per count: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution
Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.
Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1028A
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED
Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH Age: 67 Tucson, AZ
Courtland Gettel, 16CR1099-WQH Age: 43 Coronado, CA
Wire Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
Roger Arthur Beu, Jr. Sentenced to 41 Months in Prison for Conspiring to Submit Fraudulent Tax Returns and Failing to Register as a Convicted Sex OffenderRead the Press Release
KNOXVILLE, Tenn.- On September 20, 2017, Roger Arthur Beu, Jr., 57, of Harriman, Tennessee, was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Judge, to serve 41 months in prison for his role in preparing and submitting fraudulent federal tax returns to the Internal Revenue Service (IRS) and for failing to register on the Tennessee Sex Offender Registry. Following his release from prison, Beu will be supervised by U.S. Probation for three years. He was also ordered to pay restitution to the IRS.
Beu pleaded guilty to two indictments in April 2017. The first indictment charged that as a paid tax preparer, he assisted in the preparation of several fraudulent federal income tax forms submitted to the IRS between 2009 and 2013 in a scheme to defraud the IRS. The fraudulent tax forms pertained to several businesses owned by Morgan County businessman Joseph Armes, Jr. Armes previously pleaded guilty and is awaiting sentencing. The tax fraud scheme defrauded the IRS of more than $1.4 million in tax revenue.
The second indictment charged that, having previously been convicted of sexual battery by an authority figure in 2009, Beu failed to register with the Tennessee Sex Offender Registry after he moved from Indiana to Roane County, Tennessee in August 2016.
U.S. Attorney Nancy Stallard Harr praised the cooperative efforts of the investigators in this case and said, “In addition to pursuing tax fraud offenders, the U.S. Attorney’s Office is committed to aggressively enforcing federal laws enacted to ensure that our citizens are aware of the whereabouts of convicted sex offenders living in our communities.
"Our core mission is the enforcement of our nation’s tax laws," stated Tracey D. Montaño, Special Agent in Charge (SAC) of the IRS-Criminal Investigation Nashville Field Office. “To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share. IRS-Criminal Investigation, together with the Department of Justice, will continue to investigate and prosecute those who defraud our tax system by aiding in the filing of false returns,” added SAC Montaño.
These investigations were conducted by IRS-Criminal Investigation, Federal Bureau of Investigation, U.S. Department of Energy’s Office of Inspector General, and U.S. Marshals Service. Assistant U.S. Attorney Matthew Morris represented the United States in the court proceedings.
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Rochester Woman Sentenced for Her Role in Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Kassandra Whylly, 21, of Rochester, NY, who was convicted of financial institution fraud, was sentenced to 15 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay more than $9,000 in restitution to the ESL Federal Credit Union.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that between April 2016 and November 2016, the defendant, along with co-defendant Thomas Porter, Jr., executed an ongoing scheme to defraud the ESL Federal Credit Union by making false deposits into ATM machines and fraudulently withdrawing cash based upon the false deposits. Over the course of several months, Whylly and Porter actively recruited ESL members to participate in more than 100 separate fraudulent transactions, through which the defendants stole a combined sum of more than $35,000.
Porter has been convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Rio Rancho Man Pleads Guilty to Federal Child Pornography and Cyberstalking ChargesRead the Press Release
ALBUQUERQUE – Armando Camarena, 34, of Rio Rancho, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a three-count indictment charging him with child pornography and cyberstalking charges. Camarena entered the guilty plea under a plea agreement recommending a sentence of 12 years of imprisonment followed by a term of supervised release to be determined by the court. He also will be required to register as a sex offender after he completes his prison sentence.
Homeland Security Investigations (HSI) arrested Camarena in July 2014 based on a criminal complaint charging him with distributing and possessing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, HSI initiated the investigation leading to Camarena’s arrest after receiving a lead from HSI in Idaho Falls, Idaho, which reported that a 14-year-old girl had received child pornography, child erotica and threatening messages on her iPod from an individual the child met through social media. Investigation revealed that the child pornography and threats were sent from an IP Address used by Camarena. On July 30, 2014, HSI and the Albuquerque Police Department (APD) executed a federal search warrant at Camarena’s residence and seized computer images consistent with child pornography. Camarena was taken into custody at that time.
Camarena was indicted on Aug. 12, 2014, and was charged with receipt of child pornography, possession of child pornography, and cyberstalking. The indictment alleged that Camarena committed the crimes in Sandoval County, N.M., between Dec. 2013 and July 2014.
During today’s change of plea hearing, Camarena pled guilty to the indictment. In his plea agreement, Camarena admitted that in Dec. 2013, he used a social media application to initiate contact with a juvenile victim residing outside New Mexico. When the juvenile victim sought to terminate contact with Camarena in Jan. 2014, Camarena sent the juvenile victim a series of messages in which he threatened to kill and inflict serious bodily injury on the victim and the victim’s family with the intention of causing them substantial emotional distress.
In his plea agreement, Camarena also admitted that in July 2014, he possessed child pornography on his cellular telephone, which he downloaded and received from the internet. Camarena acknowledged that law enforcement officers seized his cellular telephone when they executed a federal search warrant at his residence on July 30, 2014.
Camarena has been in custody since his arrest in July 2014. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by SPEED, the Sexual Predator and Exploitation Enforcement Detail, which is comprised of officers from HSI-Albuquerque office, APD and the Bernalillo County Sheriff’s Office, with assistance from HSI-Idaho and the Idaho Fusion Center.
The case is being prosecuted by Assistant U.S. Attorney Jack E. Burkhead as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Registered Nurse Sentenced for Tampering with FentanylRead the Press Release
Abingdon, VIRGINIA – A registered nurse, who worked at a medical facility in Roanoke, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon for tampering with a consumer product, namely fentanyl, Acting United States Attorney Rick A. Mountcastle announced today.
Kevin Carter, 28, of Roanoke, previously pleaded guilty to one count of tampering with a consumer product, fentanyl, that affects interstate or foreign commerce, with reckless disregard for the risk that another person be placed in danger of death or bodily injury. Today in District Court, Carter was sentenced to imprisonment for a term of 18 months.
On or about December 15, 2016, Carter tampered with liquid syringes of fentanyl by removing a syringe of liquid fentanyl from the anesthesia cart in an operating room for his own use and replacing the stolen syringe with another syringe, labeled fentanyl, which contained no fentanyl.
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations with the assistance of the Virginia State Police and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Record Maritime Cocaine and Heroin Seizures in FY 2017 Include San Diego-Based CaseRead the Press Release
Special Assistant U.S. Attorney Ari Fitzwater (619) 546-8756, Assistant U. S. Attorney Joshua Jones (619) 546-9744, Assistant U. S. Attorney Connie Wu (619) 546-8592
NEWS RELEASE SUMMARY – September 20, 2017
SAN DIEGO – The U.S. Coast Guard’s announcement today that it has intercepted a record amount of illicit drugs in the Eastern Pacific Ocean in FY2017 includes a San Diego-based prosecution involving more than 6,000 pounds of cocaine confiscated from a low-profile vessel.
The U.S. Coast Guard encountered the vessel in international waters, approximately 450 nautical miles southwest of the Guatemala/El Salvador border on August 14 and detained four individuals following discovery of the cocaine. Low-profile vessels are designed to ride low in the water to avoid detection.
A federal grand jury returned an indictment in the Southern District of California on September 1, charging four men with possession of cocaine with intent to distribute onboard a vessel. According to the indictment, approximately 6,349.20 pounds of cocaine (totaling over three tons) was confiscated from the vessel. The defendants remain in custody pending trial. The defendants will appear for a motion hearing and trial setting before U.S. District Judge John A. Houston on October 16.
At today’s event attended by Attorney General Jeff Sessions, the 140-person crew of the Coastguard Cutter Stratton offloaded 50,000 pounds of cocaine and heroin - with an estimated street value of more than $679 million – that was seized in the Eastern Pacific Ocean since August 2.
“By preventing overdoses and stopping new addictions before they start, enforcing our drug laws saves lives,” Attorney General Jeff Sessions said. “This record-breaking year by our Coast Guard saw the arrest of more than 500 suspected drug traffickers and kept nearly half a million pounds of dangerous drugs from getting to our streets--and ultimately to our neighbors, friends, and families. I commend every service member who has helped us in our mission to keep the American people safe, and I thank them for this indispensable contribution to public safety.”
“The seizure of this cocaine means tens of thousands of pounds won’t make it to our communities and hundreds of millions of dollars won’t make it into cartel coffers,” said Acting U.S. Attorney Alana Robinson. “To drug traffickers who may think they are invisible in the middle of what seems to be a vast, empty ocean: You are not alone. We are doing everything we can to prevent you from using the high seas as your personal freeway.”
The Coast Guard has interdicted several low-profile vessels since June. Low-profile vessels are specifically designed for smuggling illicit cargo such as drugs, weapons and cash. These smuggling vessels have multiple outboard motors to allow them to travel at high speeds and are painted to blend with the water to avoid detection from military and law enforcement authorities operating in the region.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 17cr2603
Edinson Elias Castillo-Bustos Age: 56 Colombia
Redis Mina-Canga Age: 50 Colombia
Edgar Anibal Rojas-Vanegas Age: 31 Guatemala
Jose Sebastian Ardila-Meza Age: 48 Colombia
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine on Board a Vessel – Title 46, U.S.C., Sections 70503 and 70506(b)
Maximum penalty: Life in prison and $10,000,000 fine
Possession of Cocaine with Intent to Distribute on Board a Vessel – Title 46, U.S.C., Section 70503
Maximum penalty: Life in prison and $10,000,000 fine
AGENCY
Drug Enforcement Administration
United States Coast Guard
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Rangeley Man Indicted on Drug Distribution ChargesRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Steven Butler, 24, of Rangeley, Maine, was indicted last week by a federal grand jury for distributing fentanyl.
If convicted, Butler faces up to 20 years in prison, three years of supervised release, and a $1,000,000 fine.
The investigation was conducted by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Police; and the Rangeley Police Department.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Raleigh Man Sentenced to 20 Years for Manufacturing Child Pornography Through Online Video ChatsRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that today in federal court, United States District Judge Louise W. Flanagan sentenced KEITH WILLIAM DEICHERT, 47, of Raleigh, to 240 months of imprisonment followed by 15 years of supervised release.
DEICHERT was named in a 21-count indictment filed on August 23, 2016. On May 17, 2017, he pleded guilty to one count of the Manufacture of Child Pornography.
In February 2015, the Federal Bureau of Investigation (FBI) identified and seized a computer server which hosted a hidden bulletin board website dedicated to the advertisement and distribution of child pornography (Website A). Website A also provided users with a forum to discuss matters pertinent to the sexual abuse and exploitation of children. On February 20, 2015, authorities seized the computer server hosting Website A from a web-hosting facility in Lenoir, North Carolina. Authorities were able to capture the usernames and IP addresses of individuals who accessed and downloaded child pornography (CP) from Website A. One of the usernames and associated IP addresses seized during the investigation was “harris.” The individual who used this moniker accessed CP on Website A on multiple occasions during the monitoring period. Agents determined that the IP address associated with “harris” was controlled by Time Warner Cable (TWC). In March 2015, an administrative subpoena was served to TWC which requested information related to the user of the IP address. According to records received from TWC, the account belonged to DEICHERT. Based on the information obtained, a search warrant was obtained for DEICHERT’s residence.
On October 29, 2015, agents executed the search warrant. During the search, agents located and seized multiple computers and media storage devices. Additionally, agents located two publications which depicted child pornography. A third book described different types of sexual contact (including sexual contact between adults and children). Moreover, two printed
publications, “How to Handle Encounters with Law Enforcement,” and “Surveillance and Counter Surveillance” were recovered.
Forensic examination of the items seized revealed an extensive collection of CP. Specifically, DEICHERT’s collection of CP included approximately 40,433 images and 1,661 videos. Additionally, law enforcement recovered more than 200 web cam videos from an external hard drive depicting child pornography that were recorded by DEICHERT during online chats with boys on the websites Chatroullete and Omegle. A forensic analysis of the same hard drive revealed a program used to record videos streaming online, and a program that allows users to transpose previously recorded videos onto their personal webcam. DEICHERT used these programs to pretend to be a female, engaged in sexually explicit conduct with young boys, and then recorded videos of the boys engaging in such conduct. Because the defendant produced multiple videos involving both known and unknown victims, he has been classified as a repeat and dangerous sex offender against minors.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Peggah Wilson prosecuted the case for the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Plantation Middle School Aftercare Worker Sentenced to More than Ten Years in Prison for Attempted Enticement of a MinorRead the Press Release
On September 18, 2017, Roosevelt Miller, 20, of Ft. Lauderdale, was sentenced to a total of 121 months in federal prison by United States District Judge William P. Dimitrouleas, after having previously pled guilty to attempting to entice a minor to engage in sexual activity, in violation of, Title 18, United States Code, Section 2422(b).
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
According to court documents, in early 2017, numerous children ranging in age from 13 to 14 years old, who attend Plantation Middle School, alerted authorities that Miller had inappropriate sexual communications with them using various mobile telephone applications. Specifically, Miller used various social media platforms, including Instagram and text messaging, to send seven minors messages asking them to perform sexual acts on the defendant. Most of these minor victims were enrolled in an aftercare program at Plantation Middle School, where Miller was employed as a counselor.
Mr. Greenberg commended the investigative efforts of the FBI and the Plantation Police Department. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pair Plead Guilty to Federal Conspiracy ChargeRead the Press Release
Abingdon, VIRGINIA – A pair of men from India, who made cold calls to the United States for the purpose of selling versions of pharmaceutical drugs illegal in the United States, including controlled substances, pleaded guilty today in the United States District Court in Abingdon to federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Alok Kailashnath Jaiswal, 32, of Azangarh, India and Rahil Parvez Mir, 25, of Mumbai, India, waived their rights to be indicted today and each pleaded guilty to one count of conspiracy to commit offenses against the United States. Specially, to illegally distribute controlled substances, to fraudulently and knowingly import into the United States any merchandise contrary to law, and, to introduce into interstate commerce a drug that was misbranded, with the intent to defraud and mislead.
Jaiswal and Mir made cold calls from India to individuals in the United States to solicit orders for versions of pharmaceutical drugs, including controlled substances, which were not approved for sale in the United States. The defendants then obtained payment, typically via wire transfer, from the United States purchasers and illegally shipped the drugs to recipients in the United States.
A law enforcement officer, working in an undercover capacity in the Western District of Virginia, made several purchases from Jaiswal and Mir. The substances shipped included acetaminophen with codeine (Schedule III), diclofenac (Schedule IV), lorazepam (Schedule IV), human growth hormone, sildenafil and tadalafil.
Owner and Manager of Plymouth Environmental Company Charged in Fraud Conspiracy Related to Disposal of Toxic ChemicalsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced an indictment charging LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC., JOHN D. MILLER JR., 60, and JOSEPH V. MILLER, 57, with conspiracy, multiple counts of wire fraud, mail fraud and falsifying documents. The defendants will make their initial appearances in U.S. District Court at a later date.
According to the indictment, LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC. (“LUMINAIRE”), purported to be a recycling and waste disposal business that offered to pick up customers’ fluorescent light ballasts containing polychlorinated biphenyls (“PCBs”), transport the PCB-containing ballasts to the LUMINAIRE facility located in Plymouth, Minn., and remove and dispose of all the PCBs in accordance with the Toxic Substances Control Act (TSCA). LUMINAIRE charged customers a significant fee for this service because the PCBs contained in the ballasts were considered a toxic chemical, and regulations promulgated by the United States Environmental Protection Agency (“EPA”) mandate special procedures for disposal of these materials.
According to the indictment, from 2010 until 2015, JOHN and JOE MILLER, owner and manager, respectively, of LUMINAIRE, orchestrated a fraudulent scheme designed to generate business for LUMINAIRE by making false representations to customers that LUMINAIRE would properly dispose of customers’ toxic chemicals. Instead, after picking up loads of PCB-ballasts from customers, LUMINAIRE’s employees, at the direction of JOHN and JOE MILLER, would remove or otherwise obscure labels from the containers holding the PCB-ballasts, and then sell the PCB-ballasts as scrap metal to nearby metal recycling facilities. By doing so, JOHN and JOE MILLER were able to charge customers a significant fee for work that was never actually performed and obtain additional profits by fraudulently selling the PCB-ballasts to scrap yards. Additionally, in order to conceal the true destination and disposal of customers’ toxic chemicals, JOHN and JOE MILLER and others would falsely certify on shipping manifests that the PCB-ballasts had been properly transported to LUMINAIRE’S facility. As a result of the scheme, LUMINAIRE fraudulently collected more than $1,000,000 in fees and additional profits.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and Amber M. Brennan.
This case is the result of an investigation conducted by the U.S. Environmental Protection Agency.
Defendant Information:
LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC.
Plymouth, Minn.
Charges:
- Conspiracy to commit mail and wire fraud, 1 count
- Mail Fraud, 5 counts
- Wire Fraud, 10 counts
- False entry in records, 6 counts
JOHN D. MILLER JR., 60
Plymouth, Minn.
Charges:
- Conspiracy to commit mail and wire fraud, 1 count
- Mail Fraud, 5 counts
- Wire Fraud, 10 counts
- False entry in records, 6 counts
JOSEPH V. MILLER, 57
Chanhassen, Minn.
Charges:
- Conspiracy to commit mail and wire fraud, 1 count
- Mail Fraud, 5 counts
- Wire Fraud, 10 counts
- False entry in records, 6 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Operation Trena Sin Trono Sends Leader and Final Defendants to PrisonRead the Press Release
LAREDO, Texas – The head of a large scale marijuana trafficking and money laundering conspiracy and 10 others have been sent to federal prison, announced Acting U.S. Attorney Abe Martinez.
Erasmo Trejo-Nava, 45, a Mexican National who resided in Laredo, was the head of a drug trafficking organization that received marijuana loads from Mexico and arranged to transport the marijuana to the Dallas area for himself and others. The organization used various stash houses and business fronts in the Laredo area to receive and prepare the marijuana for transportation via personal vehicles to a local warehouse where it was unloaded and reloaded onto tractor trailers for transportation to the Dallas area. Following delivery of marijuana loads in the Dallas area, the Trejo Nava Organization collected drug proceeds and arranged to have the drug proceeds transported by couriers via personal vehicle or tractor trailers to Laredo and on to Nuevo Laredo, Mexico.
Over the course of the conspiracy which spanned from June 10, 2011 through June 4, 2013, Drug Enforcement Administration (DEA) agents made multiple seizures of marijuana that totaled in excess of 10,000 kilograms.
U.S. District Judge Marina Garcia Marmolejo sentenced Trejo-Nava himself to a total term of 187 months in prison. The court also issued a money judgement against him in the amount of $5 million. His wife - Raquel Margarita Ramos Jimenez, 46, facilitated money laundering and was sentenced to time served which amounted to 31 months. Additionally the court issued a final order of forfeiture as to both of them for three residential properties and a commercial property as well as separate drug proceeds seizures in amounts totaling $173,240.
His brother and Mexican national Victor Hugo Trejo-Nava, 43, coordinated the shipment of marijuana loads as did Jose Angel Trejo, 45, of Laredo. They received 130 and 121 months in prison, respectively.
Mexican national Jaime Enrique Montalvo Ruiz, 47, and Laredoan Ovidio Rodriguez, 44, used Erasmo Trejo-Nava’s service to have their marijuana loads transported from Laredo to the Dallas area received respective sentences of 144 and 120 months in prison.
Arturo Lozano, 48, of Kaufman, and Leocadio Ruiz, 49, a Mexican national who resided in Cedar Hill, worked for Montalvo Ruiz in the Dallas area. Lozano received and distributed marijuana was ordered to serve a term of 144 months in prison, while Ruiz received drug shipments and collected drug proceeds and received a sentence of 70 months.
Laredoan Francisco Colin, 44, provided tractor trailers and drivers to Erasmo Trejo-Nava; Mario Alberto Rodriguez, 30, of Laredo, was Erasmo Trejo-Nava’s worker and wrapped and loaded marijuana; and Mexican national Gerardo Moreno Recio, 50, was a stash house operator. Colin received a 50-month prison term, while Rodriguez and Recio were ordered to serve total sentences of 120 and 151 months of imprisonment.
Ovido Rodriguez, Mario Rodriguez, Trejo, Colin and Lozano received varying terms of supervised release to serve following completion of their prison terms. Not U.S. citizens, the others are expected to face deportation proceedings following their release.
Today’s sentencings brings to a total 26 defendants convicted and sentenced in the investigation which included four indictments.
The remaining defendants received sentences ranging from 12 to 120 months in prison for their varying roles in the conspiracy.
The charges were the result of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the Drug Enforcement Administration, IRS - Criminal Investigation, High Intensity Drug Trafficking Area Task Force and with the assistance of Homeland Security Investigations, Laredo Police Department, Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Omaha Mother and Son Sentenced to 10 year Prison Terms for Selling MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Yolanda Otero-Valenzuela, 63, and her son, James Narvaez, 29, both of Omaha, were each sentenced on September 20, 2017, to 10 year prison terms by United States District Judge John M. Gerrard. Each had previously pled guilty to conspiracy to distribute multiple ounce quantities of methamphetamine. Narvaez was found to have carried a 9 mm handgun during the course of the conspiracy. After serving their prison terms, each will serve a 5 year Term of Supervised Release.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Omaha Man Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
COUNCIL BLUFFS, Iowa - On September 18, 2017, United States District Court Judge Stephanie M. Rose sentenced John C. Gundersen Jr., 52, of Omaha, Nebr., heather Jean Reekrto 72 months in prison followed by four years of supervised release for possession of methamphetamine with the intent to distribute some or all of it, announced United States Attorney Kevin E. VanderSchel.
Gundersen entered a guilty plea to possession with intent to distribute methamphetamine on May 1, 2017. Gundersen was contacted by law enforcement at a traffic stop on June 2, 2016, and had active warrants for his arrest. He was arrested, and a vehicle search located methamphetamine, which Gunderson intended to distribute to other people, along with over $1,000 in cash.
The Missouri Valley Police Department and Iowa Division of Narcotics Enforcement conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Jason T. Griess at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Oklahoma City Police Officer Charged with Concealing a Federal Crime and Making a False Statement to Federal InvestigatorsRead the Press Release
Oklahoma City, Oklahoma – Today a federal grand jury charged WESTON SLATER, 25, of Yukon, with concealing a federal crime and making a false statement to federal investigators, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to the two-count indictment, Slater was an officer with the Oklahoma City Police Department ("OCPD") in early 2016, when the FBI, OCPD, and the Oklahoma Department of Agriculture, Food & Forestry Investigative Service ("ODAFF") were investigating the federal crime of conspiring to receive, possess, or conceal stolen goods that had crossed state boundaries. That conspiracy charge is included in a six-defendant second superseding indictment filed on May 18, 2017, and a three-defendant third superseding indictment filed on June 20, 2017, both in case number CR-17-11-R.
Count 1 of today’s indictment alleges Slater committed the federal crime of "misprision of felony" beginning on February 4, 2016, when he used an OCPD computer at the request of one of the conspirators to determine that a certain vehicle had been stolen in Texas. This count further alleges that Slater made a false statement to the dispatcher about his reason for running the search on the vehicle. According to the indictment, Slater failed to bring the federal crime to the attention of relevant law enforcement authorities.
Count 2 alleges Slater knowingly and willfully made a materially false statement in a matter within the jurisdiction of the FBI on February 28, 2017. In particular, it charges he told the FBI he had not accessed OCPD’s "Varuna" database to search for information on certain law enforcement officers on October 1, 2016, when he actually knew that he had searched for that information for an improper purpose.
If convicted, Slater could be imprisoned for a maximum of three years on Count 1, to be followed by one year of supervised release. He could receive a maximum of five years on Count 2, in addition to three years of supervised release. He could also be fined up to $250,000 on each count.
The public is reminded these charges are merely accusations and that Slater is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
This case is the result of an investigation by the FBI Major Theft Task Force, OCPD, and ODAFF. The task force consists of the FBI, ODAFF, the Oklahoma State Bureau of Investigation, and the Garvin County Sheriff’s Office. Assistant U.S. Attorneys Edward J. Kumiega and Ashley L. Altshuler are prosecuting the case.
Oklahoma City Daughter and Mother Sentenced for Tax Fraud and Framing of Family MemberRead the Press Release
Oklahoma City, Oklahoma – KASHARA STEWART, of Oklahoma City, Oklahoma, and her mother, WONICA STEWART POPE, also of Oklahoma City, were sentenced yesterday to federal prison respectively for tax-refund fraud and making a false statement to a federal agent, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On February 22, 2017, a federal grand jury returned a Superseding Indictment charging Kashara Stewart with seven counts of tax fraud and seven counts of aggravated identity theft. It alleged that from January 2012 through December 2012, Kashara Stewart filed false federal income tax returns in the names of individuals, without their knowledge or permission, and attached false W-2s for employers that did not employ the purported tax filers in the relevant tax years. Those false tax returns directed the IRS to deposit the claimed tax refunds into Kashara Stewart’s bank account.
The Superseding Indictment also charged Kashara Stewart’s mother, Pope, with one count of making a false statement to a federal law enforcement officer. On August 27, 2013, during the investigation of Kashara Stewart’s stolen identity refund fraud, Pope left a voicemail for an IRS–Criminal Investigations Special Agent in which she falsely confessed to the crime. Pope falsely stated she was her sister, Wenoca Stewart Williams, to shift blame away from her daughter.
On November 1, 2016, based in part on Pope’s phone call to IRS–Criminal Investigations, a federal grand jury charged Wenoca Stewart Williams, along with Kashara Stewart, with conspiracy and tax fraud. After learning that Pope had framed Williams, the United States moved to dismiss the charges against Williams, who is no longer charged with any federal crime.
On May 5, 2017, Kashara Stewart pled guilty to filing a false claim for a tax refund. Pope entered a guilty plea the same day to making a false statement to a federal official. She admitted she left a voicemail message for an IRS Special Agent in which she posed as Williams and purported to confess to Kashara Stewart’s tax fraud.
Yesterday Chief U.S. District Judge Joe Heaton sentenced Kashara Stewart to 38 months in prison, to be followed by three years of supervised release. She must also pay restitution to the IRS in the amount of $352,449. Judge Heaton sentenced Pope to 30 months in prison. He found that she substantially interfered in the administration of justice by giving three separate false confessions in late August and early September 2013. After imprisonment, she will serve two years on supervised release.
This case is the result of an investigation by IRS–Criminal Investigations and was prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
Nurse Practitioner Admits to Receiving Kickbacks for Signing Orders for Medicaid ServicesRead the Press Release
RALEIGH – The United States Attorney Office for the Eastern District of North Carolina, John Stuart Bruce, announced that today in federal court, CHRISTINE HICKS THOMAS, 62, of Murfreesboro, North Carolina, pleaded guilty to Illegal Remunerations. Under the terms of the plea agreement, THOMAS faces up to 5 years in prison, $25,000 in fines, and 3 years of supervised release. Under additional terms discussed in court, THOMAS agreed to surrender her nursing license, to surrender any interest she has in companies that bill the government for health care services, and to be permanently excluded from Medicare and Medicaid programs.
According to the Criminal Information and evidence discussed in open court, THOMAS, a licensed nurse practitioner, agreed to sign off on orders authorizing various Medicaid recipients to receive outpatient behavioral health services. In fact, THOMAS never evaluated the patients or made any clinical assessment of whether the services were medically necessary for the recipients. In a recorded encounter in a parking lot, THOMAS accepted a cashier’s check in exchange for signing the orders.
The orders that THOMAS signed are required by Medicaid’s Managed Care Organizations as a prerequisite before a Medicaid provider can bill the government for outpatient behavioral health services. Once authorization orders are signed, providers can lawfully bill the government for hundreds of thousands of dollars in outpatient behavioral health services, provided such services are actually rendered.
As a result of her conviction and plea, THOMAS will no longer be a licensed nurse practitioner, and will no longer be able to participate in government health care benefit programs such as Medicare and Medicaid. She will also face a potential sentence of imprisonment.
This case is part of a broader investigation of a Medicaid fraud conspiracy carried out by Terry Lamont Speller; Donnie Lee Phillips, II; and Reginald Saunders, whose cases have already been sentenced. The investigation also relates to the pending case against Shephard Lee Spruill, II. Each of these cases are the subject of prior press releases.
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General, with the assistance of the Federal Bureau of Investigation. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division, and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, each represented the United States.
If you suspect Medicaid or Medicare fraud please visit the HHS OIG website at https://oig.hhs.gov/ and click on the Report Fraud button. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Norwalk Man Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that RYAN S. ROZYCKI, 41, of Norwalk, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of tax evasion.
According to court documents and statements made in court, ROZYCKI owns and operates bangthebook.com, a sports gaming information website, as well as other website businesses and rental properties. For the 2009 through 2014 tax years, ROZYCKI reported more than $1.6 million in gross receipts on his federal income tax returns, but failed to report more than $1.1 million in taxable income, which he had deposited into his personal bank accounts. ROZYCKI had worked with an accountant to prepare his tax returns, but did not provide his accountant with any information regarding his personal accounts and the business receipts that had been deposited into them.
As a result, ROZYCKI failed to pay $371,161 in taxes for the 2009 through 2014 tax years.
ROZYCKI is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on December 18, 2017, at which time he faces a maximum term of imprisonment of five years, a fine of up to approximately $742,000, and back taxes, interest and penalties.
ROZYCKI was released on a $100,000 bond pending sentencing.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Nicholas County man sentenced to 10 years in federal prison for attempted enticement of a minorRead the Press Release
CHARLESTON, W.Va. – A Nicholas County man was sentenced today to 10 years in federal prison for a sex crime involving a minor, announced United States Attorney Carol Casto. John Marshall Underwood, Jr., 44, of Gilboa, previously pleaded guilty to attempted enticement of a minor to engage in sexual activity. After completing his prison sentence, Underwood will be on federal supervised release for 15 years, and he will also be required to register as a sex offender.
Underwood admitted that from December 14, 2016, through February 1, 2017, he used a cell phone to communicate with a woman he believed to be a prostitute who had custody of two minor nieces. The woman Underwood thought was a prostitute was actually an undercover law enforcement officer. Underwood also admitted that he communicated with the woman about engaging in commercial sexual activity with one of the nieces. On at least two occasions, Underwood communicated with an individual he believed to be the niece and attempted to entice her to engage in commercial sexual activity. The individual Underwood thought was the niece was also an undercover law enforcement officer. Underwood admitted that on February 1, 2017, he arranged a meeting with the individuals, who were actually undercover officers, and was arrested after he arrived at the meeting location. Law enforcement recorded all the calls between Underwood and the undercover officers.
The investigation was conducted by the Charleston Police Department, the West Virginia State Police, and Homeland Security Investigations. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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.justice.gov/psc.
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New Vineyard Man Indicted on Drug Distribution ChargesRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jordan Richard, 24, of New Vineyard, Maine and formerly of Rangeley, Maine, was indicted last week by a federal grand jury for distributing cocaine.
If convicted, Richard faces up to 20 years in prison, three years of supervised release, and a $1,000,000 fine.
The investigation was conducted by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Police; and the Rangeley Police Department.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
New London Man Pleads Guilty to Distributing Heroin Involved in Southeastern Connecticut OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NESTOR SANTANA, also known as “Beans,” 30, of New London, pleaded guilty today in New Haven federal court to a heroin distribution charge stemming from an investigation of two drug overdose deaths in May 2016.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, Gomez sold a quantity of heroin to Adele Bouthillier, who then distributed the heroin to the victim. SANTANA supplied Gomez with the heroin that caused the death of the victim.
On May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old female lying face down on the bathroom floor.
The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the 34-year-old female’s death to be “Acute Ethanol and Fentanyl Intoxication.”
The investigation revealed that the victim was supplied with heroin/fentanyl by James Butler. Butler had been supplied with the drugs by Gomez, who in turn was supplied by SANTANA.
In August and September 2016, investigators made controlled purchases of heroin from SANTANA.
SANTANA was arrested on state charges on September 29, 2016. A search of his residence at the time of his arrest revealed an additional quantity of heroin and items used to process and package narcotics. He has been detained since his arrest on a federal criminal complaint on January 31, 2017.
SANTANA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 13, 2017, in Hartford.
Gomez and Bouthillier have pleaded guilty to sex trafficking of a minor and heroin distribution offenses, and Butler has pleaded guilty to a heroin distribution offense. Each awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This matter stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Navajo Man Facing Federal Commercial Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Today a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Trevor David Littleman, 25, an enrolled member of the Navajo Nation with violating the Hobbs Act and federal firearms laws. Littleman remains in federal custody pending trial which has yet to be scheduled.
The criminal complaint alleges that on Sept. 8, 2017, Littleman robbed the Giants Gas Station and Convenience Store located on New Mexico State Road 371, Main Street in Crownpoint, N.M., at gunpoint. Before departing from the store with packs of cigarettes and cash from the cash registers, Littleman allegedly fired one round of ammunition into the ceiling. According to the complaint, a 9mm casing and shattered fluorescent light and debris were found on the floor of the gas station.
If convicted on the charges in the criminal complaint, Littleman faces a statutory maximum penalty of 20 years in prison on the Hobbs Act charge. Littleman also faces a mandatory minimum of ten years of imprisonment for discharging a firearm, which must be served consecutive to any sentence imposed on the other charge. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.
Muskogee Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MATTHEW DYLAN ERNST, age 24, of Muskogee, Oklahoma, pled guilty to DISTRIBUTION OF METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, and up to a $10,000,000.00 fine or both.
The Indictment alleged that on or about November 4, 2016, in the Eastern District of Oklahoma, the Defendant, MATTHEW DYLAN ERNST, did knowingly and intentionally distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charge arose from an investigation by the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kristin Harrington represented the United States.
Muskegon Man Sentenced to Five-And-A-Half Years in Federal Prison for Firearms OffenseRead the Press Release
GRAND RAPIDS, MICHIGAN – Gerald Fitzpatrick Odneal II, also known as "PJ," of Muskegon, Michigan was sentenced to 66 months (five-and-a-half years) in federal prison for possessing firearms as a convicted felon, Acting U.S. Attorney Andrew Byerly Birge announced today. In addition to the prison term, U.S. District Judge Janet T. Neff imposed a 3-year term of supervised release that will commence once Odneal is released from imprisonment.
In February of 2017, police were looking for Odneal in connection with an unrelated case. They located him near his home in Muskegon, but he fled from police, throwing a loaded .38 caliber Smith and Wesson revolver while in flight. Police recovered the weapon, but Odneal escaped. Police again located Odneal in April of 2017 and arrested him. Police recovered three additional firearms at the time of Odneal’s arrest, an SKS rifle, a stolen .40 caliber semiautomatic handgun, and a shortened (sawed-off) .22 caliber rifle. Odneal had taken a photo of himself brandishing one of the weapons, his fingerprint was on another, and he admitted to moving the third. Odneal had previously been convicted of being a Felon in Possession of a Firearm.
In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of a significant custodial sentence, noting that Odneal "has a long history replete with violence and weapons offenses." In fact, "his most recent state-court conviction involving a running gun battle" in Muskegon. In light of his history, the U.S. Attorney’s Office argued that Odneal posed an immense risk to the community. "The Muskegon community suffers from gun violence, and there is a great need to deter such conduct by others. A significant sentence will tend to deter such conduct."
"While gun violence continues to be a problem that affects the safety and security of our neighborhoods, this sentence reflects the continuing impact that the Muskegon Violent Crime Task Force is having on the ability of those individuals who seek to threaten our communities", said Jeffrey R. Downey, Assistant Special Agent in Charge, Detroit Division of the FBI.
The charges in this case are the result of an investigation by the Muskegon Violent Crime Task Force, which includes the Federal Bureau of Investigation (FBI), the Michigan State Police (MSP), and the Muskegon City Police Department. The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and drug trafficking in the Muskegon area. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Miami-Dade Resident Sentenced to More Than 4 Years in Prison for Managing a Miami Spa Performing Illicit Silicone InjectionsRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), announced the fifty-six month prison sentence imposed upon Magaly Del Rosario for managing a Miami spa which performed illicit silicone injections.
On July 6, 2017, Del Rosario previously pled guilty for her participation in a conspiracy and delivery for pay of an adulterated and misbranded device received in interstate commerce with the intent to defraud and mislead. Yesterday, United States District Judge Kathleen M. Williams sentenced Del Rosario to 50 months in prison for the conspiracy, to be followed by 6 months in prison for the remaining count of conviction. In addition, Del Rosario was sentenced to three years of supervised release. A restitution hearing has been scheduled for December 1, 2017.
According to the court record, including an agreed upon factual statement, Del Rosario and her co-defendant, Maribel Jimenez (who previously pled guilty and was sentenced on August 29, 2017, to 79 months in prison), conspired from 2008 through August 2015 to receive and deliver an adulterated and misbranded “medical device” for pay which consisted of silicone used illegally for body contouring injections. Del Rosario further admitted to having assisted Jimenez, in unlawfully injecting this substance into hundreds of clients seeking buttocks augmentation at Bella Beauty Spa (“Bella Beauty”), a business owned by Jimenez and located at 8360 West Flagler Street in Miami. The silicone was unlawfully smuggled into the United States from Colombia throughout the period of the criminal conspiracy by means of multiple DHL deliveries of bottles falsely labeled as containing depilatory wax.
During the course of the criminal conduct, Del Rosario “repeatedly and consistently” informed Bella Beauty’s clients that they would be injected with a substance that was safe, non-permanent and capable of being absorbed by the body over time,” while she “knew this not to be the case.” Del Rosario and Jimenez falsely claimed that the substance was hydrogel, hyaluronic acid, Juvederm, Restylane, or other such absorbable, time-limited substances. They did not inform clients that the dermal filler material was in fact silicone, a permanent substance known to be harmful if injected into the human body. The potentially dangerous and harmful health risks that could result from the injection of the illicit silicone include: the potential of injection into a blood vessel resulting in embolism, migration of injected silicone to other bodily regions, infection and infection-related disorders, silicone-filled scar tissue formations (“granulomas”) caused by the body’s attempt to encapsulate such a foreign substance, necrosis, skin discoloration, immune system hyperactivity and related adverse systemic conditions, disfigurement, discomfort, and pain.
Mr. Greenberg commended the investigative efforts of FDA-OCI, ICE-HSI and MDPD. Mr. Greenberg thanked U.S. Customs and Border Protection and the Colombian National Police for their assistance. This case is being handled by Assistant U.S. Attorneys Peter Outerbridge and Miesha Darrough.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.