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Friday 28 July 2017
Couple Sent to Prison for Scheme to Steal HUD Funds Intended for the Cotton Plant Housing AuthorityRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation Division, and Phyllis G. Robinson, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD)—Office of Inspector General, announced today that Chief United States District Judge Brian S. Miller sentenced Rhonda Williams, 50, and her husband, Gary Williams, 59, both of Des Arc, Arkansas, to prison for their role in a scheme to steal money intended for use by the Cotton Plant Housing Authority.
On September 2, 2016, Rhonda Williams and Gary Williams appeared before Judge Miller and pleaded guilty to conspiring to commit bank fraud and money laundering. Today, Judge Miller sentenced Rhonda Williams to 37 months’ imprisonment, to be followed by three years of supervised release. In the same hearing, Judge Miller sentenced Gary Williams to 24 months of federal prison, to be followed by three years of supervised release. The Williams were jointly ordered to pay restitution of $732,177.80 and to forfeit $145,000 in cash seized from their home, the money in four bank accounts, a boat, and an SUV.
“These defendants took public money that was meant to provide affordable housing to a low income population, and instead used it for their own personal gain,” Harris said. “This case is an example of how our office will continue working tirelessly to protect the public and eliminate this unacceptable fraud, waste, and abuse.”
The Cotton Plant Housing Authority received its annual operating funds from HUD in the form of an annual distribution. Rhonda Williams served as the Executive Director of the Housing Authority and Gary Williams was the Housing Authority’s Maintenance Supervisor.
From January 31, 2001 to December 31, 2014, the Williams conspired and executed a scheme where they used false and fraudulent pretenses to receive funds that were intended for use by the Housing Authority. As part of the conspiracy, the Williams lied about the reasons for the payment of Housing Authority money, and solicited and accepted bribes and kickback payments from Housing Authority contractors. In addition, the Williams caused the Housing Authority to pay for their personal expenses on their Housing Authority credit cards, and took Housing Authority equipment and materials and used them in the construction of their personal residence.
“IRS-Criminal Investigation remains committed to its pursuit of individuals who engage in corruption at the expense of hardworking Americans,” Montaño said. “As employees of the Cotton Plant Housing Authority, Rhonda and Gary Williams’ actions violated public trust by using their position to enrich themselves at the expense of American taxpayers. Today’s sentence demonstrates the government’s determination to ensure that trust is not broken.”
This investigation was conducted by IRS-Criminal Investigation Division, the HUD - Office of Inspector General, and the Benton Police Department. Assistant United States Attorneys Cameron McCree and Edward Walker prosecuted the case for the United States.
Chicago Man Sentenced to 15 Years in Federal Prison for Sharing Images of Child PornographyRead the Press Release
CHICAGO — A Chicago man who shared dozens of images of child pornography was sentenced today to 15 years in federal prison.
From August 2012 to September 2014, DONALD BOWEN used an electronic file-sharing network to trade the pornographic images with others via the Internet. In September 2014, Bowen granted access to his password-protected folder to an individual with whom he was chatting online. Unbeknownst to Bowen, the individual was actually an undercover law enforcement officer. The officer downloaded 39 images of child pornography from Bowen’s folder. The images viewed by the officer included young children engaging in sexually explicit conduct.
A subsequent forensics search of Bowen’s computer revealed more than 4,000 videos and 6,000 images of child pornography.
Bowen, 54, of Chicago, pleaded guilty last year to one count of transportation of child pornography. Bowen’s prior conviction for a misdemeanor offense related to child abuse triggered the mandatory minimum sentence of 15 years imposed by U.S. District Judge Charles Norgle.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and James M. Gibbons, special agent-in-charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago.
“Defendant used his computer to share images of child pornography with others and, in doing so, continued the cycle of exploitation,” Assistant U.S. Attorney Elizabeth R. Pozolo argued in the government’s sentencing memorandum. “The public needs to be protected from individuals like the defendant.”
In addition to trading the pornographic images, Bowen admitted in a plea agreement that he possessed images of child pornography on various electronic devices, including a cellular phone and 15 optical discs. Bowen also admitted possessing a three-ring binder with a white cover that contained hundreds of printed photographs depicting child pornography.
Chairman of a Macau Real Estate Development Company Convicted on All Counts for Role in Scheme to Bribe United Nations Ambassadors to Build a Multi-Billion Dollar Conference CenterRead the Press Release
Yesterday, a federal jury convicted the chairman of a real estate development company for his role in a scheme to bribe United Nations ambassadors to obtain support to build a conference center in Macau that would host, among other events, the annual United Nations Global South-South Development Expo.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim of the Southern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Chief Don Fort of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
After a four week trial, Ng Lap Seng, a/k/a “David Ng,” 69, of Macau, China, was convicted of two counts of violating the Foreign Corrupt Practices Act, one count of paying bribes and gratuities, one count of money laundering and two counts of conspiracy. No sentencing date has been set.
“The defendant’s corrupt activities were all the more egregious and shameful as he tried to hide his bribes as philanthropy,” said Acting Assistant Attorney General Blanco. “Corruption is a disease that has a corrosive effect on the rule of law everywhere and harms good people throughout the world. The Department is steadfast in its mission to aggressively investigate and prosecute bribery in all its forms, and vigorously protect the rule of law.”
“In his unbridled pursuit of even greater personal fortune, billionaire Ng Lap Seng corrupted the highest levels of the United Nations,” said Acting U.S. Attorney Kim. “Through bribes and no show jobs, Ng turned leaders of the league of nations into his private band of profiteers. Ng’s journey from a Macau real estate mogul to convicted felon should serve as a cautionary tale to all tempted to follow his path. If you bring corruption to New York – whether to the State Capitol in Albany or to the halls of the U.N. General Assembly – your journey may very well end in a Manhattan federal courtroom, with a unanimous jury announcing your guilt.”
“Ng’s bribery scheme began at the intersection where business and intergovernmental matters overlap,” said Assistant Director in Charge Sweeney, Jr. He may have thought this was a good place to start, but it’s doubtful this was the ending he had in mind. This case is nothing more than an example of corruption in its purest form, and we’ve proven once again that no individual or organization is powerful enough to be immune from prosecution.”
“Today’s conviction is a result of untangling a global labyrinth of complex financial transactions used by Ng to facilitate bribes to foreign officials,” said Chief Fort. “IRS-CI has become a trusted leader in pursuit of those who use corruption as their business model to circumvent the law. CI is committed to maintaining fair competition, free of corrupt practices, through a dynamic synthesis of global teamwork and our robust financial investigative talents.”
According to the evidence presented at trial, Ng, the chairman of the Sun Kian Ip Group, conspired with and paid bribes to Francis Lorenzo, a former UN Ambassador from the Dominican Republic, and John W. Ashe, the late former Permanent Representative of Antigua and Barbuda to the UN and the 68th President of the UN General Assembly (“UNGA”). With the assistance of Jeff C. Yin, an accountant and co-conspirator who worked with Ng and others and previously pleaded guilty, Ng orchestrated a scheme with the principal objective of obtaining the formal support of the UN for a multi-billion dollar facility that Ng hoped to build in Macau using the Sun Kian Ip Group (the “Macau Conference Center”). Ng wanted the Macau Conference Center to serve as a location for meetings, discussions, forums, and other events associated with the UN. In particular, he wanted it to serve as the permanent home of the annual “Global South-South Development Expo,” which is run by the UN Office for South-South Cooperation, and is hosted in a different country or city every year.
The trial evidence further showed that Ng bribed Ambassador Ashe and Ambassador Lorenzo (together, the “Ambassadors”) in exchange for their agreement to use their official positions to advance Ng’s interest in obtaining formal UN support for the Macau Conference Center. As the evidence demonstrated at trial, Ng paid the Ambassadors in a variety of forms. For example, Ng appointed Ambassador Lorenzo as the President of South-South News, a New York-based organization — funded by Ng — which described itself as a media platform dedicated to advancing the implementation of the UN’s Millennium Development Goals, a set of philanthropic goals. Ng provided bribe payments to Ambassador Lorenzo through South-South News by transmitting payments from Macau to a company in the Dominican Republic affiliated with Ambassador Lorenzo’s brother (the “Dominican Company”). Through South-South News, Ng also made payments to Ambassador Ashe, including to Ambassador Ashe’s wife, who was paid in her capacity as a “consultant” to South-South News, and to an account that Ambassador Ashe had established, purportedly to raise money for his role as President of UNGA. Ng also provided bribes through cash and wire payments to the Ambassadors.
According to the trial evidence, one of the actions that the Ambassadors took in exchange for bribe payments, to advance Ng’s objectives, was to submit an official document to the then-UN Secretary-General in support of the Macau Conference Center (the “UN Document”). The UN Document claimed that there was a need to build the Macau Conference Center to support the UN’s global development goals. Ambassador Ashe, aided by Ambassador Lorenzo, initially submitted the UN Document to the UNGA in or about late February 2012. More than a year later, at Ng’s behest, the Ambassadors revised the UN Document to refer specifically to Ng’s company, the Sun Kian Ip Group, as a partner in the Macau Conference Center project. The UN Document requested that the Secretary-General circulate the UN Document “as a document of the sixty-sixth session of the General Assembly,” under a specific item of the official UNGA agenda. The Secretary-General followed this request, thereby making the UN Document an official part of the UNGA record.
Five other defendants have been charged in this matter. Co-conspirators Lorenzo, Yin and Heidi Hong Piao have pleaded guilty and are awaiting sentencing. Shiwei Yan has pleaded and was sentenced to 20 months in prison. Co-defendant Ashe passed away in 2016 and the charges against him were dismissed.
This case was investigated by the FBI and IRS-CI. Trial Attorney David A. Last of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Daniel C. Richenthal, Janis M. Echenberg and Douglas S. Zolkind of the Southern District of New York are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Car Lot Owner Pleads Guilty in Scheme to Defraud Area BanksRead the Press Release
Memphis, TN – The United States charged a Memphis man for committing bank fraud against various banks in the Memphis and West Tennessee area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to the charging instrument, from December 2011 through February 2014, Baron Marshall owned Southwind Auto Sales ("Southwind"). Marshall and unknown co-conspirators, not charged, participated in a deceptive scheme to defraud Shelby County Federal Credit Union, Regions Bank and Bank of Fayette County ("Banks") by applying for loans for associates to purchase luxury vehicles from Southwind.
Marshall would receive the funds from the Banks and then refused to produce vehicle titles to the Banks, and in some instances, released bank liens. As a result of the scheme, the banks collectively suffered a loss of over $244,000.
Marshall pled guilty to one count of bank fraud during the referenced time period. The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine. The sentencing hearing will be held on October 6, 2017.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
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Canadian Defendant Returned from Poland to Face Bank Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Acting Attorney James P. Kennedy, Jr. announced today that Panagiota Loukisas, 56, of North York, Ontario, Canada, was successfully returned from Poland and arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy. In July 2015, the defendant was named in a five count indictment charging bank fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment, the defendant opened bank accounts at five banks in Niagara Falls, N.Y. in November 2014. Loukisas deposited checks drawn on a Canadian bank account held by her company, PM Global Consulting Services, into these five accounts. The defendant then withdrew significant sums of money from the Niagara Falls bank accounts before the checks were returned to the banks for insufficient funds. Loukisas is accused of fraudulently depositing non-sufficient fund checks valued at more than $83,000 and withdrawing more than $52,000 from the accounts before the scheme was discovered.
The defendant was arraigned and is being held pending a detention hearing on August 7, 2017.
The charges are the culmination of an investigation by Special Agents of the Immigration & Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
California man sentenced to seven years in federal prison for role in methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A California man was sentenced yesterday to seven years in federal prison for a methamphetamine crime, announced United States Attorney Carol Casto. Edgar Zendejas Bedoy, 35, of El Centro, previously pleaded guilty to conspiracy to distribute five grams or more of methamphetamine.
Bedoy admitted that beginning in December 2011 and continuing into 2012, he conspired with Gary Liberty to send packages of methamphetamine and marijuana from California to an individual in Sissonville for distribution. The individual was actually a confidential informant cooperating with the Metropolitan Drug Enforcement Network Team. Through discussions with the informant, Gary Liberty agreed to arrange methamphetamine and marijuana deals for Bedoy with the informant. Liberty negotiated the price of the drugs for Bedoy with the informant, and the two then agreed to ship the packages containing methamphetamine and marijuana from California to the informant in West Virginia. Bedoy admitted to shipping 472 grams of methamphetamine and nearly 12 kilograms of marijuana to West Virginia for distribution. Liberty was previously sentenced to 10 years in federal prison for methamphetamine trafficking.
The Metropolitan Drug Enforcement Network Team, U.S. Immigration and Customs Enforcement, part of the Department of Homeland Security, and the U.S. Postal Inspection Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This prosecution is 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 illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Buffalo Man Sentenced on Drug 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 Shawn Lebrecht, 35, of Olean, NY, pleaded guilty to possession of child pornography before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that in early August 2016, an undercover law enforcement officer began communicating online with the defendant. Lebrecht sent the officer several images of child pornography. On August 25, 2016, a search warrant was executed at the defendant’s East Green Street residence. During the search, officers recovered a laptop computer. A forensic analysis determined the laptop contained over 300 images of child pornography. Some of the images depicted pre-pubescent children and violence.
Today’s plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero
Sentencing is scheduled for October 24, 2017, at 1:30 p.m. before Judge Wolford.
Buffalo Man Sentenced on Drug 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 David Young, 50, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine, was sentenced to 30 months in prison by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that on February 2, 2015, Cheektowaga Police officers conducted a traffic stop of the vehicle the defendant was driving. Young advised the officer that the vehicle was a rental vehicle while producing the rental agreement. However, the defendant was not listed as an authorized driver of the vehicle. As a result, he was asked to exit the vehicle. While doing so, the officer noticed a syringe in the driver’s seat of the vehicle.
Young was arrested and the vehicle was searched. During this search, the officer recovered approximately 325 gross grams of methamphetamine in the trunk as well as a FedEx shipping label address for 79 North Ogden, Young’s residence.
Today’s sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Buffalo Man Pleads Guilty to Cross-Country Cocaine Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rashawn Dewer, 37, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that the defendant organized a conspiracy that transported kilograms of cocaine from Texas to Buffalo and cash proceeds from Buffalo to Texas. Law enforcement agencies in multiple jurisdictions, including the State of Louisiana, made multiple seizures such as:
• On August 16, 2014, law enforcement officers stopped a vehicle in the vicinity of Covington, Louisiana, that was traveling from Buffalo to Texas. Inside a hidden compartment in the vehicle was approximately $330,020. This money originated from the defendant, was being transported at the defendant’s direction, and was payment for cocaine.
• On January 20, 2016, law enforcement officers stopped a vehicle in the area of Lake Charles, Louisiana that was traveling to Texas. Inside a hidden compartment in the vehicle was over $275,000. This money originated from the defendant and was being transported at the defendant’s direction.
• On February 22, 2016, law enforcement officers stopped a vehicle driven by a co-conspirator in the area of Lake Charles, Louisiana. Seized from inside the vehicle was approximately $798,021. At the time, the co-conspirator resided in Sugarland, Texas. After arrest, the co-conspirator asked an associate to call a telephone number that was subscribed to a second co-conspirator, who resided in Buffalo, to say, “I’m not going to make it.” On the money wrappings, one latent fingerprint was developed and found to match known prints from the defendant.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for October 24, 2017, at 9:30am before Judge Wolford.
Buffalo Man Pleads Guilty to Cocaine 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 Hayward Tarver, 38, of Buffalo, NY, pleaded guilty to possession with intent to distribute 28 grams or more of crack cocaine, before U.S. District Judge William M. Skretny. The charges carries a mandatory minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that on September 27, 2013, Buffalo Police and the Drug Enforcement Administration executed a search warrant at the defendant’s residence at 66 Connelly Avenue in Buffalo. During the search, officers recovered approximately 166 grams of crack cocaine, $6,000 in U.S. currency, a digital scale, and packaging materials used to distribute the cocaine.
The plea is the result of an investigation by the Drug Enforcement Agency, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for November 15, 2017 at 10:00 a.m. before Judge Skretny.
Brazilian National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was charged yesterday in federal court in Boston with a federal immigration crime.
Josilei DeCastro, a/k/a Marcos Santos, a/k/a Marcos Augusto Dos Santos, 37, was charged with illegally reentering the United States after being deported.
According to court documents, law enforcement officers discovered DeCastro in Billerica on Dec. 9, 2016, and determined him to be illegally present in the United States. DeCastro was previously deported on July 17, 2000.
DeCastro faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baton Rouge Resident Convicted of Stealing Federal Dollars in Fraudulent Social Security Benefits SchemeRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced that LUCILLE WILLIAMS, age 54, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to stealing funds of a Federal agency, in violation of Title 18, United States Code, Section 641. During the guilty plea hearing yesterday, WILLIAMS admitted that as the authorized payee for Social Security Administration (SSA) benefits to her mother, she continued to collect SSA benefits after her mother’s death. As part of her scheme to steal SSA benefits, WILLIAMS submitted reports to the SSA falsely stating that her mother was still alive and that she used the benefit payments for the care and support of her deceased mother. WILLIAMS admitted that, as a result of her fraudulent scheme, she illegally collected almost $80,000.
Acting U.S. Attorney Amundson stated: “Federal benefit fraud continues to be employed by criminals in the United States. When fraudsters steal funds intended for legitimate purposes, their criminal conduct victimizes not only our federal agencies but also all taxpayers. My office works in conjunction with the Social Security Administration’s Office of the Inspector General to aggressively identify and prosecute defendants like this who mistakenly believe that their fraudulent conduct will continue indefinitely and undetected.”
Special Agent-in-Charge Robert G. Feldt stated: “The Social Security Administration, Office of Inspector General, will tirelessly investigate and bring to justice those who commit fraud against Social Security Programs.”
This ongoing investigation is being conducted by the Dallas Field Division of the Social Security Administration’s Office of Inspector General and the Affirmative Civil Enforcement Unit of the United States Attorney’s Office. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese
Bank Officer Becomes Fourth Defendant Sentenced in Multi-Million Dollar Bank FraudRead the Press Release
Defendant helped three previously-sentenced codefendants fraudulently obtain over $2.1 million from his bank
LEXINGTON, Ky. – A former Vice President of PBI Bank in Lexington was sentenced to two years in federal prison after pleading guilty to helping three other people defraud the bank.
U.S. District Judge Danny C. Reeves sentenced Joseph Tobin, age 45, for six counts of aiding and abetting bank fraud and one count of bank fraud. Judge Reeves had previously sentenced Daniel Sexton to 109 months, Jonathan Williams to 60 months, and Sheila Flynn to 24 months of imprisonment for their roles in the fraud. Sexton, Williams, and Flynn are currently serving their sentences in federal prisons after pleading guilty.
According to their guilty pleas, Sexton and Williams owned and operated several mobile home businesses in Georgetown, Kentucky. Flynn worked at those businesses as an office manager. Tobin was a Vice President at PBI Bank in Lexington, which was receiving funds through the Troubled Assets Relief Program at the time of the offense.
Sexton, Williams, and Flynn conspired together to obtain various bank loans using false corporate accounting records, false tax records, and false appraisals for assets such as a private plane. They also failed to disclose debts they owed to others in their loan applications. Tobin knew that the loan applications were fraudulent but approved them anyway.
Sexton and Williams also recruited other people to take out loans from PBI Bank then direct the money to them. Tobin approved these loans even though he knew that Sexton and Williams were the true borrowers. Tobin also set up a straw loan for another borrower.
In addition to their prison sentences, Judge Reeves ordered the four defendants to pay restitution to four victimized banks. Sexton and Williams were each ordered to pay over $2.6 million in restitution, Tobin is responsible for $185,001 and Flynn for over $1.4 million.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Amy S. Hess, Special Agent in Charge, Federal Bureau of Investigation; and Alfred Hogan, Special Agent in Charge, Office of the Special Inspector General for the Troubled Assets Relief Program, jointly announced the sentence. Assistant U.S. Attorney Dmitriy Slavin represented the United States.
Attorney Jonathan Flom Sentenced to 48 Months’ Imprisonment for Money LaunderingRead the Press Release
Earlier today, Jonathan Flom, an attorney licensed in three states, was sentenced to 48 months’ imprisonment and three years’ supervised release for money laundering. Today’s sentencing took place before United States District Judge Roslynn R. Mauskopf at the federal courthouse in Brooklyn, New York.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Attorney Jonathan Flom took advantage of the trust placed in him by virtue of his profession to make easy money for himself,” stated Acting United States Attorney Rohde. “Such abuse of trust will be appropriately punished.”
“Flom preyed on the vulnerabilities of victims who were already being cheated out of money, falsely representing himself as someone who was working in their favor,” Assistant Director-in-Charge Sweeney stated. “He further tried to exploit his role as an attorney to conceal the fraud, but in the end the joke was on him, when it was revealed that an undercover FBI agent had been keeping tabs on his scheme. Today’s sentencing serves as a fine example of how the FBI successfully brings these scams to light.”
On June 24, 2016, following a five-day trial, a federal jury convicted Flom of money laundering. According to previous court filings and the testimony at trial, between December 2013 and April 2014, Flom accepted $141,300 into his bank account from investors whom he believed to be the victims of a securities fraud scheme. He then funneled those monies to a man he believed was orchestrating the fraud scheme, but who in fact was an undercover agent with the FBI—while keeping a 5% fee for himself. At trial, the jury heard that recorded conversations between Flom and the undercover agent in which Flom bragged that the letters of his name stood for “For Love of Money” and provided advice to the undercover agent about how they could use the guise of attorney-client privilege to conceal the fraud from law enforcement.
At trial and at sentencing, the government also presented evidence that between approximately February 2012 and August 2013, Flom knowingly laundered $756,168 in a nearly identical securities fraud scheme with Cecil Franklin Speight. In this scheme, investor-victims who believed they were making legitimate stock purchases were instructed to send money to bank accounts belonging to Flom, knowing he was a lawyer and believing that he was going to transfer funds to the issuers of the securities. In fact, Flom took the investor-victims’ money, kept a percentage for himself and sent the remainder to Speight. The investor-victims received only worthless counterfeit stock certificates.
On February 12, 2016, Speight was sentenced to 42 months’ imprisonment and ordered to pay $3.3 million dollars in restitution following his guilty plea to conspiracy to commit mail fraud and securities fraud.
The government’s case is being prosecuted by Assistant United States Attorneys Keith D. Edelman, Moira Kim Penza and Jack Dennehy.
The Defendant:
JONATHAN FLOM
Age: 59
South Palm Beach, Florida
E.D.N.Y. Docket No. 14-CR-507 (RRM)
Abilene Man Sentenced to 120 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Jonathan Andrew Hydro, 59, of Abilene, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 120 months in federal prison, following his guilty plea in April 2017 to one count of receipt of visual depictions of minors engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Hydro was also ordered to pay $5,000.00 in restitution. He has been in custody since the time of his arrest in February 2017.
According to documents filed in the case, on June 17, 2016, Hydro knowingly received, by way of the Internet, seven images which depict minors engaged in sexually explicit conduct. At the time Hydro received the images he knew that at least one of the performers in each image was a minor and he knew that the visual depiction was of a minor engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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2nd West Warwick Resident Pleads Guilty to Drug Trafficking, Bank Fraud ChargesRead the Press Release
PROVIDENCE – Robert Wilkins, 26, of West Warwick pleaded guilty today to federal heroin, cocaine and crack cocaine trafficking charges, announced Acting United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Appearing before U.S. District Court Chief Judge William E. Smith, Wilkins pleaded guilty to one count each of conspiracy to deliver heroin, possession with the intent to deliver heroin, conspiracy to deliver 28 grams or more of cocaine base, possession with the intent to deliver cocaine base, possession with the intent to deliver cocaine, three counts of delivery of heroin, fifteen counts of delivery of cocaine base, and one count of bank fraud.
A codefendant in this matter, Christian M. Domenech, 23, of West Warwick, pleaded guilty on July 14, 2017, before U.S. District Court Chief Judge William E. Smith, to one count each of conspiracy to deliver heroin, possession with the intent to distribute heroin, possession with the intent to distribute cocaine, possession with the intent to distribute cocaine base, three counts of distribution of heroin, fifteen counts of delivery of cocaine base, and one count of bank fraud.
According to court documents and information presented to the court, a three-month investigation by the FBI Safe Streets Task Force into the defendants’ drug trafficking activity included numerous purchases from the defendants of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each transaction was monitored by law enforcement.
Additionally, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. The investigation determined that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew a total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
Robert Wilkins and Christian Domenech, who have been detained in federal custody since their arrest, are scheduled to be sentenced on October 20, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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17 Charged with Distributing Cocaine and Crack in Central ConnecticutRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced the unsealing of two indictments charging a total of 17 individuals with federal narcotics offenses related to the trafficking cocaine and crack cocaine in central Connecticut.
Thirteen of the 17 defendants were arrested on July 26, and three defendants have been incarcerated in state custody. One defendant is currently being sought.
This matter stems from a joint investigation headed by the DEA New Haven Task Force that has included the use of court-authorized wiretaps, controlled purchases of crack cocaine, and seizures of cocaine and cash proceeds. According to statements made in court, it is alleged that Westley Northrup, formerly of Meriden, operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody. Northrup conspired with Carlos Roman, of Middletown, to purchase cocaine from suppliers including Omar Rivera, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers. Further investigation revealed that Rivera, of New Britain, was being supplied by Orlando Quiros, of Suffield, who regularly received packages containing multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico. Quiros’ operation was assisted by individuals who agreed to accept delivery of the packages, and by Steven Riccelli, a U.S. Postal Service employee.
During the course of the investigation, law enforcement officers intercepted and seized approximately $240,000 in cash that Quiros had in a vehicle he was driving from Connecticut to New York.
On July 26, law enforcement executed multiple search warrants and seized approximately seven kilograms of cocaine, several pounds of marijuana, three firearms, and nearly $100,000 in cash.
“The seizure of seven kilograms of cocaine in this case makes clear that these defendants were significant drug traffickers with multiple sources in Connecticut, as alleged in the indictments,” said U.S. Attorney Daly. “The U.S. Attorney’s Office is committed to working closely with the DEA, U.S. Postal Inspection Service and our state and local law enforcement partners to shut down these drug pipelines and prosecute those responsible.”
“DEA is committed to investigating and dismantling large-scale drug trafficking organizations like this one operating in the central Connecticut area,” said DEA Special Agent in Charge Ferguson. “This prolific organization was responsible for supplying kilogram quantities of cocaine throughout the state of Connecticut. As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“The arrest of these individuals is an example of the commitment of Postal Inspectors and their law enforcement partners to bring to justice anyone who uses the U.S. Mail to facilitate the transport of illegal drugs, ensuring the safety of the mail, our employees and customers,” said Inspector in Charge Binkowski.
On July 20, 2017, a grand jury in New Haven returned a nine-count indictment charging
WESTLEY NORTHRUP, a.k.a. “Piff,” 29, of Meriden
CARLOS ROMAN, a.k.a. “Frizz,” 37, of Middletown
DENISE HERNANDEZ, a.k.a. “Booty,” 29, of Meriden
RIGOBERTO HERNANDEZ, a.k.a. “Tito,” 36, of Meriden
SHANE BLAKE, 34, of Bristol
OMAR RIVERA, a.k.a. “O,” 34, of New Britain
ANTONIO MIRANDA, a.k.a. “Tone” and “Primo,” 28, of New Britain
CALVIN VAUGHN, a.k.a. “Squeaks,” 34, of Middletown
TURON DAVIS, a.k.a. “Slim,” 39, of Middletown
KASEAN WHITE, a.k.a. “Slay,” 29, of Middletown
DERRICK BRYANT, 26, of MiddletownEach of the defendants in this indictment are charged with conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base (“crack”). If convicted of this charge, based on the type and quantity of narcotics charged, Northrup, Roman and Rivera face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Denise Hernandez, Rigoberto Hernandez, Blake, Miranda and Kasean White face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Vaughn, Davis and Bryant face a maximum term of imprisonment of 20 years.
The indictment also charges Roman with multiple counts of possession with intent to distribute, and distribution of, crack cocaine and/or cocaine, one count of possession of a firearm by a convicted felon, and one count of possession of firearm in furtherance of drug trafficking crime.
On July 20, 2017, the grand jury in New Haven returned a three-count indictment charging
ORLANDO QUIROS, a.k.a. “O” and “Gordo,” 40, of Suffield
LEONEL QUIROS, a.k.a. “Haze,” 33, of New Britain
COREY BEST, 32, of Bloomfield
LISETTE PEREZ, 34, of Springfield, Mass.
STEVEN RICCELLI, 42, of Unionville
LUIS ARROYO, 56, of New Britain
OMAR RIVERA, a.k.a. “O,” 34, of New Britain (also charged in the Northrup indictment)Each of the defendants in this indictment are charged with conspiracy to distribute and to possess with intent to distribute cocaine. If convicted of this charge, with the exception of Rivera, each defendant faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Rivera faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years on this charge.
The indictment also charges Orlando Quiros, Leonel Quiros and Best one count of attempt to possess with intent to distribute cocaine, and Orlando Quiros with one count of use of a facility in interstate commerce to distribute the proceed of drug trafficking.
Northrup, Roman and Miranda have been incarcerated in state custody. Kasean White is currently being sought.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service. The U.S. Marshals Service, ATF, FBI and the Suffield, Bloomfield and Springfield (Mass.) Police Departments assisted with the arrests.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Thursday 27 July 2017
Youngstown man indicted for failing to register as sex offenderRead the Press Release
A federal grand jury returned a one-count indictment charging Keith Wilson, 36, of Youngstown, with failing to register as a sex offender, said Acting U.S. Attorney David A. Sierleja and U.S. Marshal Peter Elliott.
The indictment alleges that on or about July 11, 2017, Wilson, a person required to register under the Sex Offender Registration and Notification Act, traveled in interstate commerce and did knowingly fail to register, or update a registration.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshal Service. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wood County woman sentenced for bank robberies in three statesRead the Press Release
WHEELING, WEST VIRGINIA – A Davisville, West Virginia woman was sentenced today to 51 months incarceration for bank robberies spanning three states, Acting United States Attorney Betsy Steinfeld Jividen announced.
Christine Joy Martin, 31, pled guilty to three counts of “Unarmed Bank Robbery” in April 2017. Martin was sentenced to 51 months incarceration for each count, to run concurrently. Martin was also ordered to pay $7,889.44 in restitution.
Martin admitted to robbing Huntington Bank in Marion County of $2,000 on November 4, 2016. She also admitted to robbing WesBanco Bank in Washington County, Pennsylvania, of $350.00 on December 23, 2016 and admitted to robbing the People’s Bank in Athens County, Ohio of $2,150 on December 27, 2016. Martin has waived venue on the charges in Ohio and Pennsylvania.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The Morgantown Police Department and the Fairmont Police Department investigated the bank robbery in West Virginia. The Federal Bureau of Investigation and the South Strabane Township Police Department investigated the Pennsylvania robbery. The Federal Bureau of Investigation and the Athens City Police Department investigated the Ohio robbery.
U. S. District Judge John Preston Bailey presided.Woman Pleads Guilty to Theft Concerning Programs Receiving Federal FundsRead the Press Release
SAN JUAN, P.R. – Zoraida Velázquez-Bracero plead guilty to an information charging her with theft concerning programs receiving federal funds, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The U.S. Department of Education, Office of Inspector General was in charge of the investigation.
From June 2005 until July, 2015, Velázquez-Bracero was the Purchasing Director at Pontifical Catholic University of Puerto Rico, an entity that receives in excess of $10,000.00 in federal funding in a one year period. In this position, Defendant was issued a University corporate credit card for purchasing goods and supplies for the University as well as arranging official travel for University professors. However, in 2008 Defendant started using this corporate credit card for personal expenses not authorized by the University.
Through direct charges and cash advances, Velázquez-Bracero used this corporate credit card to pay for school tuition, household utility bills and other items, and vacations to Disney World, New York City, Atlanta, Indianapolis, Canada, and France. Defendant concealed the use of this corporate credit card by altering and/or creating fictitious credit card statements wherein she hid the charges by increasing the amounts of other legitimate charges to the card, or by deleting the charges altogether before submitting the statement to the finance department for payment.
Although the original limit on this corporate credit card was $80,000.00, Velázquez-Bracero obtained numerous credit limit increases by forging her supervisor’s signature on letters to the credit card company requesting said increases. Defendant knew that she was affecting federal grants when she illegally used this corporate credit card. The total amount of unauthorized charges by Velázquez-Bracero was $655,432.00.
“The defendant misappropriated funds intended to aid University students, for her illegal personal gain,” said US Attorney Rosa Emilia Rodríguez-Vélez. “At the U.S. Attorney’s Office we will continue to aggressively investigate and prosecute financial crimes. This arrest should discourage those who get involved in these types of schemes before it’s too late, because we will continue investigating and prosecuting these offenses.”
“Federal education funds exist to provide students with educational opportunities and help students make their dreams of higher education a reality, it’s not a personal slush fund,” said Yessyka Santana, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Southeast Regional Office. “I’m proud of the work of OIG special agents, our law enforcement partners, and the PCUPR staff for holding Ms. Velázquez accountable for her alleged criminal actions.”
As a result of the guilty plea, the defendant may be sentenced to a term of eight to fourteen months in prison, a fine not to exceed two hundred fifty thousand dollars ($250,000.00), and/or a term of supervised release of not more than three (3) years. Assistant United States Attorney Scott H. Anderson is in charge of the prosecution of the case.
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William T. “Billy” Walters Sentenced in Manhattan Federal Court for $43 Million Insider Trading SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM T. WALTERS, a/k/a “Billy,” was sentenced to five years in prison for conspiring to commit insider trading from at least 2008 through 2014, principally relating to securities of Dean Foods Company (“Dean Foods” or the “Company”).
Acting U.S. Attorney Joon H. Kim said: “Billy Walters, a legendary sports gambler who mastered playing the odds, refused to play by the rules. As the evidence at trial revealed and as a unanimous jury found, Walters cheated his way to tens of millions in illegal profits, making massive, perfectly timed trades in Dean Foods based on confidential information stolen directly from the boardroom. Making millions in the stock market with a deck stacked in your favor leads to time in a federal penitentiary. For the integrity of our securities markets, that is the blunt lesson our insider trading prosecutions must teach.”
According to the allegations in the charging documents, evidence at trial, and statements made in court proceedings:
From 2008 through 2014, WALTERS and Thomas C. Davis, among others, participated in a scheme to commit insider trading principally related to securities of Dean Foods, a Fortune 500 company that is the largest processor and distributor of fresh milk in the United States. Davis pled guilty to insider trading, perjury, and obstruction of justice charges on May 16, 2016, and cooperated with the investigation.
From 2001 until August 7, 2015, Davis served as a member of the Board of Directors of Dean Foods (the “Board”), and regularly possessed material, nonpublic information about Dean Foods, including about the Company’s financial performance and results, comprising quarterly earnings results; contemplated and actual corporate transactions; and other significant corporate and strategic developments (the “Inside Information”). In furtherance of the scheme, Davis violated his duties of trust and confidence to Dean Foods by providing Inside Information to WALTERS in advance of public announcements. WALTERS, knowing that Davis owed duties of trust and confidence to the Company, used the Inside Information to execute profitable trades in Dean Foods stock. In total, WALTERS’ trading on the basis of Inside Information netted realized and unrealized profits of approximately $32 million and avoided additional losses of approximately $11 million. In return for Davis providing the Inside Information to WALTERS, WALTERS, among other things, provided capital to Davis for joint business ventures and made two loans to Davis for approximately $1 million in total, which Davis largely did not repay.
In furtherance of the scheme, and to avoid detection by law enforcement, WALTERS provided Davis with a prepaid cellular phone to use when passing Inside Information to WALTERS. Moreover, WALTERS further instructed Davis to use code words when discussing the Inside Information, including by referring to Dean Foods as the “Dallas Cowboys.”
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In addition to the prison term, WALTERS, 70, of Las Vegas, Nevada, was sentenced to one year of supervised release, and a $10 million fine.
Mr. Kim praised the work of the FBI and the Postal Inspection Service, and thanked the SEC and the Financial Industry Regulatory Authority (“FINRA”) for their assistance. He also thanked the Las Vegas offices of the FBI and the Internal Revenue Service, Criminal Investigation Division.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brooke E. Cucinella, Daniel S. Goldman, and Michael Ferrara are in charge of the prosecution.
Weymouth Man Sentenced for Illegally Possessing Assault-Style Weapons and AmmunitionRead the Press Release
BOSTON – A Weymouth man was sentenced today in federal court in Boston for possessing assault-style weapons and ammunition.
Robert Nicholas Kurtzer, 36, was sentenced by U.S. District Court Judge William G. Young to 84 months in prison and three years of supervised release. In April 2017, Kurtzer pleaded guilty to possession of assault-style firearms, ammunition, and silencers. According to court documents, Kurtzer was prohibited from possessing ammunition and/or firearms because of a prior state conviction for armed robbery.
On July 12, 2016, law enforcement officers stopped a pick-up truck, in which Kurtzer was a passenger, for a traffic violation. Kurtzer was carrying a large knife on his hip and a canister of pepper spray. Officers asked Kurtzer if there were any weapons in the vehicle, and Kurtzer replied, “Lots of them.” Kurtzer was searched and found in possession of a 10.5 inch Smith and Wesson fixed blade knife; a canister of Sabre Red O/C spray; one .300 AAC BLK caliber bullet; several .22 caliber long rifle ammunition; and seven .45 caliber Winchester ammunition.
Following Kurtzer’s arrest, officers searched Kurtzer’s Weymouth residence and a secondary storage locker where the following items were seized: two assault rifles (including a Midwest Industries AR15-style assault rifle with an optic scope attached to the top, and an AR15-style assault rifle with unknown manufacturer and a 37mm flare launcher attached to it); a Marlin bolt-action rifle with an obliterated serial number; two handguns (including a .45 caliber pistol; and a Colt MKIV Series 80 pistol, bearing an after-market Punisher logo); numerous weapons parts for use in the assembly of assault rifles and handguns; one firearm silencer; approximately six unfinished, partly assembled firearm silencers; milling machinery used to manufacture handguns and rifles; and approximately 671 rounds of assorted ammunition.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Emily Cannon of Weinreb’s Organized Crime & Gang Unit prosecuted the case.
Webster Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Pablo Ulloa, 33, of Webster, NY, pleaded guilty to conspiracy to possess with intent to distribute five grams or more of methamphetamine before U.S. District Court Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendant and his co-defendant Brian Donaldson. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box which contained a much larger quantity of methamphetamine.
A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale and pipes.
Donaldson has been convicted and is awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division and the Hamburg Police Department, under the direction of Chief Gregory Wickett.Sentencing is scheduled for November 1, 2017, at 11:00 a.m. before Judge Skretny.
Warrenton Man Pleads Guilty to Heroin and Fentanyl DistributionRead the Press Release
ALEXANDRIA, Va. – A drug dealer who operated in Fauquier County pleaded guilty today to engaging in a conspiracy to distribute heroin and fentanyl.
According to the statement of facts filed with the plea agreement, Justin Chrisp, 28, of Warrenton, sold at least half a gram of heroin every day beginning in March 2012. During this time period, at least four of Chrisp’s customers overdosed after using the drugs. Only after medical intervention by law enforcement officers responding to the scenes of these overdoses did several of these customers regain consciousness.
Chrisp pleaded guilty to conspiracy to distribute 100 grams or more of heroin, and conspiracy to distribute fentanyl. He faces a mandatory minimum of five years and a maximum penalty of 40 years in prison when sentenced on October 20. 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, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Robert P. Mosier, Fauquier County Sheriff, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Tobias D. Tobler is 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. 1:17-cr-163.
Utah Man Charged with Murdering Wife on Cruise Ship in Southeast AlaskaRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a Utah man was arrested on a criminal complaint charging him with the murder of his wife onboard the cruise ship Emerald Princess in Southeast Alaska. At the time of the crime, the Emerald Princess was in U.S. Territorial Waters, subjecting the case to federal jurisdiction.
Kenneth Ray Manzanares, 39, of Santa Clara, Utah, was charged by criminal complaint with the murder of his wife, K.M. According to the criminal complaint, on July 25, 2017, Emerald Princess Security and Medical personnel responded to an incident in the cabin occupied by Kenneth and K.M. K.M. was found in the cabin, deceased, and had a severe head wound.
According to the complaint, prior to security officers arriving to the cabin, one of the witnesses, D.H., observed Manzanares grab K.M.’s body and drag her toward the balcony. D.H. then grabbed the ankles of K.M.’s body and pulled her back into the cabin. Soon after, Emerald Princess security entered the cabin and restrained and secured Manzanares.
Manzanares was detained by Security Officers at the scene, and was arrested yesterday, July 26, 2017. Manzanares is scheduled to make his initial appearance in federal court in Anchorage today, via video conference from Juneau, July 27, at 2:00 PM before U.S. Magistrate Judge Kevin F. McCoy.
The charges in the criminal complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Union County, New Jersey, Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man has been arrested and charged in connection with a bank robbery in Bergen County in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced today.
Israel Cosme, 36, of Elizabeth, New Jersey, is charged by complaint with one count of bank robbery. He was originally arrested Jan. 24, 2017 in connection with two bank robberies he allegedly committed in Maryland. He appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Jan. 15, 2017, Cosme allegedly robbed a TD Bank in Little Ferry, New Jersey. According to bank employees and video surveillance, a man wearing blue jeans, tan work boots, a gray hooded sweatshirt, and a knit cap entered the bank. The robber approached one of the bank tellers and handed her a note demanding money. The robber then told the bank teller that he was carrying a weapon in his pocket and that he would shoot her if she did not comply with his demands. He then reached over the counter, grabbed the teller by the shirt, and forcibly grabbed money out of her hand. The robber was later identified as Cosme.
When law enforcement apprehended Cosme outside of a hotel room in Maryland and searched his hotel room pursuant to a search warrant, they recovered a pair of blue jeans and a gray hooded sweatshirt that resembled the clothing he was wearing during the robbery.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Little Ferry Police Department, under the direction of Chief Ralph Verdi, for its assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Two indicted in nationwide unclaimed property fraud schemeRead the Press Release
ATLANTA – Allen J. Pendergrass and Terrell McQueen have been arraigned on charges of orchestrating a nationwide unclaimed property fraud scheme. They provided asset recovery services for clients, claiming they would recover unclaimed money and assets held by local and state governments for a fee. During that process, they allegedly forged documents, claiming thousands of dollars due to citizens, which they placed into accounts they controlled, never distributing the money owed.
“These defendants are charged with forging power of attorney forms to steal over $100,000 owed to local businesses and residents,” said U. S. Attorney John Horn. “Citizens should remain vigilant in guarding their personal information as thieves continue to find new and creative ways to use it to perpetuate fraud schemes.”
“The defendants stole individual's identities and received money that was not rightfully theirs,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “The IRS will continue to investigate and disrupt these complex financial schemes holding those accountable for their wrongdoing.”
“This investigation involved the meticulous gathering of hard evidence which uncovered a significant financial fraud and identity theft scheme,” said David M. McGinnis, Inspector in Charge, Charlotte Division. “Postal Inspectors will vigorously pursue and bring to justice anyone who commits a crime by utilizing the US Mail system.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2014, Pendergrass owned and operated Guishard, Wilburn & Shorts, LLC a company based on College Park, Georgia, that purportedly provided asset recovery services, including recovering unclaimed money and assets held by local and state governments for a fee. During that time, Pendergrass also owned or controlled other companies in Georgia that purported to provide the same services, including Asset Financial Recovery, Inc., Recovery Capital, Attorney Recovery System, National Asset Recovery Agency, Inc., Beacon Asset Recovery Agency, LLC, National Unclaimed Funds, Inc. and Service Pros, Inc.
In 2012, Pendergrass started Asset Financial Recovery, Inc., and was listed as the company’s chief executive officer. McQueen was listed as the chief financial officer. In 2013, Pendergrass and McQueen mailed forged power of attorney forms to the City of Atlanta and fraudulently claimed over $100,000 owed to local businesses and residents. These forms included forged signatures. Pendergrass and McQueen deposited stolen funds into bank accounts they controlled and did not provide the funds to rightful owners. Pendergrass, McQueen, and companies they controlled, perpetuated this fraud scheme across the country.
Allen J. Pendergrass, 60, of Fayetteville, Georgia, and Terrell McQueen, 37, of Fort Worth, Texas, were indicted on June 27, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the United States Postal Inspection Service.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
In that this remains an ongoing investigation, anyone with information regarding this matter should contact the United States Postal Inspection Service at 877-876-2455.
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.
Two People Sentenced for Trafficking Cocaine, Heroin and Fentanyl in Jefferson CountyRead the Press Release
BIRMINGHAM – A federal judge today sentenced two men for conspiring to traffic nearly $2 million worth of cocaine, heroin and fentanyl in Jefferson County, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
U.S. District Court Judge L. Scott Coogler sentenced FERLANDO CARMISE MIMS, 19, of Birmingham, to 15 years and one month in prison, and MARAHAI ARDIZO ENRIQUEZ, 25, of Phoenix, Ariz., to four years and nine months in prison. Each of the defendants pleaded guilty to the conspiracy, acknowledging their involvement in the distribution of multiple kilograms of cocaine, heroin and fentanyl between September 2015 and October 2016.
“Overdoses from heroin and fentanyl in Birmingham and across Northern Alabama have become epidemic,” Posey said. “To combat the rising death toll we work closely with DEA and other law enforcement partners to identify the most serious drug-trafficking threats and conduct joint enforcement actions like the one that took down this large-scale opioid distribution organization.”
Two of the nine defendants in the case remain to be sentenced. They are ANTHONY LEVY WARD, 36, of Chelsea, on Sept. 28, and JOSE AGUSTIN GUTIERREZ, 31, of Phoenix, on Nov. 9.
The amount of fentanyl trafficked in the conspiracy was about 4.6 kilograms, or nearly 233,000 user doses of the drug. The total amount of heroin trafficked was about 5 kilograms, or approximately 50,000 user doses.
Enriquez was responsible for trafficking 8.8 kilograms of cocaine and Mims with trafficking one kilogram of heroin.
The DEA investigated the case in conjunction with the Birmingham and Hoover police departments and the U.S. Marshals Service. The U.S. Attorney’s Office for the Northern District of Alabama is prosecuting the case.
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Two Ohio men indicted on firearms chargesRead the Press Release
Two Ohio men were indicted on federal firearms charges, said Acting U.S. Attorney David A. Sierleja.
Indicted are Ronald A. Stevens, 44, of Youngstown, and Christopher Ray Damron, 33, of Sherrodsville.
Both are charged with being a felon in possession of a firearm and ammunition. Their case are unrelated.
Damron on March 22, 2017, possessed a Colt, model Mustang Pocketlite, .380 pistol, and ammunition, despite prior convictions in Summit County for rape and attempted intimidation of a witness, according to the indictment.
Stevens possessed Rohm, model RG38, .38 revolver, and ammunition on April 8, 2017, despite a prior felony conviction for attempted felonious assault, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
Both cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Youngstown Police Department also investigated the Stevens cases while the Carroll County Sheriff’s Office also investigated the Damron case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Men Found Guilty of Second Degree Murder While Armed in 2007 Slaying in Northeast WashingtonRead the Press Release
WASHINGTON – Reynaud Cook, 33, and Don Hancock, 33, both of Washington, D.C., have been found guilty by a jury of second-degree murder while armed for the July 2007 slaying of a man in Northeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The verdict was returned July 26, 2017, following a trial in the Superior Court of the District of Columbia. The Honorable Judith Bartnoff scheduled sentencing for Oct. 20, 2017.
According to the government’s evidence, on July 17, 2007, Cook and Hancock, who were best friends and referred to each other as brothers, were in the Deanwood neighborhood of Northeast Washington. The victim, Nacarto Gladden, who was just three days shy of his 33rd birthday, was also in the neighborhood, in the back of a car parked behind a building in the 4900 block of Quarles Street NE. At about 4:30 a.m., Hancock, armed with a pistol, ripped Mr. Gladden from the back seat of the car and began assaulting him. Then, while Mr. Gladden struggled to disarm Hancock, Cook crept into the parking lot armed with a revolver and shot Mr. Gladden three times at close range.
Although Cook and Hancock were identified as suspects early in the investigation, they were not charged until 2013, when previously reluctant witnesses provided additional information and identified them as the perpetrators of the murder. Ballistics evidence and DNA also identified Cook and Hancock as the perpetrators of this crime. Both defendants have remained in custody since their arrests in 2013.
In announcing the verdict, U.S. Attorney Phillips and Chief Newsham praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Deborah Sines, Gary Wheeler, and Elizabeth Danello; Chrisellen Kolb, Deputy Chief of the Appellate Division; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Program Specialist Benjamin Kagan-Guthrie; Supervisory Paralegal Specialist Sharon Newman; Lead Paralegal Specialist Meredith McGarrity; Paralegal Specialists Lornce Applewhite, Stephanie Gilbert, and Sandra Lane; Victim/Witness Advocate Marcia Rinker; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Security Specialists Katina Adams-Washington and LaJune Thames; Litigation Technology Specialist Leif Hickling; Administrative Services Specialist Sallie Rynas; Supervisory Criminal Investigator Chris Brophy; Investigative Analyst Zachary McMenamin; former Investigative Analyst Larry Grasso, and Interns Raul Rojo and Courtney Lutz.
Finally, they commended the work of Assistant U.S. Attorneys Sharon Donovan and Kimberley C. Nielsen who prosecuted the case at trial.
Two Cartel Members Found Guilty of Murder and Other Charges in Slaying of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
A federal jury found two Mexican nationals guilty today of murder of a federal officer, attempted murder of a federal officer, and related offenses in the killing of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Director Andrew McCabe of the FBI and Acting Director Thomas D. Homan of ICE made the announcement.
The defendants, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka Zafado, 36, of San Luis Potosi, Mexico, and Jesus Ivan Quezada Piña, aka Loco, 29, of Matamoros, Mexico, are among seven Mexican nationals extradited to the U.S. on federal charges in this case.
“Drug cartels bring death and destruction across our Southern border and sell drugs that take lives all across America,” said Attorney General Sessions. “The work our ICE officers do every day to keep these criminals out of our country and secure our border is heroic and makes all of us safer. Today’s conviction of two cartel members in the horrific murder of ICE agent Jaime Zapata in Mexico is the next step in the Department of Justice’s ongoing efforts to dismantle the cartels and bring them to justice.”
“Today’s guilty verdicts for those responsible for the murder of ICE Special Agent Jamie Zapata and attempted murder of Special Agent Victor Avila are an important step forward for law enforcement as we continue on the path for justice,” said Acting Director McCabe. “As I’ve said before, an attack against a federal agent serving his or her country remains a top priority for the FBI, and today’s verdict demonstrates that we will not rest until those responsible for this heinous attack and the loss of a colleague have been brought to justice.”
“I applaud today’s verdict and hope that it provides some measure of solace to the victims and their families,” said Acting Director Homan. “Six years after these defendants ambushed and murdered Special Agent Jaime Zapata and seriously wounded Special Agent Victor Avila in Mexico, ICE remains committed to ensuring all those responsible for this cowardly and brutal attack are brought to justice. To that end, we are deeply grateful to the Government of Mexico, the Department of Justice, and all our partners involved in the pursuit and prosecution of these criminals. This serves as a reminder that we will not relent in our mission to ensure the safety and security of Americans, and we are unwavering in our resolve to locate and apprehend those who target the brave men and women of law enforcement, wherever they are. We continue to honor the memory of Special Agent Zapata with our steadfast commitment to eradicate the transnational criminal organizations that threaten the safety and security of our nation.”
Garcia Sota and Quezada Piña were found guilty of four federal offenses: murder of an officer or employee of the United States; attempted murder of an officer or employee of the United States; attempted murder of an internationally protected person; and using, carrying and brandishing and discharging a firearm during and in relation to a crime of violence causing death. The verdicts followed a trial that began July 10, in the U.S. District Court for the District of Columbia, during which the government presented testimony from 22 witnesses, including Special Agent Avila. The Honorable Senior Judge Royce C. Lamberth scheduled a status hearing for August 29. A sentencing date has not yet been set. The defendants both face mandatory life sentences for the murder conviction.
According to the government’s evidence at trial, Garcia Sota and Quezada Piña were members of two Los Zetas hit squads, or “estacas,” and were on a mission on the day of the shootings to steal vehicles for use in the cartel’s operations. On the afternoon of Feb. 15, 2011, Garcia Sota and Quezada Piña were among a group of cartel members who targeted an armored Chevrolet Suburban bearing diplomatic plates and driven by the Special Agents on a busy highway south of San Luis Potosi. Special Agent Zapata and Special Agent Avila were on official business, heading southbound to Mexico City, when the attack took place. During the ambush, the cartel members fired at and into the agents’ vehicle with handguns and semiautomatic assault weapons, including AK-47 and AR-15 type assault rifles. Special Agent Zapata, 32, was fatally shot, and Special Agent Avila then 38, was wounded. Investigators later found approximately 90 shell casings at the scene, according to the trial evidence.
Five other defendants, all Mexican nationals, previously pleaded guilty to federal charges in this case. Ruben Dario Venegas Rivera, aka Catracho, 29; Jose Ismael Nava Villagran, aka Cacho, 35; Julian Zapata Espinoza, aka Piolin, 36; and Alfredo Gaston Mendoza Hernandez, aka Camaron, 34, pleaded guilty to federal murder and attempted murder charges between August 2011 and October 2016. The fifth defendant, Francisco Carbajal Flores, aka Dalmata, 42, pleaded guilty in January 2012 to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents. All five defendants are awaiting sentencing.
This case was investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The Government of Mexico provided substantial assistance throughout the investigative and prosecution phases of the case.
The case was prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Fernando Campoamor-Sanchez of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys David Karpel and Karen Seifert of the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section. Former Assistant Deputy Chief Andrea Goldbarg of the Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Jocelyn Ballantine of the U.S. Attorney’s Office also served as members of the prosecution team at earlier stages of the litigation. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Paralegal Specialist Mac Caille Petursson of the U.S. Attorney’s Office, and Paralegal Specialist Alejandra Arias of the Narcotic and Dangerous Drug Section.
Two Cartel Members Found Guilty of Murder and Other Charges in Slaying of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
WASHINGTON – A federal jury found two Mexican nationals guilty today of murder of a federal officer, attempted murder of a federal officer, and related offenses in the killing of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Director Andrew McCabe of the FBI and Acting Director Thomas D. Homan of ICE made the announcement.
The defendants, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka Zafado, 36, of San Luis Potosi, Mexico, and Jesus Ivan Quezada Piña, aka Loco, 29, of Matamoros, Mexico, are among seven Mexican nationals extradited to the U.S. on federal charges in this case.
“Drug cartels bring death and destruction across our Southern border and sell drugs that take lives all across America,” said Attorney General Sessions. “The work our ICE officers do every day to keep these criminals out of our country and secure our border is heroic and makes all of us safer. Today’s conviction of two cartel members in the horrific murder of ICE agent Jaime Zapata in Mexico is the next step in the Department of Justice’s ongoing efforts to dismantle the cartels and bring them to justice.”
“With today’s guilty verdicts, a total of seven members of the violent Mexican drug cartel, Los Zetas, have now been brought to justice for the ruthless ambush that took the life of ICE Special Agent Jaime Zapata and that injured and could have killed ICE Special Agent Victor Avila,” said U.S. Attorney Phillips. “The victims of this horrific assault were in Mexico on official business serving our country. The prosecution of these defendants is a testament to the enormous resources devoted to this investigation by law enforcement in the United States and Mexico.”
“Today’s guilty verdicts for those responsible for the murder of ICE Special Agent Jamie Zapata and attempted murder of Special Agent Victor Avila are an important step forward for law enforcement as we continue on the path for justice,” said Acting Director McCabe. “As I’ve said before, an attack against a federal agent serving his or her country remains a top priority for the FBI, and today’s verdict demonstrates that we will not rest until those responsible for this heinous attack and the loss of a colleague have been brought to justice.”
“I applaud today’s verdict and hope that it provides some measure of solace to the victims and their families,” said Acting Director Homan. “Six years after these defendants ambushed and murdered Special Agent Jaime Zapata and seriously wounded Special Agent Victor Avila in Mexico, ICE remains committed to ensuring all those responsible for this cowardly and brutal attack are brought to justice. To that end, we are deeply grateful to the Government of Mexico, the Department of Justice, and all our partners involved in the pursuit and prosecution of these criminals. This serves as a reminder that we will not relent in our mission to ensure the safety and security of Americans, and we are unwavering in our resolve to locate and apprehend those who target the brave men and women of law enforcement, wherever they are. We continue to honor the memory of Special Agent Zapata with our steadfast commitment to eradicate the transnational criminal organizations that threaten the safety and security of our nation.”
Garcia Sota and Quezada Piña were found guilty of four federal offenses: murder of an officer or employee of the United States; attempted murder of an officer or employee of the United States; attempted murder of an internationally protected person; and using, carrying and brandishing and discharging a firearm during and in relation to a crime of violence causing death. The verdicts followed a trial that began July 10, in the U.S. District Court for the District of Columbia, during which the government presented testimony from 22 witnesses, including Special Agent Avila. The Honorable Senior Judge Royce C. Lamberth scheduled a status hearing for August 29. A sentencing date has not yet been set. The defendants both face mandatory life sentences for the murder conviction.
According to the government’s evidence at trial, Garcia Sota and Quezada Piña were members of two Los Zetas hit squads, or “estacas,” and were on a mission on the day of the shootings to steal vehicles for use in the cartel’s operations. On the afternoon of Feb. 15, 2011, Garcia Sota and Quezada Piña were among a group of cartel members who targeted an armored Chevrolet Suburban bearing diplomatic plates and driven by the Special Agents on a busy highway south of San Luis Potosi. Special Agent Zapata and Special Agent Avila were on official business, heading southbound to Mexico City, when the attack took place. During the ambush, the cartel members fired at and into the agents’ vehicle with handguns and semiautomatic assault weapons, including AK-47 and AR-15 type assault rifles.. Special Agent Zapata, 32, was fatally shot, and Special Agent Avila, then 38, was wounded. Investigators later found approximately 90 shell casings at the scene, according to the trial evidence.
Five other defendants, all Mexican nationals, previously pleaded guilty to federal charges in this case. Ruben Dario Venegas Rivera, aka Catracho, 29; Jose Ismael Nava Villagran, aka Cacho, 35; Julian Zapata Espinoza, aka Piolin, 36; and Alfredo Gaston Mendoza Hernandez, aka Camaron, 34, pleaded guilty to federal murder and attempted murder charges between August 2011 and October 2016. The fifth defendant, Francisco Carbajal Flores, aka Dalmata, 42, pleaded guilty in January 2012 to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents. All five defendants are awaiting sentencing.
This case was investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The Government of Mexico provided substantial assistance throughout the investigative and prosecution phases of the case.
The case was prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Fernando Campoamor-Sanchez of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys David Karpel and Karen Seifert of the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section. Former Assistant Deputy Chief Andrea Goldbarg of the Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Jocelyn Ballantine of the U.S. Attorney’s Office also served as members of the prosecution team at earlier stages of the litigation. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Victim/Witness Services Coordinator Tonya Jones, Paralegal Specialist Mac Caille Petursson, and Intern Jake Yelin of the U.S. Attorney’s Office, and Paralegal Specialist Alejandra Arias of the Narcotic and Dangerous Drug Section.
Three South Texas Men Charged with Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas - Three local men are in custody on separate, but similar cases of soliciting a minor for sexual purposes, announced Acting U.S. Attorney Abe Martinez.
The federal criminal complaints were filed yesterday against Spencer Salcedo, 41, and Jesse Hernandez, 52, both of Corpus Christi, and Darrell Freeze, 54, of Pettus. Salcedo was taken into custody today and is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m. Hernandez and Freeze were taken into custody on related charges last week and made their appearances in federal court yesterday, at which time they were temporarily ordered into custody pending a detention hearing set for July 31.
All were arrested as part of Operation Hidden Predator, a joint operation conducted by the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office.
“Our children are our nation’s most valuable asset,” said Special Agent in Charge Perrye K. Turner of the FBI. “The Federal Bureau of Investigation will utilize and combine all of our resources with our federal, state and local partners to effectively and efficiently safeguard our children.”
The charges allege the men were communicating with a person they believed was the mother of two minor children — ages 14 and 11. Each man allegedly expected to meet and engage in sexual contact with the minors. They were arrested as they arrived at the designated meeting place.
If convicted, each man faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law
Three Defendants Arrested for Attempting to Smuggle Marijuana into the United StatesRead 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 Curtis Nalls, 38, John Banks, 34, and Cassondra McDougald, 32, all of Niagara Falls, NY, were arrested and charged by criminal complaint with conspiracy to smuggle over 100 kilograms of marijuana into the United States from Canada. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $4,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the complaint, in November 2016, Homeland Security Investigations Border Enforcement Security Task Force (BEST) Buffalo received information that defendants John Banks and Curtis Nalls were involved in drug trafficking and smuggling activity from Canada to the Niagara Falls, NY area. An investigation was initiated it was determined that between July 28, 2016, and July 25, 2017, Balls, Nalls and Cassondra McDougald, individually and together, participated in the organization and/or transport of marijuana from Canada through the Rainbow Bridge Port of Entry into the United States approximately 39 times, each time carrying approximately 10 to 30 pounds.
On July 25, 2017, law enforcement officers learned that McDougald traveled to Canada and back to the United States. They surveilled McDougald and followed her to her residence on Cudaback Avenue in Niagara Fall. That same day, United States Probation Officers approached Nalls and Banks who were traveling in a vehicle on Packard Road in Niagara Falls. Upon approach, officers observed that the passenger side door panel of the vehicle had been removed, revealing black and blue taped bundles in the natural void of the door. Nalls was on federal probation at the time which resulted in a search of the car and his residence. During the searches, officers seized 30 bundles of suspected marijuana; a quantity of loose, suspected marijuana; two suspected marijuana plants; $22,061 in cash; two pistols with magazines; ammunition; and a Hydraulicpress.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer. Defendant Nalls is being detained, defendants Banks and McDoualg were released on conditions.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigation, under the direction of Special Agent-in-Charge James C. Spero, and the United States Probation Department, under the direction of Chief Probation Officer Anthony SanGiacomo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Texas Man Sentenced to Six Years in Prison on Multiple Charges for Stealing from Dead Man’s Retirement FundRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Texas man to six years and three months in prison for a scheme to steal more than $650,000 from a retirement account after the account owner and his designated beneficiary both died, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
U.S. District Court Judge L. Scott Coogler sentenced DWAYNE ELLIS BAPTISTE, 44, on four counts of wire fraud, one count of mail fraud, and one count of aggravated identity theft. Baptiste pled guilty to the charges in February. He is in the custody of U.S. Marshals.
“Baptiste went to great lengths to exploit the deaths of two people so he could steal a man’s life-long savings,” Posey said. “In calculated steps, he formed a company, faked a power of attorney, created bank accounts and used stolen identifying information and a forged signature to carry out his scheme.”
“The actions taken by Baptiste to steal from the dead are unconscionable acts of greed,” Archey said. “I applaud the sentence handed down today and the work of my agents to bring Baptiste to the bar of justice.”
Baptiste lived in Huntsville in 2011 and was acquainted with Ralph Swinehart, who along with his father, Ronald Swinehart, also lived in Huntsville. Ronald Swinehart was a retired employee of Lockheed Martin Corporation and had a retirement savings account through the company. The retirement account was held at ING Institutional Plan Services.
In September 2011, according to Baptiste’s plea and the government’s sentencing memorandum, Ronald Swinehart signed and executed a durable power of attorney naming his son, Ralph Swinehart, as his agent. Ronald Swinehart died on Oct. 11, 2011; his son died on Oct. 23, 2011.
The court documents show Baptiste carried out a scheme to divert the $678,309 in Ronald Swinehart’s retirement account to an account he controlled. He conducted that scheme as follows:
Baptiste filed a fraudulent power of attorney with the Madison County Probate Court in October 2011 appointing himself as Ronald Swinehart’s agent. He also created a company, Swinehart Investment Solutions, in which he fraudulently claimed Ronald and Ralph Swinehart — both deceased — were members.
In December 2011, Baptiste opened two commercial accounts in the name of Swinehart Investment Solutions at BBVA Compass Bank. Baptiste also changed the beneficiary designation on Ronald Swinehart’s retirement account from Ralph Swinehart to himself, and the bank account information to one of the BBVA accounts he controlled. Baptiste then contacted ING, pretending to be Ronald Swinehart, and received instructions on how to withdraw money from Ronald Swinehart’s retirement account. Baptiste used Ronald Swinehart’s name, Social Security number, and address in that process, committing mail fraud and aggravated identity theft.
Baptiste then committed wire fraud by directing four transfers, totaling $678,309, from the retirement account to his BBVA account. After withholding for federal taxes, Baptiste received $545,670 for himself. He took repeated steps to conceal his fraud, using withdrawals and cashier’s checks to move the money through different accounts he controlled.
The FBI investigated the case, which Assistant U.S. Attorneys John B. Ward and Manu Balachandran prosecuted.
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Taunton Man Pleads Guilty to Dealing HeroinRead the Press Release
BOSTON – A Taunton man pleaded guilty today in federal court in Boston to dealing heroin and fentanyl.
Xavier Ramos, 28, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. U.S. District Court Judge George A. O’Toole scheduled sentencing for Nov. 2, 2017.
In October 2015, Ramos was arrested and charged along with 24 others in connection with a heroin trafficking ring led by Dedwin Cruz-Rivera in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton and surrounding communities.
Ramos assisted co-defendant Dedwin Cruz-Rivera by acting as a Spanish to English translator and brokered deals between Cruz-Rivera and another individual. Ramos also purchased small amounts of heroin, some of which he distributed to others to support his own heroin habit.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Tampa Woman Charged with Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Natalie Panko (57, Tampa) was arrested today on a four-count indictment charging her with conspiracy to commit theft of government property, identity theft, and theft of government property. She faces a maximum penalty of five years in federal prison on the conspiracy count and 10 years’ imprisonment on each of the three theft of government property counts. Panko made her initial appearance in federal court today and was released on bond.
According to the indictment, Panko and others knowingly processed debit and credit cards in other people’s names containing federal income tax refunds generated by fraudulent tax returns through Square Inc. accounts. Square Inc. is a merchant processor that provides terminals to businesses to process credit/debit card payments. Panko and others set up Square Inc. merchant accounts related to a restaurant located in the Middle District of Florida. The Square Inc. accounts associated with the restaurant were used to process credit and debit card transactions for both legitimate restaurant-related sales, as well as for tax fraud transactions using prepaid debit cards like Green Dot. After the payments were processed, Square Inc. electronically transferred the funds to bank accounts controlled by Panko and to the accounts of others, where the proceeds were shared with others and used for personal items.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Texas Man Sentenced to over 19 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Mauro Gonzales, age 38, of Arlington, Texas was sentenced yesterday to 235 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, in August of 2012, agents with Homeland Security Investigations (HSI) and the Drug Enforcement Administration (DEA) in Fort Smith, Arkansas, learned that large quantities of methamphetamine were being distributed out of the Fort Smith area. During the investigation, Agents were able to identify Mauro Gonzales and co-conspirator Gerardo Gamboa along with other members of the drug trafficking organization. On May 20, 2013, Gamboa was traffic stopped in Sequoya County, Oklahoma for speeding. A search of the vehicle revealed approximately 4.7 pounds (2,138grams) of methamphetamine concealed in the back seat of the vehicle Gamboa was driving.
Gonzales was indicted in the Western District of Arkansas in 2013 and pled guilty on February 16, 2017.
This case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Fort Smith Police Department and the Oklahoma Highway Police. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Suffolk County Police Officer Charged with Civil Rights Violation for Forcing Female Arrestee to Engage in Sexual ActRead the Press Release
A complaint was unsealed today in federal court in Central Islip, New York, charging Suffolk County Police Department Officer Christopher McCoy with depriving an arrestee of the right to bodily integrity by forcing her to perform a sexual act in the precinct. McCoy was arrested this morning, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Anne Y. Shields.
This charge was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Law enforcement officials are duty-bound to uphold the Constitution and protect all of our citizens, and certainly not to abuse them,” stated Acting United States Attorney Rohde. “No dereliction of this duty will be tolerated.” Ms. Rohde thanked the Suffolk County Police Department for its assistance during the investigation.
“While in custody, this woman didn’t deserve to be allegedly abused and degraded by a sworn public servant,” stated Assistant Director-in-Charge Sweeney. “Police officers are held to a high standard, as they should be, and they certainly don’t have the authority to disrespect any human being. This type of conduct threatens the reputation of the vast majority of law enforcement officials who serve each day with honor and integrity.”
According to the complaint, on March 16, 2017, while on duty, McCoy arrested Jane Doe[1], as she was the subject of several outstanding warrants in connection with unresolved vehicle and traffic offenses. Jane Doe was transported to the First Precinct in Wyandanch. During arrest processing, while McCoy and Jane Doe were alone in the precinct’s juvenile room, McCoy forced Jane Doe to perform oral sex. Upon her release, Jane Doe promptly reported the incident.
The charge in the complaint is are merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Lara Treinis Gatz is in charge of the prosecution
The Defendant:
CHRISTOPHER MCCOY
Age: 38
Sayville, New York
E.D.N.Y. Docket No. 17-MJ- (AYS)
[1] Jane Doe is a pseudonym, as the Department of Justice does not name alleged victims of sexual abuse in publicly filed documents.
Stroudsburg Man Sentenced to Six Months’ Imprisonment for Failing to Pay Employment TaxesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Andershonis, age 58, of Stroudsburg, Pennsylvania, was sentenced on July 26, 2017, by United States District Court Judge Richard Conaboy to serve 6 months’ imprisonment and 6 months’ home-confinement for failing to pay his company’s employment taxes. Judge Conaboy also ordered Andershonis to pay $212,508 in restitution.
According to United States Attorney Bruce D. Brandler, from the first quarter of 2010 to the last quarter of 2012, Andershonis failed to pay the employment taxes for his company, Just Very Affordable, Inc., a company that specializes in installing commercial kitchens His actions resulted in a tax loss of more than $212,000.
Andershonis was charged by an information in February 2017, and pled guilty pursuant to a plea agreement in March 2017.
The case was investigated by the Internal Revenue Service, Criminal Investigations. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Stroudsburg Man Sentenced to 14 Years in Prison for Heroin TraffickingRead the Press Release
WILKES-BARRE—The United States Attorney’s Office for the Middle District of Pennsylvania announced that James King, age 49, of Stroudsburg, Pennsylvania, was sentenced today to 14 years in prison by Senior U.S. District Court Judge A. Richard Caputo, for trafficking heroin during September 2016.
According to United States Attorney Bruce D. Brandler, King previously pleaded guilty to possession with intent to distribute heroin. King admitted to distributing between 60 and 80 grams of heroin (which equals approximately 2,000-3,000 retail bags of heroin).
Judge Caputo also ordered King to serve three years on supervised release following his prison sentence.
King was indicted by a federal grand jury in October 2016, as a result of an investigation by the Drug Enforcement Administration and Stroud Area Regional Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Steuben County Man Pleads Guilty to Making A False StatementRead 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 Brian Woodhams, 40, of Wayland, NY, pleaded guilty to making false statements to a federal agent, before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary C. Baumgarten, who is handling the case, stated that since October, 2015, the defendant has held a student pilot license issued by the Federal Aviation Administration (FAA) and is permitted to fly an airplane with a flight instructor or by himself. If Woodhams flies with a passenger, a flight instructor must also be on board the airplane.
On October 31, 2015, the defendant was involved an accident while landing his Piper Cherokee 140 airplane at the Perry-Warsaw Airport in Perry, NY. The airplane veered to the right, and Woodhams over-corrected and hit the brakes, causing the nose of the plane to go into the ditch off the runway. At the time of the accident, there was a 15-year old boy on board as a passenger, but no flight instructor.
On November 2, 2015, FAA Aviation Safety Inspectors viewed the defendant’s airplane at the Perry-Warsaw Airport. During a telephone conversation, Woodhams told inspectors that he had sustained a bloody nose and hurt his shin during the crash. The defendant also stated that he was the only occupant in the airplane at the time of the accident but that his son approached the aircraft immediately after the crash and slipped and fell as he climbed up the flap, hitting his nose and causing a bloody nose.
Woodhams met with inspectors in person on November 4, 2015, and stated once again that he was the only occupant of the aircraft at the time of the accident and that his son arrived at the crash scene later. The defendant was told that a witness reported seeing his son in the aircraft but Woodhams again denied this fact.
On November 10, 2015, the defendant submitted a Pilot/Operator Aircraft Accident/Incident Report to the National Transportation Safety Board (NTSB) and failed to report that there was a passenger on the plane at the time of the accident who was injured.
On January 10, 2017, Woodhams was interviewed by a Special Agent of the U.S. Department of Transportation, Office of Inspector General, and FAA inspectors and stated once again that he was the only person on the plane at that time. When questioned concerning evidence developed during the FAA investigation that there was a passenger in the plane at the time of the crash, defenant denied that there was a passenger in the plane and he gave an alternative explanation that was untrue.
The plea is the result of an investigation by the Department of Transportation, Office of the Inspector General, and the Federal Aviation Administration.
Sentencing is scheduled for November 3, 2017 at 10:00 a.m. before Judge Vilardo.
Statement of Acting U.S. Attorney Joon H. Kim on the Guilty Verdict in U.S. V. Ng Lap SengRead the Press Release
Acting U.S. Attorney Joon H. Kim stated: “In his unbridled pursuit of even greater personal fortune, billionaire Ng Lap Seng corrupted the highest levels of the United Nations. Through bribes and no show jobs, Ng turned leaders of the league of nations into his private band of profiteers. Ng's journey from a Macau real estate mogul to convicted felon should serve as a cautionary tale to all tempted to follow his path. If you bring corruption to New York – whether to the State Capitol in Albany or to the halls of the U.N. General Assembly – your journey may very well end in a Manhattan federal courtroom, with a unanimous jury announcing your guilt.”
Social Security Administration Employee Sentenced for Theft of FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAELLE MARTINEZ, age 39, of Marrero, was sentenced today after previously pleading guilty to theft of government funds.
U.S. District Judge Lance M. Africk sentenced MARTINEZ to five years probation and restitution in the amount of $15,104.56.
According to the court documents, MARTINEZ was employed for approximately eight years as a Claims Representative/Social Insurance Specialist in the Social Security Administration (“SSA”) District Office located in Terrytown, Louisiana. MARTINEZ was responsible for the adjudication and authorization of SSA benefits on behalf of the SSA. To accomplish her scheme, MARTINEZ identified beneficiaries who were entitled to receive retroactive or back payments from the SSA. MARTINEZ would change the recipient’s deposit information and would divert the SSA money to bank accounts under her control. MARTINEZ then changed the deposit information back before the beneficiaries would notice a problem. In total, MARTINEZ stole $15,104.56 from several SSA beneficiaries.
Acting U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General, in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Short Hills, New Jersey, Investment Manager Sentenced to 33 Months in Prison for $675,000 Ponzi SchemeRead the Press Release
NEWARK, N.J. – An investment manager with an office in Short Hills, New Jersey, was sentenced today to 33 months in prison for that he fraudulently inducing investments, concealing investment losses, and diverting more than $675,000 in investor money for his own use, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Moskowitz, 48, of Short Hills, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of wire fraud. Judge Hayden imposed the sentence today in Newark federal court.
In a separate legal proceeding, the N.J. Bureau of Securities ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.
According to documents filed in this case and statements made in court:
Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.
Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.
In addition to the prison term, Judge Hayden sentenced Moskowitz to three years of supervised release and ordered restitution and forfeiture of $694,577.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Acting Bureau Chief Amy Kopleton, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defenders, Newark
Sarasota Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Johnny Dawson (38, Sarasota) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition seized during his arrest.
Dawson pleaded guilty on April 26, 2017.
According to court documents, on August 7, 2016, law enforcement officers responded to a call reporting an individual who had a firearm wrapped inside of a t-shirt. The responding officer observed Dawson walking away, holding a t-shirt. As the officer approached, Dawson moved the shirt behind his back, and the officer could see the outline of a firearm within the shirt. Dawson then put the shirt down and fled. The officer apprehended Dawson, seized the shirt, and recovered a loaded gun wrapped inside with the hammer cocked back. Dawson later admitted to possessing the loaded firearm. At the time of the offense, Dawson had multiple prior felony convictions and therefore is prohibited from carrying a firearm or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Roswell Man Sentenced to 12 Years for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joseph Ray Mendiola, 36, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 144 months in prison followed by five years of supervised release for his conviction on cocaine and methamphetamine trafficking charges. Mendiola was also ordered to forfeit 14 firearms and ammunition.
Mendiola, whose prior criminal history includes two prior methamphetamine trafficking convictions and a conviction for being a felon in possession of a firearm, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Mendiola is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police. Twenty-one of the defendants were charged with federal offenses and the remaining 20 with state crimes.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) led by Mendiola, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Mendiola and 15 other federal defendants were charged in a 24-count indictment filed on Sept. 22, 2015. Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles.
On Oct. 18, 2016, Mendiola pled guilty to conspiracy to possess methamphetamine and cocaine with intent to distribute and possession of methamphetamine with intent to distribute. In entering the guilty plea, Mendiola admitted conspiring with his co-defendants to distribute methamphetamine and cocaine in Chaves County from June 2015 through July 31, 2015. Mendiola also admitted that on July 25, 2015, and July 31, 2015, he and a co-defendant arranged to purchase two pounds of methamphetamine with the intention of distributing it to others.
To date, 13 of Mendiola’s co-defendants have entered guilty pleas and two have been sentenced. Three co-defendants have yet to be arrested and are considered fugitives. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Roanoke Man Sentenced on Heroin ChargeRead the Press Release
Roanoke, VIRGINIA – A Roanoke man who conspired with others to distribute heroin and other drugs was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Westley Richardson, a.k.a. “Murda” a.k.a. “Murder,” 36, of Roanoke, was sentenced today to 120 months in prison, to be followed by a 5-year term of supervised release. Richardson previously pleaded guilty to one count of conspiring to possess with the intent to distribute and to distribute heroin and methamphetamine.
According to evidence presented by Special Assistant United States Attorney Kari Munro, after Richardson was recorded on video selling heroin and other substances to various individuals, police arrested him during a traffic stop on May 12, 2016 in Roanoke in possession of one or more of these substances. Richardson later acknowledged that he had acquired large amounts of heroin and methamphetamine for distribution in and around the Roanoke Valley over a period of more than a year, in some instances accepting firearms as payment for the drugs.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Agency; the Virginia State Police; the Roanoke County Police Department; the Roanoke City Police Department; the Radford City Police Department; and the regional HIDTA task force. Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Registered Sex Offenders Ordered into Custody on Allegations of Domestic Sex TraffickingRead the Press Release
HOUSTON - Two men have been charged in a four-count indictment with sex trafficking of minors and conspiracy to do so, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the indictment under seal against Jamine Lake, aka Pimpin or PI, 27, and Ronnie Presley, aka Fresh or Bubba or Tony, 35, both of Houston, on July 13, 2017. It was unsealed as Lake and Presley were arrested July 19 and 26, respectively. Today, U.S. Magistrate Judge Dena Hanovice Palermo found both to be a danger to the community and ordered they remain in custody pending further criminal proceedings.
The indictment charges both men with conspiracy to traffic women and children for the purposes of commercialized sex and sex trafficking of children and sex trafficking by force, fraud and coercion. Lake is also charged with violating his supervised release from a 2013 conviction for similar federal offenses.
According to information presented in court, Presley and Lake were allegedly working together to traffic three minor females ranging in age from 13 to 17 in an area near Bissonett in Houston. During part of the conspiracy, Presley was allegedly giving orders from jail. The court also heard today that one of the minors allegedly went to the jail to put money in Presley’s account using cash earned from commercial sex acts. According to the allegations, Lake and Presley communicated with each other and one of the minors via cell phone.
If convicted, the men face up to life in prison and a possible $250,000 fine.
The Houston FBI Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney Sherri Zack is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Ravenna man charged with armed bank robbery and brandishing a firearmRead the Press Release
A federal grand jury returned a two-count indictment charging Cameron Cleveland, 39, of Ravenna, with armed bank robbery and brandishing a firearm during the robbery, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Cameron Cleveland used force, intimidation and a firearm to rob the Huntington Bank in Ravenna on July 10, 2017. On that same day, Cleveland knowingly used and brandished a firearm in furtherance of a crime of violence, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Ravenna Police Department. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.