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15 September 2017
Dallas Man Sentenced in Connection with Denton County Highway Expansion FraudRead the Press Release
SHERMAN, Texas – A 34-year-old Dallas man has been sentenced to federal prison in connection with a Denton County highway expansion project in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Wade Wylie Blackburn, pleaded guilty on Apr. 19, 2017, to conspiracy to commit mail fraud and was sentenced to 12 months and one day in federal prison on Sep. 14, 2017, by U.S. District Judge Marcia A. Crone. Blackburn was also ordered to pay restitution in the amount of $1 million to the Texas Department of Transportation.
According to information presented in court, from 2008 to 2011, Blackburn conspired with Kevin James Bollman to defraud the Texas Department of Transportation (TXDOT.) Blackburn and Bollman raised investment money and purchased Right-of-Way (ROW) along Interstate Highway 35 East in Denton County with the intent of quickly re-selling the ROW land tracts to TXDOT.
TXDOT acquired ROW through one of three methods: (1) Condemnation (normal acquisition); (2) Early Acquisition (EAQ); and (3) Advanced Acquisition (AAQ) through option contracts. The first two methods required environmental clearances before TXDOT was permitted to acquire the ROW and pay the landowner. The timing on these acquisitions, including the timing of the environmental clearance issued by the federal government, is unpredictable and often takes years to accomplish. The third method – the AAQ method through option contracts – permitted TXDOT to execute an option contract before environmental clearances were obtained, then pay the landowners a significant up-front option fee designed to keep the landowner from transferring or developing the property on the ROW that would later result in TXDOT likely having to pay more for the ROW. The landowner agreed not to develop the property in exchange for the up-front option fee, then closed on the sale and received the remainder of the purchase money after the environmental clearances were obtained.
As part of the scheme, Blackburn and Bollman intentionally caused false material information to be submitted to the TXDOT appraiser regarding, among other things, their development plans for the various properties. Blackburn and Bollman made these representations to the TXDOT appraiser even though they knew they had no intent to develop any of the properties. Blackburn also wrote a letter with material false statements to individuals at TXDOT. It claimed they were being forced to forego imminent development plans for the tracts, had been unable to successfully secure building permits, and were experiencing financial hardships as a result. Blackburn and Bollman also made false material oral misrepresentations to officials of TXDOT when they told them that they were experiencing financial hardships as a result of not being able to proceed with immediate development of the tracts, and that TXDOT should use the AAQ method to immediately purchase the tracts. Blackburn and Bollman made the material misrepresentations to TXDOT so they could ultimately benefit from the up-front option fee rather than wait for TXDOT acquisition by their usual course of condemnation. TXDOT used option contracts to purchase the tracts for higher prices than what Blackburn and Bollman paid for the tracts. Blackburn was indicted by a federal grand jury in April 2016.
According the general counsel for TXDOT, this is the first time a developer has been ordered to pay restitution for providing false information. Bollman is scheduled to be sentenced on Oct. 30, 2017.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
Collin County Man Sentenced for Possessing Child PornographyRead the Press Release
PLANO, Texas — A 41-year-old Plano, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Ryan Curry pleaded guilty on Apr. 27, 2017 to possession of child pornography and was sentenced to 108 months in federal prison on Sep. 14, 2017, by U.S. District Judge Marcia Crone.
According to information presented in court, in November 2016, law enforcement officers executed a federal search warrant at the residence where Curry was residing in Plano. A computer user at the residence had been identified by law enforcement during an undercover operation into individuals trading child pornography on the Internet. Curry admitted to possessing more than 3,000 images and videos of child pornography on a cell phone. Those images included depictions of prepubescent minors and sadistic and masochistic conduct.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Charlotte Man Sentenced to More than 13 Years for Carjacking and Firearms ChargesRead the Press Release
CHARLOTTE, N.C. – Cedric Lamar Turner, 31, of Charlotte, was sentenced today to 164 months in prison on carjacking charges and related firearms violations, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also ordered Turner to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, on August 8, 2016, Turner approached the male victim who was exiting a BB&T Bank branch, and, while brandishing a black pistol, he carjacked the victim’s 1999 Toyota Camry. Court records show that Turner also stole the victim’s wallet, checkbook and cellular phone. Shortly after the carjacking, law enforcement located Turner driving the stolen vehicle and attempted to conduct a traffic stop. Turner did not stop, and, after crashing the stolen car into a power pole, he exited the vehicle and fled on foot. According to court records, law enforcement arrested Turner shortly thereafter. At the time of the arrest, Turner had the victim’s wallet in the pocket of his pants. Law enforcement also found nearby a Haskell, model JHP, .45 caliber pistol.
According to court records, Turner told law enforcement that he had been “caught red handed.” Turner also admitted that he had been at a convenience store next to the bank branch, watching the bank in order to target someone to rob. As reflected in court documents, Turner admitted that he saw the victim go into the bank, and, thinking the victim would have money when he exited the bank, Turner approached the victim at his vehicle, pointed his gun at the victim and demanded the victim’s money and car. According to court records, while driving in the stolen vehicle, Turner threw the victim’s cellular phone out of the car because he believed that he could be tracked by the phone. Over the course of the investigation, law enforcement also determined that the firearm Turner brandished during the carjacking was stolen.
Turner pleaded guilty in February 2017 to one count of carjacking; one count of using, carrying and brandishing a firearm in relation to a crime of violence; and one count of possession of a firearm by a convicted felon. Turner is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the ATF and CMPD. Assistant U.S. Attorney Robert Gleason, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Cape Cod Gang Leader Sentenced to 28.5 Years in PrisonRead the Press Release
BOSTON – A leader of the Nauti Block gang was sentenced in federal court in Boston today to 28.5 years in prison for trafficking multiple kilograms of heroin and fentanyl throughout Cape Cod. An associate of the gang was also sentenced today for her role in the drug trafficking conspiracy.
Denzel Chisholm, 26, of West Yarmouth, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 342 months in prison and 10 years of supervised release; and Molly London, 33, of Hyannis, was sentenced to 20 months in prison and three years of supervised release. In June 2017, Chisholm and London were convicted of various drug charges related to their roles in a heroin and fentanyl trafficking operation on Cape Cod. Chisholm was convicted of one count of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin, nine counts of possession of heroin with the intent to distribute, and one count of conspiracy to distribute suboxone, which was intended to be trafficked into MCI-Norfolk prison. London was convicted of aiding and abetting Chisholm and maintaining a residence for drug purposes.
On April 5, 2016, following a nearly eight-month long investigation, 13 members of the Cape Cod-based Nauti-Block gang were arrested on federal drug trafficking and firearms charges. Two subsequent superseding indictments brought the total number of defendants charged in the case to 19.
Chisholm distributed massive quantities of heroin throughout lower Cape Cod. He used other individuals, including London, to store and deliver the heroin, then sold it to numerous co-conspirators. During a search of London’s home, 77 grams of heroin were found in a Starbucks cup and a 55-pound package of mannitol (a heroin cutting agent) was found by her bed. Previously intercepted text messages and phone calls indicated that London made her home available to Chisholm just before Chisholm engaged in heroin transactions.
Fifteen of Chisholm and London’s co-conspirators have pleaded guilty to various drug distribution and conspiracy charges and seven have been sentenced.
Chisholm and co-defendant Tyrone Gomes also face state charges for the 2015 murder of Christine Ferreira at a rest stop on Route 6 on Cape Cod.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
California Man Convicted for Role in the Illegal Sale of Black Rhinoceros HornsRead the Press Release
Edward N. Levine was convicted yesterday for conspiracy to violate the Lacey and Endangered Species Acts and to a violation of the Lacey Act by knowingly selling black rhinoceros horns to an undercover agent from the United States Fish and Wildlife Service (USFWS), announced the Justice Department. Sentencing has been set for December 15. Levine’s co-defendant, Lumsden Quan, was sentenced in December 2015.
Levine was arrested in March 2014 for his role in a conspiracy to knowingly sell black rhinoceros horns across state lines. Levine worked with Quan to transport two horns from California to Nevada, where the men sold them to an undercover agent from Colorado for a sum of $55,000.
This case is part of “Operation Crash,” a nationwide crackdown by federal, state and local law enforcement agencies against those who engage in illegal trafficking of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of November 2015, Operation Crash has resulted in the prosecution and sentencing of nearly 32 subjects and recovery of approximately $5.6 million through forfeiture and restitution.
Since 1976, trade in rhinoceros horns has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. All species of rhinoceros are protected under the federal Endangered Species Act.
The investigation was handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada, and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorney Ryan Connors, Assistant U.S. Attorney Kathryn Newman, Paralegal Christopher Kopf, and Paralegal Amanda Backer.
California Man Convicted for Role in the Illegal Sale of Black Rhinoceros HornsRead the Press Release
LAS VEGAS, Nev. – Edward N. Levine, 64, of Novato, Calif., was convicted Thursday for conspiracy to violate the Lacey and Endangered Species Acts and to a violation of the Lacey Act by knowingly selling black rhinoceros horns to an undercover agent from the United States Fish and Wildlife Service (USFWS), announced the Justice Department. Sentencing has been set for December 15. Levine’s co-defendant, Lumsden Quan, was sentenced in December 2015.
Levine was arrested in March 2014 for his role in a conspiracy to knowingly sell black rhinoceros horns across state lines. Levine worked with Quan to transport two horns from California to Nevada, where the men sold them to an undercover agent from Colorado for a sum of $55,000.
This case is part of “Operation Crash,” a nationwide crackdown by federal, state and local law enforcement agencies against those who engage in illegal trafficking of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of August 2017, Operation Crash has resulted in the prosecution and sentencing of more than 30 subjects and recovery of approximately $5.6 million through forfeiture and restitution.
Since 1976, trade in rhinoceros horns has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. All species of rhinoceros are protected under the federal Endangered Species Act.
The investigation was handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada, and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorney Ryan Connors, Assistant U.S. Attorney Kathryn Newman, Paralegal Christopher Kopf, and Paralegal Amanda Backer.
To report a wildlife crime such as the illegal trafficking and trade of species, call 1-844-FWS-TIPS (1-844-397-8477) or visit https://www.fws.gov.
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Businessman Pleads Guilty to Conspiracy to Forge A Federal Judge’s SignatureRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Michael Greco, the United States Marshal for the Southern District of New York (“USMS”), announced that MICHAEL ARNSTEIN pled guilty today before U.S. District Judge Andrew L. Carter Jr. to one count of conspiracy to forge a federal judge’s signature. ARNSTEIN is scheduled to be sentenced by Judge Carter on January 16, 2018.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted today, Michael Arnstein exploited the authority of the federal judiciary in a blatantly criminal scheme. By forging court orders and the signature of a U.S. District Judge, Arnstein was able to effectively erase websites critical of Arnstein’s business from its search results. Now Arnstein awaits sentencing in the same court he impersonated.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Arnstein’s attempts to remove any trace of unfavorable information about his business posted online sent him down a slippery slope. Not only did he commit a federal crime by forging a judge’s signature in furtherance of his scheme, but he now finds himself back on the Internet. This time, however, it’s a story no search engine can erase.”
U.S. Marshal Michael Greco said: “The outstanding combination of investigative efforts by the FBI and U.S. Marshals Service enabled deputies and special agents to expose an egregious attempt at forgery and deception by Michael Arnstein. The Deputy U.S. Marshals assigned to the Southern District of New York’s Protective Intelligence Unit work tirelessly to investigate any and all forms of inappropriate communications in order to thwart such schemes. As always, the U.S. Marshals Service is committed to protecting the safety, security and integrity of our federal judiciary and court family.”
According to the allegations contained in the Complaint, the felony Information to which ARNSTEIN pled guilty, and statements made during the plea proceeding and other court proceedings:
Between February 2014 and February 2017, ARNSTEIN engaged in a brazen scheme to submit counterfeit federal court orders to Google, Inc. (“Google”) in an effort to get websites containing unfavorable postings about ARNSTEIN’s business de-indexed from Google’s internet search results. In furtherance of this scheme, ARNSTEIN and others forged the signature of a United States District Judge for the Southern District of New York on over ten counterfeit court orders. These counterfeit orders listed the websites containing purportedly defamatory information about ARNSTEIN’s business and ordered the removal of such information from the websites. ARNSTEIN then submitted the counterfeit orders, which appeared to be valid on their face, to Google and requested that Google de-index the websites containing the purportedly defamatory information. ARNSTEIN often succeeded in getting the websites de-indexed using the counterfeit court orders.
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ARNSTEIN, 40, of Kailua, Hawaii, pled guilty to one count of conspiracy to forge a judicial signature, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Marshals Service. Mr. Kim also thanked Google for its helpful assistance in this investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sheb Swett and Daniel S. Noble are in charge of the prosecution.
Brookings Man Receives Federal Prison Sentence for Manufacturing Hash Oil and Endangering Human LifeRead the Press Release
MEDFORD, Ore. – On Thursday, September 14, 2017, United States District Court Judge Michael J. McShane sentenced Troy Allen Wyatt, 44, to 18 months in prison after he pleaded guilty to manufacturing hash oil and endangering human life. Wyatt currently resides in Brookings, Oregon.
According to court documents, Wyatt accidentally started a fire in January 2016 while making hash oil at his home in Medford. The fire started when propane gas ignited during the manufacturing process and resulted in $12,798 in property damage. Wyatt’s 13-year-old daughter was in the home during the fire but was not injured.
Wyatt will remain out of custody pending a voluntary surrender date to be determined by the court. He was ordered to pay restitution to the property owner and an insurance company.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Medford Police Department, and was prosecuted by William "Bud" Fitzgerald, Assistant United States Attorney for the District of Oregon.
Bangor Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Robert Goguen, 43, of Bangor pleaded guilty today in U.S. District Court to possession of child pornography.
According to court records, on November 10, 2015, U.S. probation officers went to Goguen’s apartment in Bangor and seized a laptop computer. A search of the computer revealed images and videos of child pornography that Goguen had downloaded and saved.
Goguen faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Probation Office, U.S. Immigration & Customs Enforcement’s Homeland Security Investigations and the Bangor Police Department. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Atlanta Man Sentenced to Three Years for $2.7 Million Bank FraudRead the Press Release
ALEXANDRIA, Va. – An Atlanta, Georgia man was sentenced today to three years in prison, followed by five years of supervised release, for his role in a bank fraud scheme that resulted in losses of approximately $2.7 million.
Thomas Scott Brown, 47, pleaded guilty to bank fraud and false statements to a financial institution on June 9. According to court documents, from approximately 2006 through 2007, Brown purchased properties for buyers with his own money and then directed those individuals to apply for home equity loans with Navy Federal Credit Union, claiming that they owned the properties free and clear of any liens when, in fact, they still owed Brown for the properties. In applying for these home equity loans, Brown instructed the buyers to submit false documentation to the bank, including fraudulent Housing and Urban Development Settlement Statements and false membership applications. Brown further ordered these individuals to pay him from the proceeds of the home equity loans.
In most instances, the homes went into foreclosure after the bank approved the loans. In total, 51 properties Brown sold eventually went into foreclosure, causing Navy Federal Credit Union losses of $2.7 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jamar K. Walker prosecuted 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-104.
Annapolis Brothers Indicted on Federal Drug Conspiracy ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Calum Thomas, age 20, and Christian Thomas, age 21, both of Annapolis, Maryland, on charges related to a scheme to Distribute and Possess with Intent to Distribute Controlled Substances and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The indictment was returned on September 7, 2017, and was unsealed on September 14, 2017.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Timothy J. Altomare of the Anne Arundel County Police; and Anne Arundel County State’s Attorney Wes Adams.
According to the three-count indictment, the defendants allegedly distributed heroin, cocaine, and marijuana in and around Annapolis, Maryland. In addition, it is alleged that they robbed and attempted to rob other drug traffickers and their customers of drugs and drug proceeds, as well as burglarized residences to steal drugs.
The federal charge include overt acts to further the drug trafficking operation, to include the homicide of a 55-year-old man that occurred on January 2, 2017 in Annapolis, Maryland. The defendants allegedly utilized a Hermann Weihrauch, .357 caliber Magnum, model EA/R, six-shot revolver. The victim had no ties to illegal activity.
The defendants face a maximum sentence of 20 years in prison for the conspiracy. Christian Thomas faces a mandatory minimum sentence of seven years imprisonment, up to life, for possessing and brandishing a firearm in furtherance of a drug trafficking crime. Calum Thomas faces a mandatory minimum sentence of five years imprisonment, up to life, for possessing a firearm in furtherance of a drug trafficking crime. Detention hearings will be held today at 2 p.m. in U.S. District Court in Baltimore. Both defendants remain detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the ATF, Anne Arundel County Police and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Daniel C. Gardner and Special Assistant U.S. Attorney Christine Goo who are prosecuting the case.
Accountant Arrested for Fraud Scheme, Tax Evasion and Money LaunderingRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old former Corpus Christi man has taken into custody following the return of an indictment alleging a scheme to defraud his former employer of more than $160,000, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned 20-count indictment against Brian Perez on Aug. 23,2017. He was taken into custody today in San Antonio where he will make his initial appearance before U.S. Magistrate Judge Henry Bemporad. He is expected to then appear in Corpus Christi in the near future.
Perez is a certified public accountant and is charged with 18 counts of wire fraud and one count each of tax evasion and money laundering.
While working as a bookkeeper, Perez allegedly devised a scheme to defraud his employer by unlawfully transferring funds using the Electronic Federal Tax Payments System from the company’s bank account to his personal taxpayer withholding account at the IRS. The indictment alleges Perez then filed his U.S. Income Tax Return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,775 between March 9, 2015, and Aug. 7, 2015, according to the charges.
In May 2015, Perez allegedly laundered approximately $59,000 by using a financial institution to engage in a monetary transaction when he transferred criminally-derived funds from his personal checking account to an investment account. The indictment also charges Perez with tax evasion for filing a tax return knowing he had received significantly more income than the amount stated in the return.
Each conviction of wire fraud carries a potential 20-year maximum prison sentence. If convicted of the wire fraud or tax evasion charges, he also faces up to an additional 10-years and three years, respectively, in federal prison. All charges also carry a possible $250,000 fine.
IRS-Criminal Investigation and the FBI investigated. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
A Message from Attorney General Jeff Sessions to Those Impacted by Hurricanes Irma and HarveyRead the Press Release
https://www.justice.gov/opa/video/department-justice-s-response-hurricanes-harvey-and-irmaRemarks of Attorney General Sessions regarding the Department of Justice response to Hurricanes Harvey and Irma
Hello. This is Attorney General Jeff Sessions.On behalf of President Trump and the entire Department of Justice, I want to offer my prayers and support to those devastated by Hurricanes Irma and Harvey. Having personally lived through hurricanes and their aftermath on the Alabama Gulf Coast, I can understand the challenges you face.
The Justice Department is the lead coordinating agency for federal law enforcement supporting FEMA relief operations in hurricane-impacted areas. More than 600 Department of Justice law enforcement officers from throughout the country are already involved in relief efforts, helping local first responders provide medical assistance, aiding in urban search and rescue operations throughout Florida and the Caribbean, assistance with law enforcement duties and offering support however else they can.
Sadly, I must warn that experience tells us that while thousands come forward to help selflessly, there are a few who use the disaster to enrich themselves or promise expertise but lack competence to do professional work. Be careful. And be sure any contributions you make are only going to reputable aid organizations that have proven to be honest and effective.
In the wake of these disasters, the Justice Department is here with ways to avoid becoming a victim of fraud. Since 2005, the Justice Department’s National Center for Disaster Fraud has processed over 70,000 complaints. It operates 24 hours a day, 7 days a week to take disaster fraud complaints. We’ve already received hundreds of complaints in the last month related to Harvey and Irma and they come from all over the country.
We have also worked with the Federal Trade Commission to release antitrust guidance for businesses that want to rebuild their communities. This guidance will ensure that these businesses can work together to rebuild affected communities without violating the antitrust laws.
Finally, I encourage anyone with information about fraud or other illegal behavior to call the Disaster Fraud Hotline at 1-866-720-5721. With your help, we can make sure that the people hurt most by these tragedies are saved from hurting any more.
Stay safe and God bless.
14 September 2017
“Dino the Casino” Sentenced to 2 Years in Prison for Operating Illegal Gambling Business from Bakersfield to SacramentoRead the Press Release
SACRAMENTO, Calif. — Nive Hagay, 31, of Los Angeles, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years in prison to be followed by three years of supervised release for conducting an illegal gambling business and distributing cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2008 and November 2016, Hagay, who also went by the name “Dino the Casino,” placed video slot machines in small businesses from Bakersfield to Sacramento. Hagay then laundered the proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8.
On October 15, 2016, at a smoke shop in Sacramento, Hagay sold approximately one ounce of a mixture that tested positively for cocaine.
In addition to the sentence imposed, Hagay forfeited various assets acquired with cash from the illegal gambling business, including a 2010 Aston Martin Rapide, a 2016 Mercedes Benz AMG GT, several Ducati motorcycles, and hundreds of thousands of dollars seized from his home, the illegal slot machines, and various bank accounts.
This case was the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Justin L. Lee prosecuted the case. Assistant U.S. Attorney Kevin Khasigian handled the forfeiture.
Woodland Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Raul Gonzalez, 43, of Woodland, was sentenced by U.S. District Judge Morrison C. England Jr. to 30 years in prison for production of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, this case originated from a tip from the National Center for Missing and Exploited Children concerning an email address that was linked to an online photo-sharing site featuring images of minors engaged in sexually explicit conduct. The email address was registered to Gonzalez, and a search of his home uncovered a cellphone containing multiple images of child pornography.
Officers discovered that two of the minor victims portrayed in those images had been exploited and photographed by Gonzalez himself, and that one of the victims was his prepubescent relative. According to court documents, on October 13, 2013, Gonzalez caused his minor relative to engage in sexually explicit conduct, which he recorded with his cellphone camera. Gonzalez also sexually abused another minor who was less than 14 years old.
Gonzalez was convicted in Yolo Superior Court (case 14-3642) for the abuse of the two minors and sentenced to 30 years in prison. Judge England ordered that the sentence in this case be served concurrently with the 30‑year sentence imposed in Yolo County Superior Court case, and that the sentence be served in federal prison. Gonzalez pleaded guilty to the federal charge on June 1, 2017.
U.S. Attorney Talbert stated: “Today’s long sentence underscores the egregious nature of the defendant’s crime. Gonzalez preyed on and exploited two very young children, and compounded that abuse by recording it. My office is committed to working with our law enforcement partners to prosecute and incapacitate those who exploit the most vulnerable members of our society.”
Special Agent in Charge Sean Ragan of the Sacramento Field Office stated: “The production of child pornography is an assault against the most vulnerable members of our society. While Gonzales will serve a 30-year sentence for his crimes, his victims may suffer the effects of this crime for a lifetime. The FBI is committed to working with our law enforcement partners to identify and apprehend those who prey upon our nation's children.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children (ICAC) Task Force, a federally and state‑funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Winthrop Man Pleads Guilty to Unlawfully Possessing a FirearmRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jonathan Bowers, 29, of Winthrop, Maine pleaded guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on April 9, 2016, Bowers possessed a 9mm pistol while at a car repair shop in Chelsea, Maine. Bowers was prohibited from possessing firearms because of seven felony convictions for burglary and theft.
If Bowers is found to be an armed career criminal, he faces an enhanced sentence of between 15 years and life in prison, up to five years of supervised release, and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kennebec County Sheriff’s Office.
Virginia man admits to his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Berrysville, Virginia man has admitted to methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Kevin L. Navarro, 24, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting.” He admitted to conspiring with another person to distribute methamphetamine in Hardy County, West Virginia in October 2016.
Navarro faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.Van Wert man indicted for child pornographyRead the Press Release
A Van Wert man was indicted for crimes involving child pornography, said U.S. Attorney Justin E. Herdman.
Roy Allen Nichols, 54, was charged with receipt and distribution of child pornography
If convicted, the defendant’s sentence will be determined by the Court after reviewing 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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI in Lima.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Undocumented Alien Handed 10-Year Sentence for Illegally Re-Entering the CountryRead the Press Release
McALLEN, Texas – An undocumented alien with serious prior convictions has been ordered to serve 120 months in federal prison, announced Acting U.S. Attorney Abe Martinez. Tomas Aquino-Pacheco, 38, pleaded guilty June 28, 2017, to illegal re-entry after prior deportation or removal.
Today, U.S. District Judge Micaela Alvarez imposed the lengthy sentence which was based on his prior criminal history. This was his second conviction for illegal re-entry, the first of which he served 33 months in federal prison. He was also convicted in 1999 for an offense involving more than 40 kilograms of cocaine and sentenced to 120 months imprisonment and again in 2012 for an offense involving more than 400 kilograms of marijuana for which he was sentenced to 60 months imprisonment.
On April 6, 2017, Border Patrol agents encountered Aquino near Hidalgo. They confirmed he was an undocumented alien who had illegally entered the United States. He had most recently been deported just a few months earlier on Nov. 30, 2016, following his previous release from prison.
Aquino will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Not a U.S. citizen, Aquino is again expected to face deportation proceedings following his release from prison.
Customs and Border Protection and Border Patrol conducted the investigation. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Two Louisiana Residents Charged with Smuggling Live White-Tailed Deer into MississippiRead the Press Release
Hattiesburg, Miss. – Edward L. Donaldson Jr., 75, and John Jared Oertling, 42, both residents of Pearl River, St. Tammany Parish, Louisiana, were charged in a Criminal Information with conspiracy to violate the Lacey Act for importing live white-tailed deer into Mississippi, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Luis Santiago of the U.S. Fish and Wildlife Service, Office of Law Enforcement.
Mississippi law makes it unlawful to import live white-tailed deer into the State of Mississippi and authorizes the Mississippi Department of Wildlife, Fisheries and Parks Commission with the responsibility of establishing regulations governing the importation of white-tailed deer with the emphasis on preventing the introduction of disease. The Commission established a regulation that mirrors the state statute, prohibiting the importation of live white- tailed deer into the State of Mississippi. The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase wildlife that were taken, possessed, transported or sold in violation of any law or regulation of any state.
According to the Criminal Information, from February of 2010 through November of 2012, Edward L. Donaldson Jr., and John Jared Oertling did knowing and willfully conspire to transport live white-tailed deer in interstate commerce in violation of state and federal laws. Donaldson Jr. and Oertling manage a 1,031-acre high fenced enclosure in Forrest County, Mississippi known as Turkey Trott Ranch. Jill Marie Donaldson, wife of Oertling and daughter of Donaldson is the owner of Turkey Trott Ranch.
The Information also alleges that it was part of the conspiracy that the defendants would unlawfully smuggle the live white-tailed deer into Mississippi for the purpose of breeding and killing trophy white-tailed buck deer. Donaldson Jr. and Oertling learned in 2012 that the live white-tailed deer purchased and imported from Pennsylvania to Turkey Trott Ranch in Forrest County, Mississippi came from a herd of captive white-tailed deer in PA that tested positive for Chronic Wasting Disease (CWD).
Chronic Wasting Disease (CWD) is the chief threat to deer and elk populations in North America. The disease, which ultimately ends in death of infected animals, is a transmissible neurological disease that produces small lesions in the brain of deer and elk and is characterized by loss of body condition and behavioral abnormalities.
"This case demonstrates our continuing commitment, together with our federal and state law enforcement partners, to investigate and prosecute those who choose to violate the federal Lacey Act by illegally importing white-tailed deer into our state," said Acting U.S. Attorney Brittain.
U.S. Fish and Wildlife Service Special Agent in Charge Luis Santiago stated "We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. The U.S. Fish and Wildlife Service, Office of Law Enforcement considers the potential spread of disease caused by the illegal commercialization of wildlife resources a high priority, and we will continue to work closely with our State partners to assist them in these important investigations."
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, U.S. Department of Agriculture – Office of the Inspector General, and the Mississippi Department of Wildlife, Fisheries, and Parks. It is being prosecuted by Criminal Division Chief Darren J. LaMarca.
Twin Buttes Man Found Guilty of Multiple Child Molestation OffensesRead the Press Release
BISMARCK - United States Attorney Christopher C. Myers announced that on September 14, 2017, following a three-day trial, a federal jury convicted Lonnie Dale Spotted Bear, 73, of Twin Buttes, ND, on two Counts of Aggravated Sexual Abuse of a Child, one Count of Attempted Aggravated Sexual Abuse of a Child, and one Count of Abusive Sexual Contact of a Child.
Evidence presented at trial demonstrated that, during a five-year period, Spotted Bear molested three girls, all of whom were under the age of twelve. Specifically, Spotted Bear gained access to, isolated, and individually molested each of the girls. Additionally, evidence at trial demonstrated that when Spotted Bear learned that two of his victims disclosed that he molested them, he attempted to intimidate and influence their guardians.
Sentencing for Lonnie Dale Spotted Bear has been scheduled for December 20, 2017, at 2:30 p.m., in Bismarck, ND.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jonathan O'Konek prosecuted the case.
Torrington Man Sentenced to 2 Years in Prison for Possessing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY J. ALLEN, 36, of Torrington, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, this matter stems from “Operation Pacifier,” an FBI investigation into Playpen, a global online forum through which registered users advertised, distributed and accessed child pornography. On February 20, 2015, the FBI seized a computer server hosting Playpen from a webhosting facility in North Carolina. Pursuant to a federal court order in the Eastern District of Virginia, the website operated under FBI supervision February 20 to March 4, 2015. During that time, the FBI collected information to identify members of Playpen.
Playpen had more than 150,000 members who created and viewed tens of thousands of postings related to child pornography. Images and videos shared through the site were highly categorized according to victim age and gender, as well as the type of sexual activity. The site also included discussion forums that included tips for grooming victims and avoiding detection.
The FBI determined that a user name connected to an IP address operating at ALLEN’s Torrington residence had accessed Playpen for approximately 34 hours during the monitoring period. Investigators subsequently searched ALLEN’s residence and seized several devices that ALLEN used to view child pornography. Forensic analysis of the devices revealed more than 4,000 images of child pornography, including images and videos of prepubescent minors, as well as more than 60 voyeurism videos.
ALLEN was arrested on September 2, 2015. On June 7, 2017, he pleaded guilty to one count of possession of child pornography.
ALLEN, who is released on a $50,000 bond, was ordered to report to prison on October 17, 2017.
This case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Three Ohio men indicted for child pornography crimesRead the Press Release
Three Ohio men were charged in federal court with child pornography crimes, said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio.
Indicted are; Donald Neff, 51, of Kent; Brian Ake, 43, of Massillon, and Roland Wolfe, 52, of Cleveland. The cases are unrelated.
Neff was charged with receiving visual depictions of minors engaged in sexually explicit conduct and possessing child pornography between November 2016 and June 2017.
Ake was charged with accessing with intent to view visual depictions of minors engaged in sexually explicit conduct and destruction of property. He accessed with intent to view numerous digital files containing visual depictions of real minors engaged in sexually explicit conduct between Oc. 24, 2014, through March 4, 2015. He also destroyed digital files on a cellular phone on Dec. 1, 2015, after a search for property by an FBI agent, according to the indictment.
Wolfe knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between Oct. 19, 2016, through Jan. 20, 2017. Wolfe also possessed a Dell laptop computer and five USB storage devices, each of which contained child pornography, according to the indictment.
If convicted, the defendants’ sentences 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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Neff case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the Ohio Adult Parole Authority, Portage County Sheriff’s Office, Ohio Internet Crimes Against Children Task Force, and the FBI Child Exploitation Task Force.
The Ake cased is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan after an investigation by the FBI.
The Wolfe case is being prosecuted by Sullivan after an investigation by the Ohio Adult Parole Authority, the Ohio Internet Crimes Against Children Task Force and the Cleveland State University Police Department.
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.
Three Modesto Residents Indicted for Large Quantity Methamphetamine DistributionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Ricardo Rumbo Vasquez, 37; Andres Dominguez Aguirre, 24; and Eric Oswaldo Felix, 43, all of Modesto, charging them with conspiracy to distribute and possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, all of the defendants were arrested after meeting in a parking lot to negotiate the delivery of methamphetamine. Felix’s car was searched by law enforcement, resulting in a seizure of 60 plastic bags of methamphetamine located in a secret compartment in the roof of the car.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, and the Stanislaus County Drug Enforcement Agency. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, the defendants face mandatory minimum sentences of 10 years in prison and maximum statutory penalties of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Attorney’s Office Announces Formation of A Task Force to Fight Hurricane Irma-Related Illegal ActivityRead the Press Release
SAN JUAN, P.R. – United States Attorney Rosa Emilia Rodríguez-Vélez is urging Puerto Rico residents and businesses to be aware of and report suspected fraudulent activity related to disaster relief operations and federal funding for victims. The USAO for the District of Puerto Rico, in coordination with the Federal Bureau of Investigations (FBI), the U.S. Department of Homeland Security-Office of Inspector General (DHS OIG), the Puerto Rico Department of Public Safety, and the Puerto Rico Department of Justice have formed a task force to investigate and prosecute illegal activity stemming from Hurricane Irma.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of typical illegal activity under the jurisdiction of each of the agencies in the working group include:
• Impersonation of federal law enforcement officials
• Identity theft
• Fraudulent submission of claims to insurance companies and the federal government
• Fraudulent activity related to solicitations for donations and charitable giving
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
• Price gouging
• Theft, looting, and other violent crime
“Our efforts are directed at enforcing a zero tolerance policy,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”
“With our federal and state partners, we have a long history of tracking down and prosecuting those who attempt to defraud the government of monies that have been set aside to help victims of natural disasters,” said Special Agent in Charge Douglas A. Leff of the FBI, San Juan Field Office. “The FBI will do everything in its power to protect taxpayer funded relief programs that have been created to help people who have suffered actual losses.”
“The DHS OIG takes any and all allegations of fraudulent activity seriously and intends to hold accountable those who try to use this disaster to take advantage of others,” said Special Agent in Charge Jay H. Donly of the DHS OIG Miami Field Office. “The DHS OIG will use all of its investigative resources to stop those who use this unfortunate situation for personal and illegal gain.”
Hector Pesquera, Secretary of the Puerto Rico Department of Public Safety, assured that “his department has been tasked by the Governor of Puerto Rico to join these efforts to investigate and process any individual that engages in fraud or acts of corruption as related to hurricane victims. For those purposes, we have made available to the Task Force all of our resources.”
The Puerto Rico Disaster Fraud Task Force will be in close collaboration with the Justice Department’s National Center for Disaster Fraud (NCDF). The NCDF receives from members of the public reports of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations. It has been fully operational since its inception following Hurricane Katrina and is specifically designed to be ready for situations like Harvey and Irma. NCDF has an excellent staff of investigators, analysts, call center operators, and managers preparing to handle the anticipated volume. Since 2005, the NCDF has processed over 70,000 complaints. NCDF operates a call center 24 hours a day, 7 days a week, to take disaster fraud complaints through a national hotline number (1-866-720-5721) and via email ([email protected]). This hotline serves, in essence, as a national 911 for disaster fraud. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud. Tips on avoiding fraudulent charitable contribution schemes are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.
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Stoughton Man Pleads Guilty to Cocaine TraffickingRead the Press Release
BOSTON – A Stoughton man pleaded guilty today in federal court in Boston for his role in a cocaine distribution operation in the South Shore.
Angel Morales, 46, pleaded guilty to one count of conspiracy to possess with intent to distribute and distribution of cocaine, one count of possession with intent to distribute cocaine, and one count of being a felon in possession of a firearm. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 12, 2017.
From late February 2016 until July 19, 2016, Morales conspired with co-defendant Roberto Fonseca-Rivera, 46, of Roslindale, and others to distribute cocaine in Canton, Stoughton, Randolph, Quincy, and Weymouth. Morales asked Fonseca-Rivera to receive packages containing cocaine that were being shipped from Puerto Rico to locations in Randolph and Canton, where Fonseca-Rivera had rented private mailboxes. Fonseca-Rivera received at least eight packages from Puerto Rico and delivered them to Morales, who paid Fonseca-Rivera for receiving the cocaine. Morales had a similar arrangement with another individual who also received packages of cocaine on behalf of Morales. Morales and Fonseca-Rivera then distributed the cocaine to other individuals.
On July 19, 2016, law enforcement agents executed a search warrant at Morales’ apartment in Stoughton where they seized approximately $11,000 in cash, more than 100 grams of cocaine, a firearm with an obliterated serial number, and two magazines containing 15 rounds of ammunition each, a box containing an additional 10 rounds of ammunition, and various drug trafficking paraphernalia.
Fonseca-Rivera pleaded guilty on Sept. 11, 2017.
The charge of conspiracy to possess with intent to distribute and distribution of cocaine 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. The charge of possession with intent to distribute cocaine 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. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Stoughton Police Chief Donna McNamara made the announcement today. Assistant U.S. Attorneys James E. Arnold and Craig E. Estes of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
Staten Island Couple Charged with Hurricane Sandy Relief FraudRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Nagwa Elsilimy and Ahmed Arafa with fraud by making false statements to the Federal Emergency Management Agency (FEMA) and the United States Department of Housing and Urban Development (HUD) in connection with their obtaining more than $750,000 in disaster relief from New York City’s Build It Back program (BIB) and FEMA in the aftermath of Hurricane Sandy. The defendants allegedly misrepresented that a home in Staten Island, which they had abandoned months before the storm, was their primary residence at the time the superstorm devastated New York and New Jersey. The defendants unlawfully obtained over $750,000 in aid intended for people displaced by the storm. Elsilimy was arrested this morning, and her initial appearance is scheduled for this afternoon before United States Chief Magistrate Judge Roanne L. Mann.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent-in-Charge, United States Department of Housing and Urban Development Office of Inspector General (HUD OIG), Mark Tasky, Special Agent-in-Charge, Department of Homeland Security Office of Inspector General (DHS OIG), Washington Field Office, and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI).
“Taking advantage of funds intended for disaster relief misappropriates taxpayer dollars, reduces monies available to true victims and erodes public confidence in relief programs,” stated Acting United States Attorney Rohde. “This Office will continue to work with our law enforcement partners to root out such alleged illegal behavior.”
“The Defendants’ alleged conduct is disturbing, especially during this time when the public is reminded of the devastation that historic storms leave with thousands of victims,” stated HUD OIG Special Agent-in-Charge Scaringi. “The taxpayer has no tolerance for those who would steal from Federal public aid – the sole goal of which is to help victims rebuild and move forward with their lives. We, along with our federal and state law enforcement and prosecution partners, will continue to aggressively pursue fraudsters who engage in such unacceptable behavior to both the public and their neighbor.”
“DHS OIG will continue to target fraudsters who seek to turn the tragedy of a natural disaster into an opportunity of personal gain at the expense of taxpayers,” stated DHS OIG Special Agent-in-Charge Tasky. “Today’s arrest is a tangible step of our commitment with our law enforcement partners who work tirelessly to identify, investigate, and pursue prosecution of fraudulent activities that undermine federal programs.”
“Hurricane Sandy ravaged shoreside communities and displaced hundreds of thousands of New Yorkers from homes made uninhabitable by the storm,” stated DOI Commissioner Peters. “While homeowners applied for aid to rehabilitate and rebuild, these defendants were capitalizing on the destruction, collecting benefits to which they were not entitled and exploiting federal funds to restore property they didn’t live in, according to the charges. DOI has monitored the City’s rebuilding effort since its inception, and will continue to investigate the programs and those dishonest homeowners who take advantage of finite disaster relief funds.”
According to the complaint, in the days and months following Hurricane Sandy, which struck New York and New Jersey on October 29, 2012, the defendants obtained and attempted to obtain federal funds appropriated for Sandy disaster relief by submitting material misrepresentations in their applications for disaster relief. Specifically, the defendants falsely represented that a home they had abandoned before the storm was their primary residence at the time Sandy hit the Eastern District of New York. The defendants had been residing at a different address since at least March 2012, and, at the time Sandy struck Staten Island, the defendants’ alleged primary residence was vacant, and had been vacant for at least seven months. Evidence obtained in the investigation suggests that the defendants fraudulently obtained federal aid totaling more than $750,000 based upon their misrepresentations in applications to FEMA, HUD and BIB, the New York City program established with federal funds to aid residents in rebuilding private homes damaged or destroyed due to Hurricane Sandy.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a statutory maximum of 30 years’ imprisonment for major disaster relief fraud and five years’ imprisonment for making false statements to a federal agency.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elizabeth Losey Macchiaverna is in charge of the prosecution.
The Defendants:
NAGWA ELSILIMY
Age: 59
Staten Island, NY
AHMED ARAFA
Age: 59
Staten Island, NY
E.D.N.Y. Docket No. 17-MJ-805
Southern Tier Man Charged with Methamphetamine PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Gary Hannold, 42, of Bemus Point, NY, was arrested and charged by criminal complaint with possession with intent to distribute 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that in the early morning hours on August 11, 2017, the defendant was pulled over by deputies with the Chautauqua County Sheriff's Office while riding his motorcycle in the Village of Sherman.
According to the complaint, as Hannold got off the motorcycle, he removed his helmet, and then took off a camouflage back pack that he was wearing and threw the pack back into the high weeds adjacent to the motorcycle. As a deputy attempted to retrieve the back pack, the defendant attempted to grab the pack back. Inside the back pack, the deputy found a quantity of suspected crystal methamphetamine packaged in several plastic baggies, was well as marijuana, a clear vile containing cocaine, 10 packets of Suboxone, a digital scale, a bag with unused small plastic bags, U.S. Currency, two cell phones, a New York State motorcycle license plate and numerous other items.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The complaint 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 Chautauqua County Sheriff’s Department, under the direction of Joseph Gerace.
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.
Solon man charged with defrauding the Cleveland Clinic out of $2.7 millionRead the Press Release
A Solon man was charged in federal court for his role in a conspiracy to defraud the Cleveland Clinic out of more than $2.7 million, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Gary Fingerhut, 57, was charged via criminal information with one count of conspiracy to commit wire fraud and honest services wire fraud and one count of making false statements.
Fingerhut worked at Cleveland Clinic Innovations, which assisted doctors and other Clinic personnel with inventing medical products and marketing those products, typically through the formation of a spin-off company. Fingerhut was hired as general manager of information technologies in 2010 and became executive director in 2013. The Clinic terminated his employment in June 2015, according to the information.
In 2012, the Cleveland Clinic Innovations formed a subsidiary company known as Interactive Visual Health Records (IVHR), to develop a visual medical charting concept of certain Clinic physicians into a functioning, marketable product. Fingerhut hired an individual identified in court documents as W.R. to work as a consultant and then chief technology officer at IVHR to develop the product, according to the information.
Fingerhut and W.R., as a condition of their employment, were prohibited from receiving any financial benefit or having any personal or familial financial interests in companies the Clinic did business with, unless they were expressly disclosed to, and approved by, the Clinic. Fingerhut underwent formal training on the Clinic’s ethics and compliance polices and requirements, according to the information.
W.R. and others caused to be incorporated a shell company known as iStarFZE LLC (ISTAR) that did not actually perform or provide any goods or services. It was established in the name of a nominee owner. W.R. caused ISTAR to establish a web site and email addresses and a mailing address in New York City, according to the information.
W.R. caused ISTAR to submit a bid to the Clinic to develop and design IVHR’s software and to increase the price the Clinic paid for the software design and development, all without disclosing W.R.’s financial interest in ISTAR, according to the information.
W.R. periodically paid Fingerhut a “referral” or “commission” fee in return for Fingerhut not disclosing the fraud scheme, according to the information.
Fingerhut accepted nearly $469,000 in these payments from W.R. between August 2012 and November 2014. During that time, Fingerhut, W.R. and others diverted more than $2.7 million from the Clinic, according to the information.
The investigation is ongoing.
This case is being prosecuted by Assistant U.S. Attorneys Paul Flannery and Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences 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.
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.
Sisters Sentenced for Embezzlement from Indian Tribal GovernmentRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Sylvia Toolie, 60, and her sister, Peggy Akeya, 57, of Savoonga, Alaska, were sentenced by Chief U.S. District Judge Timothy M. Burgess for embezzling funds from the Native Village of Savoonga (“Native Village of Savoonga” or “the Tribe”), which is located on St. Lawrence Island.
Toolie was sentenced yesterday to serve eight months in prison, followed by three years of supervised release. Akeya was sentenced on Tuesday, Sept. 12, to a term of five years’ probation, three months’ home confinement, and 120 hours of community service. Toolie and Akeya were ordered to pay restitution to the Native Village of Savoonga in the amounts of $69,563.07 and $14,855.81, respectively. Judge Burgess also ordered Akeya to record statements for a public service announcement to raise awareness of the consequences that follow from embezzling tribal government or other public funds.
Between April 2011 and May 2012, Toolie and Akeya stole from the Tribe using their positions of trust to do so. Toolie was a full-time salaried employee of Kawerak, Inc. (“Kawerak”) who was assigned to serve as the Native Village of Savoonga’s tribal coordinator. (Kawerak is a regional non-profit corporation that provides services to tribes in the Bering Straits region.) In her position, Toolie handled the day-to-day operations of the Tribe’s office and other duties, including grant reporting and managing accounts receivable, accounts payable, and payroll. She was also entrusted with ensuring that funds provided to the Tribe were used and accounted for properly. Absent Kawerak’s prior approval, Toolie was not permitted to be paid by the Tribe at all. Toolie nevertheless used her position of trust to obtain numerous unauthorized checks from the Tribe. In all, Toolie tried to fraudulently obtain roughly $83,000 of the Tribe’s funds, and actually pocketed $69,563.07.
Akeya used her position as Secretary and unofficial bookkeeper to sign numerous unauthorized checks to herself and others that were drawn on the Tribe’s bank accounts. Akeya tried to fraudulently obtain over $25,000 in funds, and actually obtained $14,655.96.
By approximately mid-November 2011, the Tribe had run out of money despite receiving considerable federal funding in 2011. When a large check that the Tribe issued was returned for insufficient funds, that creditor made inquiries, which ultimately led to the underlying investigation and proof that the Tribe’s funds had been misappropriated for years by Toolie, Akeya, and others. For example, the investigation revealed that the funds that Toolie and Akeya embezzled were supposed to pay for, among other things, repairs to homes and public buildings in Savoonga damaged during a severe December 2010 winter storm that prompted the State of Alaska to issue a disaster declaration. Due to the suspicious payments and the Tribe’s inability to account for millions of dollars in federal funding, the Department of the Interior, Bureau of Indian Affairs (BIA) has withheld funding from the Native Village of Savoonga since fiscal year 2012.
In sentencing Toolie, Judge Burgess underscored the “exponential impact” that these crimes had on Savoonga, and he was sentencing Toolie to serve eight months in prison in part to send a clear message that stealing tribal or public funds will be met with “significant [and] serious consequences that include going to jail.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Housing and Urban Development, Office of Inspector General (HUD OIG).
Seaford Heroin Dealer Sentenced to 66 Months in PrisonRead the Press Release
WILMINGTON, Del. – Bob Bennett, of Seaford, was sentenced today to 66 months in federal prison for possessing a gun and distributing heroin in Seaford. Bennett pled guilty in May to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
On November 4, 2016, ATF and the Seaford Police Department executed a search warrant on Bennett’s home and car in Seaford. The search revealed a loaded, .40-caliber firearm in the same room as two safes, the contents of which included 3,250 individual bags of heroin stamped “Donald Trump.” Nearby, officers found an additional 109 bags of heroin, stamped “Donald Trump” or “Ferrari,” as well as a total of $2,418 in cash. Agents recovered a number of other items in the house.
“The Court’s sentence reflects the severity of Mr. Bennett’s actions and the risks those actions presented to the Seaford community,” Acting United States Attorney David C. Weiss said. “Bennett was responsible for introducing a large amount of heroin into the community. Worse, he used guns to further that activity—even providing weapons to the dealers selling his heroin. This is exactly the type of destructive, and potentially violent, criminal that the U.S. Department of Justice, the ATF, and Seaford PD want to get off of our streets.”
“Armed narcotics traffickers pose a defined threat to the citizens in Seaford and throughout Delaware,” said Daniel L. Board Jr., the Special Agent in Charge for the ATF Baltimore Field Division. “However, ATF will continue to be unwavering in our response to these threats. We will proactively fight violent crime at every turn by targeting, investigating and partnering in the prosecution of those who seek to reduce the quality of life in our communities.”
As noted above, District Court Judge Gregory M. Sleet sentenced Bennett to sixty-six (66) months in prison and three (3) years of supervised release. In sentencing Bennett, Judge Sleet made clear that he was disconcerted by Bennett’s nearly twenty years of involvement with the criminal justice system, especially the fact that Bennett turned to utilizing guns in furtherance of his heroin distribution activities. Judge Sleet noted that he hoped this sentence will spur Bennett to a rehabilitated life for both him and his children.
This case was investigated by the ATF and Seaford Police. Assistant United States Attorneys Alexander S. Mackler and Lesley F. Wolf prosecuted the case.
San Diego-based Drug Trafficking Cell DismantledRead the Press Release
Assistant U. S. Attorneys Joshua Mellor (619) 546-9733 and Francis A. DiGiacco (619) 546-6771
NEWS RELEASE SUMMARY – September 14, 2017
SAN DIEGO – Five alleged members of a San Diego-based drug trafficking cell, including alleged leader Jaime Ivan Mendez-Maciel, were arrested yesterday and made their first appearances in federal court yesterday and today.
According to the indictment and search warrants, Mendez-Maciel operated a series of drug stash houses in San Diego and coordinated the importation and distribution of hundreds of pounds of methamphetamine and cocaine through the Southwest Border destined for various cities throughout the United States.
Drug Enforcement Administration agents began investigating the drug trafficking organization cell in October of 2016. Throughout the investigation, DEA agents seized over a hundred pounds of methamphetamine, fifty pounds of cocaine, and several assault rifles and pistols.
Mendez-Maciel, Juan Garcia and Nallely Tanairi Garcia were arraigned on Wednesday before U.S. Magistrate Judge William Gallo. Armando Martin Lopez-Estrada and Daniel Bravo were arraigned today. The defendants are scheduled to appear for a detention hearing on Friday, September 15 at 10 a.m. before Judge Gallo.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Numbers: 17CR2726-LAB and 17CR2727-LAB
Jamie Ivan Mendez-Maciel Age: 41 San Diego
Jesse Cortes – fugitive Age: 20 San Diego
Juan Garcia Age: 19 San Diego
Nallely Tanairi Garcia Age: 25 San Diego
Armando Martin Lopez-Estrada Age: 31 San Diego
Daniel Bravo Age: 36 San Diego
SUMMARY OF CHARGES
Title 21, U.S.C., Secs. 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine and Cocaine;
Title 21, U.S.C., Secs. 952, 960, and 963 - Conspiracy to Import Methamphetamine and Cocaine;
Title 21, U.S.C., Sec. 841(a)(1) - Distribution of Methamphetamine;
Title 21, U.S.C., Sec. 952 and 960 - Importation of Methamphetamine and Cocaine;
Title 21, U.S.C., Sec. 841(a)(1) - Possession with Intent to Distribute Methamphetamine and Cocaine
AGENCY
Federal Bureau of Investigation
Homeland Security Investigations
Customs and Border Protection
Internal Revenue Service
San Diego Police Department
California Highway Patrol
Alcohol, Tobacco, and Firearms
United States Marshals Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Man Sentenced to 10 Years in Prison for Sending Methamphetamine Through the MailRead the Press Release
BOSTON – A San Diego man was sentenced today in federal court in Boston for distributing more than 30 packages of methamphetamine through the mail.
Leonard Leseman, 58, was sentenced by U.S. District Court Judge Leo S. Sorokin to 10 years in prison and five years of supervised release. In June 2017, Leseman pleaded guilty to conspiring to distribute methamphetamine.
From approximately 2011 through October 2013, Leseman supplied methamphetamine to co-defendant Robert Annette, by sending packages containing methamphetamine through the United States mail. In 2012, a Postal Inspector, conducting a routine drug interdiction, located a suspicious package sent by Leseman and addressed to a fictitious name at Annette’s Somerville residence. When the Inspector attempted to deliver the package, Annette refused receipt. From then on, Annette arranged for a network of friends to receive the packages. In total, Leseman mailed more than 30 packages containing methamphetamine to various addresses provided by Annette. During the investigation, law enforcement officers also seized packages containing methamphetamine that Leseman sent to customers in Washington, D.C., and Carnegie, Penn.
Leseman and Annette communicated via text message to discuss the logistics for orders, shipments and payments. For example, regarding a package that Leseman sent Annette, Leseman advised him: “You’ll see 3 blind mice eating ice cream.” After Leseman mailed the package from San Diego, Postal Inspectors in Massachusetts seized the package and opened it pursuant to a search warrant. Inside the package were three toy mice and an ice cream maker with four ounces of methamphetamine hidden inside.
To date, five individuals, including Leseman, have pleaded guilty to participating in the conspiracy to distribute methamphetamine. Scott Hill, formerly of Randolph, was sentenced to 42 months in prison in April 2017, and Steven Marszalkowski, formerly of Provincetown, was sentenced to 13 months in prison in August 2017. Larry Ligocki, of Chelsea, and Annette, of Somerville, are awaiting sentencing.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Investigative assistance was provided by Postal Inspectors in San Diego and Pennsylvania, the Pennsylvania State Police, the Massachusetts State Police Narcotics Task Force in Hyannis, and the Provincetown and Truro Police Departments. Assistant U.S. Attorneys James E. Arnold and Craig E. Estes of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Rochester Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeuane Harvey, 30, of Rochester, NY, pleaded guilty to being a felon-in-possession of a firearm and ammunition, before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on September 9, 2016, Rochester Police Department officers were on patrol in the area of the David F. Gantt Community Center located on North Street in Rochester. Officers saw that the defendant, who was standing with two other people, was holding a rifle with a curved magazine, which appeared to be high capacity. Harvey ran as officers attempted to confront him. After briefly losing sight of the defendant, officers found him and took Harvey into custody. The defendant did not have the rifle in his possession; however, officers searched the surrounding area and found the rifle laying on the ground near the playground. An ammunition magazine with a 30 round capacity, loaded with 17 rounds, was attached to the rifle. In 2008, Harvey was convicted of Criminal Possession of a Weapon in the Second Degree and Criminal Possession of a Weapon in the Third Degree, both felony level offenses. As a result of those convictions, Harvey is legally prohibited from possessing a firearm or ammunition.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge Ashan Benedict, new York Field Division.
Sentencing is scheduled for November 28, 2017, at 3:00 p.m. before Judge Larimer.
Raytown Landlord Pleads Guilty to Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man pleaded guilty in federal court today to engaging in a bankruptcy fraud scheme in order to prevent dozens of rental properties from being sold by the county for failure to pay property taxes.
Kenneth Mabrie, 67, of Raytown, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of aiding and abetting bankruptcy fraud.
Mabrie was an intercity landlord who did not pay his Jackson County property taxes nor the city assessments on the properties he owns and rents. When the properties went into foreclosure by Jackson County in 2009 and again in 2011, Mabrie filed a Chapter 13 bankruptcy proceeding shortly before the sale of the properties at the annual August auction. The bankruptcy petitions were soon dismissed for failure to file required information, but prevented the foreclosure and Mabrie continued to collect rent from the properties (including money from the Housing Choice Voucher (HCV) program, also known as the Section 8 tenant-based assistance program).
Co-defendant Curtis Jones, 54, of Kansas City, Mo., has also pleaded guilty to his role in the scheme.
Jones filed for bankruptcy on Aug. 22, 2012, five days before the date of the auction sale. Jones listed 31 tax delinquent properties in his bankruptcy petition. Jones was deeded 17 of those properties from Mabrie one day prior to the filing. Seven of those properties were included in Mabrie’s 2011 bankruptcy petition. An additional two properties listed by Jones were privately owned by Mabrie at the time of the filing. The remaining 12 properties were deeded to Jones one day prior to filing from other persons. The majority of the remaining 12 properties had some sort of nexus to Mabrie; for example, of the remaining 12 properties, Mabrie owned 10 of the properties previously, and one of the properties was deeded from Mabrie’s daughter. Jones’s bankruptcy petition was dismissed on Sept. 7, 2012, for failure to file information.
Jones filed for bankruptcy again on Aug. 23, 2013, the same day of the auction sale. Jones listed 29 tax delinquent properties in his bankruptcy petition. Two of those properties were deeded from Mabrie on the day of the filing and 26 of the properties had been included in the 2012 petition. This bankruptcy petition was dismissed on Sept. 13, 2013, for failure to file information.
The loss amount to Jackson County was $92,040. This represents only the most recent tax bill as included in the bankruptcy filings (2010 or 2011 or 2012), less any money Mabrie or Jones paid to Jackson County following the bankruptcy filings (as of September 2015).
Under federal statutes, Mabrie and Jones are each subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Housing and Urban Development – Office of Inspector General.
Queens Man Sentenced to 18 Years’ Imprisonment for Shooting Woman During CarjackingRead the Press Release
Earlier today at the federal courthouse in Brooklyn, New York, United States District Judge Ann M. Donnelly sentenced the defendant Donald Warren to 18 years’ imprisonment, to be followed by three years of supervised release, for shooting a woman during the course of a carjacking in Queens, New York, and participating in another carjacking as well. Warren and his co-defendant, John Howard, previously pleaded guilty to carjacking and related firearms charges. Howard is scheduled to be sentenced next month.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division, and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
According to court filings, Warren and Howard participated in a string of violent carjackings between December 2015 and January 2016 in which the victims were threatened, robbed, and forced from their vehicles at gunpoint. As part of his plea agreement, Warren admitted that he participated in a carjacking on December 28, 2015, with Howard during which they stole a Mercedes Benz in front of the Best Western hotel in Jamaica, New York. Warren had threatened the driver with a gun, stole his wallet and forced him out of his car.
On January 21, 2016, Warren and Howard participated in an armed carjacking outside the Hampton Inn located in South Ozone Park, New York, that resulted in the shooting of a 53-year-old woman. The woman’s daughter was waiting in the passenger seat of a car parked in front of the hotel when Warren, armed with a loaded gun, entered the vehicle. Warren threatened the daughter and drove the car, with the daughter trapped inside it, around the hotel parking lot. When her mother left the hotel a few minutes later, Warren exited the vehicle and demanded the mother’s purse. After the mother refused and struck Warren in the face, he shot her in the chest. Howard and Warren then fled the scene. The shooting victim survived, but her injuries required hospitalization and surgery.
“Donald Warren committed violent carjackings culminating in the callous shooting of a woman for refusing to hand over her purse,” stated Acting United States Attorney Rohde. “Today’s sentence punishes him for the disregard he showed for human life.” Ms. Rohde extended her grateful appreciation to the Nassau County Police Department, the Nassau County District Attorney’s Office and the Queens District Attorney’s Office for their assistance during the investigation.
“Donald Warren and John Howard would prowl neighborhoods in Nassau and Queens looking for unsuspecting victims to carjack or rob at gunpoint,” stated ATF Special Agent-in-Charge Benedict. “Their pattern of violent crime escalated in a short period to the shooting of an innocent 53-year-old woman seeking to protect herself while Warren brandished a handgun and threatened her. After shooting the victim, Warren and Howard used a car previously stolen at gunpoint as a getaway vehicle. Warren deserves every day of the sentence received, and we hope his lengthy imprisonment provides some solace to the victims of his crimes. I would like to extend my gratitude to the ATF Special Agents and NYPD Detectives assigned to the ATF Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Joint Robbery Task Force, and to the United States Attorney’s Office for their outstanding work in bringing a violent offender to justice.”
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Moira Kim Penza are in charge of the prosecution.
The Defendants:
DONALD WARREN
Age: 55
Queens, New YorkE.D.N.Y. Docket No. 16-CR-102 (AMD)
Previously Convicted Felon Sentenced for Firearms OffenseRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to 54 months in prison for possessing a firearm.
Miles Straker, 30, an illegal alien from Trinidad and Tobago, pleaded guilty to being a felon and illegal alien in possession of a firearm on June 5. According to court documents, Straker was charged with distribution of cocaine and illegal possession of the firearm. These charges arose from a series of controlled purchases of cocaine from Straker conducted by the Virginia State Police Tri-Rivers Task Force in February 2017 in Williamsburg. Following the controlled purchases, Straker was arrested and the firearms were discovered.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Eric M. Hurt prosecuted 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. 4:17-cr-38.
Portuguese Engineer Sentenced to 20 Months in Prison for Conspiring to Export Technology to Iran Without Approval from the U.S. GovernmentRead the Press Release
WASHINGTON –Joao Pereira da Fonseca, 55, a citizen of Portugal, was sentenced today to 20 months in prison on a federal charge stemming from a scheme in which he conspired to help an Iranian company unlawfully obtain sophisticated equipment from two companies in the United States.
The announcement was made by Dana J. Boente, Acting Assistant Attorney General for National Security, Channing D. Phillips, U.S. Attorney for the District of Columbia, and David Shaw, Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations, in San Diego, Calif.
Fonseca, of Coimbra, Portugal, pled guilty on July 17, 2017, to conspiring to unlawfully export goods and technology to Iran and to defraud the United States. He entered the guilty plea before the Honorable Emmet G. Sullivan, on the day his trial was to begin in the U.S. District Court for the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a prison sentence of 20 months. Judge Sullivan accepted the plea and sentenced Fonseca accordingly. Upon completion of his prison term, Fonseca faces deportation proceedings.
“Joao da Fonseca disregarded U.S. law by participating in a scheme to export goods, technology, and services to Iran,” said U.S. Attorney Phillips. “His conviction and prison sentence show there will be serious consequences for those who circumvent and violate laws meant to safeguard the national security, foreign policy and economy of the United States.”
“Today’s sentencing is a result of the great investigative work of our Special Agents in conjunction with other law enforcement and government partners locally and abroad,” said Special Agent in Charge Shaw. “The illegal export of U.S.-origin items to prohibited countries is harmful to U.S. national security and will not be tolerated. HSI will continue to aggressively pursue those that seek to violate these laws and jeopardize our safety.”
At the time he entered his guilty plea, Fonseca admitted to taking part in the scheme between October 2014 and April 2016. One of the companies in the United States manufactures machines that help produce sophisticated optical lenses that have both commercial and military uses. The other company manufactures machinery that tests components of inertial guidance systems that have both commercial and military uses. Fonseca was a contractor for a Portuguese engineering company that served as a front company to purchase the machines on behalf of their Iranian client. The Portuguese company claimed that it was purchasing the machines for its own use, but planned to have the machines shipped to Iran. Fonseca is a mechanical engineer whose role in the conspiracy was to travel to the U.S. to approve the machinery and learn how to install and maintain the machinery once it was shipped to its final destination in Iran.
Due to the investigation conducted by a Special Agent from Homeland Security Investigations, the government prevented both machines from leaving the U.S. Fonseca traveled to the United States to receive training on how to use the optical lens equipment in October 2015. He returned to the United States in late March 2016 to be trained on how to use the inertial guidance system equipment at the company that manufactures it. When Fonseca was returning to Portugal in early April 2016, he was detained for violating certain immigration laws. Soon thereafter, Homeland Security Agents had gathered sufficient evidence that he had also violated U.S. export laws and criminal charges were brought against him. He has been in custody ever since.
In announcing the sentence, Acting Assistant Attorney General Boente, U.S. Attorney Phillips, and Special Agent in Charge Shaw expressed appreciation for the work of those who investigated the case from the Department of Homeland Security, Homeland Security Investigations. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Elena Buruncenco and Jorge Casillas; Litigation Technology Specialist Anisha Bhatia; former Litigation Technology Specialist Aneela Bhatia; Legal Assistant Matthew Ruggierio, and Summer Law Clerks Tessa Tilton, Michael Collins, Jessie Michelin, James Murray, Alison Perry, Anthony Ricci, Jared Schwalb and Elizabeth Ulan.
Finally, they commended the work of the attorneys who investigated and prosecuted the case, including Assistant U.S. Attorneys Frederick W. Yette, Erik Kenerson and Thomas Swanton, of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Robert E. Wallace and Amy Larson of the National Security Division’s Counterintelligence and Export Control Section.
Pittsburgh Man Pleads Guilty to Federal Drug ChargesRead the Press Release
PITTSBURGH –A Pittsburgh resident pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Carlos M. White, Jr., 29, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around December 2013, and continuing to in and around March 2014, in the Western District of Pennsylvania and elsewhere, White conspired to distribute and possess with the intent to distribute 100 grams or more of heroin. Also, on May 22, 2014, White possessed with intent to distribute 100 grams or more of heroin.
Judge Hornak scheduled sentencing for January 11, 2018, at 9:30 a.m. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Troy Rivetti and Tonya Sulia Goodman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department conducted the investigation that led to the prosecution of White.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Philadelphia Area Restaurateur Guilty on Tax OffensesRead the Press Release
PHILADELPHIA – Giuseppe “Pino” DiMeo, 49, of Eagleville, Pennsylvania pled guilty today to two counts of conspiring to defraud the Internal Revenue Service (“IRS”), and nine counts of filing false tax returns announced Acting United States Attorney Louis D. Lappen. DiMeo admitted that he conspired with his business partners at restaurants in Wilmington, Delaware and in the Philadelphia, Pennsylvania area to defraud the IRS of income taxes and payroll taxes. DiMeo skimmed cash from three of his restaurants and failed to report the cash income to the IRS. DiMeo also paid many of his employees in cash under the table and failed to inform his accountant or the IRS about his businesses’ cash payroll. In total, the government has determined, and alleges that, DiMeo failed to report approximately two million dollars in income to the IRS.
DiMeo’s cash skimming and paying employees under the table occurred at DiMeo’s Pizza in Lafayette Hill, Pennsylvania (now closed), Pizzeria DiMeo’s (Andorra), Philadelphia, Pennsylvania, and DiMeo’s Pizzaiuoli Napulitani in Wilmington, Delaware. DiMeo is also an owner of Arde Osteria in Wayne, Pennsylvania.
The defendant faces a maximum possible sentence of 37 years of imprisonment, three years of supervised release, a $2.75 million fine, and a $1,100 special assessment.
The case was investigated by the Internal Revenue Service, Criminal Investigations,
and is being prosecuted by Assistant United States Attorneys Maria M. Carrillo and Tiwana L. Wright.
Okemos Woman Guilty of Defrauding the U.S. Treasury of over $3.6 Million Sentenced to 10 Years in PrisonRead the Press Release
Investigators Recover Over $1.5 Million in Fraud Proceeds
GRAND RAPIDS, MICHIGAN — Callista Suzena Chiwocha, of Okemos, Michigan was sentenced in U.S. District Court to ten years in prison for conspiring to defraud the government by filing false tax returns, announced Acting U.S. Attorney Andrew Birge. The ten-year prison sentence imposed by Chief U.S. District Judge Robert J. Jonker was the maximum penalty available. Callista Chiwocha was also ordered to pay full restitution in the amount of $3,627,401.16 to the Internal Revenue Service. Callista Chiwocha, her husband, Tapera Albert Chiwocha, Sr., and their company, Human Services Associates, LLC pled guilty in March 2017. Tapera Albert Chiwocha, Sr. passed away in July 2017 pending sentencing. The Court also ordered Human Services Associates, LLC, which Callista Chiwocha attempted to dissolve while the federal investigation was pending, to pay full restitution.
Over approximately ten months during 2011, Callista Chiwocha, age 64, and her husband, Tapera Albert Chiwocha, Sr., age 75, requested over $4.5 million in federal tax refunds from the United States Treasury by causing 3,228 false tax returns to be filed on behalf of others with the Internal Revenue Service. The Chiwochas and those who worked for them at Human Services Associates, LLC tricked individuals into providing their personal identification information after being promised "free stimulus money." The tax returns typically contained false reporting of undocumented income and abusive use of the earned income credit. The Chiwochas’ scam preyed on the poorest and most vulnerable citizens of the district. The Chiwochas created Human Services Associates, LLC to facilitate and conceal their criminal activities. Before perpetrating the fraud, Callista Chiwocha had prior work experience in the banking industry and the tax return preparation industry.
Acting U.S. Attorney Birge commented: "When you steal from the U.S. Treasury, you steal from your neighbor. The Chiwochas and Human Services Associates, LLC pillaged the U.S. Treasury for a period of ten months in 2011 and reaped an enormous amount of illegitimate refund money – over $3.6 million – in the process. Their crime was brazen and outrageous and is the very type of crime that breeds cynicism about our tax system, which relies upon honest and voluntary compliance. The statutory maximum sentence the U.S. District Court imposed on Ms. Chiwocha should send a stern message to the public that tax refund fraud will not be tolerated in this District."
When issuing the sentence, Chief U.S. District Judge Jonker stated: "This may have been Ms. Chiwocha’s first experience breaking the law, but she did it in a big way." Jonker also acknowledged Callista Chiwocha’s prior work experience in the banking and tax return preparation industries and noted that the knowledge she gained from this work experience undoubtedly helped her facilitate the scheme. Callista Chiwocha obtained an undergraduate business degree in accounting from the University of Michigan in 1978. Investigative records show that shortly before starting the tax fraud scheme, the Chiwochas were delinquent on their home mortgage payments and had been frequenting casinos.
Complaints by local citizens prompted the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation to open an investigation in 2011, which began with the execution of search warrants at the Chiwochas’ home and places of business. In 2011, investigators also seized the contents of over twenty bank accounts traced to the scheme, additional cash, and four vehicles that the Chiwochas and their associates had purchased with illegitimate tax refund money. The seizures in 2011 led to the recovery of over $1.5 million in fraud proceeds through civil forfeiture proceedings. In the near future, the U.S. Attorney’s Office will be processing paperwork to restore the recovered fraud proceeds to the U.S. Treasury.
Callista Chiwocha’s and Human Services Associates, LLC’s sentencings were the culmination of six years’ worth of work by investigators and prosecutors. In earlier prosecutions, other Chiwocha-related family members pled guilty to similar tax offenses: daughter Takabvako Chiwocha-Crowell pled guilty to filing false tax returns and was sentenced to 42 months’ incarceration; daughter Tsiidzoyedu Callista Chiwocha pled guilty to filing false tax returns and was sentenced to one year and one day of incarceration; grandson Qasim Ibn-Ishaq Verser pled guilty to filing false tax returns and was sentenced to 36 months’ incarceration; grandson Imran Dawood Ibn-Abdurrahim pled guilty to filing false tax returns and was sentenced to 54 months’ incarceration; and, granddaughter Ruqayya Aida Abdul-Hakim pled guilty to filing false tax returns and was sentenced to 72 months’ incarceration. The Chiwochas’ tax refund fraud scheme was an extended family enterprise.
IRS Criminal Investigation Special Agent in Charge Many Muriel stated: "This case demonstrates IRS-CI’s ability to find individuals who cheat the Internal Revenue Service. In this particularly disturbing case, the defendant preyed on the most vulnerable citizens and filed false tax returns using their information. Because of her greed, Calista Suzena Chiwocha scammed the public and the IRS, all in efforts to enrich herself. This sentencing demonstrates the IRS’s and the U.S. Government’s commitment to bring to justice those who commit these and other egregious crimes."
David P. Gelios, Special Agent in Charge of the FBI said, "During the majority of 2011, Human Services Associates, LLC and the Chiwochas stole tax refund money from the U.S. Treasury, eroding trust in the tax system. Today’s maximum sentence sends a clear message to the public that federal law enforcement at all levels will continue to work to hold those defrauding the U.S. government accountable for their criminal acts."
This case was prosecuted by Assistant U.S. Attorneys Joel S. Fauson and Michael A. MacDonald.
END
Norwich Woman Sentenced to Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARYBETH HARVEY, 35, of Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months of imprisonment, followed by four years of supervised release, for trafficking cocaine. Judge Meyer also ordered HARVEY to forfeit $4,800.
According to court documents and statements made in court, an investigation by the FBI Northern Connecticut Safe Streets Task Force, Norwich Police Department, Waterford Police Department and Groton Town Police revealed that in the summer of 2016, Paul Mott, of Groton, conspired with others to obtain and distribute cocaine. Mott regularly took orders for cocaine from HARVEY and other co-conspirators and then drove to his supplier in the Bronx, New York, to obtain the drug. When he returned to Connecticut, Mott provided the cocaine to HARVEY and others for further distribution. Some of Mott’s narcotics trafficking activity occurred his restaurant, Caribbean American Kitchen to Go, located on Truman Street in New London.
HARVEY and Mott were arrested on August 8, 2016. On that date, a search of HARVEY’s residence revealed approximately 23 grams of cocaine.
On May 9, 2017, HARVEY pleaded guilty to one count of conspiracy to possesses with intent to distribute cocaine.
Mott also pleaded guilty and, on September 5, 2017, was sentenced to 60 months of imprisonment. He also was ordered to forfeit a 2013 Toyota 4Runner and approximately $3,494 that was seized from him at the time of his arrest.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
New York Women Sentenced for Using Counterfeit Credit CardsRead the Press Release
CONCORD, N.H. - Latavia Hassan, 33, of Mastic, New York, was placed on probation for four years and Chantel Lightner, 27, of Wyandanch, New York, was placed on probation for two years following their convictions for conspiracy to use counterfeit credit cards, announced Acting United States Attorney John J. Farley.
While pleading guilty to the offense last May, Hassan and Lightner admitted that on twenty-four separate occasions they used counterfeit credit cards to fraudulently acquire gift cards and other merchandise totaling more than $18,000 from TJ Maxx, Marshalls, and Home Goods stores in Nashua, Bedford, Londonderry, Manchester, and Concord between 3:00 p.m. and 7:30 p.m. on April 16, 2017.
Members of the Concord Police Department recovered the counterfeit credit cards and stolen gift cards and merchandise after Hassan and Lightner attempted to buy gift cards from the Burlington Coat Factory in Concord.
The case was investigated by the Concord Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert Kinsella.
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New Orleans Woman Convicted of Conspiracy, Identity Theft and False Statement Charges for Role in $2.1 Million Medicare Kickback SchemeRead the Press Release
On Tuesday, a federal jury found a New Orleans woman guilty of conspiracy, identity theft and false statements charges for her role in an approximately $2.1 million Medicare kickback scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Special Agent in Charge C.J. Porter of the Office of Inspector General – Health and Human Services Dallas Field Office and Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Field Office made the announcement.
After a two-day trial, Kim Ricard, age 51, of New Orleans, was convicted of one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries. In addition, Ricard was convicted of three counts of accepting kickbacks, along with three counts of identity theft and one count of making false statements to federal agents. Sentencing has been scheduled for December 7, before U.S. District Judge Jane Milazzo of the Eastern District of Louisiana, who presided over the trial.
According to evidence presented at trial, from 2008 to 2013, Ricard and others engaged in a scheme to refer mentally ill Medicare patients to home health agencies in and around New Orleans, in exchange for kickbacks. The evidence further established that Ricard unlawfully used the Medicare identification information of three Medicare beneficiaries in connection with the scheme. Ricard then lied to investigators, the evidence showed.
As a result of the scheme, Ricard’s co-conspirator caused Medicare to pay over $2.1 million based on those illegally-obtained referrals
One other defendant was charged in this matter. Milton Diaz, 65, of Harvey, Louisiana, pleaded guilty and is awaiting sentencing.
This case was investigated by the Office of Inspector General of the Department of Health and Human Services, and the FBI. Trial Attorneys Claire Yan and Kate Payerle of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
National Center for Disaster Fraud Acting Executive Director Corey Amundson to Hold Press Call on Department’s Response to Disaster FraudRead the Press Release
WASHINGTON – Acting U.S. Attorney Corey R. Amundson of the Middle District of Louisiana who serves as the Acting Executive Director of the National Center for Disaster Fraud (NCDF), U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida will host a press call on THURSDAY, SEPTEMBER 14, 2017, to discuss fraudulent activity pertaining to relief efforts associated with Hurricanes Harvey and Irma and tips for the public to avoid being victimized by scams. All disaster fraud complaints should be reported to the toll-free NCDF hotline at 866-720-5721.
WHO:
Corey R. Amundson, Acting Executive Director of the National Center for Disaster Fraud
U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico
Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida
Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida
WHAT:
Acting Executive Director Corey R. Amundson will announce efforts of the NCDF in combating Hurricanes Harvey and Irma related illegal activity.
WHEN: Thursday, September 14, 2017
9:30 a.m. EDT
WHERE: Call-in #: (800) 369-1892Passcode: 54795
NOTE: Please RSVP to [email protected]. Press inquiries regarding logistics and the NCDF should be directed to Nicole Navas at [email protected].
Monroe Man Sentenced to Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DWIGHT JARVIS, 28, of Monroe, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, on October 27, 2016, a search of JARVIS’ Monroe residence revealed approximately 29 grams of cocaine, approximately 25 grams of crack cocaine, 70 dose bags of heroin, and other items used to process and package narcotics for street sale.
JARVIS was arrested on a federal criminal complaint on December 16, 2016. On April 27, 2017, he pleaded guilty to one count of distribution of cocaine base (“crack”).
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Milford and Monroe Police Departments. The DEA Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Middle District of Florida, Along with Three Other U.S. Attorney Offices in Districts Affected by Hurricane Irma, Establishes Task Force to Combat Disaster Fraud and Urge the Public to Be Vigilant in Reporting Suspected FraudRead the Press Release
Tampa, FL - The National Center for Disaster Fraud (NCDF) and the U.S. Attorney's Office for the Middle District of Florida, along with U.S. Attorney Offices in the District of Puerto Rico, Southern District of Florida, and Northern District of Florida announced the formation of task forces comprised of local, state and federal agencies in our respective areas to combat Hurricane Irma related illegal activity. The NCDF and U.S. Attorneys in these districts urge residents and businesses to immediately report suspected fraudulent activity relating to recovery and cleanup operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief and any other disaster fraud related activity.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Theft, looting, and other violent crime
“Unfortunately, criminals can exploit disasters, such as Hurricanes Harvey and Irma, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions,” said Acting Executive Director Corey R. Amundson of the National Center for Disaster Fraud. “Once the NCDF receives a complaint, it routes the complaints to the appropriate federal, state, or local law enforcement agency in the appropriate jurisdiction. In the process, we are able to de-conflict and identify trends, national schemes, and offenders operating in multi-jurisdictions. The Justice Department will aggressively pursue those who commit disaster fraud.”
“We will aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help individuals, families, or businesses that have lost so much as a result of Hurricane Irma,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “Our Office will continue to protect the rights of our honest citizens affected by this disaster and ensure that they receive the necessary public and charitable assistance they deserve. If you suspect any fraud, we urge you to call the NCDF Hotline. Our efforts to combat fraud associated with Hurricane Irma will supplement the outstanding and ongoing efforts by the State of Florida and Florida Attorney General Pam Bondi.”
“Our efforts are directed at enforcing a zero tolerance policy,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”
“As our South Florida community recovers from Hurricane Irma, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners stand ready to investigate and prosecute in federal court anyone who seeks to re-victimize, defraud or exploit the individuals and businesses in need,” said Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “Our united enforcement front will work hard to combat criminal activity, including fraud schemes associated with the hurricane’s devastation. Our mission is to ensure that federal, state and local programs, as well as reputable public and charitable assistance initiatives reach those struck by the impact of our recent natural disaster and are not fraudulently diverted to the criminals’ pockets.”
“We do not tolerate fraud,” said U.S. Attorney Christopher P. Canova for the Northern District of Florida. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Emergency funds are needed to help them get back on their feet. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse. If you are aware of fraud, we urge you to call the National Disaster Fraud Hotline.”
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected].
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Mexican National Sentenced to over Three Years for Narcotic Smuggling and Assault on a Federal OfficerRead the Press Release
TUCSON, Ariz. – Yesterday, Jose Ramon Flores-Villareal, 29, a citizen of Mexico, was sentenced by Senior U.S. District Judge David C. Bury to 37 months of imprisonment. Flores-Villareal previously pleaded guilty to acting as a scout in a narcotics smuggling conspiracy and assault on a federal officer.
For several weeks prior to Flores-Villareal’s arrest, members of the U.S. Border Patrol Casa Grande Station’s specially-trained Mountain Team conducted anti-scout operations on the Tohono O’odham Indian Nation. Scouts in this area are hired by Drug Trafficking Organizations to reside for an extended period of time atop mountains and hills in order to help marijuana backpackers evade law enforcement. On March 1, 2017, team members observed Flores-Villareal and other scouts utilizing radios to communicate with guides of marijuana backpackers on the desert floor. Air support units arrived, and Flores-Villareal hid himself near a cliff with a 15 to 20-foot drop. An agent located Flores-Villareal, who refused to comply with commands, and Flores-Villareal attempted to strike the agent. Flores-Villareal also grabbed the agent’s radio from his duty belt, keying his radio, thereby preventing him from calling for help. During the course of the struggle, the agent was pushed close to the nearby cliff drop-off. Agents were able to find and assist the other agent and take Flores-Villareal into custody.
The investigation in this case was conducted by Homeland Security Investigations’ NATIVE Task Force and the U.S. Border Patrol Casa Grande Station. The prosecution was handled by Assistant U.S. Attorneys Adam Rossi and Susanna Martinez, District of Arizona, Tucson.
CASE NUMBER: CR-00509-JGZ-BPV
RELEASE NUMBER: 2017-086_ Flores-Villareal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Manager of Camden, New Jersey, Drug Trafficking Organization Admits Drug and Firearm ChargesRead the Press Release
CAMDEN, N.J. – A Camden man today admitted to conspiring with others to sell crack cocaine and possess a firearm in furtherance of a drug conspiracy in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Preston J. Thomas, a/k/a “Boo,” 31, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Thomas admitted that he sold, and directed others to sell, crack cocaine on and around the 1100 block of Lansdowne Avenue in Camden. Thomas also admitted that he provided crack cocaine to other members of the conspiracy, collected proceeds from the sales, and conspired with members of the conspiracy to possess a firearm in furtherance of its drug trafficking activities.
Thomas, along with brothers Jason and Joseph Boyd, Tony Wilson, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson, were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered several firearms that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by members of the conspiracy.
Six other co-defendants have also pleaded guilty to drug and firearm offenses, and three have been sentenced.
Tony Wilson, a/k/a “Tony Langston,” a/k/a “Tone,” and a/k/a “H,” 25, previously pleaded guilty before Judge Simandle to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. He was sentenced on June 16, 2017, to 96 months in prison followed by five years of supervised release.
On June 14, 2017, Jason Boyd, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” 37, was sentenced to 96 months in prison followed by five years of supervised release. Boyd had previously pleaded guilty to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.
On June 13, 2017, Derek Stallworth, a/k/a “AK” and a/k/a “A,” 21, of Camden, was sentenced to 96 months in prison followed by five years of supervised release. Stallworth had previously pleaded guilty to the same charges for his role in the conspiracy.
On April 3, 2017, Joseph Boyd, a/k/a “Breet,” 32, pleaded guilty to an information charging him with conspiracy to distribute and to possess with intent to distribute cocaine base and was sentenced Sept. 6, 2017, to 70 months in prison.
On June 7, 2017, Julian Dickerson, a/k/a “Juelz,” 30, pleaded guilty to an information also charging him with conspiracy to distribute and to possess with intent to distribute cocaine base. Dickerson’s sentencing is scheduled for Sept. 29, 2017.
On June 28, 2017, Nafeez Griffin, a/k/a “Feez,” 31, pleaded guilty to an information charging him with one count of distribution and possession with intent to distribute cocaine base. Griffin’s sentencing is scheduled for Oct. 6, 2017.
On February 8, 2017, a federal grand jury also charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. The charges against Whitaker are still pending.
The drug distribution conspiracy charge to which Thomas pleaded guilty carries a statutory minimum penalty of five years in prison and maximum potential penalty of 40 years in prison and a $5 million fine. The firearm conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 5, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s guilty plea.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie F. Moy Esq., Assistant Federal Public Defender
Man Sentenced for $1.6 Million Tax Return FraudRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 40 months in prison for his role in a fraud scheme that prepared hundreds of false tax returns that resulted in a loss of approximately $1.6 million to the United States.
Kevin Towns, 44, pleaded guilty to conspiracy and preparing false tax returns on June 7. According to court documents, Towns was one of the principal tax preparers at A Plus Tax Service and NN Financial, which operated as tax preparation businesses at different periods between July 2009 and February 2014. Towns, along with co-defendants Stephanie Towns and Brenda Benn, conspired to operate a business based on creating false tax returns that generated inflated refunds for their clients in order to cultivate good will and generate repeat business. They used methods such as claiming false education-related expenses, stating excessively high amounts of charitable contributions, and manipulating the amount of income to take advantage of certain tax credits. The customers did not persuade or instruct the tax preparers to generate the false returns.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Randy Stoker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-30.