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Tuesday 25 July 2017
Philadelphia Woman Pleads Guilty to Charges of Causing False Statements to the Federal Election CommissionRead the Press Release
Carolyn Cavaness, age 34, of Ardmore, Pennsylvania, pled guilty to a criminal information unsealed today charging her with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election. Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
According to the plea agreement, Cavaness engaged in a falsification scheme involving payments to a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives, identified in the information as Candidate B. According to the plea agreement, those payments came from Candidate B’s political opponent, identified in the information as Candidate A, for the purpose of removing Candidate B from the 2012 Democratic race for Pennsylvania’s First Congressional District. Cavaness was a member of Candidate B’s campaign staff.
Pursuant to the plea agreement, the defendant admitted that in or about February 2012, Candidate B withdrew from the primary election pursuant to an agreement with his opponent, Candidate A, who promised to pay Candidate B $90,000 from his campaign funds to be used to repay Candidate B’s campaign debts. Cavaness admitted that she was aware that under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election, and that the FEC required campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period. However, in order to conceal the fact that Candidate A’s campaign committee paid Candidate B’s campaign debts, according to the plea agreement, Candidate B instructed Cavaness to create a company whose sole purpose would be to receive the funds from Candidate A’s political campaign and repay Candidate B’s campaign debts. Admissions in the plea agreements revealed that Cavaness did so, and that the payments were then routed through two political consultants, who created false invoices to generate a paper trail intended to justify the payments from Candidate A’s campaign committee.
According to the plea agreement, Cavaness used the money from Candidate A’s campaign committee to repay Candidate B’s campaign debts and for personal expenses, but failed to disclose this information to the FEC. Instead, according to the plea agreement, Cavaness knowingly and intentionally caused Candidate B’s campaign committee to file false reports with the FEC which did not disclose or reference the funds received from Candidate A’s campaign committee, did not mention the companies of the political consultants through whom the payments were routed, and falsely listed the same debts owed by Candidate B’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Candidate B by Candidate A’s campaign committee.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Pharmacist Pleads Guilty to Health Care Fraud Charges for Role in $192 Million Compounded Medication Scheme; Pharmacy Marketer Also Pleads GuiltyRead the Press Release
The Pharmacist in Charge of a Hattiesburg, Mississippi compounding pharmacy pleaded guilty today to health care fraud charges for his role in a scheme that defrauded TRICARE and private insurance companies out of at least $192 million in payments for medically unnecessary compounded medications.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson Division, Special Agent in Charge Jerome R. McDuffie of the Internal Revenue Service – Criminal Investigation’s New Orleans Field Office and Special Agent John F. Khin of the Defense Criminal Investigative Service Southeast Field Office made the announcement.
May, 40, of Lamar County, Mississippi, pleaded guilty to one count of conspiracy to commit health care fraud and money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Sentencing has been scheduled for October 17 before Judge Starrett.
As part of his guilty plea, May admitted that he conspired with others to select compounded medication formulas based on profitability, rather than on effectiveness or patient need. He further admitted that he conspired with co-owners of the pharmacy to circumvent fraud prevention measures, such as collecting copayments, so that patients were incentivized to receive, and continue to receive, medically unnecessary medications. According to plea documents, May dispensed these medically unnecessary compounded medications and caused fraudulent claims to be submitted to TRICARE, a health care program that benefits members of the U.S. armed forces, and other health care benefit programs. Based on these fraudulent claims, May and his co-conspirators received at least $192 million in reimbursements.
In a related case, Gerald Schaar, 46, of Biloxi, Mississippi, pleaded guilty to one count of conspiracy to commit health care fraud for his role in the scheme to defraud TRICARE. According to plea documents, Schaar admitted to soliciting physicians and other medical professionals to write prescriptions without seeing patients for medically unnecessary compounded medications dispensed by the pharmacy. According to the plea documents, Schaar further admitted to conspiring with others to falsify patient records to make it appear as though medical professionals had seen patients prior to the date prescriptions were written, when in reality, no examinations had occurred. As a result of the fraudulent prescriptions obtained by Schaar, and ultimately forwarded to the pharmacy, TRICARE reimbursed approximately $2.3 million in false and fraudulent claims submitted by the pharmacy. Sentencing for Schaar has been scheduled for October 17 before Judge Starrett.
This case was investigated by the FBI Jackson Division's Hattiesburg Resident Agency, the IRS Criminal Investigation, the Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies. Trial Attorneys Dustin Davis and Katherine Payerle of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $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.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Peoria County Man Pleads Guilty to Concealing Assets in BankruptcyRead the Press Release
PEORIA, Ill. - A Brimfield, Ill., man, Thomas L. Bledsoe, 52, today pled guilty to concealing insurance policies valued at more than $100,000 from the U.S. Trustee and creditors in his bankruptcy petition. Bledsoe entered his plea before U.S. District Judge Joe Billy McDade. Sentencing is scheduled on Nov. 22, 2017.
According to court documents and statements during today’s hearing, on Mar. 18, 2009, Bledsoe filed a voluntary petition under Chapter 13 of the U.S. Bankruptcy Code. On April 2, 2009, Bledsoe, a life insurance agent, filed a Schedule B form which required that he disclose any interest he owned in any insurance policies, to name the insurance company for each policy and to itemize the surrender or refund value of each policy, to which Bledsoe answered “none.”
On April 30, 2009, at a meeting of creditors, Bledsoe testified under oath that the voluntary petition and schedules were correct. After a creditor filed an objection, during a hearing on Oct. 26, 2009, Bledsoe testified that he owned a life insurance policy with a cash value of $5,000. Bledsoe subsequently amended the Schedule B form to indicate that he owned a single life insurance policy with a cash value of $3,000.
In fact, as Bledsoe admitted during today’s proceeding, he owned four life insurance policies, with a combined cash value of more than $50,0000, from Northwestern Mutual Insurance Company, and three life insurance policies, with a combined cash value of more than $57,000, from Canada Life Insurance Company. In addition, Bledsoe admitted he failed to disclose possession of three cashier’s checks totaling more than $65,000, and a 2005 Montesa motorcycle. Bledsoe also falsely stated that he had not received any money from the sale of his residence, when in fact, he had received money from the sale of the residence as part of his divorce, approximately two years prior to the bankruptcy proceeding.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
“Together with Acting U.S. Attorney Hansen and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
The statutory maximum penalty for concealing assets in bankruptcy proceedings is up to five years in prison. The maximum statutory penalty is prescribed by Congress and is provided for informational purposes as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Orlando Man Sentenced to Ten Years for Attempted Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Derek Coleman Corker (27, Orlando) to 10 years in federal prison for attempting to entice a minor to engage in sexual activity.
He pleaded guilty on April 25, 2017.
According to court documents, on January 3, 2017, Corker posted an ad for sex on Craigslist that included a graphic photo of himself. An undercover agent responded to the ad, posing as the father of a 13 year-old girl. During their conversations, Corker repeatedly expressed explicit interest in having sex with the “daughter.” He told the “father” during a cellphone conversation that “cute little girls kinda always been a thing I’ve always wanted to try and do.”
On January 4, 2017, Corker traveled to Brevard County to meet the “father” and have sex with the “daughter.” When he arrived at the location, he was arrested. Agents recovered 10 condoms and a cigarette package containing 3 small baggies of marijuana from inside his vehicle. Corker later admitted that he was the one who posted the Craigslist ad.
“This predator tried to harm a child,” said acting Special Agent in Charge of HSI Tampa Ivan J. Arvelo. “HSI special agents, along with our partners at the Brevard County Sheriff’s Office, ensured that instead, he will be behind bars for that crime.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Orlando Man Sentenced to 60 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II has sentenced Roy Thomas Phillips (47, Orlando) to 60 years in federal prison for sexually exploiting children. The Court also ordered him to forfeit the electronic devices he had used to commit the offense.
Phillips pleaded guilty on February 10, 2017.
According to court documents, from 2013 until his arrest in 2016, Phillips paid individuals in the Philippines to sexually abuse children and to livestream the abuse over the Internet. Phillips directed the live sexual molestations and recorded screen shots of the abuse from his office in Orlando. During a one-year period, Phillips wire transferred a total of $16,700 to one of the individuals in the Philippines to pay for the live sex acts perpetrated on children. The child victims were between the ages of 3 and 13.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio man pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – An Ohio man pleaded guilty yesterday to a federal drug crime, announced United States Attorney Carol Casto. Joshua L. Henderson, 27, of Dayton, entered his guilty plea to possession with intent to distribute fentanyl.
Henderson admitted that in early February 2017, he traveled from Dayton to Parkersburg several times a week to sell drugs. Using a confidential informant, the Parkersburg Police Department made multiple controlled purchases from Henderson of both heroin and fentanyl. On February 15, 2017, law enforcement obtained a search warrant for a residence where Henderson had been staying in Parkersburg. During the execution of the search warrant, Henderson attempted to flee by jumping from a second story window. Law enforcement caught Henderson and recovered over 13 grams of fentanyl and $1,800 in cash, as well as a Taurus 9mm pistol that had fallen from Henderson’s waistband during the jump. Additionally, law enforcement discovered more fentanyl, digital scales, small plastic baggies, and methamphetamine in or around Henderson’s bedroom.
Henderson was charged in a six-count indictment that accused him of federal drug charges and possessing a firearm in furtherance of a drug trafficking crime. As part of the plea agreement, Henderson admitted that he possessed the gun and that he sold all the drugs charged in the remaining counts of the indictment, which the Court may consider at sentencing.
Henderson faces up to 20 years in federal prison when he is sentenced on October 23, 2017.
The Parkersburg Police Department conducted the investigation. Assistant United States Attorney Eumi L. Choi is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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North Franklin Man Sentenced to Prison for Tax FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 62, of North Franklin, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to three months of imprisonment, followed by one year of supervised release, for tax fraud.
According to court documents and statements made in court, SUDIK operated a general dentistry practice, and also served as the trustee of the Walter S. Sudik Trust, a trust his uncle created. The primary purpose of the Trust was to provide money to Walter Sudik’s living siblings or their spouses to ensure they were properly cared for in their remaining years. Walter Sudik died in July 2010. Following his uncle’s death and while serving as the trustee, SUDIK took more than $248,000 from the Trust without authorization and was paid $35,500 by the Trust for fiduciary fees for his services as trustee and reimbursement for closing his dental office to act as trustee. On his 2010 and 2011 federal tax returns, SUDIK willfully failed to report a total of $284,167 in unreported income and failed to pay $63,229 in income taxes.
On his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419. On his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.
Judge Arterton ordered SUDIK to pay $63,229, plus interest and penalties, to the Internal Revenue Service, and a total of $65,317 to three of the four beneficiaries of the Trust. The fourth beneficiary, SUDIK’s mother, did not wish to be part of a restitution order. SUDIK previously returned $116,488 to the four Trust beneficiaries after he learned he was under criminal investigation. Also, just prior the sentencing hearing, his attorney tendered each of the three beneficiaries a check in the amount of $10,000. The beneficiaries will receive restitution before the IRS.
On May 10, 2016, SUDIK pleaded guilty to one count of filing a false tax return. He was ordered to report to prison on or before September 26, 2017.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
New York Man Admits North Jersey Knifepoint Bank RobberyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted robbing a bank in Bergen County, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Andres Dominguez, 38, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court, Dominguez admitted that he robbed a Bank of New Jersey in Fort Lee, New Jersey, on Jan. 12, 2017, while brandishing a large knife.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 31, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
New Caney Man Charged with Producing Child PornographyRead the Press Release
HOUSTON – A 39-year-old resident of New Caney has been taken into custody on federal charges of sexual exploitation of a child, announced Acting U.S. Attorney Abe Martinez.
Joshua James Holmstedt is suspected of actively engaging in the sexual exploitation and sexual abuse of a minor female under the age of five, according to the charges. He was taken into federal custody today and made his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 10:00 a.m. At that time, he was temporarily ordered into custody pending a probable cause and detention hearing set for July 27 at 2:00 p.m.
According to the criminal complaint, Holmstedt engaged in conversations via a specific social media forum believed to be frequented by individuals who have a sexual interest in children. The service randomly pairs users in one-on-one chat sessions where they can chat anonymously. Users type in search words and the forum pairs them with random strangers who typed in the same search words. Holmstedt allegedly saw a post that contained terms commonly associated with the sexual exploitation of children and had responded to it.
During the course of the chats, Holmstedt allegedly claimed he was sexually active with a minor female and claimed he watched pornographic material with her. Holmstedt later sent an image and four videos he claimed were of the minor, some of which focused on her vagina, according to the charges. He also allegedly sent other videos of other prepubescent children engaged in sexual acts and masturbation.
If convicted, Holmstedt faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with assistance of the Montgomery County Precinct 4 Constable’s Office.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which was brought as part of Project Safe Childhood - a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Muscatine Men Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA - On July 24, 2017, United States District Court Judge Stephanie M. Rose sentenced Aron Gaytan, 22, to 216 months in prison and Patrick Jay Plank, 51, to 120 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. On July 25, 2017, Judge Rose sentenced Robert Owen Knapp, 25, to 80 months in prison for conspiracy to distribute methamphetamine. Each man was ordered to serve five years of supervised release following their imprisonment and to pay $100 to the Crime Victims’ Fund.
On February 13, 2017, Knapp pleaded guilty and was found responsible for distributing in excess of 300 grams of ice methamphetamine. Plank pleaded guilty on February 17, 2017, and was found responsible for distributing in excess of one kilogram of ice methamphetamine. On February 22, 2017, Gaytan pleaded guilty and was found responsible for distributing eight kilograms of ice methamphetamine.
The charges resulted from an investigation and the execution of multiple search warrants in Muscatine and Johnson Counties. Law enforcement seized approximately 1.5 kilograms of ice methamphetamine, approximately 2.5 kilograms of marijuana, approximately 27 grams of cocaine, 28 firearms, and $5,184 during the searches.
The Muscatine County Drug Task Force, Johnson County Drug Task Force, Muscatine Police Department and Muscatine County Sheriff’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Monterey Park Man Arrested on Federal Smuggling Charges Stemming from Shipment of Live King CobrasRead the Press Release
LOS ANGELES – A Monterey Park man was taken into custody late this morning on federal smuggling charges stemming from the seizure of a package that contained three king cobras hidden in potato chip canisters.
Rodrigo Franco, 34, was arrested this morning by special agents with the United States Fish and Wildlife Service (USFWS), Office of Law Enforcement after he was named in a criminal complaint filed on July 21.
Franco, who is charged with one count of illegally importing merchandise into the United States, is expected to make his initial appearance this afternoon in United States District Court.
According to the affidavit in support of the complaint, United States Customs and Border Protection on March 2 inspected a package sent from Hong Kong and discovered three live king cobra snakes – a protected and highly venomous reptile – each of which was approximately two-feet long. In addition to the three snakes, the parcel being sent through the United States Postal Service contained three albino Chinese soft-shelled turtles.
On the same date, Franco also mailed six protected turtles – desert box turtles, three-toed box turtles and ornate box turtles – from the United States to Hong Kong, but that shipment also was intercepted by the USFWS.
Because of the danger associated with the cobras, the snakes were seized from the package that had come from Hong Kong. The United States Postal Inspection Service made a controlled delivery of the soft-shelled turtles to Franco’s residence. Immediately after the package was delivered, agents with the USFWS and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at the residence.
While executing the search warrant, agents found the package that originated in Hong Kong in the children’s bedroom, in which, they also discovered a tank containing a live baby Morelet’s crocodile and tanks containing alligator snapping turtles, a common snapping turtle, and five diamond back terrapins – all of which are protected species, according to the affidavit.
During a subsequent interview with authorities, Franco admitted that he had previously received 20 king cobras in two prior shipments – but he said all of those snakes had died in transit.
During the ensuing investigation, authorities obtained evidence from Franco’s phone that revealed messages in which Franco and an individual in Asia discussed shipping turtles and snakes between the United States and Asia. According to the complaint, the messages indicate that Franco had previously received live cobras from his contact in Asia and was going to give five of the snakes to a relative of his contact.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The smuggling charge alleged in the complaint carries a statutory maximum sentence of 20 years in federal prison.
The prosecution is being handled by Assistant United States Attorney Erik M. Silber of the Environmental and Community Safety Crimes Section.
Meth Dealer Who Possessed over 20 Guns to Serve More Than 13 Years in Federal PrisonRead the Press Release
An Iowa man who sold methamphetamine for over a year and who possessed over 20 firearms, including a stolen firearm, was sentenced on July 24, 2017, to more than 13 years in federal prison.
Shawn Chevchuc, age 45, from Lime Springs, Iowa, received the prison term after a March 1, 2017, guilty plea to conspiracy to distribute methamphetamine and possession of firearms by a felon.
At the guilty plea, Chevchuc admitted he was involved with others in selling methamphetamine from 2015 through 2016. Information disclosed during the sentencing hearing indicated that, during this time period, Chevchuc was involved with selling over two kilograms of methamphetamine. He also possessed over 20 firearms, including one firearm that had been previously stolen during a burglary. Chevchuc had multiple prior burglary and drug convictions and was prohibited from possessing any firearms because he was a felon.
Chevchuc was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Chevchuc was sentenced to 160 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Chevchuc is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Division of Narcotics Enforcement (DNE), the Iowa Division of Criminal Investigation, the Iowa State Patrol, the Mitchell County Sheriff’s Office, the Hancock County Sheriff’s Office, the Winneshiek County Sheriff’s Office, the Decorah Police Department, and the Bureau of Alcohol, Tobacco, and Firearms (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2056-LTS.
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Massachusetts Man Who Conspired to Traffic Drugs in New Hampshire Sentenced to Ten Years in Federal PrisonRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that on July 24, 2017, Martin Gonzalez-Diaz, 34, formerly of Methuen, Massachusetts, was sentenced to ten years in federal prison after pleading guilty to conspiracy to distribute in excess of one kilogram of heroin and quantities of fentanyl and oxycodone.
An offer of proof made during court proceedings established that from approximately the Spring of 2014 through late January of 2016, Martin Gonzalez-Diaz and his co-defendant, Juan Alexis Diaz Pena, conspired to distribute kilogram quantities of heroin and lesser quantities of fentanyl and oxycodone in the Lawrence, Massachusetts, area to individuals who in turn sold the drugs to New Hampshire based drug customers for re-distribution in Rochester, New Hampshire.
Gonzalez-Diaz’s co-defendant, Pena, 31, also formerly of Methuen, Massachusetts, was previously sentenced to 96 months in prison on June 26, 2017, for his role in the drug conspiracy and for his unlawful possession of a firearm in furtherance of a drug trafficking crime.
As part of the investigation, in January 2016, the United States Drug Enforcement Administration (“DEA”) searched an apartment connected to Pena and located quantities of cocaine and heroin and items associated with drug trafficking. A loaded 9 mm semi-automatic handgun was recovered from under a mattress in a bedroom in close proximity to where the drugs were located.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin and fentanyl in New Hampshire. We will continue to target drug trafficking organizations that are responsible for the importation of large quantities of these drugs into New Hampshire from source cities like Lawrence, Massachusetts,” stated Acting United States Attorney John J. Farley.
After Gonzalez-Diaz completes serving his ten-year prison sentence, he will likely face deportation proceedings to remove him from the United States.
This investigation was conducted by the United States Drug Enforcement Administration, Tactical Diversion Unit, Portsmouth, New Hampshire; the Rochester, New Hampshire Police Department, and the Haverhill, Massachusetts Police Department. Assistant United States Attorneys Jennifer Cole Davis and Seth Aframe prosecuted the case.
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Major Investigation in West Memphis Results in Dozens of Defendants Charged with Multiple Drug and Gun Crimes in 25 IndictmentsRead the Press Release
WEST MEMPHIS—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Matthew Barden, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), William McCrary, Assistant Special Agent in Charge, New Orleans Field Division, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), and Scott Ellington, Prosecuting Attorney for the Second Judicial District of Arkansas, announced today the simultaneous unsealing of 25 federal indictments charging 43 defendants in a major operation aimed at curbing drug trafficking and gun violence in West Memphis and Crittenden County. The indictments were returned by a federal grand jury on July 6, 2017 and July 11, 2017, and were unsealed today following a coordinated roundup of the charged defendants.
In total, including defendants charged in state courts, law enforcement obtained arrest warrants for 50 defendants, and arrested 26 individuals early Tuesday morning. Eleven defendants were already in state custody. Thirteen defendants, including 11 federal fugitives, remain at large.
“Drug and gun crime has been overrunning the entire Arkansas Delta for some time, and the epidemic has hit West Memphis and Crittenden County hard,” Harris said. “Law enforcement at all levels is committed to helping rid this community of drugs, and is working together to find and stop these criminals. Our collective goal is to return these communities to their law-abiding citizens. Today’s major operation is a huge step toward this goal, but know that our commitment to helping this part of the state will continue long after today.”
The Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named Money Don’t Sleep, began in 2015, with a goal to target steadily increasing drug and gun crime in Crittenden County. Early Tuesday morning 200 law enforcement officers, including more than 300 tactical officers, helped execute the arrest warrants in a targeted takedown that resulted in the arrests of these defendants on multiple federal firearm and drug charges. Most of the defendants are residents of West Memphis (see attachment for complete list of defendants and charges).
“Nothing is more important than the safety and security of our communities,” said Stephen G. Azzam, Special Agent in Charge of DEA’s New Orleans Field Division, which includes the Eastern District of Arkansas. “This operation is one of the largest Domestic Cartel Initiative DEA has conducted and represents one of the most powerful attacks we have launched against a drug trafficking organization, having an immediate impact in this region. The resulting arrests clearly demonstrate the combined strength that federal, state and local law enforcement agencies bring to bear in the battle against these domestic cartels and strike a significant blow to their drug trafficking organizations. By working together, we are leveraging our respective resources and expertise to achieve results that we could not accomplish on our own. Our combined, concentrated efforts are making communities in West Memphis, Arkansas, and across the nation, safer by disrupting the flow of dangerous drugs to our neighborhoods.”
From September 2015 through May 2017, agents with the DEA and West Memphis Police Department coordinated more than 50 controlled purchases of controlled substances, resulting in the acquisition of more than six pounds of methamphetamine and 11 illegally possessed firearms, several of which were stolen. Also, more than 10 ounces of crack cocaine and 20 ounces of cocaine were purchased in the investigation. A majority of the 43 federal defendants are convicted felons, many with violent histories.
“The men and women of ATF are extremely proud of the outcome of today’s collaborative law enforcement efforts to make West Memphis and the surrounding areas of Crittenden County a safer place,” ATF Asst. Special Agent in Charge McCrary said. “ATF is committed to working with our partners to address the violence that plagues these communities.”
“I want to thank Chief Oakes and the West Memphis Police Department for their investment in time and willingness to work with our federal partners in bringing this operation to fruition,” Scott Ellington said. “I also want to thank the Arkansas State Police, Highway Police, and Arkansas Community Corrections for their assistance and manpower in today’s major operation. Our community is worth fighting for, and I believe in West Memphis and Crittenden County. Cleaning up this community begins with holding people accountable for their actions. Today, with the help of the DEA and other federal and state partners, we took a big step toward taking back our community from the criminals who choose to sell drugs and guns, rather than contribute to it in a positive manner.”“Today, the West Memphis Police Department, along with federal, state, and local law enforcement partners, conducted an enforcement operation targeting violent drug traffickers operating in West Memphis,” West Memphis Police Captain Robert Langston said. “This operation was conducted by over 300 law enforcement personnel, with many of them coming from Little Rock, St. Louis, New Orleans, and Atlanta. The arrest of these violent drug dealers will make West Memphis a safer place for our citizens, said of the West Memphis Police Department.”
During the investigation, with assistance from the U.S. Postal Inspection Service, agents also intercepted more than six pounds of methamphetamine being sent to defendants through the mail.
“The U.S. Postal Inspection Service is committed to the safety and security of the mail, postal employees and customers through disruption of narcotics trafficking using the U.S. Mail,” Thomas L. Noyes, Inspector in Charge of the Fort Worth Division said. “I want to commend the U.S. Attorney’s Office, West Memphis Police Department, DEA and our law enforcement partners involved in this investigation for their tenacious efforts to prevent illegal substances and related violence from invading our neighborhoods.”
The counts in today’s unsealed indictments include conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to possess with intent to distribute crack cocaine and cocaine, possession with intent to distribute crack cocaine and cocaine, distribution of crack cocaine and cocaine, use of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, felon in possession of ammunition, selling firearm to a felon, and theft of mail by a United States Postal Service employee. (See attached defendant/indictment list)
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Jerome T. Kearney beginning at 10 a.m. on Thursday.
The investigation was conducted by DEA, in partnership with the ATF, and the West Memphis Police Department. Tuesday’s arrest operation included the assistance of DEA, ATF, Federal Bureau of Investigation, United States Probation and Parole, United States Postal Inspection Service, United States Postal Service Office of Inspector General, United States Marshall Service, Arkansas Highway Police, Arkansas National Guard Counter Drug Unit, Arkansas State Police, Arkansas Community Corrections, and the West Memphis Police Department.
The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys, headed by Liza Jane Brown and Michael Gordon. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Money Don't Sleep Federal Indictments/DefendantsLong Island Investment Advisor Pleads Guilty to Insider TradingRead the Press Release
Earlier today in federal court in Brooklyn, Tibor Klein, a registered investment advisor, pleaded guilty before United States District Judge Joan M. Azrack to one count of conspiracy to commit securities fraud.
Today’s guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS).
According to court documents, Klein had received material, non-public information regarding the pending merger between Pfizer, Inc., and King Pharmaceuticals, Inc., from his client and friend, Robert Schulman, a former partner of a Richmond-based global law firm. Schulman had learned of the information through his representation of King Pharmaceuticals. Klein and another co-conspirator then used that material, non-public information to engage in securities transactions ahead of the merger announcement that resulted in more than $400,000 in illegal profits.
At sentencing, Klein faces a maximum sentence of five years’ imprisonment. Schulman was convicted of securities fraud and securities fraud conspiracy following a jury trial in March 2017.
Ms. Rohde thanked the USPIS for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David C. Pitluck, Julia Nestor and Patrick T. Hein are in charge of the prosecution.
The Defendant:
Name: TIBOR KLEIN
Age: 43
Residence: Melville, New York
E.D.N.Y. Docket No. 16-CR-442 (JMA)
Local Crime Boss and Crew Headed to Federal PrisonRead the Press Release
LAREDO, Texas – A convicted heroin smuggler who was also the leader of an alien smuggling operation has been ordered to federal prison along with several members of his organization, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting Deputy Chief Patrol Agent Joel Martinez from the Laredo Sector Border Patrol. Mariano De La Cruz, 32, aka “Rayo” and “El Pelon,” of Laredo, pleaded guilty April 13, 2016, to two different indictments charging him with conspiring to possess with the intent to distribute heroin and the alien smuggling conspiracy, respectively.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a combined sentence of 206 months in federal prison. Also sentenced today were David Cuevas, 25, and Sara Rodriguez, 40, both of Laredo, and Juan Gerardo Rodriguez-Mantos, 34, an undocumented alien from Mexico living in Laredo who was the brother of Rodriguez. They had also pleaded guilty for their respective roles in the alien smuggling conspiracy. Cuevas received a sentence of 60 months in prison, while Rodriguez was ordered to serve 84 months. In sentencing Rodriguez-Mantos, the court considered the fact that he had sexually assaulted some of the victims. He received a 252-month-term of imprisonment for the alien smuggling conspiracy and for being an illegal alien in the United States after deportation. De La Cruz and Cuevas will also serve five years on supervised release following completion of their sentences, while Rodriguez was ordered to serve a three-year-term. Not a U.S. citizen, Rodriguez-Mantos is expected to face deportation proceedings following his release from prison.
“HSI is dedicated to working closely with all of our law enforcement partners to effectively in identify, arrest and prosecute individuals involved in exploiting people,” said Folden. "Criminals who illegally smuggle people into and throughout the country place personal profit ahead of public safety. For this reason, HSI will continue to utilize its broad authorities to dismantle human smuggling organizations.”
“I commend the men and women of the Department of Homeland Security representing the Joint Task Force-West South Texas Corridor Laredo Area Team who worked tirelessly to dismantle this organization,”said Joel Martinez. “Their joint efforts represents our commitment in disrupting and dismantling criminal organizations in South Texas.”
In addition to arranging for the shipment of almost two kilograms of heroin from Laredo to Rhode Island, De La Cruz led a multi-city organization that transported at least 140 undocumented aliens from Laredo and Hebbronville to San Antonio and other locations over a one-year-period from late 2014 until his arrest in late 2015. Cuevas was De La Cruz’s second in command. In that role, he relayed messages to and from De La Cruz, who was running the organization from prison. Rodriguez operated stash houses in Laredo for De La Cruz and also transported aliens to the brush where smugglers would then guide them around Border Patrol checkpoints.
Rodriguez-Mantos assisted his sister in running the stash houses, maintained order among the aliens and was a part-time foot guide. During that time, he sexually-assaulted some of the undocumented female aliens and brutalized other aliens who refused to comply with his orders. At times, he demonstrated his authority with a baseball bat and threatened them with a rifle that he claimed was a “BB” gun.
Cuevas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De La Cruz and the others have been and will remain in custody.
Three others who also pleaded to the alien smuggling conspiracy were sentenced previously to terms ranging from 24-36 months in prison.
In the drug conspiracy, Juan Contreras, 29, of La Vernia, received a 60-month-term of imprisonment for physically transporting the heroin to Rhode Island.
HSI and Border Patrol conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Las Vegas Man Sentenced to over Six Years in Prison for Possession of Nearly 8,000 Images of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 78 months in prison to be followed by lifetime supervision for possession of over 7,915 images and videos of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
James Karman Ryan, 49, pleaded guilty on April 18, 2017, to one count of possession of child pornography.
According to the plea agreement, on Jan. 14, 2014, during the execution of a search warrant by the Las Vegas Metropolitan Police Department, Ryan barricaded himself in his room and began to delete files on his computer. He eventually surrendered and admitted that he was attempting to delete child pornography from his computer as the SWAT team was making entry into his house. After a forensic examination of his computer, hard drives, and other storage devices, over 7,915 images and videos were found to contain child pornography. Of the 7,915 images and videos, approximately 4,687 images and videos were deemed to be child sexual abuse.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Frank Coumou and Lisa Cartier-Giroux.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Kewa Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Chad L. Lovato, 23, an enrolled member of Kewa Pueblo from Santo Domingo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Lovato’s plea agreement recommends a sentence of a year and a day in prison followed by a term of supervised release to be determined by the court.
Lovato was arrested on Feb. 4, 2017, on a criminal complaint charging him with assaulting three Kewa Pueblo tribal members with a firearm on Jan. 23, 2017, on the Kewa Pueblo in Sandoval County, N.M. According to the complaint, Lovato assaulted the tribal members by brandishing a firearm at them while a tribal official was transporting Lovato to the Governor’s Chambers in Kewa Pueblo. The complaint further alleges that Lovato engaged in a lengthy standoff in the Governor’s Chambers before law enforcement officers were able to take Lovato into custody safely.
During today’s proceedings, Lovato pled guilty to an information charging him with assault with a dangerous weapon. In entering the guilty plea, Lovato admitted that on Jan. 23, 2017, he assaulted a Kewa Pueblo tribal official with a BB gun with intent to do bodily harm. Lovato admitted that he pointed and aimed the BB gun at the victim, and then barricaded himself in the Tribal Governor’s office until he was apprehended by law enforcement. A sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.
Kankakee Man Sentenced to Seven Years in Prison for Gun PossessionRead the Press Release
URBANA, Ill. - A Kankakee, Ill., man has been sentenced in federal court for illegal possession of a firearm by a felon. On July 24, U.S. District Judge Colin S. Bruce sentenced Brandon Shoffner to 84 months (7 years) in federal prison, to be followed by three years of supervised release. Shoffner, 29, of the 700 block of Hammes Ave., has been in law enforcement custody since his arrest on Aug. 13, 2016. Judge Bruce found that during his arrest, Shoffner struck an officer, a factor the court accepted to increase Shoffner’s sentencing guidelines.
On Feb. 24, 2017, Shoffner pled guilty to the indictment which charged him with possession of a SAR Arms 9mm handgun. At the time Shoffner possessed the gun, in August 2016, he had prior felony convictions in Kankakee County.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force, and prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Justice Department Sues Puerto Rico Business for Violating Employment Rights of United States Army ReservistRead the Press Release
The Justice Department filed a complaint today alleging that Farmacia Lugo, Inc. (Farmacia Lugo), a business based in Puerto Rico, violated the employment rights of U.S. Army Reservist Anna J. Santiago under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Santiago has served her country as a member of the Army Reserves since 2012. She currently holds the rank of Private 1st Class and serves as a culinary specialist.
According to the complaint, filed in the United States District Court for the District of Puerto Rico, Santiago’s military service was a motivating factor in Farmacia Lugo’s decision to terminate her employment. The Department claims that, in 2014 and 2015, Santiago served multiple periods of military duty which caused her to be absent from her job as a pharmacy technician. The complant alleges that during and after Santiago’s periods of military service, the owner of Farmacia Lugo began making negative statements about Santiago and her military service obligations. This pattern of disparagement of Santiago’s military service by her employer was ongoing and continued through November 2015 after she returned from military training. The complaint further alleges that, on November 11, 2015, the owner of Farmacia Lugo terminated Santiago in front of other employees and customers. The complaint alleges that during the termination, the employer told PFC Santiago that it was appropriate that it occurred on Veterans Day because her military service was the cause of her termination.
“The men and women who bravely wear our nation’s uniform need to know that they will be protected from unjust terminations when they return from periods of military service,” said Acting Assistant Attorney General Thomas Wheeler. “The Department of Justice is committed to aggressively enforcing USERRA to protect our brave service members, whose rights do not end with their first day back on the job.”
“USERRA guarantees the rights of those who serve our nation with honor and distinction to return to civilian employment upon returning from military service,” said Rosa E. Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “This lawsuit demonstrates our steadfast commitment to leverage every resource and tool at the federal government’s disposal to protect the rights of the men and women who defend our freedom and safeguard our way of life.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
The lawsuit seeks damages equal to the amount of Santiago’s lost wages and benefits caused by Farmacia Lugo’s failure to comply with USERRA, as well as liquidated damages (in an amount equal to lost wages) for what the Department alleges is Famacial Lugo’s reckless disregard for USERRA. It also seeks orders requiring Farmacia Lugo’s compliance with all provisions of USERRA and requiring Farmacia Lugo to pay all related litigation fees.
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being jointly handled by the the U.S. Attorney’s Office for the District of Puerto Rico and the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of Army Reserves servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Jefferson County man indicted heroin distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA - A Charles Town, West Virginia man has been indicted by a federal grand jury on a heroin distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ryan Jackson, age 39, is charged with one count of “Distribution of Heroin.” Jackson allegedly distributed a mixture of heroin and fentanyl in Jefferson County in October 2016.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ivorian Man Pleads Guilty in Manhattan Federal Court to Conspiring to Provide Material Support to the FARCRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Raymond Donovan, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced that FAOUZI JABER, a/k/a “Excellence,” pled guilty to conspiring to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”), a designated foreign terrorist organization. JABER pled guilty earlier today in Manhattan federal court before U.S. Magistrate Judge Katherine H. Parker.
Acting U.S. Attorney Joon H. Kim said: “Faouzi Jaber arranged to traffic millions of dollars’ worth of lethal weapons and narcotics in support of the FARC’s efforts to violently overthrow the government of Colombia and terrorize U.S. forces stationed there. In a series of meetings that took him around the world, Jaber was willing to do whatever it took to help this foreign terrorist organization achieve its violent and undemocratic goals. Our Office will continue to prosecute those who conspire to provide material support to the FARC and other dangerous terrorist organizations to the fullest extent of the law.”
DEA Special Agent in Charge Raymond Donovan said: “DEA’s number one priority is going after individuals and organizations that pose a direct threat to the safety and security of the American people. Faouzi Jaber demonstrated how willing he was to do business with some of the world’s most deadly terror networks that wish harm on innocent Americans and the rule of the law. We must continue to attack these potentially deadly networks globally, no matter where they hide.”
According to the allegations contained in the Superseding Indictment, statements made during the plea proceeding, and other documents in the public record:
From the fall of 2012 through early 2014, JABER participated in a conspiracy to provide material support to the FARC, a guerilla group that, as of that time period, was dedicated to the violent overthrow of the democratically elected government of Colombia, had engaged in acts of violence against U.S. citizens and interests in Colombia and elsewhere, and was one of the world’s largest suppliers of cocaine. JABER engaged in a series of meetings, in locations such as Accra, Ghana, and Warsaw, Poland, with individuals who identified themselves as representatives and associates of the FARC, but who were, in fact, confidential sources (the “CSes”) working for the DEA. In the course of those meetings, which were recorded, JABER introduced the CSes to two of his associates, a weapons trafficker based in Ukraine and a narcotics trafficker based in West Africa, in furtherance of his efforts to assist the FARC. Working together with those associates, during the meetings with the CSes, JABER agreed to provide weapons – including surface-to-air missiles, assault rifles, grenade launchers, and grenades – to the FARC, at a total price of over $8 million, with the understanding that those weapons would be used by the FARC against U.S. forces in Colombia. JABER also agreed to assist the FARC with the transportation and storage of FARC-owned cocaine in West Africa, and with the laundering of cocaine proceeds for the FARC, including by moving the cocaine proceeds through bank accounts in New York.
In April 2014, JABER traveled to Prague, Czech Republic, to meet with certain of the CSes to continue negotiating and arranging the weapons and narcotics-trafficking transactions in support of the FARC. On April 5, 2014, JABER was arrested in Prague by Czech authorities based on the charges in this case, at the request of U.S. authorities. JABER was later extradited to the United States to face the charges against him.
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JABER, 61, of the Ivory Coast, pled guilty to one count of conspiring to provide material support and resources to a designated foreign terrorist organization, i.e., the FARC, which carries a maximum sentence of 15 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 a judge. Sentencing is scheduled for November 8, 2017, at 4:00 p.m. before Chief U.S. District Judge Colleen McMahon.
Mr. Kim praised the outstanding efforts of the DEA’s Special Operations Division and DEA’s Vienna, Austria Country Office; DEA’s Warsaw, Poland Country Office; DEA’s Accra, Ghana Country Office; and DEA’s New York Field Division. Mr. Kim also thanked Czech law enforcement authorities, the Counterterrorism Section of the Department of Justice’s National Security Division, and the Department of Justice’s Office of International Affairs for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney George D. Turner is in charge of the prosecution.
INTERPOL Washington Participates in AMBER Alert SymposiumRead the Press Release
INTERPOL Washington has provided more than 6.6 million investigative leads regarding child sexual exploitation and abuse to NCMEC.INTERPOL Washington-U.S. National Central Bureau-recently participated in the “National Symposium for AMBER Alert Coordinators and Clearinghouse Managers Symposium” hosted by AMBER Alert Training and Technical Assistance Program, at the National Criminal Justice Training Center at Fox Valley Technical College. Held June 27-29, in Minneapolis, Minnesota, the symposium served as an opportunity for those involved with the AMBER Alert program across the United States and overseas to participate in practical training and develop relationships with each other.
Supervisory INTERPOL Washington Analyst Michelle Ford-Stepney participated in a panel on cross-border child abductions, focusing her remarks on International Parental Abductions. Even though INTERPOL Washington does not participate directly in the AMBER Alert system, the agency does partner with law enforcement to seek the return of missing children to their homes of origin. INTERPOL Washington also works with the National Center for Missing and Exploited Children (NCMEC) to provide law enforcement officials urgent and timely leads and information to prevent child sexual exploitation and abuse.
INTERPOL’s I-24/7 secure messaging system is the tool used to quickly and effectively make available the information and leads to investigative law enforcement entities around the world. Foreign Universal Resource Locators (URL) Internet leads received by INTERPOL Washington are provided to NCMEC. Images and other forms of media containing actual evidence are provided to U.S. law enforcement agencies for potential action. Today, more than 6.6 million reports have been made available through INTERPOL’s I-24/7.
The training was presented by the leadership of the U.S. Department of Justice, Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention, and the AMBER Alert Training and Technical Assistance Program in partnership with the NCMEC. The objective was to learn current AMBER Alert strategies from partners nationwide by identifying AMBER Alert successes, lessons learned, and current training and technical assistance resources and needs.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Hunting Guide from Elk County Pleads Guilty to Lacey Act ViolationsRead the Press Release
WICHITA, KAN. - A Kansas hunting guide pleaded guilty and was sentenced Tuesday for routinely violating state and federal hunting laws while taking clients on $300-a-day hunting trips, U.S. Attorney Tom Beall said.
Jerad Stroot, 26, Colwich, Kan., an employee of Eagle Head Outfitters, LLC, pleaded guilty to one count of conspiracy to violate the Lacey Act. In his plea, Stroot said his work included transporting hunters and their equipment to the field, directing hunters when to shoot, retrieving birds killed by hunters and keeping track of the number of birds killed by hunters and daily bag limits.
Stroot admitted:
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Placing corn, wheat and soybeans around ponds as bait for waterfowl.
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Helping hunters to exceed their daily bag limits by offering to say he shot some of the birds they shot.
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Failing to tag, process and transport birds as required by state and federal law.
Stroot was sentenced to five years on probation during which he may not hunt, trap or guide and a $5,000 fine
Co-defendant Josh Hedges, 35, Grenola, Kan., owner of Eagle Head Outfitters, is set for a change of plea hearing July 31.
Beall commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
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Houston Father and Son each Sentenced to Federal Prison for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A Houston father and son were each sentenced to federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rolando Delarosa, Sr., 43, and Rolando Delarosa, Jr., 22, both pleaded guilty on Feb. 27, 2017, to conspiracy to possess with intent to distribute methamphetamine and were sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, between December 2013 and June 2015, the Delarosas were involved in a drug trafficking conspiracy that was responsible for trafficking methamphetamine through Houston and into the surrounding areas. An investigation began after a co-conspirator, Jesus Silva, made four deliveries to an undercover officer in Houston and Cleveland, Texas. After each of these deliveries, Silva was followed back to a home known to be owned and occupied by Rolando Delarosa, Sr.
Wiretaps confirmed that Delarosa, Sr. was Silva's supplier and that he intended to distribute, and distributed more than 2 ½ kilograms of methamphetamine. Silva continued to provide methamphetamine to an undercover officer and introduced Rolando Delarosa, Jr. to confidential sources as a supplier of methamphetamine. Delarosa, Jr. agreed to sell three kilograms of methamphetamine to a confidential source. Agents followed Delarosa, Jr. back to Delarosa, Sr.'s house, where Delarosa, Jr. and his girlfriend also lived. The officers then noticed Delarosa, Jr. and his girlfriend leave the residence in the same vehicle with Delarosa, Jr. driving. A traffic stop was conducted on the vehicle and Delarosa, Jr. and his girlfriend were observed by the officers as switching seats before coming to a complete stop. The officers immediately recognized the smell of raw and burnt marijuana coming from the vehicle when they approached it as well as a small bag of marijuana in plain sight on the center console. A search of the vehicle revealed a bag containing a large amount of methamphetamine inside. Analysts at the DEA Crime Lab determined that this substance was, in fact, almost one pound of methamphetamine. Officers then went to the residence of Delarosa Sr. and were given consent to search the residence. Officers located two rifles and more methamphetamine in the residence.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Holyoke Man Indicted for Dealing CocaineRead the Press Release
BOSTON - Raul Ramos, 43, of Holyoke, was arrested today and charged in federal court in Springfield with one count of distribution and possession with intent to distribute cocaine.
According to court documents, Ramos possessed and distributed cocaine on Nov. 8, 2016. The charges are a result of a federal, state, and local law enforcement investigation into drug trafficking in Springfield and Holyoke.
The charging statute provides for a sentence of no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of $2 million dollars. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Weinreb’s Springfield Branch Office is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Harrison County man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher C. Cozad, of Mount Clare, West Virginia, was sentenced today to 46 months incarceration for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Cozad, age 32, pled guilty to one count of “Unlawful Possession of a Firearm” in March 2017. Cozad, having previously convicted of felony fleeing from an officer in Harrison County in 2011, admitted to possessing a Smith & Wesson 5.56 caliber firearm in April 2016 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Habitual Domestic Violence Offender Sentenced to 41 MonthsRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Tyson Heath, age 41, of Wellpinit, Washington, was sentenced today after having pleaded guilty on March 14, 2017, to the crime of Domestic Assault by a Habitual Offender. Senior United States District Judge Wm. Fremming Nielsen sentenced Heath to a 41-month term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison. Of note, Heath stands over 6’5” and weighs close to 250 pounds.
According to information disclosed during the court proceedings, in January, 2017, within the boundaries of the Spokane Tribe of Indians Reservation, Heath assaulted a domestic partner. The victim was discovered after the assault with a large amount of bruising and swelling around her right eye and orbital bone. In addition, the victim’s right cheek displayed red and purple bruising in what appeared to be the shape of four fingers, as if someone had slapped or backhanded her very hard. The victim also suffered a ruptured eardrum. This case involved yet another domestic violence assault – Heath’s third such offense -- making him a habitual offender.
At the time of this assault, Heath had previously been convicted of Fourth Degree Assault (Domestic Violence) and Second Degree Assault (Domestic Violence) in the Spokane County Superior Court in 2010 and 2011 respectively. Heath’s 2010 domestic violence assault conviction stemmed from an argument with his girlfriend. The argument became physical and Heath began throwing his girlfriend around, ultimately throwing her into a bedroom wall face first and then refusing to let her leave the apartment. Heath’s 2011 assault conviction also involved a domestic partner. Heath had gone to his ex-girlfriend’s place of employment, in violation of a restraining order. She told him to leave; he did not and ultimately hit her in the face with a rock. The victim was found in a pool of blood on the floor. Heath was sentenced to four months in jail for the 2010 offense and three months in jail for the 2011 offense.
At sentencing, today Heath indicated he wished to apologize to the victim of the most recent assault. Judge Nielsen told Heath that when he drank alcohol he was a danger to the public and that society will not and cannot tolerate it. Judge Nielson then announced the 41-month sentence.
Joseph H. Harrington stated, “The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively domestic violence crimes that occur in this District over which federal jurisdiction exists, including Indian Country. I commend the excellent work of the Spokane Tribal Police and the FBI. Domestic violence in Indian Country demands the attention of law enforcement, families, social service programs, and the community at large.”
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Tribal Police. The case was prosecuted by Alison L. Gregoire an Assistant United States Attorney for the Eastern District of Washington.
Grayson County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
SHERMAN, Texas – A 39-year-old Denison, Texas man has been sentenced to federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Mark Alan Bennett pleaded guilty on Mar. 29, 2017, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 241 months in federal prison today by U.S. District Judge Amos Mazzant.
According to information presented in court, between August and November 2016, Bennett was found to be in possession of methamphetamine on four occasions, two traffic stops and during the execution of two search warrants at his Denison residence. All together, 177.32 grams of methamphetamine was recovered from Bennett. During the execution of a search warrant on Sep. 23, 2016, law enforcement agents also recovered a short-barreled shotgun. Bennett was indicted by a federal grand jury on Dec. 21, 2016 and charged with drug trafficking violations.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Denison Police Department and the Wise County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney William R. Tatum.
Four Men Sentenced for Violent Crime Spree Last SummerRead the Press Release
Charlottesville, VIRGINIA – Four of the six individuals responsible for a crime spree in Albemarle and Greene counties last summer that included a series of armed robberies, kidnappings, an armed home invasion, and a carjacking were sentenced today in federal court in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
In separate hearings today in the United States District Court for the Western District of Virginia in Charlottesville, Terence Tyree, Kentavia Jones, Jaquarius Johnson and Isaiah Wilson were sentenced to federal prison time for their various roles in the conspiracy.
Tyree, 19, of Ruckersville, was sentenced to 360 months in federal prison. Jones, 19, of Earlysville, was sentenced to 225 months in federal prison. Johnson, 19, of Charlottesville, was sentenced to 126 months in federal prison. Tyree, Jones and Johnson were also ordered to pay $4,079 restitution joint and severally to the victims of these crimes. Wilson, 24, of Charlottesville, was sentenced today to 68 months in federal prison. Demetrius Steppe will be sentenced on Friday, July 28, 2017.
“This prosecution is an example of the application of Attorney General Sessions’ March 8, 2017 Memorandum announcing the Department of Justice’s Commitment to Targeting Violent Crime,” Acting United States Attorney Rick A. Mountcastle said today. “The Albemarle County Police Department, the Greene County Sheriff’s Office, and the Federal Bureau of Investigation worked together to identify and quickly apprehend these violent criminals before they could do more violence to our citizens. The Albemarle and Greene County offices of the Commonwealth’s Attorney worked together with our office to decide to bring this case in Federal court and our Assistant United States Attorneys ensured that these defendants received appropriate sentences under federal law so that they no longer present a danger to our citizens. The Department’s violent crime strategy targets violent criminals such as these in a common-sense way to make our communities safer for law-abiding citizens.”
“The facts of this case are egregious. These violent criminals – who terrorized our central Virginia communities with handguns, sawed-off shotguns, and even an assault rifle– thankfully, no longer pose a threat. The FBI is committed to the Department of Justice’s renewed emphasis on removing violent criminals like these from our streets,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division. “I want to thank our colleagues at the United States Attorney’s Office for the Western District of Virginia for their expert prosecution of this case and I want to thank our outstanding partners at the Albemarle County Police Department and the Greene County Sheriff’s Office for their collaboration. I’ve said this in similar FBI cases over the past year; Virginia is not a safe place for criminals to operate and victimize our citizens. We are mobilized against you and we will put you in prison for a long, long time.”
These four men were responsible for the armed robbery of five commercial establishments throughout June and July 2016. The targets were comprised of convenience stores and pizza restaurants in Albemarle and Greene Counties. In each armed robbery, the defendants – wearing masks, gloves, and dark clothing – entered local businesses and threatened the employees at gunpoint. They stole cash and cell phones from the employees, and fled the store.
This violent crime spree culminated with a home invasion, carjacking, kidnapping, and armed robbery, all of which took place on the evening of July 18, 2016. That night, defendants Tyree, Jones, and Johnson broke into an Albemarle County residence by throwing a propane tank through a sliding glass door. The homeowner was inside, alone, and heard the loud explosion. When he went downstairs, he saw three men – later identified as Tyree, Jones, and Johnson – in his living room, armed with a firearm. They forced the victim against the wall and struck him, and then ransacked the house. Afterwards, the defendants commanded the victim to enter his own vehicle in his garage, and they then drove him away from home -- at gunpoint -- to a nearby ATM located at the Wells Fargo bank at the intersection of Route 29 and Airport Road. At that location, the defendants spotted another victim, who was a passerby walking through the parking lot, having just come from the nearby airport with his luggage still in hand. The defendants abducted the man, forcing him into the car at gunpoint. When the first victim was unsuccessful at getting money from the ATM machine, the defendants again forced him back into the car. With the two kidnapping victims in the car, the defendants drove to a nearby 7-11 convenience store and robbed the employees at gunpoint. Soon thereafter, in a nearby neighborhood, the defendants stopped the car and told both victims to get out and both complied. The defendants later abandoned the vehicle, which was later recovered by law enforcement.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office, with assistance from the Albemarle County and Greene County Commonwealth Attorneys Offices. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh prosecuted the case for the United States.
Four Members of 39ers Gang Receive Life SentencesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the sentencing of four defendants convicted of gang-related offenses in February of 2017 following the 39ers racketeering and murder trial.
Today, U.S. District Judge Jay C. Zainey sentenced JASMINE PERRY, age 26; LEROY PRICE, age 31; ASHTON PRICE, age 26; and ALONZO PETERS, age 27. All four men were convicted of offenses related to their involvement with the 39ers gang in New Orleans from approximately 2007-14, and each defendant received life sentences. The Court imposed the following sentences on each defendant:
COUNT CHARGE DEFENDANTS SENTENCE 1 Conspiracy to violate the Racketeer Influence and Corrupt Organization Act (RICO) JASMINE PERRY Life Imprisonment LEROY PRICE Life Imprisonment ASHTON PRICE Life Imprisonment ALONZO PETERS 235 months imprisonment 2 Conspiracy to distribute controlled substances LEROY PRICE Each defendant received a sentence of life imprisonment Defendants were convicted of 1 kilogram or more of heroin and 280 grams or more of cocaine base ASHTON PRICE ALONZO PETERS 3 Conspiracy to use and carry and to possess firearms JASMINE PERRY Received 240 months imprisonment LEROY PRICE ASHTON PRICE ---------------- ---------------- ALONZO PETERS Received 235 months imprisonment 4 Murder in aid of racketeering JASMINE PERRY Each defendant received a mandatory sentence of life imprisonment (Kendall Faibvre) ASHTON PRICE 5 Causing death through the use of a firearm JASMINE PERRY Each defendant received a sentence of life imprisonment (Kendall Faibvre) ASHTON PRICE 6 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY Each defendant received a sentence of 240 months imprisonment (Jasmine Jones) ASHTON PRICE 7 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Each defendant received a consecutive sentence of 120 months imprisonment (Jasmine Jones) ASHTON PRICE 14 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment (Lester Green) 16 Assault with a dangerous weapon in aid of racketeering LEROY PRICE 240 months imprisonment (Jamal Smith) 18 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment (Donald Daniels) 22 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment (Elton Fields) 33 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Albert Hardy) 34 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Albert Hardy) 35 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Kelvin Baham) 36 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Kelvin Baham) 37 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Carrie Henry) 38 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Carrie Henry) 39 Murder in aid of racketeering JASMINE PERRY Mandatory life imprisonment (Gregory Keys) 40 Causing death through the use of a firearm JASMINE PERRY Life imprisonment (Gregory Keys) 41 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Kendrick Smothers) 42 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Kendrick Smothers) 45 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment for both defendants (Michael Marshall ASHTON PRICE 46 Causing death through the use of a firearm ASHTON PRICE Life imprisonment (Michael Marshall) 47 Murder of a federal informant LEROY PRICE Mandatory life imprisonment as to both defendants (Michael Marshall) ASHTON PRICEActing U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force, the New Orleans Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant U.S. Attorneys Myles Ranier, David Haller, Brittany Reed, and Jeff Sandman were in charge of the prosecution.
Four Members of “Manche Boy Mafia” Gang Sentenced in Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced four Tampa men to federal prison for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft. Brandon Lewis (22) and Terrance Cobb (22) were each sentenced to 5 years and 1 month in federal prison; Dontae Williams (24, Tampa) was sentenced to a term of 5 years and 10 months; and Davon Smith (21, Tampa) was sentenced to 5 years and 5 months’ imprisonment. The Court also ordered them to pay restitution of $113,490.54, which is traceable to proceeds of the offenses, and for Lewis and Williams to forfeit funds equal to the value of automobiles they purchased with the proceeds from the offenses.
On April 28, 2017, Lewis and Williams pleaded guilty to conspiracy to commit access device (credit card) fraud and aggravated identity theft, while Cobb and Smith pleaded guilty to access device (credit card) fraud and aggravated identity theft.
According to court documents and statements made in court, from at least January 2015 through November 2016, Lewis, Cobb, Smith, and Williams, along with others affiliated with the “Manche Boy Mafia” or “MBM” organization, conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, including some that used bitcoins as their currency. The conspirators then purchased or stole reloadable gift cards and scratched off or otherwise damaged the magnetic strips on the back of the cards so that they could not be read by merchants’ point of sale (POS) terminals. The conspirators used an embosser to emboss the stolen account numbers and their own names onto the front of these altered gift cards. In some cases, the conspirators used a label maker to affix the Card Verification Value (CVV) security code associated with the stolen account to the back of the counterfeit cards. The conspirators then used these counterfeit credit cards at various retailers around the Tampa Bay area. When the retailers’ POS terminals could not read the damaged magnetic strips, the conspirators advised the clerks to manually enter the stolen account information embossed on the front of the counterfeit cards to make the purchase. The conspirators typically purchased gift cards and electronics, which they kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards and had used and possessed thousands of stolen account numbers from individuals across the United States. In total, these individuals were held responsible for more than $600,000 in intended or attempted purchases.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Four Lawrence Residents Plead Guilty to Conspiracy to Distribute HeroinRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that four residents of Lawrence, Massachusetts, pleaded guilty to conspiring to distribute and to possess with the intent to distribute heroin during a period beginning in 2013 and ending in October 2016.
The defendants were part of an indictment returned by the grand jury for the District of New Hampshire on October 5, 2016, charging 16 individuals with participating in the conspiracy.
According to documents on file with the court and statements made during the change of plea hearings, the drug trafficking organization responsible for distributing heroin was managed by Alberto Guerrero Marte, age 34. Day to day customer orders for heroin were taken by Michell DeJesus, age 37, and the information was provided to Marte. The heroin was delivered to the customers at various residences in Massachusetts by Maribel Santiago Ramos, age 34, and others. Each of these defendants admitted to trafficking one kilogram or more of heroin during the conspiracy.
Defendant Allison DeJesus, age 18, also took customer orders for heroin and re-supplied Santiago Ramos when deliveries were made.
A sentencing hearing has been scheduled for October 27, 2017, for Allison DeJesus. Sentencing hearings have been scheduled for November 1, 2017, for Marte, Michell DeJesus, and Maribel Santiago Ramos. The United States has agreed to recommend a sentence of 15 years for defendant Marte and a sentence of five years of probation for defendant Allison DeJesus. The sentences for the remaining defendants will be determined at the time of sentencing.
“Opioid abuse is at epidemic levels in the Granite State and those suffering from the disease of heroin and fentanyl addiction need access to treatment and recovery,” said Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursue Drug Trafficking Organizations or individuals who are coming from out of state to distribute this poison across New Hampshire in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
Defendant Luis Rodriguez Lugo is scheduled for trial on September 6, 2017. Defendants Jonaly DeJesus, Allan Pimentel, Santo Garcia Mendez, Wilkin Beltre Aria, Alfredo Gonzalez, Querzon Baez, Pedro Vincente Guerrero, Jose Pimentel and Edward Garcia are scheduled for trial on October 3, 2017.
The case was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. This case was prosecuted by Assistant United States Attorney Don Feith.
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Fort Wayne Man Sentenced to 70 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Antonio Cortez Harris, age 25, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
Harris was sentenced to 70 months imprisonment and 3 years of supervised release.
According to documents filed in this case, on or about February 9, 2016, Harris possessed with intent to distribute less than 100 grams or more of a substance containing a detectable amount of heroin and possessed a firearm in furtherance of a drug trafficking crime.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Stacey R. Speith.
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Fort Wayne Man Sentenced to 70 MonthsRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Ronnie Rutherford Jr., age 40, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann on federal convictions of possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
Rutherford was sentenced to 70 months imprisonment and 2 years of supervised release.
According to documents filed in this case, between December 30, 2013 and February 17, 2014, Ruthererford possessed a firearm in furtherance of a drug trafficking crime and possessed a firearm after having been convicted felony Attempted Burglary and felony Theft.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Fort Wayne Police Department and was handled by Assistant United States Attorney Anthony W. Geller.
Former Truckee Resident Indicted for $1.7m Investment FraudRead the Press Release
SACRAMENTO, Calif. — Patrick Slavin, 55, formerly of Truckee, was arraigned today in federal court on a 21-count indictment charging him with mail and wire fraud for an investment scheme that he ran from 2008 through 2016, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Slavin claimed to have developed a proprietary investment model that guaranteed returns of 12-18 percent that would be paid within one to two years of the investment. He persuaded some individuals to invest by representing that the money would be invested through a “social venture” fund or project that would earn returns by providing capital and services to nonprofit organizations. After the investments were made, Slavin assured investors that their money was earning profits. Based on these assurances, Slavin solicited additional investments or encouraged his investors to rollover their prior investments. In truth, Slavin used a large portion of the investors’ money to pay back other investors or for his own personal expenses and lost the rest in trading. Overall, investors lost at least $1.7 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
If convicted, Slavin faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gross loss or gross gain from the fraud scheme. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Pleads Guilty to Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty today to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield Field Office; Special Inspector General John F. Sopko for Afghanistan Reconstruction; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); and the Defense Criminal Investigative Service’s (DCIS) made the announcement.
Mark E. Miller, 48, of Springfield, Ill., was charged in an Information filed on July 18, in the Central District of Illinois with one count of seeking and receiving bribes. He pleaded guilty before U.S. Magistrate Judge Tom Schanzle-Haskins in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.
During the hearing, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. During that time, Miller maintained a residence in Springfield. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a contracting officer representative for a number of construction projects.
Miller further admitted that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller admitted that he oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.
Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
Miller will be sentenced on November 30 before Judge Mills.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Former Bank Branch Manager Sentenced to 4+ Years in Prison for Stealing from Elderly Bank CustomersRead the Press Release
The former manager of a JPM Chase bank branch in West Seattle was sentenced today in U.S. District Court in Seattle to 54 months in prison for embezzling more than half a million dollars from the accounts of elderly customers, announced U.S. Attorney Annette L. Hayes. ROBERTA CASTILLO, 43, acted as a trusted friend and financial helper to various elderly customers of first Washington Mutual and later Chase after WAMU was sold. These elderly clients trusted CASTILLO to assist them with their financial affairs. Instead, she stole their funds by manipulating the electronic records at the bank, committing identity theft with their personal information and using innocent subordinates to make it difficult to track the disappearing funds. Chase has agreed to restore the funds to the customer accounts. At sentencing U.S. District Judge John C. Coughenour said CASTILLO had preyed on “vulnerable victims,” and asked to be updated that Chase had made the victims whole.
“This defendant stole from her elderly victims when they were most vulnerable – after the loss of a spouse, while battling illness or dealing with the challenges that sometimes come with age,” said U.S. Attorney Annette L. Hayes. “In one instance, she stole more than $350,000 from the estate of a deceased customer. This defendant’s shameful behavior deserves substantial punishment.”
According to records filed in the case, CASTILLO began working for what was then Washington Mutual in the late 1990s. She started as a teller and worked her way up to being a branch manager in West Seattle. Along the way CASTILLO worked with many customers who, as they aged, came to rely on her for their financial services. With access to their accounts, CASTILLO drained resources from at least three different sets of clients. CASTILLO was embezzling as much as $20,000 per month. She drained $364,000 from an overlooked CD in the account of a deceased client; she made 37 unauthorized transfers totaling more than $140,000 from the accounts of an elderly brother and sister; and she committed identity theft against another client opening and using a credit card in his name and getting cash from his line of credit. CASTILLO used the money to pay her bank loans, routine expenses such as manicures and gas, hotel rooms, airplane tickets, a cruise, and for bail money for a boyfriend in trouble with the law. In the wake of the thefts some of the victims have struggled to pay bills or make necessary home repairs.
In addition to the prison sentence, CASTILLO will serve five years on supervised release and is ordered to pay restitution of more than $500,000 to Chase.
The case was investigated by the Seattle Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Susan Roe.
Florida Man Sentenced to 73 Months in Prison for Leading Stolen Credit Card Trafficking Ring Involving More Than 114,000 Accounts and Losses of $23 MillionRead the Press Release
NEWARK, N.J. – A Florida man was sentenced today to 73 months in prison for his role in a conspiracy to possess and traffic stolen credit card data held by New Jersey residents, Acting U.S. Attorney William E. Fitzpatrick announced.
Miguel Gonzalez, 43, of Miami, Florida, previously pleaded guilty before U.S. District Court Judge Esther Salas to an information charging him with one count of conspiracy to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2010 and July 2013, Gonzalez obtained and possessed stolen credit card data for more than 114,000 credit card accounts. Gonzalez purchased the stolen credit card information from various vendors who advertise and transmit the data over the Internet using email and instant chat software. These vendors sold stolen credit card data obtained from network intrusions into various corporate victims, including major retailers in the state of New Jersey. The stolen credit card data was used by Gonzalez and others to create counterfeit credit cards, which were used to enter into unauthorized and fraudulent transactions. The credit card issuers associated with the more than 114,000 stolen credit card accounts suffered a combined loss of more than $23 million.
In addition to the prison term, Judge Salas sentenced Gonzalez to five years of supervised release, fined him $100,000 and ordered him to forfeit a number of items, including a house, boat, car and $30,000 in jewelry.
Acting U.S. Attorney Fitzpatrick credited agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Paul A. Murphy, Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, and Dara Aquila Govan.
Defense counsel: Ricardo P. Hermida Esq., Miami
Five Violent Jewelry Robbers Have Been ArrestedRead the Press Release
DALLAS — Five individuals who were wanted by the FBI, the DFW International Airport Department of Public Safety, the Arlington Texas Police Department, and the Garland Texas Police Department for their suspected involvement in a series of violent robberies against traveling jewelry salesmen, one of which resulted in the death of the victim, have been arrested, announced U.S. Attorney John Parker of the Northern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department's Criminal Division and Special Agent in Charge Eric K. Jackson of the Federal Bureau of Investigation.
Johnnattan Ramirez, 35, Pedro Louis Alvarez, 32, Robert Riveros, 25, Eslevy Vargas-Avila, 27, and Catherine Contreras-Beltran, 28, were charged in a federal superseding indictment in October 2016. Each defendant is charged with one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Ramirez, Alvarez and Riveros are also charged with one additional count of interference with commerce by robbery and one additional count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence.
Investigative efforts by the FBI Dallas Violent Crimes Task Force and the DFW International Airport Department of Public Safety identified Ramirez, Alvarez, Riveros, Vargas-Avila and Contreras-Beltran as suspects in these violent robberies. Further investigative efforts led to the location and arrest of all five defendants. Alvarez was arrested in New York City by the FBI and the DFW International Airport Department of Public Safety on June 27, 2016. Contreras-Beltran, Vargas-Avila, Ramirez, and Riveros were all arrested in Colombia by the Colombian National Police, DIJIN Vetted Team, on December 24, 2016, February 13, 2017, February 19, 2017, and July 19, 2017, respectively. The United States government intends to request extradition of Contreras-Beltran, Vargas-Avila, Ramirez, and Riveros, all of whom are Colombian citizens.
“I commend the extraordinary efforts of the FBI and our local and international law enforcement partners in apprehending these brazenly violent fugitives,” said U.S. Attorney Parker. “This extremely dangerous group of robbers is part of a larger organized South American Theft Group that has targeted members of the jewelry industry across this nation for a number of years. Our community is safer as a result of getting these people off our streets.”
“Thanks to the efforts of our prosecutors, the FBI and our local and international partners, all five members of this alleged armed robbery organization have been apprehended,” said Acting Assistant Attorney General Blanco. “We thank our Colombian law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working vigorously with our partners at home and abroad to apprehend and bring this and other armed robbery groups to justice.”
“This case is a testament to the exemplary work of the FBI’s Violent Crime Task Force,” said Eric K. Jackson, Special Agent in Charge of the FBI Dallas Division. “The agents on our task force worked hand in hand with state, local, and international partners to relentlessly investigate these crimes and, ultimately, identify, locate, and apprehend these violent fugitives.”
The indictment alleges, on April 27, 2016, Ramirez, Alvarez, and Riveros observed K.D., an individual who they believed to be a traveling diamond and jewelry salesman, at a store in Garland, Texas. Ramirez and Riveros approached K.D. as he was leaving the store, while Alvarez continued surveillance. Riveros then took a rolling case, a calendar catalog, calendar invoice/order forms, a Nikon digital camera, and a State of California sales permit from K.D. against his will by threatened force, violence, and fear of immediate injury to his person, that is, by brandishing a firearm.
The indictment further alleges, on June 2, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila, and Contreras-Beltran, observed C.K., an individual who they believed to be a traveling diamond and jewelry salesman, and followed him to a gas station located on East Pioneer Parkway in Arlington, Texas. Ramirez, Riveros, and Vargas-Avila approached C.K. as he was putting gas in his rental vehicle, while Alvarez and Contreras-Beltran continued surveillance. Ramirez, who had a firearm and was wearing a mask to conceal his identity, approached C.K. and searched him at gunpoint for hidden diamonds and jewelry on his person, while Vargas-Avila entered C.K.’s vehicle and took a bag containing, among other items, a diamond scale and diamond gauge.
The indictment also alleges, on June 9, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila, and Contreras-Beltran, observed M.S., an individual who they believed to be a traveling diamond and jewelry salesman, at a store in Richardson, Texas. Ramirez, Alvarez, Riveros, and Vargas-Avila followed M.S. to a DFW International Airport gas station in Euless, Texas, and observed M.S. enter the gas station’s convenience store. Riveros broke a window on M.S.’s rental vehicle with a handgun, took a case containing jewelry and placed it inside the vehicle being driven by Ramirez. M.S. ran from the store and entered Ramirez’s vehicle through the window and attempted to retrieve his case. Ramirez then drove his vehicle in a manner intended to dislodge M.S. from the vehicle, striking other vehicles in the process, before departing the area with M.S. partially inside the vehicle. Ramirez, Alvarez, Riveros, and Vargas-Avila drove to an apartment complex in Irving, Texas, where M.S. was removed from the vehicle and beaten, which contributed to the death of M.S.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count and the interference with commerce by robbery count both carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence counts each carry a maximum statutory penalty of life in federal prison and a $250,000 fine.
The FBI Dallas Violent Crimes Task Force, the DFW International Airport Department of Public Safety, Arlington Texas Police Department, and the Garland Texas Police Department investigated the case, with assistance from the Colombian National Police, DIJIN Vetted Team. Assistant U.S. Attorney Keith Robinson is prosecuting, with assistance from Joseph Wheatley, Trial Attorney, Organized Crime and Gang Section.
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Five Fugitives Arrested in Connection with String of Violent RobberiesRead the Press Release
Five individuals have been arrested in connection with their suspected involvement in a series of violent robberies against traveling jewelry salesmen, one of which resulted in the death of the victim, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Eric K. Jackson of the FBI’s Dallas Division.
“Thanks to the efforts of our prosecutors, the FBI and our local and international partners, all five members of this alleged armed robbery organization have been apprehended,” said Acting Assistant Attorney General Blanco. “We thank our Colombian law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working vigorously with our partners at home and abroad to apprehend and bring this and other armed robbery groups to justice.”
“I commend the extraordinary efforts of the FBI and our local and international law enforcement partners in apprehending these brazenly violent fugitives,” said U.S. Attorney Parker. “This extremely dangerous group of robbers is part of a larger organized South American theft group that has targeted members of the jewelry industry across this nation for a number of years. Our community is safer as a result of getting these people off our streets.”
“This case is a testament to the exemplary work of the FBI’s Violent Crime Task Force,” said Special Agent in Charge Jackson. “The agents on our task force worked hand in hand with state, local and international partners to relentlessly investigate these crimes and, ultimately, identify, locate and apprehend these violent fugitives.”
Pedro Louis Alvarez, 32, of Honduras; and four Colombian nationals, Johnnattan Ramirez, 35; Robert Riveros, 25; Eslevy Vargas-Avila, 27; and Catherine Contreras-Beltran, 28, were charged in a federal superseding indictment in October 2016 with one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery and related firearms charges. Ramirez, Alvarez and Riveros are also charged with one additional count of interference with commerce by robbery and related firearms charges. Alvarez was arrested in New York City by the FBI and the Dallas Fort Worth International Airport Department of Public Safety on June 27, 2016. Contreras-Beltran, Vargas-Avila, Ramirez and Riveros were all arrested in Colombia by the Colombian National Police, between December 2016, and July 19.
The indictment alleges that on April 27, 2016, Ramirez, Alvarez and Riveros robbed a traveling diamond and jewelry salesman at gunpoint, taking the victim’s rolling case and a Nikon digital camera, among other items, while Alvarez conducted surveillance. The indictment further alleges that on June 2, 2016, and June 9, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila and Contreras-Beltran robbed two additional traveling diamond and jewelry salesmen at gunpoint, taking from the first victim a bag containing, among other items, a diamond scale and diamond gauge, and from the second victim a case containing jewelry. According to the allegations, when the second victim attempted to retrieve his case from Ramirez’s vehicle, Ramirez drove away with the victim partially inside the vehicle, and Ramirez, Alvarez, Riveros and Vargas-Avila then removed the victim from the vehicle and beat him, which contributed to his to death.
An indictment is an accusation by a federal grand jury, and the defendants are entitled to the presumption of innocence unless proven guilty.
The FBI Dallas Violent Crimes Task Force, the Dallas Fort Worth International Airport Department of Public Safety, Arlington Texas Police Department and the Garland Texas Police Department investigated the case, with assistance from the Colombian National Police. The case is being prosecuted by Assistant U.S. Attorney Keith Robinson and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
Federal Court Bars Louisiana Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court in Louisiana has permanently barred Finecia Draper from preparing federal income tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Finecia Draper of Simmesport, Louisiana prepared false returns through her sole proprietorship, B&R’s Unlimited Fashion located at 245 Moreau Street in Simmesport, Lousiana. In addition to barring Draper from preparing tax returns, the court ordered her to prominently post a notice in her place of business stating that she is barred from preparing tax returns for others.
According to the government’s complaint, Draper prepared tax returns that fraudulently understated her customers’ income and tax liabilities and/or overstated the refunds they were entitled to receive. According to the complaint, Draper did so by submitting Schedules C, Profit or Loss From Business, with the returns to fabricate or inflate business losses claimed by her customers. In many of the examples cited in the complaint, the taxpayer did not even own or operate a business. The bogus losses that Draper claimed fraudulently understated the income her customers earned which resulted in underreporting their tax liabilities and overstating the refunds they were due, according to the complaint. The complaint additionally alleged that Draper fraudulently claimed and/or inflated the Earned Income Tax Credit (EITC) on returns she prepared.
From 2011 to 2015, Draper prepared over 2,000 returns, according to the complaint. The complaint alleged that audits of 163 returns prepared by Draper in 2011, 2012 and 2013 revealed that she overstated refunds and understated tax liability by over $275,000 in the aggregate.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County, New Jersey, Man Sentenced to 39 Months in Prison for Defrauding InvestorsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man was sentenced today to 39 months in prison for fraudulently using more than $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Esposito, 45, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.
In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.
In addition to the prison term, Judge Martini sentenced Esposito to three years of supervised release. Restitution will be determined at a late date.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
El Salvador man indicted on an illegal alien chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An El Salvador man has been indicted by a federal grand jury on a reentry of a removed alien charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jose Angel Gabriel Palma-Erazo, age 31, was indicted on one count of “Reentry of Removed Alien.” Palma-Erazo, having previously been removed from Texas, allegedly was found in Berkeley County in June 2017 without consent.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The U.S. Department of Homeland Security, Immigrations and Customs Enforcement and the Jefferson County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to Nine Years in Prison for Three Armed Robberies of Commercial EstablishmentsRead the Press Release
WASHINGTON – Anthony Burns, 24, of Washington, D.C., was sentenced today to nine years in prison for a series of armed robberies targeting commercial businesses, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Burns pled guilty in May 2017, in the U.S. District Court for the District of Columbia, to one count of conspiracy to interfere with interstate commerce by robbery, three counts of interference with interstate commerce by robbery, and one count of using, carrying, brandishing and possessing a firearm during a crime of violence. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Burns will be placed on four years of supervised release. He also was ordered to pay $3,194 in restitution and an identical amount in a forfeiture money judgment.
Three others have pled guilty and been sentenced on federal charges related to their roles in the armed robberies, which targeted stores in Washington, D.C. and Maryland. They include Gregory Hull, 23, of Suitland, Md, Breyon Lee, 24, and Lee’s brother, Bradley Lee, 21, both of Washington, D.C. Hull and Breyon Lee were each sentenced to 51 months in prison, and Bradley Lee was sentenced to a 48-month prison term. All will be placed on three years of supervised release following completion of their prison terms, and all must pay restitution.
According to the government’s evidence, on Nov. 27, 2015, at approximately 2 p.m., store surveillance video captured Burns, Hull, and an unidentified co-conspirator, who were masked and armed with handguns, as they robbed the City Beats shoe store, in the 3000 block of Martin Luther King, Jr. Avenue SE. The men ordered everyone in the store to get on the floor. Burns approached a store employee with his gun drawn and demanded that the employee open the cash register. Burns, Hull, and their accomplice fled with approximately $1,594 in stolen cash and eight pairs of stolen shoes, valued at $1,600.
According to the government’s evidence, on Dec. 13, 2015, at approximately 4:40 a.m., Burns and an unidentified co-conspirator entered the 7-Eleven convenience store in the 4600 block of South Capitol Street SW. Surveillance video showed that both men tried to conceal their identities using masks and hooded garments, and Burns was armed with a handgun. Burns pointed a gun at a store employee’s head, grabbed him behind the collar, and forced him behind the store counter. Burns demanded money from the cash register and a safe underneath the counter. When the employee was unable to open the register and safe, Burns struck him on the back of his head with the gun, causing a laceration. A second employee came out of the bathroom, and Burns’s accomplice forced the employee to open the cash registers. Burns and his accomplice grabbed an undetermined amount of cash from the registers and several packs of cigarettes and cigars.
About 40 minutes after the 7-Eleven robbery, government evidence shows, Burns and the accomplice entered another 7-Eleven store in the 900 block of Eastern Avenue NE, again wearing masks and hooded garments. Burns jumped over the counter and pointed the gun at the cashier, demanding money from the cash register. The employee opened both registers. Burns and his accomplice grabbed an undetermined amount of cash and fled.
Burns was arrested pursuant to an arrest warrant on Dec. 29, 2015.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the actions of those who worked on the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Margaret Barr, Paralegal Specialist Catherine O’Neal, and Legal Assistant Peter Gaboton. Finally, they commended the work of Assistant U.S. Attorney Jamila Hodge, who prosecuted the case.
District Man Pleads Guilty to Bank RobberyRead the Press Release
WASHINGTON – Kevin Aguilar, 24, of Washington, D.C., pled guilty today to a federal bank robbery charge stemming from a hold-up he committed earlier this year at a bank in downtown Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Aguilar entered the plea in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Aguilar faces a likely range of 57 to 71 months in prison and a fine of up to $150,000. The plea agreement calls for him to pay $852 in restitution and an identical amount in a forfeiture money judgment. The Honorable Reggie B. Walton scheduled sentencing for Oct. 12, 2017.
According to the government’s evidence, on Jan. 26, 2017, at approximately 11:15 a.m., Aguilar entered a Capital One Bank in the 1200 block of F Street NW. He gave the teller a note in which he threatened to shoot the teller unless he immediately was given $10,000. The teller handed over $852, and Aguilar fled. He later was identified through bank surveillance footage and other evidence. Aguilar was arrested on April 18, 2017, and has been in custody ever since.
As part of the plea, Aguilar also admitted attempting to rob a BB & T bank in the 600 block of 13th Street NW on June 24, 2016. In that incident, he demanded money and stated, “I’m going to count to three and I’ll shoot … one.” The teller pressed an alarm and he fled without any cash. Aguilar was identified as the robber through surveillance videos and other evidence.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section, and Paralegal Specialist Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorneys Akhi Johnson and Lisa Walters, who investigated and prosecuted the case.
District Man Found Guilty of Charges in Killings of Two Roommates in Northwest WashingtonRead the Press Release
WASHINGTON – Jeffrey Neal, 25, of Washington, D.C., was found guilty by a jury today of charges stemming from the slayings of his two roommates, whose bodies were found at their residence in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Neal was found guilty of two counts of first-degree murder while armed, with aggravating circumstances, and related offenses. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Chief Judge Robert E. Morin scheduled sentencing for Oct. 20, 2017.
According to the government’s evidence, on June 12, 2014, at approximately 11:35 a.m., officers with the Metropolitan Police Department (MPD) were dispatched to a house in the 1800 block of Eighth Street NW for a report of an unconscious person. The body of Leon Young, 22, was discovered in the attic, naked except for a black plastic bag tied around his head. Neal was arrested the following day and charged with Mr. Young’s murder.
On June 16, 2014, police returned to the house and discovered the body of Delano Wingfield, 23, in a shallow grave in the backyard. He was naked except for a pair of socks.
An investigation determined that both men were beaten multiple times in the head with a hammer. During the investigation, police learned that Mr. Young and Mr. Wingfield were childhood friends with the defendant. When the police interviewed Neal, he confessed to killing Mr. Young. He claimed he killed Mr. Young in self-defense, after Mr. Young allegedly confessed to killing Mr. Wingfield. Neal claimed he hit Mr. Young twice in the head with a hammer in self-defense. However, the autopsy of Mr. Young revealed that Mr. Young had been hammered in the head at least 26 times. Some of those blows were after the black plastic bag had been placed on Mr. Young’s head. Further, according to the government’s evidence, DNA evidence of Mr. Wingfield’s blood was found in various locations in Neal’s bedroom. Also, Neal told detectives that he left a pair of socks on Mr. Young’s body. However, Mr. Young was not discovered with socks. It was Mr. Wingfield’s body that had on a pair of socks.
In announcing the verdict, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences; the FBI’s Cellular Analysis Survey Team; the FBI’s DNA Casework Unit; the District of Columbia Office of the Chief Medical Examiner; Bode Cellmark Forensics, and the New Smyrna Beach Police Department of New Smyrna Beach, Fla.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan, Deputy Chief of the Homicide Section; Chrisellen Kolb, Deputy Chief of the Appellate Section; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialist Kelly Blakeney; former Paralegal Specialists Fern Rhedrick, Amoret Vanterpool, and Vanessa Trent-Valentine; Marcia Rinker, David Foster, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Criminal Investigators John Marsh, Durand Odom, and Zachary McMenamin; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie, Contract Specialist Sallie Rynas; Interns Hayley Poindexter and Simone Unwalla, and former intern Benjamin Symons.
Finally, they commended the work of Assistant U.S. Attorneys Shana L. Fulton and Veronica Sanchez, who investigated and prosecuted the case.
Decorated Naval Aviator Steals $124,000 from Distinguished Flying Cross SocietyRead the Press Release
Assistant U.S. Attorney Phillip L.B. Halpern (619) 546-6964
NEWS RELEASE SUMMARY – July 25, 2017
SAN DIEGO – Decorated Naval Veteran Anthony Ventura admitted today in federal court that he used his position as treasurer of the Distinguished Flying Cross Society to embezzle $124,000 in charity funds.
The defendant had a distinguished military career in which he flew numerous combat missions in Vietnam. Among other honors, he was awarded, the Vietnam Service Medal, the Republic of Vietnam Campaign Medal, the National Defense Service Medal, the Bronze Star, and the Distinguished Flying Cross. Following his military career, he had a number of jobs, including serving as a Senior Vice President with Wachovia Securities, LLC.
The Distinguished Flying Cross (“DFC”) is awarded to aviators and aircrew for heroism or extraordinary achievement during aerial flight. The first DFC medal was awarded by President Coolidge to Captain Charles A. Lindbergh for his solo flight across the Atlantic Ocean in 1927. Other recipients include Commander Richard E. Byrd and Amelia Earhart. It is the only medal conferred by all five military services in all wars and campaigns since World War I.
The Distinguished Flying Cross Society (“DFCS”) is a national society formed to honor men and women who have been awarded the Distinguished Flying Cross. The Society was founded on fraternity and fellowship among military fliers. It seeks to preserve the rich heritage and historical narratives of those who are recipients of the DFC and to educate the public as to the value of courage, patriotism and character. Among other things, the DFCS Teams with other organizations (e.g., the Congressional Medal of Honor Foundation) to educate young Americas. It also awards scholarships to the descendants of DFCS members, who are pursuing degrees at accredited institutions of higher learning.
From on or about July 2012 through January 2016, Ventura served as the Treasurer for the DFCS. In this capacity, he had access to and control over the DFCS’s bank accounts, credit card accounts, and bookkeeping records. As Treasurer of the DFCS, Ventura was the custodian of all DFCS funds and had fiduciary responsibility to: (i) ensure that all funds were deposited in a bank designated by the Board of Directors; (ii) oversee the disbursal of funds as authorized by the Chairman, President, or Board of Directors; (iii) prepare financial reports for Board meetings; and (iv) submit tax returns as required by State and Federal authorities.
In 2014, as result of a series of unfortunate business decisions, the defendant filed for personal bankruptcy. At this point, he had insufficient funds on hand to perform a number of activities, such as trading stocks and maintaining his stable of horses. In order to maintain his lifestyle, Ventura opened up a bank account at the Travis Credit Union that he concealed from the Board of Directors of the DFCS. He then transferred $124,000 of DFCS assets to the Travis Credit Union account. He used these funds for a variety of personal activities, including: (i) $30,561 to run his personal horse stable (“Sovran Star Stables); (ii) $67,000 to purchase stocks/bonds through a company he set up for that purpose (“Ironbeam LLC”); and (iii) $25,600 in cash withdrawals to cover personal living expenses. In order to conceal and disguise his theft of DFCS funds, Ventura created fake quarterly financial summaries for the DFCS Board of Directors.
In addition to the embezzlement of DFCS funds, Ventura also filed a false Charitable Organization Tax Form, Form 990-EZ, for the calendar year 2014. This return, which was verified by a written declaration that it was made under the penalties of perjury, falsely reported that the DFCS had cash, savings, and investments in the amount of $148,049, whereas in truth and fact, it had only $15,810.80 as Ventura had removed and converted to his personal use the rest of its funds.
“Regardless of how significant an individual’s contribution is to our society or how desperate their financial condition, there can be no excuse for stealing charitable funds that are destined for the awarding of scholarships,” said Acting U.S. Attorney Alana Robinson.
“The FBI is proud to serve this organization of war heroes by uncovering a scheme that stripped their funds intended for charitable and noble purposes," said Special Agent in Charge Eric S. Birnbaum.
“It is unfortunate that Naval Veteran Anthony Ventura’s service to this country will now be tarnished by his decision to embezzle funds from the Distinguished Flying Cross Society, which also led him to file a fraudulent tax return on its’ behalf,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “Mr. Ventura ignored his duty to file an accurate tax return and will now be labeled a convicted felon, in addition to a decorated naval aviator.”
DEFENDANT: Case Number 17cr1271-JLS
Anthony Ventura Age: 71 Lincoln, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Filing a False Tax Return – Title 26, U.S.C., Section 7206(1)
Maximum penalty: 3 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Internal Revenue Service - CI
Crips Gang Member Sentenced to 20 Years for Racketeering Conspiracy in NebraskaRead the Press Release
A violent member of the Crips gang was sentenced today to 20 years in prison and three years of supervised release for participating in a racketeering conspiracy involving multiple acts of violence, including murder, attempted murder, assaults, witness tampering and drug distribution, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Dionte Dortch, aka “Killa Tay,” 24, of Omaha, Nebraska, was sentenced by U.S. District Judge Joseph F. Bataillon after he pleaded guilty to one count of conspiracy to participate in racketeering activity, one count of witness tampering, one count of attempted obstruction of justice and one count of possession of a firearm by a felon.
According to the plea agreement, Dortch admitted that he was a member of the Omaha-area chapter of the Crips known as the “40th Avenue Crips” and “44th Avenue Crips,” and that he personally committed acts of violence for the gang in furtherance of the racketeering conspiracy. According to the plea, these acts of violence included an attempt to hire a hitman to kill a potential witness against him at trial in this case, shooting at a vehicle occupied by four individuals and using threats of violence to prevent a witness from testifying before a federal grand jury.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Cowart Seafood, Inc. President Sentenced to 25 Months in Prison for Illegal Seafood Conspiracy and Firearms ViolationRead the Press Release
Gulfport, Miss – Lonnie M. Ray, the president of Cowart Seafood, Inc., of Bay St. Louis, Mississippi, was sentenced today to 25 months in federal prison for conspiracy to violate the Lacey Act and illegal possession of a short-barreled shotgun, announced Acting U.S. Attorney Harold Brittain; Assistant Director Tracy A. Dunn with the National Oceanic and Atmospheric Administration; Special Agent in Charge Louis Santiago with the U.S. Fish and Wildlife Service; Chief Keith Davis with the Mississippi Department of Marine Resources, Office of Marine Patrol; Resident Agent in Charge Jason Denham with the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Justin Green, Special Agent in Charge, Southeast Region, U.S. Food and Drug Administration - Office of Criminal Investigation. The Lacey Act makes it unlawful to sell in interstate commerce any fish taken in violation of state law.
Ray previously pled guilty to conspiring to violate the Lacey Act by selling fish to Louisiana seafood buyers that was taken in violation of Mississippi law. According to Mississippi law, seafood dealers are required to submit information about each seafood purchase from a commercial fisherman on a form known as a trip ticket that is provided by the Mississippi Department of Marine Resources ("DMR"). Ray admitted violating this requirement by failing to report seafood purchases to DMR and by buying fish from recreational fisherman in violation of state law. The Lacey Act charges against Shelley H. Ray, who was also named in the indictment, were dismissed. Lonnie Ray also pled guilty to owning a 12-gauge double-barrel shotgun, having a barrel of less than l8 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.
Acting United States Attorney Brittain praised the efforts of the federal and state investigative agencies for their diligent work in the investigation of this matter.