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11 September 2017
Business Agent Pleads Guilty to $3.5 Million Tax FraudRead the Press Release
RICHMOND, Va. – Edward R. Prestes, 48, of Glen Allen, pleaded guilty today to conspiracy to defraud the IRS of over $3 million in employment and income taxes.
According to court documents, the purpose of the conspiracy was to evade the payment of income and employment taxes to the IRS for laborers working for various construction companies by paying the laborers “under the table.” From in or about 2011 through in or about 2013, Prestes was an agent for the following nominee corporations, incorporated in the Commonwealth of Virginia: Virginia American Contractors, LLC; Elson Contractors, LLC; Proactive Services, LLC; Positive Solutions, LLC; and Service Contractors, LLC, (“nominee corporations”). These nominee corporations all had the same address, a post office box in Glen Allen, but each nominee corporation had a separate bank account for which Prestes was an authorized signatory.
According to court documents, various construction companies made regular payments to the nominee corporations. Prestes then distributed the funds from the nominee corporations to the laborers. Prestes would make these payments to laborers by both cash and check. Prestes did not withhold any income or employment taxes, issue Forms W-2 or 1099 to the laborers, or file quarterly returns (Forms 941) or yearly income tax returns for the nominee corporations as required by law. At the end of each year, the construction companies issued IRS Forms 1099 to the nominee corporations and deducted the payments.
According to court documents, from in or about 2011 through in or about 2013, the construction companies paid over $9.2 million to the nominee corporations. Prestes then paid the laborers approximately $2.8 million in cash and $6.3 million in checks. Prestes kept as a commission approximately 2 1/2 to 3 1/2 percent of the funds he received from the construction companies. As a result of this conspiracy, the IRS lost over $3 million in employment and income taxes.
Prestes faces a maximum penalty of 5 years in prison when sentenced on December 12. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge of IRS-Criminal Investigations, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-CR-114.
Buffalo Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Orlando Rios, 45, a/k/a Fifo, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of one kilogram or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 10 years and a maximum of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between March 2014, and June 2015, the defendant conspired with Daniel Molina-Rios, Jose Andujar, Luis Montanez, and others, as part of a wide-scale drug trafficking organization that distributed heroin on the West Side of Buffalo. Rios headed the organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin or illegal use.
During the conspiracy, the defendant made at least six trips to the New York City area to obtain large quantities of heroin from a source of supply, purchasing at least 300 grams of heroin on each trip. In addition, during the time period of the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
The defendant also maintained a premise, located at 42 Potomac Avenue in Buffalo, for the purpose of distributing heroin. During the execution of a search warrant at that residence on June 18, 2015, law enforcement officers recovered a digital scale, glassine bags, rubber bands, one Cricket cellular telephone, one black Verizon phone, $4,510.00 in cash, and a Colt .380 pistol loaded with live automatic rounds in the magazine.
A total of 14 defendants have been indicted in connection with this case, and Rios is the ninth to be convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for December 14, 2017, at 11:00 a.m. before Judge Geraci.
Attorney Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DONALD J. McCARTHY, 67, of East Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, for the tax years 1997 through 1999, 2001, 2003, and 2008 through 2011, McCARTHY, an attorney, filed federal personal income tax returns, but failed to pay the outstanding tax balances due and owing for those years, or failed to pay interest and penalties that had accrued on outstanding amounts. In addition, for the tax years 2012 through 2014, McCARTHY did not file personal income tax returns at all, and failed to pay taxes that were due and owing, as well as interest and penalties that had accrued on outstanding amounts.
The investigation revealed that McCARTHY attempted to evade the payment of income taxes by depositing his payroll checks into his personal bank account and then, shortly thereafter, withdrawing a substantial portion of the monies in cash and bank checks.
By June 2015, when he learned of the criminal investigation being conducted by the Internal Revenue Service, McCARTHY owed $1,437,037 in back taxes, interest and penalties.
Judge Underhill scheduled sentencing for December 4, 2017, at which time McCARTHY faces a maximum term of imprisonment of five years. McCARTHY also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
McCARTHY was released on a $50,000 bond pending sentencing.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Albuquerque Woman Sentenced to Twenty-Seven Years for Conviction on Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Bernalillo County Sheriff Manuel Gonzales, III, announced today that a federal judge has sentenced an Albuquerque-based methamphetamine trafficker with ties to the Sinaloa cartel to a 324-month term of imprisonment followed by five years of supervised release. Sandra Cook, 53, was sentenced based on her conviction by jury verdict on methamphetamine trafficking charges following a three-day trial in May 2017.
Cook was arrested on Feb. 24, 2016, on an indictment charging her with possessing methamphetamine with intent to distribute on June 30, 2015. The indictment was superseded on Feb. 28, 2017, to add another offense charging Cook with possessing methamphetamine with intent to distribute on Feb. 24, 2016. Cook’s trial on the two-count superseding indictment began on May 8, 2017, and concluded on May 11, 2017, when the jury returned a guilty verdict against Cook on both counts.
The trial testimony established that on June 30, 2015, officers of the Bernalillo County Sheriff’s Office (BCSO) seized multiple bundles of methamphetamine weighing approximately 3.2 kilograms (7.2 pounds) and over $22,000 in cash when they executed a search warrant at Cook’s residence. Following the filing of federal charges against Cook, she became a federal fugitive. In Feb. 2016, HSI used a court-authorized GPS tracker and data from Cook’s cell phone to locate Cook at a residence in Albuquerque. On Feb. 24, 2016, HSI and BSCO executed a search warrant at the residence where they located Cook standing near a kitchen table on which an open tool bag was sitting. The tool bag contained her driver’s license and a bag containing 441.6 grams of 100% pure methamphetamine.
This case was investigated by HSI and BCSO and was prosecuted by Assistant U.S. Attorneys Alexander M. Uballez and Peter J. Eicker.
Albuquerque Felon Sentenced to Four Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pilar Angel Lucero, 33, of Albuquerque, N.M., was sentenced today to 48 months in prison for violating federal firearms laws by unlawfully possessing a firearm and ammunition. Lucero will be on supervised release for three years after completing his prison sentence.
Lucero was charged by criminal complaint on July 7, 2016, with being a felon in possession of a firearm and ammunition on June 16, 2016, in Bernalillo County, N.M., following a routine traffic stop by the Albuquerque Police Department (APD). subsequently was indicted on the same charge on July 28, 2016. According to the indictment, was prohibited from possessing firearms or ammunition because of his previous felony convictions for shooting at a dwelling, shooting at or from a motor vehicle, drug trafficking, child abandonment/abuse, conspiracy to traffic in controlled substances, being a felon in possession of a firearm, and conspiracy to commit burglary of a house.
On May 2, 2017, Lucero pled guilty to the indictment and admitted that on June 16, 2016, APD officers found a handgun with 11 rounds of ammunition in his vehicle during a traffic stop. Lucero further admitted purchasing the handgun by using a fake New Mexico driver’s license while knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the FBI and the APD. Assistant U.S. Attorney Jennifer M. Rozzoni prosecuted the case.
Albuquerque Felon Facing Federal Commercial Robbery and Firearms Charges Arising Out of Aug. 29, 2017 Crime SpreeRead the Press Release
ALBUQUERQUE – Martin Garcia, 37, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws. The charges against Garcia arise out of an Aug. 29, 2017 crime spree, during which Garcia allegedly robbed two commercial businesses at gunpoint, attempted to run over an officer, and shot a firearm in the direction of an officer who was trying to apprehend him. Garcia remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for Sept. 12, 2017.
Garcia is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The criminal complaint alleges that on Aug. 29, 2017, Garcia robbed two employees of a wireless communications service provider in Albuquerque at gunpoint. Before departing from the store with cash from the cash registers, Garcia allegedly ordered the employees to the store’s back room and threatened to kill them if they left the room. Later that day, Garcia allegedly robbed two employees at a pizza restaurant in Albuquerque at gunpoint. As Garcia departed from the restaurant, he was followed by a third employee who provided information on Garcia’s path of travel to law enforcement authorities.
According to the criminal complaint, a high-speed pursuit occurred as officers attempted to apprehend Garcia. During the pursuit, Garcia allegedly rear-ended a civilian vehicle, attempted to run over an officer who was deploying a spike strip across the road, and fired a shot at an officer of the Albuquerque Police Department (APD) who was pursuing him. APD officers arrested Garcia in northeast Albuquerque after crashing his vehicle and running into an abandoned residence. Officers allegedly seized a loaded firearm from a closet in the abandoned residence, a shell casing on the floorboard of the vehicle Garcia had been driving, and a second shell casing on the ground near the driver’s side door of the vehicle.
Court records reflect that on Aug. 29, 2017, Garcia was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Garcia has been in state custody since his arrest on Aug. 29, 2017. The FBI arrested Garcia on the charges in the federal criminal complaint today after he was transferred to federal custody from state custody. The related state charges will be dismissed in favor of federal prosecution.
If convicted on the charges in the criminal complaint, Garcia faces a statutory maximum penalty of 20 years in prison on the Hobbs Act charge and ten years in prison on the felon in possession of a firearms charge. Garcia also faces up a mandatory minimum of ten years of imprisonment for discharging a firearm, which must be served consecutive to any sentence imposed on the other two charges. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Albuquerque Felon Facing Federal Charge After Allegedly Brandishing a Loaded Firearm at an OfficerRead the Press Release
ALBUQUERQUE –Jeremias Robertson, 26, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. Robertson remains in federal custody pending a preliminary hearing and detention hearing, both of which are scheduled for Sept. 12, 2017.
The criminal complaint alleges that the Albuquerque Police Department (APD) arrested Robertson on Aug. 18, 2017, after he allegedly brandished a loaded firearm at an APD officer. According to the criminal complaint, the officer had been dispatched to downtown Albuquerque in response to calls reporting that a man was pointing a firearm at people in the area. When the officer arrived in the area, he observed Robertson holding a firearm. When the officer ordered Robertson to drop the firearm, he allegedly pointed the firearm at the officer. After Robertson allegedly continued to disregard the officer’s commands and brandished the firearm at the officer, the officer shot Robertson. After Robertson was arrested, APD recovered the firearm, which allegedly was loaded with eight rounds of ammunition.
Robertson was prohibited from possessing firearms or ammunition on Aug. 18, 2017, because of his previous felony conviction for aggravated battery resulting in great bodily harm out of a state court in Wisconsin. If convicted of the charge in the criminal complaint, Robertson faces a statutory maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and is being prosecuted by Assistant U.S. Attorney Howard Thomas. The case is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Felon Charged with Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – This morning Morris Mora, 29, of Albuquerque, N.M., made his initial appearance before a U.S. Magistrate Judge on an indictment charging him with being a felon in possession of a firearm and ammunition. Mora remains in federal custody pending an arraignment hearing and detention hearing, both of which are scheduled for Sept. 12, 2017.
Mora is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The indictment against Mora alleges that Mora unlawfully possessed a firearm and ammunition in Bernalillo County, N.M., on March 8, 2017. At the time, Mora was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated assault with a deadly weapon, aggravated assault on a peach officer with a deadly weapon, and aggravated fleeing from a law enforcement officer.
Court records reflect that officers of the Albuquerque Police Department (APD) arrested Mora on state charges, including a related firearms charge, in the North Valley of Albuquerque on March 8, 2017. Mora was arrested on the federal charge in the indictment today after he was transferred to federal custody from state custody. The related state firearms charge will be dismissed in favor of federal prosecution.
If convicted on the charge in the federal charge in the indictment, Mora faces a statutory maximum penalty of ten years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
Akwesasne Resident Admits Illegal Transportation of AlienRead the Press Release
ALBANY, NEW YORK – Kanento Boots, age 63, of Akwesasne, Ontario, Canada, was sentenced today to time served (111 days in jail) and 1 year of supervised release for illegally transporting an alien within the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Boots pled guilty on August 15, 2017. He admitted that on May 23, 2017, on the Akwesasne reservation near Hogansburg, New York, he picked up a Hungarian man, Zsolt Mihaly, who had just crossed the border illegally from Canada. Boots drove Mihaly a short distance and Mihaly then got into the car of another driver, Constantin Chiriac. All three were arrested.
Mihaly pled guilty on June 6 to illegal entry into the United States, a misdemeanor, and was sentenced to 36 days in jail. Chirac pled guilty on July 17 to illegal transportation of an alien and is scheduled to be sentenced on September 18.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
8 September 2017
United States Citizen Pleads Guilty to Providing Material Support to Al ShabaabRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Dana J. Boente, Acting Assistant Attorney General for National Security, announced that MAALIK ALIM JONES pled guilty today before U.S. District Judge Paul G. Gardephe to conspiring to provide material support to al Shabaab, a designated Foreign Terrorist Organization based in Somalia, conspiring to receive military training from al Shabaab, and carrying and using an AK-47 machine gun, rocket-propelled grenades, and other destructive devices in furtherance of his support for al Shabaab. In 2011, JONES, a United States citizen, traveled to Somalia, where he took up arms and provided military support to al Shabaab for approximately four years.
Acting U.S. Attorney Joon H. Kim said: “As he admitted in court today, Maalik Jones traveled to Somalia, was trained by al Shabaab in the use of an AK-47 and rocket-propelled grenades, and took up arms for four years as a terrorist fighter. For his allegiance to this lawless, terrorist organization that vows to destroy America and its values, Maalik Jones been held to account in an American court of law. All that is left is for him to be sentenced for his crimes.”
Acting Assistant Attorney General Dana J. Boente said: “Jones pleaded guilty to conspiring to provide material support to al Shabaab, by traveling abroad to join and fight on behalf of the foreign terrorist organization for four years. I want to thank the many prosecutors, agents, and analysts who made this result possible.”
According to the Complaint, the Indictment, the Superseding Information, and statements made in court proceedings, including today’s guilty plea:
In February 2008, the U.S. Department of State designated al Shabaab as a Foreign Terrorist Organization. Al Shabaab has used violent means – including targeted assassinations of civilians and journalists, and the use of improvised explosive devices, rockets, mortars, and automatic weapons – to, among other things, destabilize the government of Somalia, quell the Somali population, and force the withdrawal of foreign troops in Somalia. A former leader of al Shabaab, whose exhortations were echoed by the leadership of al Qaeda, called for foreign fighters to join al Shabaab in a “holy war” in Somalia. As a result of al Shabaab’s recruitment efforts, men from other countries – including the U.S. – have traveled to Somalia to engage in violent jihad.
Since al Shabaab’s designation as a Foreign Terrorist Organization in February 2008, it has made several public statements demonstrating its intent to harm U.S. interests. For example, in or about April 2008, al Shabaab released a statement declaring a campaign against the U.S. Similarly, after an al Shabaab member was killed in May 2008, al Shabaab leaders announced that the mujahideen would “hunt the U.S. government” and that governments supporting the U.S. and Ethiopia should keep their citizens out of Somalia. In April 2009, al Shabaab claimed responsibility for mortar attacks against a U.S. congressman who had been visiting Somalia, and in February 2012, the then-Emir of al Shabaab swore allegiance to Ayman al-Zawahiri, the Emir of al Qaeda, stating that al Shabaab “will hereby merge into al Qa’ida.”
Al Shabaab also maintains a specialized fighting force, known as Jaysh Ayman, that is responsible for carrying out commando-style attacks and cross-border raids in which fighters, among other things, travel across the land border between Somalia and Kenya to target individuals and conduct attacks against civilian and military targets in Kenya. Among the attacks executed by Jaysh Ayman fighters are: (i) a June 16, 2014, attack in which al Shabaab fighters opened fire in a hotel bar in Mpekatoni, Kenya, killing approximately 40 people; (ii) a July 2014 attack in Hindi, Kenya, in which approximately 12 al Shabaab fighters opened fire at a trading center and set fire to government buildings and a church, killing nine people; and (iii) a June 14, 2015, attack in which al Shabaab fighters ambushed a Kenyan Defense Force base in Lamu County, Kenya, using various weapons, including AK-47 rifles and rocket-propelled grenades and killing two Kenyan Defense Force soldiers (the “Lamu Attack”).
In or about July 2011, JONES left Baltimore, Maryland, with the intent to join al Shabaab in Somalia. JONES traveled to New York City, from where he flew via commercial aircraft to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, JONES traveled by land from Kenya to Somalia, which is a common travel route for foreign fighters traveling to Somalia to join al Shabaab.
In Somalia, JONES joined al Shabaab and was a member of the terrorist organization for approximately four years. During this time, JONES trained, worked, and fought with al Shabaab in Somalia. Among other things, JONES received three months of military training at an al Shabaab training camp, where he learned, among other things, how to operate an AK-47 assault rifle and rocket-propelled grenades. Upon completion of this training, JONES also was assigned to al Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
In particular, after joining Jaysh Ayman, JONES and his Jaysh Ayman unit participated in a battle in Afmadow, Somalia, against Kenyan government soldiers. JONES, armed with an AK-47 rifle, engaged in the fighting until he was injured by a missile and then hospitalized. After his release from the hospital, JONES returned to his service with al Shabaab and, in particular, Jaysh Ayman.
JONES has appeared with other al Shabaab fighters in videos that were recovered from an al Shabaab fighter who participated in and was killed during the aforementioned Lamu Attack. In one of the videos, JONES possessed a firearm, and is seen with several al Shabaab fighters. The al Shabaab fighters are depicted greeting each other, hugging each other, and carrying firearms.
On or about December 7, 2015, JONES was taken into custody by Somali authorities while he was attempting to procure a boat to depart Somalia for Yemen.
* * *
JONES, 32, a United States citizen who resided in Maryland until 2011, pled guilty to one count of conspiring to provide material support to al Shabaab; one count of conspiring to receive military training from a designated foreign terrorist organization; and one count of possessing, carrying, and using a machine gun and other destructive devices during and in relation to a crime of violence. The material support count carries a maximum sentence of 15 years in prison. The military training count carries a maximum sentence of five years in prison. The machine gun count carries a maximum sentence of life in prison, with a mandatory minimum sentence of 30 years in prison, which must run consecutively to any other sentence. The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court. JONES, who has been detained since his arrest in December 2015, will be sentenced by Judge Gardephe on January 25, 2018.
Mr. Kim praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. He also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Andrew J. DeFilippis and Shawn G. Crowley, and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section, are in charge of the prosecution.
U.S. Citizen Pleads Guilty to Providing Material Support to Al ShabaabRead the Press Release
Maalik Alim Jones, 32, a U.S. citizen who resided in Maryland until 2011, pleaded guilty to conspiring to provide material support to al Shabaab, a designated foreign terrorist organization based in Somalia, conspiring to receive military training from al Shabaab, and carrying and using an AK-47 machine gun, rocket-propelled grenades and other weapons in furtherance of his support for al Shabaab.
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Joon H. Kim for the Southern District of New York made the announcement. U.S. District Judge Paul G. Gardephe presided over the hearing.
“Jones pleaded guilty to conspiring to provide material support to al Shabaab, by traveling abroad to join and fight on behalf of the foreign terrorist organization for four years,” said Acting Assistant Attorney General Boente. “I want to thank the many prosecutors, agents, and analysts who made this result possible.”
“As he admitted in court today, Maalik Jones traveled to Somalia, was trained by al Shabaab in the use of an AK-47 and rocket-propelled grenades and took up arms for four years as a terrorist fighter,” said Acting U.S. Attorney Kim “For his allegiance to this lawless, terrorist organization that vows to destroy America and its values, Maalik Jones been held to account in an American court of law. All that is left is for him to be sentenced for his crimes.”
According to the Complaint, the Indictment, the Superseding Information, and statements made in court proceedings, including today’s guilty plea:
In 2011, Jones traveled via commercial aircraft from New York to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, Jones traveled by land from Kenya to Somalia where he trained, worked and fought with al Shabaab in Somalia. Among other things, Jones received military training at an al Shabaab training camp, where he learned to operate an AK-47 assault rifle and rocket-propelled grenades. Jones also became a member of al Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
In particular, after joining Jaysh Ayman, Jones and his Jaysh Ayman unit participated in a battle in Afmadow, Somalia, against Kenyan government soldiers. Jones, armed with an AK-47 rifle, engaged in the fighting until he was injured by a missile and then hospitalized. After his release from the hospital, Jones returned to his service with al Shabaab and, in particular, Jaysh Ayman.
The material support count carries a maximum sentence of 15 years in prison. The military training count carries a maximum sentence of 5 years in prison. The machinegun count carries a maximum sentence of life in prison, with a mandatory minimum sentence of 30 years in prison, which must run consecutively to any other sentence. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. Jones, who has been detained since his arrest in December 2015, will be sentenced by Judge Gardephe on Jan. 25, 2018.
Mr. Boente and Mr. Kim praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. He also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
Assistant U.S. Attorneys Andrew J. DeFilippis and Shawn G. Crowley of the Southern District of New York, and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section are prosecuting this case.
Two Drug Traffickers Sentenced for Cape Cod Heroin Trafficking ConspiracyRead the Press Release
BOSTON – Two men, formerly of Hyannis, were sentenced yesterday in federal court in Boston for their roles in a heroin trafficking operation on Cape Cod.
Anthony Hall, 31, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 30 months in prison and three years of supervised release. In January 2017, Hall pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute. Richard Serriello, 29, was sentenced by U.S. District Court Judge Mark L. Wolf to 30 months in prison and five years of supervised release during which time he is forbidden from living on Cape Cod. In September 2016, Serriello pleaded guilty to possession of heroin with the intent to distribute.
In October 2015, federal investigators determined that Nauti-Block leader Denzel Chisholm and his co-conspirators were responsible for a significant quantity of the heroin being distributed on Cape Cod. Serriello purchased large quantities of heroin from Chisholm. In May 2015, Serriello was arrested after a high-speed motorcycle pursuit, wherein police officers recovered nearly 400 grams of heroin from Serriello’s motorbike. Hall, in turn, stored heroin for co-conspirators Christopher Wilkins and Chisholm. Hall also sold heroin to his own customers, including a customer from Martha’s Vineyard. Investigators ultimately seized heroin from this customer, which led, in part, to Hall’s arrest.
In total, 19 members and affiliates of the Nauti-Block were charged with narcotics and firearms offenses as part of the federal investigation. Eighteen have been convicted, including Chisholm, who was convicted by a federal jury.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Two Defendants Charged in Takedown of Trenton Drug Trafficking Organization Plead GuiltyRead the Press Release
TRENTON, N.J. – Two individuals from Trenton, New Jersey, who were arrested in connection with a Trenton-area drug trafficking organization today pleaded guilty to separate charges of unlawful firearms possession and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Prince Sarnoe, 30, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with unlawful possession of a firearm by a convicted felon. India Daniels, 24, pleaded guilty before Judge Wolfson to a separate information charging her with conspiracy to distribute and possess with intent to distribute heroin.
In December 2016, Sarnoe, Daniels, and eight other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Since then, eight of the 10 defendants, including Abdullah, Sarnoe and Daniels, have pleaded guilty.
According to documents filed in this case and statements made in court:
From May 2015 through December 2016, Abdullah and others participated in a drug trafficking organization that operated in the area of Spring and Passaic Streets in the City of Trenton. Abdullah was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and others.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. Additionally, multiple members of the organization, including Sarnoe – a previously convicted felon – possessed and maintained access to firearms.
While Abdullah was detained at the Mercer County Correction Center on outstanding warrants, Daniels coordinated and obtained, on Abdullah’s behalf, additional supplies of heroin from Torres-Mezquita. In furtherance of the conspiracy, Daniels then provided that heroin to Hunter for distribution to other members of the conspiracy and their customers.
The firearms charge to which Sarnoe pleaded guilty carries a maximum potential sentence of 10 years in prison and a $250,000 fine. The conspiracy charge to which Daniels pleaded guilty carries a maximum potential sentence of 20 years in prison and a $1 million fine. Sentencing for both defendants is set for Jan. 5, 2018.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Sarnoe: John S. Furlong Esq., Trenton
Daniels: Robert Rambadadt Esq., New York
Two Albuquerque Residents Sentenced and a Mexican National Pleads Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 75 of the 103 defendants charged as the result of this investigation have entered guilty pleas and 39 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Josue Duarte, 31, of Albuquerque, was sentenced in federal court in Santa Fe, N.M., on Aug. 31, 2017, to 24 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction. Robert Henry Lovato, 44, also of Albuquerque, was sentenced in federal court on Sept. 6, 2017, to 48 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Antonio Perez-Contreras, 30, a Mexican national, pled guilty in Albuquerque federal court on Sept. 7, 2017, to violating federal drug trafficking and firearms laws. Under the terms of his plea agreement, Perez-Contreras will be sentenced to 108 months in federal prison.
Duarte and co-defendant Johnny Flores, 23, were charged in a four-count indictment filed on Aug. 9, 2016, with conspiracy to distribute methamphetamine from July 18, 2016 through July 26, 2016, and distribution of methamphetamine on July 22, 2016; Flores with distribution of methamphetamine on July 18, 2016; and Duarte with distribution of methamphetamine on July 26, 2016. According to the indictment, the offenses took place in Bernalillo County. On March 16, 2017, Duarte pled guilty to a felony information charging him with distribution of methamphetamine. In entering the guilty plea, Duarte admitted that on July 26, 2016, he arranged the sale of and sold methamphetamine to an undercover law enforcement agent. Flores pled guilty in Dec. 2016, and was sentenced in June 2017.
Lovato was arrested on July 6, 2017, on an indictment charging him with distributing methamphetamine on April 19, 2016, in Bernalillo County. On Feb. 21, 2017, Lovato entered a guilty plea to a felony information charging him with distributing methamphetamine.
Perez-Contreras and codefendant Jesus Manuel Garcia, 43, of Albuquerque, were charged by indictment on June 30, 2016, with methamphetamine trafficking, firearms and illegal reentry offenses. The indictment was superseded on July 28, 2016, and again on Jan. 12, 2017. The ten-count second superseding indictment charged Perez-Contreras and Garcia with conspiring to distribute methamphetamine from May 3, 2016 through July 6, 2016, and distributing methamphetamine on May 18, 2016 and July 6, 2016. Perez-Contreras was charged individually with being an alien in possession of a firearm and ammunition and illegal reentry into the United States on May 18, 2016, and distribution of methamphetamine on June 9, 2016. Garcia was charged individually with being a felon in possession of a firearm and ammunition on May 17, 2016, May 18, 2016, June 7, 2016, and July 6, 2016. On Sept. 7, 2017, Perez-Contreras pled guilty to a felony information and admitted that on May 18, 2016, he distributed approximately 415.4 grams of methamphetamine to an undercover law enforcement agent. Perez-Contreras further admitted that he possessed a firearm and ammunition on May 18, 2016, and was prohibited from possessing firearms and ammunition because he was an alien unlawfully in the United States. Perez-Contreras remains in custody pending a sentencing hearing which has yet to be scheduled.
Twenty-five of the defendants who were charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. One defendant is a fugitive and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. Duarte was prosecuted by Assistant U.S. Attorney Paul H. Spiers. Lovato was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley. Perez-Contreras is being prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez and Raquel Ruiz-Velez.
Three Men Sentenced in Human Smuggling Extortion CaseRead the Press Release
ALEXANDRIA, Va. – Three men have been sentenced for illegally transporting a 17-year old girl from El Salvador within the United States and demanding additional money from her family for her release.
According to court documents, Daniel Lopez-Martinez, 27, of Mexico, Juan Tomas Nicolas, 25, of Guatemala, and Ernesto Solis, Jr., 29, of Mission, Texas, worked together to transport a 17-year old girl from El Salvador within the United States for money. Once she arrived in Houston, multiple calls were made by the men to the girl’s father in Loudoun County. In the calls, the men demanded an additional $4,700. The men agreed to turn the girl over to the father only upon receipt and counting the money. The girl was rescued after FBI Agents and Task Force Officers in Houston interceded in the scheduled transfer of funds.
Solis was sentenced to 2 years and 3 months in prison today. Lopez-Martinez was sentenced to 1 1/2 years in prison on July 28, and Nicolas was sentenced to 2 years in prison on August 14.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Gregory C. Brown, Chief of Leesburg Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Maureen Cain prosecuted the case.
The case was investigated by the FBI’s Washington Field Offices’ Child Exploitation and Human Trafficking Task Force, with assistance from the Leesburg Police Department, the FBI’s Houston Field Office, the FBI’s McAllen Resident Agency, the U.S. Border Patrol, and Homeland Security Investigations.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-6.
Tennessee Case Protecting the Rights of Persons with Intellectual or Developmental Disabilities Reaches Successful ConclusionRead the Press Release
Today, in Nashville, Tennessee, Chief District Court Judge Waverly D. Crenshaw, Jr. granted the parties’ motion to dismiss a civil rights case after the State of Tennessee reshaped services for people with intellectual or developmental disabilities. People with intellectual or developmental disabilities are now eligible to receive services in community-integrated housing throughout the state. This case was filed under the Civil Rights of Institutionalized Persons Act.
“We applaud the State’s efforts—and the efforts of families, caregivers, and advocates throughout this case—to develop services that help assure safety and appropriate care for individuals with intellectual or developmental disabilities who were in the State’s care,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We also recognize and appreciate the continued collaboration of important stakeholders in resolving this case, including People First of Tennessee and the Parent Guardian Associations of Clover Bottom and Greene Valley Developmental Centers. Together, we have pursued this case to enforce the important rights of people with disabilities and to treat these individuals with dignity.”
“This case demonstrates the United States Attorney’s Office’s commitment to safeguard the civil rights of all Tennesseans, especially those of its most vulnerable citizens,” said United States Attorney Mark H. Wildasin. “Because of the concerted efforts of many, the State has fulfilled its obligation to train physicians and other professionals who care for individuals with developmental and intellectual disabilities, provided access to healthcare through the State’s Medicaid program, and moved its residents to community-based care facilities.”
United States originally brought this case, United States v. Tennessee, No. 3:95-1227 (E.D. Tenn.), to address conditions of care for residents of Clover Bottom Developmental Center, Greene Valley Developmental Center, and Nat. T. Winston Center and the right to receive care in integrated settings. The State and the United States, along with two intervenors, settled the case through an agreement that called for both improved conditions within the centers and the integration of residents into community settings. Shortly after the initiation of the suit, the State closed Nat T. Winston Center. The State closed Clover Bottom Center in November 2015 and Greene Valley Developmental Centers in May 2017. In 2015, the Court approved an Exit Plan designed to resolve this litigation by bringing to fruition planned community improvements in respite care, individual support planning, and other areas. The State has now completed that Exit Plan and thereby met its requirements to dismiss the case.
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt.
Ten Aliens Indicted on Various Charges Including Illegal Reentry, False Representation of a Social Security Account Number, False Claim of United States Citizenship with Intent to Engage Unlawfully in Employment, and Aggravated Identity TheftRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging JOSE ABURTO-MORALES, age 22, of Mexico, JOSE ANTONIO ARROYO-FIGUEROA, age 31, of Mexico, RIGOBERTO CALMO-GOMEZ, age 40, of Guatemala, JOSE CAMPUZANO-RAMIREZ, age 52, of Mexico, JORGE DIAZ-CASTRO, age 35, of Honduras, RAUL GAYTAN-RODRIGUEZ, age 32, of Mexico, MAURICIO MATIAS PRUDENTE-CISNEROS, age 22, of Mexico, ALVARO RAMOS-HUINIL, age 43, of Guatemala, and MARTIN TORRES-MEDINA, age 47, of Mexico, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging GUADALUPE CRUZ-ESQUIVEL, age 38, of Mexico, with False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, ABURTO-MORALES, found in Dare County, LOPEZ-DIAZ, found in New Hanover County, DIAZ-CASTRO, found in Johnston County, GAYTAN-RODRIGUEZ, found in New Hanover County, RAMOS-HUINIL, found in Johnston County, and TORRES-MEDINA, found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ARROYO-FIGUEROA, found in Wake County, and PRUDENTE-CISNEROS, found in Wake County, are alleged to have been previously deported subsequent to an aggravated felony conviction (assault with deadly weapon inflicting serious injury, and possession with intent to sell and deliver marijuana, respectively). Therefore, if convicted, they would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CALMO-GOMEZ, found in Sampson County, and CAMPUZANO-RAMIREZ, found in Johnston County, are alleged to have been previously deported subsequent to a felony conviction (illegal reentry of a removed alien, and visa fraud, respectively). Therefore, if convicted, they would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft, CRUZ-ESQUIVEL, found in Wayne County, would face maximum penalties of twelve years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations and Homeland Security Investigations
Taunton Man Pleads Guilty to Role in Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON – A Taunton man pleaded guilty today in federal court in Boston for his role in a heroin and fentanyl operation centered in Taunton.
Roger Longmire, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 4, 2017.
In February 2017, Longmire was arrested and charged along with nine others for his connection to Fernando Hernandez, 42, of Providence, R.I. who led a drug trafficking organization. An additional 12 defendants were charged with conspiring to distribute drugs for another organization led by Jose Antonio Lugo-Guerrero, 31, of Boston.
According to court documents, the organizations led by Lugo-Guerrero and Hernandez distributed heroin and fentanyl from the summer of 2016 until the time of their arrests. Hernandez’s heroin and fentanyl trafficking organization in Taunton allegedly sold heroin and fentanyl to customers including Longmire, who also re-distributed a portion of the drugs he obtained.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Syracuse Man Charged for Gun and Drug OffensesRead the Press Release
SYRACUSE, NEW YORK – Calvin Weaver, 27, of Syracuse, New York, appeared in court today on a federal indictment charging him with being a felon in possession of a firearm, possessing a firearm with an obliterated serial number, and possession of cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
The indictment alleges that, on February 15, 2016, Weaver, a convicted felon, was in possession of a .25 caliber semiautomatic pistol with the serial number removed and a quantity of cocaine. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Weaver faces up to 10 years in prison on the charge of being a felon in possession of a firearm and up to 5 years in prison on the charge of possessing a firearm with an obliterated serial number. Weaver also faces a fine of up to $250,000 and a term of post-imprisonment supervised release of up to 3 years on those two charges. On the possession cocaine charge, the defendant faces a maximum term of imprisonment of 1 year, a term of post-imprisonment supervised release of up to 1 year, and a $1,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Calvin Weaver appeared today in Syracuse, before United States Magistrate Judge David E. Peebles and is presently detained without bail pending a trial.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
St. Francis Man Indicted on False Statements and Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Daniel Farmer, age 21, was indicted on August 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 5, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, up to 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 8, 2017, Farmer knowingly and intentionally falsified a prescription for Tramadol, a Schedule IV controlled substance, and presented that prescription to the Indian Health Services Pharmacy in Rosebud, South Dakota, knowing it to be false.
The charge is merely an accusation and Farmer is presumed innocent until and unless proven guilty.
This case is being investigated by the Office of the Inspector General of the U.S. Health and Human Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Farmer was released pending trial. A trial date has not been set.
Sharebeast.com owner pleads guilty to criminal copyright infringementRead the Press Release
ATLANTA - Artur Sargsyan has pleaded guilty to one felony count of criminal copyright infringement related to his ownership and administration of Sharebeast.com, a file-sharing website that facilitated the unauthorized distribution and reproduction of over 1 billion copies of copyrighted works.
“Through Sharebeast and other related sites, this defendant profited by illegally distributing copyrighted music and albums on a massive scale,” said U. S. Attorney John Horn. “The collective work of the FBI and our international law enforcement partners have shut down the Sharebeast websites and prevented further economic losses by scores of musicians and artists.”
“This is another example of how the FBI and its international law enforcement partners, working together, make it difficult for criminals to profit from illegal activities on the internet,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “Illegally making money off of the talent of hard working artists will not go unpunished thanks to the dedication and hard work of our FBI agents.”
According to U.S. Attorney Horn, the charges and other information presented in court: Artur Sargsyan owned and operated a number of websites including Sharebeast.com, Newjams.net, and Albumjams.com. From at least 2012 through 2015, Sargsyan illegally distributed and reproduced copyrighted works through Sharebeast.com. Using a network of websites that he owned and operated, including Newjams.net and Albumjams.com, Sargsyan created links to a wide swath of copyright-protected music that was stored on Sharebeast.com. Sharebeast illegally stored and distributed works from scores of artists including Bruno Mars, Linkin Park, Pitbull, Pharrell Williams, Gwen Stefani, Maroon 5, Ariana Grande, Destiny’s Child, Ciara, Katy Perry, Beyonce, Jennifer Hudson, Kanye West, and Justin Bieber.
In numerous instances, Sharebeast distributed and reproduced pre-release copyrighted works meaning that Sargsyan made the songs available before they were commercially available to paying consumers.
From 2012 through 2015, Sargsyan received over 100 emails notifying him that Sharebeast was hosting copyright-infringing works. Despite receiving such notices, the copyright-infringing files were still available for download.
In August 2015, the United States seized control of the domain names Sharebeast.com, Newjams.net, and Albumjams.com. And with the assistance of international law enforcement partners in the United Kingdom and the Netherlands, the FBI seized the computer servers used by Sargsyan to illegally distribute the copyrighted music worldwide.
According to the Recording Industry Association of America, Sharebeast.com was the largest online file-sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music operating out of the United States.
Sentencing for Artur Sargsyan, 29, of Glendale, California has been scheduled for December 4, 2017 at 10:30 am before U.S. District Judge Timothy C. Batten.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Samir Kaushal and Kamal Ghali are prosecuting the case. The prosecution and seizure of the website domain names reflects a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia, the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), the Office of International Affairs, the FBI’s filed offices in Atlanta, Denver, Chicago, and Los Angeles, and the U.S. Attorney’s Office for the Central District of California. Substantial assistance was provided by CCIPS, United Kingdom’s National Crime Agency, and the Ministry of Security and Justice in the Netherlands, as well as the CCIPS Cyber Crime Lab.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Russian cybcercriminal Roman Seleznev pleads guilty in AtlantaRead the Press Release
ATLANTA – Roman Seleznev has pleaded guilty to conspiracy to commit bank fraud for his role in the 2008 hack of RBS Worldpay. Seleznev was responsible for cashing out $2,178,349 associated with five hacked debit card numbers.
“The defendant and a sophisticated team of hackers stole over $2,000,000 from ATMs across the globe,” said U.S. Attorney John Horn. “This plea shows that we are committed to identifying and bringing to justice cybercriminals from across the globe, wherever they are and however long it takes.”
“This extensive investigation, and resulting guilty plea, truly illustrates that the FBI and its many domestic and international law enforcement partners have the commitment and the ability to reach out and touch the cyber criminals residing abroad that are doing so much harm from places that they feel we can’t go. Having Mr. Seleznev out of play and having dismantled his cyber based operations is a true success story for U.S. law enforcement,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This case demonstrates the Secret Service is committed to protecting our nation's critical financial infrastructure and payment systems,” said Special Agent in Charge, Kenneth Cronin, U.S. Secret Service, Atlanta Field Office. “These types of cyber criminals use sophisticated hacking techniques to compromise computer systems and then utilize a global network of co-conspirators to withdraw millions of dollars from ATM machines from around the world. Our success in this case and other network intrusion investigations is a result of our close work with our domestic and international law enforcement partners.”
According to U.S Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Georgia. The group used sophisticated hacking techniques to compromise the data encryption that was used then by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers, equipped with 44 counterfeit payroll debit cards, withdrew more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours. In addition, the hacking crew obtained access to files containing 45.5 million pre-paid payroll and gift card numbers.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Roman Seleznev, of Vladivostok, Russia, pleaded guilty before U.S. District Judge Steve C. Jones. Sentencing has not yet been scheduled.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
This case is being investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case. Assistance was provided by the U.S. Attorney’s Office for the Western District of Washington, the Justice Department’s Office of International Affairs, and the Criminal Division’s Computer Crime and Intellectual Property Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Russian Cyber-Criminal Pleads Guilty to Role in Organized Cybercrime Ring Responsible for $50 Million in Online Identity TheftRead the Press Release
A Russian cyber-criminal who sold stolen credit card data and other personal information through the identity theft and credit card fraud ring known as “Carder.su” pleaded guilty yesterday in two separate criminal cases to one count of participation in a racketeering enterprise and one count of conspiracy to commit bank fraud.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney John A. Horn of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) and Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas made the announcement.
Roman Valeryevich Seleznev, aka Track2, aka Bulba, aka Ncux, 33, entered guilty pleas in both criminal cases at a hearing before U.S. District Judge Steve C. Jones of the Northern District of Georgia. Seleznev pleaded guilty to one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia. He will be sentenced on December 11.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.
Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an on-line digital currency payment system. Seleznev admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.
In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and stole 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.
Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by HSI and the U.S. Secret Service. The Nevada case is being prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, Seleznev was sentenced to 27 years in prison for those crimes.
Russian Cyber-Criminal Pleads Guilty to Role in Organized Cybercrime Ring Responsible for $50 Million in Online Identity TheftRead the Press Release
LAS VEGAS, Nev. - A Russian cyber-criminal who sold stolen credit card data and other personal information through the identity theft and credit card fraud ring known as “Carder.su” pleaded guilty yesterday in two separate criminal cases to one count of participation in a racketeering enterprise and one count of conspiracy to commit bank fraud.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney John A. Horn of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), and Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas made the announcement.
Roman Valeryevich Seleznev, aka Track2, aka Bulba, aka Ncux, 33, entered guilty pleas in both criminal cases at a hearing before U.S. District Judge Steve C. Jones of the Northern District of Georgia. Seleznev pleaded guilty to one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia. He will be sentenced on December 11.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.
Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an on-line digital currency payment system. Seleznev admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.
In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and stole 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.
Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by HSI and the U.S. Secret Service. The Nevada case is being prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, Seleznev was sentenced to 27 years in prison for those crimes.
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Romanian Man Pleads Guilty to His Role in Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Giovani Hornea, 20, of Romania, pleaded guilty to conspiracy to commit bank fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between October 4, 2015, and November 14, 2015, the defendant conspired with co-defendant Nicolae Sarbu and others to execute a scheme to defraud Bank of America.
The defendants used skimming devices and cameras on seven occasions at automated teller machines (ATM’s) in the Buffalo and Rochester areas as well as in the State of Pennsylvania. Bank account information and personal identification numbers (PIN’s) were recorded without the true account holder’s knowledge or authorization and then used to make unauthorized withdrawals of cash from the various ATM’s. A skimmer is a device used to unlawfully record bank account information from a customer’s debit card when the card is inserted into an ATM.
Nicolae Sarbu has been convicted and is awaiting sentencing.
The total loss suffered by Bank of America as a result of this fraudulent activity was $156,266.30.
The plea is the result of an investigation by immigration and Customs Enforcement, Homeland security investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for December 20, 2017, before Judge Arcara.
President of Long Island Aviation Parts Company Sentenced to 26 Months’ Imprisonment for Fraud in Supplying Airplane Parts to Defense Department through Shell CompaniesRead the Press Release
Earlier today, Paul Skiscim, the President of Aerospec, Inc., a company located in Kings Park, New York, was sentenced before Judge Arthur D. Spatt in U.S. District Court in Central Islip, New York, to 26 months’ imprisonment, to be followed by three years of supervised release, for his fraud in continuing to provide airplane parts to the United States Department of Defense (DoD) despite the fact that he and his company had been debarred from entering into contracts with the DoD in 2013. Skiscim was also ordered to pay restitution of $420,000 and forfeit monies and properties to the government, with a total value of approximately $1 million.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and Leigh-Alistair Barzey, Special Agent-in Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office.
"The defendant’s scheme not only violated the law but showed a disregard for the safety of military personnel. We will continue to work collaboratively with our law enforcement partners to successfully interdict schemes like this one,” stated Acting United States Attorney Rohde.
“The defendant’s sentencing earlier today is the direct result of a joint effort by DCIS and the U.S. Attorney’s Office, Eastern District of New York, to identify, investigate and prosecute individuals who engage in fraudulent activity targeting the DoD and seek to profit at the expense of taxpayers,” stated Special Agent-in-Charge Barzey. “DCIS will continue to partner with the U.S. Department of Justice to protect the integrity of the DoD procurement system and protect members of the U.S. military.”
According to court documents, Aerospec, Inc. had been a supplier of airplane parts to the DoD from 2003 until 2013, when the company and Skiscim were debarred after supplying the government with defective airplane parts. As Skiscim admitted in pleading guilty on September 7, 2016, to Count One of an indictment which charged fraud involving aircraft parts, he nevertheless continued to bid, contract, and supply airplane parts to the federal government following this debarment through a series of shell companies using the names of relatives and fictitious people to mask his involvement from the DoD’s Defense Logistics Agency. Since 2013, the shell companies received over $2.8 million for the supply of airplane parts.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Robert Schumacher.
The Defendant
Name: PAUL SKISCIM
Age: 63
Residence: East Northport, NY
E.D.N.Y. Docket No. CR-16-190 (ADS)
Pittsburgh Man Charged with Possessing and Distributing Sexual Images of ChildrenRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of Distribution, and Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on August 29, named James Clay Russell, 59, as the sole defendant.
According to the indictment, on February 20, 2017 and March 23, 2017, Russell knowingly distributed an image containing material depicting the sexual exploitation of a minor. The indictment further alleges that on June 9, 2017, Russell possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Russell was detained pending trial.
The law provides for a maximum sentence of 20 years imprisonment for each count of distribution of child pornography, a maximum sentence of 10 years imprisonment for possession of child pornography, a maximum term of supervised release of life, and a fine of $750,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office and Immigration and Customs Enforcement/ Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Man Sentenced to 60 Months for Loan and Tax FraudRead the Press Release
Zaki M. Bey, 39, of Philadelphia, PA, was sentenced to 60 months in prison, announced Acting United States Attorney for the Eastern District of Pennsylvania Louis D. Lappen. Zaki Bey previously pleaded guilty to one count of conspiracy to commit loan and bank fraud, one count of conspiracy to defraud the Internal Revenue Service, and one count of conspiracy to commit wire fraud.
According to court documents, Bey conspired with others to prepare and submit fraudulent mortgage applications to banks and lending institutions. In 2007 and 2008, BEY successfully secured more than $2 million in residential loans on at least thirteen properties located in the Germantown section of Philadelphia and in New Jersey. Bey and others created fraudulent loan applications on behalf of straw buyers that contained materially false information as to the straw buyers’ income, assets, and intent to occupy the residences. Bey also furnished fraudulent records such as payroll account documents, paystubs, and financial statements to defraud financial institutions and lenders. Bey’s company at the time, Natural Home Builders, was able to receive a payout for purported construction expenses ranging from $17,864.26 to $60,000 at the closing of each settlement. Bey was not completing any construction on these properties, and obtained total settlement proceeds for construction costs of $435,074.26.
In late 2010 and early 2011, Bey filed fraudulent personal income tax returns for tax years 2007, 2008, 2009 and 2010. Bey filed these tax returns claiming false tax withholding payments and false Forms 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. Bey attempted to receive total tax refunds from the IRS in the amount of $1,141,677. Bey was only successful in receiving $148,296 from the IRS based on the fraudulent 2009 tax return he submitted. After assessed a tax deficiency by the IRS, Bey mailed checks to the IRS from a closed bank account in an attempt to repay the fraudulent tax refund.
Beginning in 2010 to 2013, Bey engaged in a wire fraud conspiracy involving the submission of fraudulent auto loan applications. Bey furnished fraudulent records such as payroll account documents, paystubs and financial statements to defraud automobile dealerships located in Philadelphia and New Jersey. The false loan applications and fraudulent records caused the automobile dealerships to electronically submit false information to financial institutions and lenders. Through the use of straw buyers, Bey was able to obtain at least 7 automobiles.
In addition to Bey’s 60 month prison sentence, he will also be required to serve 3 years’ supervised release and pay back $705,528.22 in restitution to multiple financial institutions and the Internal Revenue Service.
This case was investigated by the Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorney James Pavlock.
Pennsylvania Man Sentenced to Five Years in Prison for Distributing Child PornographyRead the Press Release
WASHINGTON – Brian Hess, of Hustontown, Pa., has been sentenced to five years in prison for distributing child pornography, 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), announced.
Hess pled guilty in April 2017 in the U.S. District Court for the District of Columbia. He was sentenced on Sept. 6, 2017, by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Hess will be placed on 10 years of supervised release. He will also be required to register as a sex offender for 15 years following his release from prison.
According to the government’s evidence, from Sept. 28, 2016 through Oct. 4, 2016, Hess communicated online with a man he believed was a child sex offender with an under-aged daughter. Hess communicated with the man over the course of several days and distributed to the man numerous images of child pornography, claiming that some of the images he sent were images of his own under-aged daughter. Unbeknownst to Hess, the man he was communicating with was an undercover detective working as part of a task force.
Law enforcement subsequently confirmed with the National Center for Missing and Exploited Children that the child Hess purported to be his daughter in the images was actually another victim of child exploitation who had previously been identified by the center as part of another, unrelated case. At the time of his arrest in November 2016, Hess also was found to be in possession of hundreds of additional images of child pornography. Hess has been in custody since he entered his guilty plea in the case.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, 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 Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Michelle Wicker. Finally, they commended the work of Assistant U.S. Attorney Andrea L. Hertzfeld, who prosecuted the case.
Passaic County, New Jersey, Pilot Charged for His Role in International Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Ringwood, New Jersey, man appeared in federal court today to face cocaine distribution, money laundering, and other conspiracy charges associated with his role in a scheme to import large quantities of cocaine from Guyana to New Jersey and New York, Acting U.S. Attorney William E. Fitzpatrick announced.
Khamraj Lall, 50, is charged by indictment with one count each of conspiracy to launder money, conspiracy to structure funds, conspiracy to import cocaine, and conspiracy to distribute cocaine. He was arraigned today before U.S. District Judge Michael A. Shipp in Trenton federal court and was detained. Lall was arrested July 22, 2015 and has been in custody since that time.
According to documents filed in this and related cases and statements made in court:
From April 2011 through November 2014, Lall, a private pilot, allegedly imported large quantities of cocaine from Guyana to New Jersey and elsewhere on his privately-owned jet aircraft and then laundered the proceeds into banks in New Jersey and New York. Afterwards, he allegedly smuggled hundreds of thousands of dollars in cash back to Guyana.
Lall performed, or had others perform, over 1,287 cash deposits totaling approximately $7,549,775 into more than 20 different bank accounts. All deposits were for amounts less than $10,000 in order to circumvent certain banking reporting laws.
The indictment seeks forfeiture of multiple properties as well as two private jets that Lall purchased with structured funds or were otherwise involved in the criminal conspiracies.
The conspiracy to import and distribute cocaine charges carry a minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. The conspiracy to launder money charge carries a potential penalty of 20 years in prison and a $500,000 fine. The conspiracy to structure funds charge carries a potential penalty of five years in prison and a $500,000 fine.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents and task force officers of the Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge James. J. Hunt, IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the Morristown, New Jersey, police department, under the direction of Chief Peter Demnitz, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck, Barry A. Kamar, and Melissa M. Wangenheim of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit, Assistant U.S. Attorneys Peter Gaeta and Sarah Devlin of the Asset Forfeiture-Money Laundering Unit, and Assistant U.S. Attorney Robert A. Marangola of the U.S. Attorney’s Office, Western District of New York.
Defense Counsel: Michael D’Alessio Jr. Esq.
Orange County Man Sentenced in White Plains Federal Court to 17 ½ Years in Prison on Charges Stemming from His Sexual Exploitation of A Minor and His Possession of Child PornographyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that EDWARD DIAZ was sentenced in White Plains federal court to 210 months in prison on one count stemming from his sexual exploitation of a minor, related child pornography offenses, and attempts to hinder the federal investigation concerning his criminal conduct. DIAZ, 60, of Campbell Hall, New York, pled guilty on March 9, 2017, before United States District Judge Vincent L. Briccetti, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Edward Diaz sexually abused a child, and then kept digital images depicting that abuse. For his predatory conduct, Diaz received the significant prison term his crime deserves.”
According to the allegations contained in the Complaint, the Indictment filed against DIAZ, and statements made in court filings and proceedings in open court:
On or about April 1, 2016, DIAZ used his personal email account to send himself an email attaching three images depicting child pornography. DIAZ’s internet service provider flagged the email as potentially containing child pornography and provided it to the National Center for Missing and Exploited Children (“NCMEC”). A NCMEC representative reviewed the email and at least one of the attachments, indicated the presence of child pornography, and notified the United States Postal Inspection Service (“USPIS”).
On the morning of June 13, 2016, USPIS agents interviewed DIAZ at his home. During the interview, the agents observed a laptop located in DIAZ’s bedroom. DIAZ denied using the laptop to view child pornography. The USPIS agents left DIAZ’s residence and returned later that day with a search warrant. Upon their return, the agents learned that DIAZ had left the residence and taken the laptop with him. USPIS agents contacted DIAZ and convinced him to return. When asked about the laptop, however, DIAZ initially stated that he did not own a laptop and finally stated that he took the laptop to a repair shop, which he declined to identify. The laptop has not been recovered.
During the subsequent search of DIAZ’s residence, USPIS agents recovered a Secure Digital (“SD”) card. The SD card, which was provided to the Federal Bureau of Investigation (“FBI”) for forensic analysis, revealed the existence of five previously deleted images that appeared to contain child pornography. Specifically, the images depicted, among other things, a pre-pubescent girl engaged in a sex act with DIAZ.
In addition to the prison term, DIAZ was sentenced to supervised release for life.
* * *
Mr. Kim praised the extraordinary investigative work of the Postal Inspection Service and the FBI.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Christopher J. Clore is in charge of the prosecution.
New Jersey, Florida, Arizona and Pennsylvania Men Latest to Plead Guilty in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
Four more defendants pleaded guilty to conspiracy and passport fraud charges during the past month for their roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by a network of India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, U.S. Attorney John A. Horn of the Northern District of Georgia, Acting Deputy Director Peter T. Edge of U.S. Immigration and Customs Enforcement (ICE), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Nisarg Patel, 26, most recently residing in Flemington, N.J., Dilipkumar Ramanlal Patel, 30, of Ocala, Fla., and Rajesh Kumar, 39, of Mesa, Ariz., each pleaded guilty to one count of conspiracy to commit fraud and money laundering offenses. The pleas were entered before U.S. District Judge David Hittner of the Southern District of Texas. All three men have been in federal custody since their arrests in October 2016 and will remain detained until their pending sentencing dates.
In a related case, Dipakkumar Sankalchand Patel, 38, most recently of Pennsylvania, pleaded guilty to one count of conspiracy to commit money laundering. The plea was entered before U.S. District Court Judge Eleanor L. Ross of the Northern District of Georgia. Dipakkumar Sankalchand Patel has been in federal custody since his arrest in May 2017 and will remain detained until his pending sentencing date.
According to admissions made in connection with their pleas, Nisarg Patel, Dilipkumar Ramanlal Patel, Kumar, Dipakkumar Sankalchand Patel and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently obtained funds.
In connection with his guilty plea, Nisarg Patel admitted that beginning in or around June 2013 and continuing through December 2015, he acted as a domestic runner in the criminal scheme, liquidating victim funds for conspirators from India-based call centers and organizational co-defendant HGLOBAL. Patel communicated about the fraudulent scheme with various India-based co-defendants via telephone, email and WhatsApp text messaging. For a percentage of commission on the transactions he conducted, Patel laundered funds from victims using reloadable cards and deposited those proceeds into various bank accounts or shipped them via package carriers to others in furtherance of the scheme and at the direction of a codefendant. Patel also admitted to receiving direct payments to his personal bank accounts from victims defrauded through the scheme.
In connection with his guilty plea, Dilipkumar Ramanlal Patel admitted that beginning in or around August 2013 and continuing through February 2014, he served as a runner, liquidating victim scam funds per the instructions of conspirators from India-based call centers. Dilipkumar Ramanlal Patel communicated via phone and email in furtherance of the criminal scheme with his India-based associates, including by sending lists of reloadable card numbers to be activated and loaded with victim funds by conspirators in India. Dilipkumar Ramanlal Patel and his conspirators then used the reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions.
Based on admissions in Kumar’s plea, beginning in or around September 2014, Kumar also operated as a runner, laundering scam proceeds from reloadable cards and purchasing money orders using those funds in and around south-central Arizona at the direction of both domestic and India-based co-defendants. Kumar also admitted to using fraudulent identification documents, including drivers’ licenses, to receive wire transfers of money directly from victims of the fraud scheme.
According to Dipakkumar Sankalchand Patel’s guilty plea, beginning in or around September 2014 through in or around June 2015, Dipakkumar Sankalchand Patel served as a runner liquidating victim scam funds per the instructions of conspirators operating in the Chicago, Illinois, area and elsewhere throughout the country. Dipakkumar Sankalchand Patel communicated via WhatsApp messaging with U.S. and India-based associates about liquidating victim funds that had been consolidated on reloadable cards. Dipakkumar Sankalchand Patel then purchased money orders and deposited them into various bank accounts as directed. Additionally, Dipakkumar Sankalchand Patel admitted to entering the U.S. on or about March 26, 2012 through Atlanta’s Hartsfield Jackson International Airport on a fraudulent Portuguese passport that was issued to him under an alias.
To date, Nisarg Patel, Dilipkumar Ramanlal Patel, Kumar, 53 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Dipakkumar Sankalchand Patel was charged via a separate indictment in the Northern District of Georgia on May 3. Including the pleas announced today, a total of 17 defendants have pleaded guilty thus far in relation to this investigation on various dates between April and July 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ICE’s Homeland Security Investigations, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, and Assistant U.S. Attorney Jessica C. Morris of the Northern District of Georgia are prosecuting these cases.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
New Haven Woman Pleads Guilty to Fraud and Identity Theft OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LESHANDA LONG, 36, of New Haven, pleaded guilty yesterday in Hartford federal court to fraud and identity theft offenses.
According to court documents and statements made in court, in August 2016, LONG stole the identity of an individual and used the misappropriated identity to obtain a credit card, rent an automobile, pay personal expenses and obtain cash advances.
Surveillance video at a bank ATM captured LONG obtaining cash advances disguised with an orange scarf and distinctive sunglasses. A subsequent search of LONG’s residence revealed the scarf and sunglasses, as well as the victim’s personal identifying material and the fraudulently obtained credit card.
LONG pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, which carries a mandatory consecutive term of imprisonment of two years. She is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on December 11, 2017.
This matter is being investigated by the U.S. Postal Inspection Service, West Haven Police Department and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Multi-agency Operation in Fresno Results in Multiple Arrests for Drug and Firearm OffensesRead the Press Release
FRESNO, Calif. — On Thursday, following a 10-month-long investigation targeting local criminal street gangs in Fresno conducted by several federal law enforcement agencies and the Fresno Police Department, 15 defendants were arrested on federal charges and at least 14 defendants were arrested on state charges. The various charges include drug trafficking, conspiracy to traffic illegally in firearms, and transportation for the purpose of prostitution. The 104-page federal criminal complaint charges 18 defendants with criminal activity ranging from firearms trafficking, drug trafficking, and prostitution-related offenses. According to court documents, the investigation uncovered multiple sales of methamphetamine, cocaine, and firearms by the various defendants between January and August 2017.
U.S. Attorney Phillip A. Talbert, Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill Snyder, Federal Bureau of Investigation (FBI) Special Agent in Charge Sean Ragan, and Fresno Chief of Police Jerry Dyer made the announcement today.
The investigation has resulted in the seizure of more than 30 firearms and multiple pounds of methamphetamine. On September 7, 2017, in addition to the arrests, nine search warrants and multiple probation and parole searches were executed on the target gang members and their associates.
U.S. Attorney Talbert stated: “This operation demonstrates how law enforcement partners at the federal, state and local level are working as one to pursue criminal gangs and their associates. All of these agencies will work tirelessly to protect our communities and to hold accountable those who threaten our safety.”
DEA Special Agent in Charge John J. Martin stated; “Drug, firearms and human trafficking bring blight to the community and tear at the fabric of society. DEA will continue to conduct investigations with our counterparts that send the message these activities will not be tolerated in our neighborhoods.”
“The FBI is dedicated to working with all law enforcement partners to effectively target gang violence in all of its forms,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are committed to keeping illegal firearms and drugs off of our streets and preventing victimization to ensure a brighter future for our community's families.”
“This investigation and today’s enforcement actions show the extraordinary multi-agency coordination and cooperation that is being brought to bear locally to take back our streets and combat gang-related violence and crime,” said Ryan L. Spradlin, the special agent in charge for Homeland Security Investigations who oversees the agency’s enforcement actions throughout northern California. “With its global reach and broad legal authorities, Homeland Security Investigations is uniquely equipped to tackle that mission and we’ll continue to work with our law enforcement partners to leverage those tools to help protect our communities from the significant public safety threat posed by criminal street gangs.”
“Firearms trafficking is one of the most pressing issues today,” said Special Agent in Charge Jill Snyder, ATF, San Francisco Field Division. “It is our duty to make this community a safer place for families. The safety of the public is at the core of ATF’s mission and through partnerships, law enforcement agencies create a unified front against violent crime, which make operations of this nature successful.”
The federal defendants, all Fresno residents, are as follows: Carlos Montano, 27; Filibert Chavez, 35; Robin Gill, 31; Gabriel Gomez, 26; Juan Carlos Briceno, 36; Nicholas Bolanos, 25; Daniel Villanueva, 19; Gerrick Travis Tyrell Franklin, 27; Amina Padilla, 34; Robert Lockhart, 52; Idelfonso Soto, 19; Carlos Melgar, 36; Jeni Fries, 23; Cisco Hernandez, 23; Miguel Murrillo, 22; Adolfo Jesus Mendoza, 23; Jesus Melgarejo Jr., 26; and Cesar Gutierrez, 24. All are in custody except for Gabriel Gomez, Daniel Villanueva and Gerrick Travis Tyrell Franklin.
The charges are the product of an investigation by the DEA, FBI, HSI, ATF, the Fresno Police Department, the Fresno County Sheriff’s Office, and the Multi-Agency Gang Enforcement Consortium (MAGEC) with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey Spivak are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
As currently charged, if convicted, certain federal defendants face a mandatory minimum of ten years in prison and up to life in prison, while others face a minimum of five years in prison and up to a maximum of 40 years in prison for the conspiracy to distribute methamphetamine depending on the quantity of drugs involved; 20 years in prison and a $1 million fine for possession of a controlled substance with intent to distribute; 10 years in prison and a $250,000 fine for the charge of being a felon in possession of a firearm, the charge of possession of an unregistered firearm, the charge of interstate transportation for the purposes of prostitution; and five years in prison and a $250,000 fine for using a facility of interstate commerce to promote prostitution or for conspiracy to deal firearms without a license. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Manteca Man Sentenced for Fraud Scheme Involving Identity Theft and Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Matthew Gene Ballard, 38, of Manteca, was sentenced on Friday, September 8, 2017, by U.S. District Judge Garland E. Burrell Jr. to six years and three months in prison for executing a bank fraud and identity theft scheme and for numerous violations of his supervised release for a prior conviction, U.S. Attorney Phillip A. Talbert announced.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and identity theft crimes committed against the public.”
Ballard pleaded guilty to the offenses on February 10, 2017.
According to court documents, Ballard had been released from federal prison on March 27, 2015, after serving three years in prison for similar offenses and was on supervised release. Between July 2015 and April 2016, Ballard, working with others, obtained stolen U.S. Mail and stolen property, and using the identification information and mail contents, made counterfeit identifications. Ballard used the identities to fraudulently open accounts, obtain lines of credit, and get cash and goods at the expense of banks and merchants. As part of his scheme, Ballard stole his own landlord’s identity and used unauthorized credit cards to pay for personal expenses.
This case was the product of an investigation by the U.S. Postal Inspection Service with the assistance of the U.S. Probation Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the cases.
Man Sentenced to 5 Years for Hacking Conspiracy that Targeted Senior U.S. Government OfficialsRead the Press Release
ALEXANDRIA, Va. – A North Carolina man who conspired with others to gain unauthorized access to government computer systems and online accounts belonging to several United States government officials was sentenced today to 5 years in prison.
Justin G. Liverman, aka “D3F4ULT”, 25, of Morehead City, pleaded guilty on January 6. Liverman admitted to being a member of a conspiracy that called itself “Crackas With Attitude” to commit unauthorized computer intrusions, identity theft, and telephone harassment. According to the statement of facts filed with the plea agreement, beginning in November 2015, Liverman conspired to attempt to intimidate and harass U.S. officials and their families by gaining unauthorized access to victims’ online accounts, among other things. For example, Liverman publicly posted online documents and personal information unlawfully obtained from a victim’s personal account; sent threatening text messages to the same victim’s cellphone; and paid an unlawful “phonebombing” service to call the victim repeatedly with a threatening message. In November 2015, the conspiracy used that victim's government credentials to gain unlawful access to a confidential federal law enforcement database, where Liverman obtained information relating to dozens of law enforcement officers and uploaded this information to a public website. In total, the conspiracy targeted more than 10 victims and caused more than $1.5 million in losses to victims.
A co-conspirator, Andrew Otto Boggs, 23, of North Wilkesboro, was sentenced on June 30 to two years in prison. Other members of the conspiracy are located in the United Kingdom and are being prosecuted by the Crown Prosecution Service.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Special Assistant U.S. Attorney Joseph V. Longobardo prosecuted the case.
The U.S. Attorney’s Offices for the Eastern and Western Districts of North Carolina, and the FBI’s Charlotte Division provided significant assistance with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-313.
Man Sentenced to 14 Years for 31 Armed RobberiesRead the Press Release
NORFOLK, Va. – A Norfolk man who participated in 31 armed robberies in Hampton Roads was sentenced today to 14 years in prison.
According to court documents, from August 2016 to January 2017, Jesse Bray, 22, participated in 31 armed robberies with two other co-conspirators, including convenience stores, gas stations, cash advance stores and wireless phone stores. Bray and his co-conspirators would enter the various stores brandishing firearms, including in some instances a sawed-off shotgun, and demanding money. The men stole approximately $10,000 during the robberies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Arron J. Graves, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-51.
Man Sentenced for Embezzling $19 Million from IT CompanyRead the Press Release
ALEXANDRIA, Va. – A Nokesville man was sentenced today to 6 1/2 years in prison for embezzling approximately $19.4 million from his employer, an information technology company headquartered in Reston.
Jon Frank, 48, pleaded guilty to wire fraud on June 9. According to the statement of facts filed with the plea agreement, Frank worked at the company as the controller. From 2007 until January 2017, he used his position to initiate transfers of approximately more than $19 million from the company’s bank account to his personal accounts. He created false documents to make it appear that the money was being sent as reimbursement to another company that was administering the health insurance plan for Frank’s employer. Relying upon his knowledge and the altered documents, he was able to mislead the individuals performing audits of the company’s financial records. Frank spent the money on expensive automobiles and real estate, among other things. In addition to his prison sentence, Frank was also ordered to pay $19,440,331 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Jack Hanly prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-144.
Leader of violent Indianapolis heroin trafficking organization sentenced in federal courtRead the Press Release
Westside organization responsible for distributing kilograms of heroin and methamphetamine to Indianapolis neighborhoods.
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today the sentencing of the leader of a drug trafficking organization which distributed heroin and methamphetamine in the Indianapolis area. David McMichel, 33, Indianapolis was sentenced to 360 months (30 years) imprisonment by U.S. District Judge Jane Magnus-Stinson.
“McMichel is the face of organized crime today. The defendants in this criminal organization were some of the most violent in Indianapolis,” said Minkler. “Not only did they sell large quantities of narcotics but most had prior felony convictions, possessed and used firearms and threatened acts of violence in furtherance of their crimes.”
Beginning in December 2014 through August 2015, David McMichel, a/k/a White Boy, a/k/a David Webster ran a drug trafficking organization from his home on the Westside of Indianapolis. The McMichel Drug Trafficking Organization (MDTO) moved large quantities of heroin and methamphetamine from suppliers in Arizona to Indianapolis, Fort Wayne and other locations. The MDTO obtained most of its drug supply from Fernando Vaca-Mata, 32, and Jose Prieto, 33, to be redistributed to lower level dealers.
As leader of the MDTO, McMichel negotiated with suppliers to obtain pound quantities of the narcotics. Further, he distributed and supervised the delivery of the narcotics and acquisition of weapons, collected proceeds from the narcotics sales and arranged to store the narcotics in stash houses around Indianapolis.
Throughout the months’-long investigation, McMichel ran the MDTO from his home while on house arrest serving a sentence for his third felony conviction. McMichel was overheard on a wiretap ordering shootings of his enemies. He stated he had a “list a block long” of individuals he wanted dead. Members of the MDTO obtained photographs from Facebook of some of his intended targets. During the investigation, law enforcement arrested one of McMichel’s “hitmen” in possession of a firearm and a photograph of an intended target.
During arrest and search warrant execution, law enforcement confiscated 19 firearms, $160,000 in cash and several pounds of heroin as well as large quantities of methamphetamine. Also recovered were two ballistic vests.
primary mission of the Drug Enforcement Administration is to identify, dismantle, and bring to justice drug-trafficking organizations who poison our streets with illegal drugs and contribute to the violence in our communities. Sentencing such as today should send a clear message and serve as a deterrent, the DEA and its law enforcement partners will continue to utilize all resources to bring you to justice. So, shame on you if you continue to violate the drug laws of the United States, you’re next,” said DEA Assistant Special Agent in Charge Greg Westfall.
“Illegal drugs and the associated violence that often follows continues to plague many of our communities at unacceptable rates,” said Chief Roach. “Through a decentralized enforcement approach and information sharing with our Federal, State, and Local law enforcement partners we continue to disrupt criminal organizations that negatively impact the quality of life for so many in the Indianapolis community.”
This case was jointly investigated by the Drug Enforcement Administration, Hamilton-Boone County Drug Task Force, Bureau of Alcohol Tobacco Firearms and Explosives, Indianapolis Metropolitan Police Department, Metro Drug Task Force and the Marion County Prosecutor’s Office.
According to Assistant United States Attorney Jeffrey D. Preston who is prosecuting this case for the government, McMichael must serve five years of supervised release following his prison sentence.
Lancaster Man Convicted of Robbing Local Credit UnionRead the Press Release
On Friday, September 8, 2017, following a four-day jury trial before the Honorable James F. Leeson, Jr. in the United States District Court in Allentown, Wilson Albert Osorio, Jr., age 30, of Lancaster, was convicted of bank robbery for his involvement in the June 22, 2016 robbery of the Members 1st Federal Credit Union located at 2568 Lititz Pike, in Lancaster. After announcing to one of the victim tellers at the time of the robbery that he was armed with “a shocker,” Osorio, along with codefendant Mario Onell Cedeno-Roman, Jr., stole a total of $11,659 in United States currency.
Osorio faces a maximum possible sentence of 20 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Manheim Township Police Department and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Mark S. Miller.
Sentencing for Osorio has been scheduled for December 19, 2017 at 4:00 p.m. in Allentown. Sentencing for Mario Onell Cedeno-Roman, Jr., who previously pled guilty, is presently set for November 2, 2017, also in Allentown.
Kennewick Man Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Peter J. Adams, age 40, of Kennewick, Washington, was sentenced today for Production of Child Pornography. United States District Judge Salvador Mendoza, Jr. sentenced Adams to a 180-month term of imprisonment, to be followed by a lifetime of court supervision after he is released from federal prison. Adams will also be required to register as a Sex Offender.
According to information disclosed during the court proceedings, the investigation of Adams originated when a Task Force Officer with Homeland Security Investigations in Richland, Washington, received a CyberTip. CyberTips are reports to National Center for Missing and Exploited Children (NCMEC) of illegal actions taken against children. In this case, the CyberTip pertained to Adams’s use of his e-mail account to distribute child pornography. The tip was associated with several other tips, all of which involved the same account.
Law enforcement officers obtained a search warrant and executed it at Adams’ residence. Adams was interviewed and admitted possession of child pornography, chatting online about having sex with a given minor (which he maintained was fantasy only), and having some “sexual chat and picture exchange” with a teenage child. With regard to the teenage child, Adams admitted he requested nude pictures. The images in question were recovered from Adams’s electronic devices and were found to be child pornography.
Adams was charged with Production of Child Pornography and, on June 9, 2017, pleaded guilty to the crime. At today’s sentencing hearing, Adams apologized the victims of his crimes. Judge Mendoza told Adams, “When I read the facts, when I look at the conduct here, I'm appalled.” Judge Mendoza acknowledged Adams’s fourteen years in the Navy and remarked that given his military service and complete lack of criminal history, “one would be surprised [by the misconduct], I am surprised. . . and disappointed." Judge Mendoza remarked, “If we leave someone like you out in the community, the danger to the community is quite high, frankly.”
Joseph H. Harrington said, “Today’s sentence should serve as a warning to those who use social networking to send, receive, or produce child pornography – such crimes will be actively pursued by federal and state law enforcement officers. This case is a fine example of the great work that can be accomplished when state and federal law enforcement officers work together. The United States Attorney’s Office will, in turn, aggressively prosecute child pornography crimes that occur in the Eastern District of Washington.”
“This sentencing should serve as a stern reminder about the consequences facing those who prey upon and sexually exploit children,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations in Seattle, Washington. “Every time a sexually explicit image of a minor is produced, transmitted, or viewed, a child is victimized,” SAC Bench stated.
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The Kennewick Police Department, Benton County Sheriff’s Office, Homeland Security Investigations, and the Southeast Regional ICAC conducted the investigation of this matter. The case was prosecuted by Alison L. Gregoire and Laurel J. Holland, Assistant United States Attorneys for the Eastern District of Washington.
Juries Find Milwaukee Men Guilty of Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that two sex traffickers (commonly referred to as “pimps”) were convicted in separate trials in federal court in Milwaukee.
On September 1, 2017, a federal jury found Jaboree Williams (age 31) guilty on 18 counts:
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three counts of sex trafficking;
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three counts of interstate transportation for purposes of prostitution;
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conspiracy to distribute heroin and other narcotics;
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obstruction of a sex trafficking investigation;
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four counts of witness intimidation and tampering;
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four counts of contempt of court;
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obstruction of justice; and
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sending an extortionate threat.
The evidence at his trial established that Williams used force, fraud, and coercion to compel female victims to engage in prostitution in a number of states, including Illinois, Minnesota, Indiana, Georgia, Ohio, and Pennsylvania. The victims testified that Williams imposed a strict set of rules, including that the victims provide him with all of the money they were paid for engaging in sex acts; that they never tell law enforcement what Williams made them do; and that they obey Williams’ commands. Williams enforced these rules by severely beating victims who violated them. He also threatened and intimidated victims and other witnesses during the investigation and prosecution, including while he was in jail and subject to a no-contact order that had been entered by a federal judge.
Williams is scheduled to be sentenced on December 20, 2017, by United States District Judge J.P. Stadtmueller. Williams faces a maximum life term of imprisonment and a mandatory minimum of 15 years of imprisonment.
The Federal Bureau of Investigation’s Human Trafficking Task Force and the Racine Police Department investigated the Williams case with the assistance of the Oshkosh Police Department. Assistant United States Attorneys Laura S. Kwaterski and Karine Moreno-Taxman prosecuted the case.
On September 6, 2017, in a separate trial, another federal jury found Terrell Shankle, a/k/a “King Relly” (age 40), guilty on six counts:
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one count of conspiracy to transport a minor across state lines to engage in prostitution; and
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five counts of sex trafficking a minor and sex trafficking a person using force, fraud, or coercion.
The evidence at his trial established that Shankle was a violent sex trafficker who, between September 2006 and May 2012, used force, fraud, and coercion to cause a number of minor and adult female victims to engage in prostitution. Victims of Shankle’s sex trafficking testified that he regularly used physical violence and threats of violence to control them and make them engage in prostitution in Milwaukee and Chicago for his profit. All of the victims were teenagers when Shankle coerced them into prostitution, and many were under the age of 18.
Shankle faces a maximum sentence of life imprisonment, and mandatory minimum sentences of 15 years’ imprisonment on each of the five counts of sex trafficking by force, fraud, or coercion. The sentencing hearing is set for December 6, 2017, before U.S. District Judge Lynn Adelman.
The Federal Bureau of Investigation and the Milwaukee Police Department investigated the Shankle case, with assistance from the Cook County (Illinois) Sheriff’s Department. Assistant United States Attorneys Benjamin W. Proctor and Erica J. Lounsberry prosecuted the case.
United States Attorney Gregory J. Haanstad stated: “Sex traffickers prey upon some of the most vulnerable members of our society, subjecting victims to extraordinary levels of violence and brutality. All too often, as was the case with Terrell Shankle, children are among the vulnerable victims targeted by sex traffickers. And sex traffickers like Jaboree Williams further aggravate already-horrific crimes by using the fear they have instilled in their victims to intimidate witnesses and obstruct sex trafficking investigations and prosecutions. The Williams and Shankle cases reflect the commitment that the United States Attorney’s Office and the Federal Bureau of Investigation have to working with our local law enforcement partners to protect citizens from these violent and predatory offenses.”
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Jamaica Plain Man Sentenced to over 14 Years for Distributing Cocaine and HeroinRead the Press Release
BOSTON – A cocaine and heroin distributor for the Boston street gang, Columbia Point Dawgs (CPD), was sentenced today in federal court in Boston.
Fancisco Arias, 35, of Jamaica Plain, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 175 months in prison and five years of supervised release. In May 2016, Arias pleaded guilty to conspiracy to distribute over five kilograms of cocaine, and over one kilogram of heroin. Arias, one of 48 defendants tied to the CPD, was indicted in June 2015.
Arias, was involved in the importation and distribution of at least five kilograms of cocaine and over four kilograms of heroin in Massachusetts, along with other members and associates of the gang. According to documents filed in court, the CPD, also known on the street as “the Point,” was Boston’s largest and most influential citywide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. It is alleged that the CPD was responsible for the distribution of multiple kilo quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
Acting United States Attorney William D. Weinreb; Suffolk County District Attorney Daniel F. Conley; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
Jackson County Residents Charged with Methamphetamine OffensesRead the Press Release
Krystle R. Sands, 32, and Robert F. Humphrey, 46, both of Elkville, IL, were indicted on August 23, 2017, in a two-count indictment charging methamphetamine violations, United States Attorney for the Southern District of Illinois Donald S. Boyce announced today.
Sands and Humphrey are each charged with conspiracy to distribute more than 50 grams of methamphetamine and conspiracy to possess pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offenses occurred between January 2015 and May 2017, in Jackson, Williamson, and Saline Counties. Sands made her initial appearance in federal court on August 28, 2017. Humphrey made his initial appearance in federal court on September 4, 2017. Both Sands and Humphrey are being held without bond pending a November 6, 2017, jury trial.
The methamphetamine conspiracy carries a maximum penalty of ten years to life imprisonment followed by eight years of supervised release and an $8,000,000 fine. The pseudoephedrine conspiracy carries a maximum penalty of up to 20 years of imprisonment followed by three years of supervised release and a $250,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Elkville Police Department. The Southern Illinois Drug Task Force and Jackson County States Attorney’s Office also assisted in the investigation.
Inmate indicted for escaping from Atlanta’s Federal Penitentiary on three separate occasionsRead the Press Release
ATLANTA – Federal inmate Jaye L. Thomas has been indicted for escaping from the prison camp at the U.S. Penitentiary in Atlanta, Georgia, on three separate occasions in 2016.
“Thomas allegedly escaped from Atlanta’s federal prison multiple times in 2016,” said U.S. Attorney John Horn. “When inmates escape from custody, they threaten the safety of our communities nearby the prison and undermine our system of criminal justice.”
“The federal indictment of federal inmate Thomas once again clearly reflects that those inmates walking away or otherwise leaving the grounds of United States Penitentiary Atlanta property will be dealt with as escapees. The potential harm to the public as well as the breakdown of order that these individuals can cause these corrections facilities when they re-enter with contraband items that have included alcohol and cell/smart phones is significant and should not and will not be tolerated,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: the U.S. Penitentiary in Atlanta (“USP Atlanta”) is a medium-security prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also operates a satellite prison camp for minimum-security male inmates. In January 2015, Thomas was convicted of possessing cocaine with the intent to distribute it. From approximately January to December 2016, he was assigned to the USP Atlanta prison camp, with a scheduled release date of December 28, 2022.
The indictment alleges that Thomas escaped from USP Atlanta on three separate occasions in 2016 (March 22, April 4, and September 25, 2016). The investigation against Thomas originated when law enforcement officers reviewed photographs from a surveillance camera that allegedly showed Thomas in a wooded area outside of prison property. Subsequently, law enforcement officers obtained documentary evidence and eyewitness testimony to support the escape charges against Thomas.
Jaye L. Thomas, 36, of Dalton, Georgia, was indicted on August 1, 2017, on three counts of escaping from federal custody.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Indictment: Drug Traffickers Distributed Meth in Marshall CountyRead the Press Release
TOPEKA, KAN. –Nine people have been indicted on federal charges of drug trafficking in Marshall County, U.S. Attorney Tom Beall said today.
The six-count indictment unsealed on Aug. 30, 2017, alleges John Haver, 61, Waterville, Kan., and others obtained methamphetamine from California and distributed it to buyers in Marshall County, Kan. Charges in the indictment include conspiracy to distribute methamphetamine, possession with the intent to distribute methamphetamine, conspiracy to launder money and money laundering. In addition to Haver, defendants named in the indictment include:
Cally Hanshaw, 41, Waterville, Kan.
Jose Martinez, 40, Porterville, Calif.
Clayton Chase, 28, Marysville, Kan.
Philip Pagan, 38, Waterville, Kan.
Curtis Wichman, 39, Blue Rapids, Kan.
Lorinda Patton, 37, Blue Rapids, Kan.
Kimberly Krunze, 26, Waterville, Kan.
Robert Zidek, 43, Blue Rapids, Kan.
Upon conviction, the crimes carry the following penalties:
Count 1: Not less than 10 years in federal prison and a fine up to $10 million.
Count 2: Not less than 5 years in federal prison and a fine up to $5 million.
Count 3-6: Up to 20 years and a fine or more than $500,000
Investigative agencies involved in this case include the Waterville, Blue Rapids, and Riley County Police Departments, the Marshall County Sheriff’s Office and the Drug Enforcement Administration. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Hartford Man with Drug and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Hartford returned a seven-count indictment yesterday charging RAYMOND ORTEGA, 23, of Hartford, with drug and firearm offenses.
The indictment alleges that in July and August 2017, ORTEGA distributed heroin and crack cocaine. The indictment further alleges that on August 2, 2017, ORTEGA possessed distribution quantities of heroin, cocaine, and crack cocaine; a Springfield Armory XDS 4.0 .45 ACP firearm with an obliterated serial number, and a Glock .40 caliber semi-automatic pistol.
The indictment charges ORTEGA with five counts of possessing with intent to distribute and/or distributing heroin, cocaine, and/or cocaine base (“crack cocaine”). Each of these charges carries a maximum term of imprisonment of 20 years. The indictment also charges ORTEGA with one count of possession of a firearm with an obliterated serial number, an offense that carries a maximum term of imprisonment of five years, and one count of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of life.
ORTEGA has been detained since his arrest on related state charges on August 2.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Bureau of Alcohol, Tobacco, Firearms, and Explosives have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Marc H. Silverman.
Hyattsville Man Sentenced to 11 and A Half Months in Prison for Immigration FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jose Ortiz Morales, age 55, of Hyattsville, Maryland today to 11 and a half months in prison for attempted unlawful procurement of naturalization charges.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Accordingy to his plea agreement, in 1980, Morales joined the Guatemalan Army and became a member of a Special Forces military unit known as the Kaibiles. The Kaibiles were involved in serious human rights offenses during the time period in which Morales was a member. The military unit of approximately 20 Special Forces soldiers is alleged to have participated in the massacre of over 200 unarmed villagers in the small hamlet of Dos Erres, Guatemala. The massacre occurred on December 6, 1982, when the soldiers indiscriminately killed innocent men, women and over 100 children. Many of the women were raped by the soldiers before they were forced to walk at gun point to a well in the center of the village, where they were bludgeoned in the head with a hammer, and their bodies thrown into the well. Those villagers who did not die of the blow to their head were killed when a soldier fired a weapon and threw a grenade into the well. Morales is under indictment in Guatemala for his alleged participation in these war crimes.
In August 1988, Morales entered the United States by crossing the international border from Mexico into Texas illegally. He travelled to the Maryland, Virginia, and District of Columbia area, where he resided and legally worked for many years. He applied for and was granted Lawful Permanent Resident (LPR) status in 1990.
On July 13, 2006, Morales sought U.S. citizenship by submitting the N-400 naturalization application to the U.S. Citizenship and Naturalization Services (CIS). On the N-400 and during a CIS official interview, Morales falsely claimed under oath that he was not a part of any group reportable to CIS, when, in fact, he was a member of the Kaibiles and sought to conceal his involvement with that military unit. This false representation was material to the immigration authorities who were deciding Morales’ application for United States citizenship.
Morales pleaded guilty on May 25, 2017.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case, and trial attorney Christine Duey, of the Department of Justice’s Human Rights and Special Prosecutions Section.
Hudson County, New Jersey, Man Sentenced to 40 Years in Prison for Producing and Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 480 months in prison for coercing a minor to engage in sexually explicit conduct while he photographed the abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Felix Restitullo, 42, of Jersey City, New Jersey, was convicted in May 2017 of one count of production of child pornography and one count of possession of child pornography following a two-week trial before U.S. District Judge William H. Walls. The jury deliberated less than three hours before returning the guilty verdicts. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Restitullo resided with his mother, who acted as caregiver to children, including the victim, an underage girl. On March 13, 2014, as a result of an ongoing investigation into the sexual abuse of minor children, law enforcement officers interviewed the victim, who told the officers that Restitullo had sexually abused her and photographed it.
Restitullo was arrested and charged by the Hudson County Prosecutor’s Office with aggravated sexual assault and endangering the welfare of the girl. In connection with his arrest, officers searched Restitullo’s bedroom and recovered a camera and multiple electronic media devices belonging to Restitullo.
A forensic examination of the devices was performed, and law enforcement agents identified photographs that depicted the victim’s sexual abuse saved on a thumb drive found in Restitullo’s closet. Agents identified more than 3,000 images and more than 350 videos of child sexual abuse.
In addition to the prison term, Judge Walls sentenced Restitullo to lifetime supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Debra Parker, Newark field office, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Justin Herring of the Criminal Division in Newark.
Defense counsel: Mario Blanch Esq., West New York, New Jersey
Honduran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Elpi Diaz-Ramos, 27, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 21 months in prison to be served consecutive with a state prison term that he is currently serving, and one year of supervised release. Diaz-Ramos will face deportation proceedings upon completion of his sentence. In June 2017, Diaz-Ramos pleaded guilty to one count of illegal reentry of a deported alien.
Diaz-Ramos had previously been deported in December 2008, April 2009 and September 2010. At some point, Diaz-Ramos returned to the United States and in 2016 he was convicted in Suffolk Superior Court of aggravated assault and battery with a dangerous weapon and sentenced to 5-7 years in state prison.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.