Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 21 July 2017
Barrio Azteca Gang Lieutenant Sentenced to Life in Prison for Racketeering ConspiracyRead the Press Release
A Barrio Azteca (BA) gang lieutenant was sentenced on July 20, to life in prison today for his participation in a racketeering and drug trafficking conspiracy.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas; Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office; and Special Agent in Charge Will Glaspy of the Drug Enforcement Administration’s (DEA) El Paso Division made the announcement.
Ricardo Valles De La Rosa (Valles), aka Chino, 52, of El Paso, pleaded guilty on January 13, before U.S. District Judge Kathleen Cardone of the Western District of Texas to racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; conspiracy to import heroin, cocaine and marijuana; and conspiracy to commit money laundering. As part of his plea, Valles agreed that he conspired to commit murder in a foreign country. Valles is one of 35 members and associates of the BA gang charged in a third superseding indictment unsealed in March 2011, with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice.
As alleged in the indictment, members and associates of the BA have engaged in a host of criminal activity, ranging from drug trafficking, extortion and money laundering to kidnapping and homicides, including the March 13, 2010, murders in Juarez of a U.S. consulate employee and her husband, as well as the husband of another U.S. consulate employee. These individuals were killed by the BA because they were mistakenly believed to be rivals associated with the Joaquin “El Chapo” Guzman Drug Trafficking Organization.
In connection with his plea, the defendant admitted that the BA gang is a paramilitary gang with members in West Texas and Juarez, Mexico, that operates both inside and outside the prison system, and engages in drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder. In addition to profiting from drug importation and distribution, the gang also profits through the collection of a “street tax” or “cuota” through extortion from individuals engaged in both legal and illegal activities in the gang’s territory.
According to further admissions made in connection with his plea agreement, beginning in or around 1995, Valles became an associate of the BA while imprisoned at a Bureau of Prisons (BOP) facility, where he rose to the rank of sergeant. Following his release from the BOP facility and deportation to Juarez, in July 2007, Valles was promoted to lieutenant and placed in charge of prostitution and illegal after-hours alcohol sales in downtown Juarez, and also collected “cuota.” Additionally, Valles maintained contact on behalf of the BA with a Mexican law enforcement entity, and would use that contact to obtain information regarding the arrests of BA members, the activities and locations of rival gang members and the results of hits carried out by the BA. Further, Valles maintained rosters of BA members in Juarez and was in charge of conducting daily roll-calls, as well as maintaining communications between the BA in Juarez and BA members who were in and out of prison in the U.S.
In addition, Valles admitted that on March 13, 2010, upon instructions from a high-ranking BA member, Valles obtained the location of a specific vehicle and sent BA members to that location. Valles admitted that he was aware that he was assisting the other BA members to locate and commit crimes against the occupants of the vehicle, including murder. BA members subsequently located the vehicle and killed the driver, who was the husband of a U.S. Consulate employee.
The defendant was sentenced to life in prison on each of counts one through three, and to 240 months in prison on count four, all to run concurrently. The defendant was also sentenced to five years of supervised release on counts one through three, and three years of supervised release on count four.
Of the 35 defendants charged in this case, 33 have been apprehended, 25 of whom have pleaded guilty, one committed suicide while imprisoned during his trial and one was found guilty at trial. Most recently, Valles, Luis Hernandez Celis, aka Pac, and Alberto Nunez Payan, aka Fresa, were extradited from Mexico in October 2015.
The FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico, Sheriff’s Office; Las Cruces, New Mexico, Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico provided substantial assistance in the investigation.
Trial Attorneys Joseph A. Cooley and John C. Hanley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case. The Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided valuable assistance in this matter.
Alleged ISIS Supporter Indicted for Attempting to Provide Material Support to Foreign Terrorist OrganizationRead the Press Release
Amer Sinan Alhaggagi, 22, of Oakland, California, was indicted yesterday by a federal grand jury in San Francisco with attempting to provide material support to a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Brian J. Stretch of the Northern District of California and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office.
According to the indictment, Alhaggagi, 22, of Oakland, California, is alleged to have knowingly attempted to provide services and personnel to the Islamic State of Iraq and al-Sham (ISIS), between July and November of 2016, in violation of 18 U.S.C. § 2339B. ISIS is a designated foreign terrorist organization. The indictment alleges that the services Alhaggagi attempted to provide included opening social media accounts for the use, benefit and promotion of ISIS, and that the personnel he provided was himself.
The indictment also alleges three counts of identity theft offenses – two counts of identity theft, in violation of 18 U.S.C. § 1029, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. With respect to those charges, an affidavit previously filed by an agent of the FBI in connection with a criminal complaint in the same matter alleged that Alhaggagi had used a stolen credit card to make $4,932 in fraudulent online purchases from a clothing company.
The FBI arrested Alhaggagi, a U.S. citizen, on Nov. 29, 2016, based on a criminal complaint charging identity theft. Magistrate Judge Kandis Westmore ordered Alhaggagi detained following his arrest based on findings that he presented a flight risk and a danger to the community. The complaint and the previous proceedings against Alhaggagi were unsealed yesterday when the indictment was returned.
Alhaggagi’s arraignment has not yet been scheduled.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendant faces a maximum total sentence of 47 years on all four counts in the indictment, and a fine of $250,000 for each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The prosecution is the result of an investigation by the FBI, the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office for the Northern District of California, the National Security Division’s Counterterrorism Section of the U.S. Department of Justice, and members of the Joint Terrorism Task Force, including the Oakland Police Department and the Berkeley Police Department.
Alleged ISIS Supporter Indicted for Attempting to Provide Material Support to Foreign Terrorist OrganizationRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Amer Sinan Alhaggagi yesterday with attempting to provide material support to a designated foreign terrorist organization, announced United States Attorney Brian J. Stretch, Acting Assistant Attorney General for National Security Dana J. Boente, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the indictment, Alhaggagi, 22, of Oakland, California, is alleged to have knowingly attempted to provide services and personnel to the Islamic State of Iraq and Syria, or ISIS, between July and November of 2016, in violation of 18 U.S.C. § 2339B. ISIS was designated a foreign terrorist organization by the United States Secretary of State in 2014. The indictment alleges that the services Alhaggagi attempted to provide included opening social media accounts for the use, benefit, and promotion of ISIS, and that the personnel he provided was himself.
The indictment also alleges three counts of identity theft offenses – two counts of identity theft, in violation of 18 U.S.C. § 1029, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. With respect to those charges, an affidavit previously filed by an agent of the Federal Bureau of Investigation in connection with a criminal complaint in the same matter alleged that Alhaggagi had used a stolen credit card to make $4,932 in fraudulent online purchases from a clothing company.
The FBI arrested Alhaggagi on November 29, 2016, based on a criminal complaint charging identity theft. Magistrate Judge Kandis Westmore ordered Alhaggagi detained following his arrest based on findings that he presented a flight risk and a danger to the community. The complaint and the previous proceedings against Alhaggagi were unsealed when the indictment was returned.
Alhaggagi’s arraignment has not yet been scheduled.
An indictment merely alleges that crimes have been committed, and the defendants is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a total of 47 years imprisonment for the four counts charged in the indictment, and a fine of $250,000 for each count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Special Prosecutions and National Security Unit of the United States Attorney’s Office for the Northern District of California, the United States Department of Justice National Security Division, the Berkeley Police Department, and members of the Joint Terrorism Task Force including, the Oakland Police Department.
Algerian Man Extradited for Conspiring to Provide Material Support to Terrorists Makes Initial AppearanceRead the Press Release
Ali Charaf Damache, aka “Theblackflag,” 52, of Algeria, made his initial appearance today following extradition from Spain for his involvement in conspiring to provide material support and resources to terrorists.
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania made the announcement.
Damache was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism.
As part of the conspiracy, Damache, his co-defendants Mohammad Hassan Khalid, Colleen R. LaRose, Jamie Paulin Ramirez, and others conspired to provide material support and resources, including logistical support, recruitment services, financial support, identification documents and personnel, to a conspiracy to kill overseas. Damache, Khalid and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the U.S. divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
Furthermore, Damache, Khalid, LaRose and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Damache, Khalid, LaRose and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.
This case was investigated by the Joint Terrorism Task Force in the FBI's New York Field Office, in conjunction with the FBI's Philadelphia, Baltimore and Washington DC Field Offices. Authorities in Ireland and Spain also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
Algerian Man Extradited for Conspiring to Provide Material Support to Terrorists Makes Initial AppearanceRead the Press Release
PHILADELPHIA – An Algerian man made his initial appearance today following extradition from Spain for his involvement in conspiring to provide material support and resources to terrorists, announced Acting U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania and Acting Assistant Attorney General for National Security Dana J. Boente.
ALI CHARAF DAMACHE, 52, a/k/a “Theblackflag,” was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism. Damache was arrested on unrelated charges by authorities in Ireland in March 2010.
As part of the conspiracy, Damache, his co-defendant Mohammad Hassan Khalid, Colleen R. LaRose, Jamie Paulin Ramirez, and others conspired to provide material support and resources, including logistical support, recruitment services, financial support, identification documents and personnel, to a conspiracy to kill overseas. Damache, Khalid and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the United States divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
Furthermore, Damache, Khalid, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Damache, Khalid, LaRose, and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.
This case was investigated by the FBI Field Division in New York, in conjunction with the FBI's Joint Terrorism Task Force in Philadelphia, and the FBI Field Divisions in Baltimore and Washington, D.C. Authorities in Ireland and Spain also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, in the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle, from the Counterterrorism Section of the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
Acting U.S. Attorney Settles Civil Rights Suit Against Westchester Property Management Company and Cooperative Building for Discriminating on the Basis of DisabilityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has settled a federal civil rights lawsuit against Defendants WEST-EX ASSOCIATES, INC. (“West-Ex”), and 505 CENTRAL AVENUE CORP. (“505 Central Ave.”), for discriminating on the basis of disability and refusing to provide reasonable accommodations, as required by the Fair Housing Act.
Acting U.S. Attorney Joon H. Kim said: “Every member of our society is entitled to equal access to housing and the independence and dignity that it provides. With this resolution, we again emphasize that condos, cooperatives, landlords, and property managers must provide reasonable accommodations to people with disabilities.”
The Fair Housing Act makes it unlawful to discriminate in the terms and conditions of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter’s disability. The law also mandates that reasonable accommodations in rules, policies, practices, and services be provided when necessary to afford equal opportunity to housing to persons with disabilities.
According to the allegations in the Complaint, filed in January 2017, 505 Central Ave. maintains a 155-unit housing cooperative located in White Plains called Thompkins Manor. West-Ex acts as 505 Central Ave.’s property management company, and handles applications for housing at Thompkins Manor. Between August 2013 and July 2014, West-Ex and 505 Central Ave. repeatedly denied the application of a 34-year-old individual (the “Complainant”) to purchase a one-bedroom unit at Thompkins Manor based on his disabilities. The Complainant has suffered numerous heart attacks and lives with congenital heart problems, developmental language disorder, learning disorders, and depression. The Complainant and his family requested that ownership of his unit be placed under a legal trust, which would assist the Complainant in managing the requirements of cooperative housing. West-Ex and 505 Central Ave. unlawfully rejected this reasonable accommodation request on numerous occasions, summarily and without adequate explanation. The Complaint further alleges that West-Ex, which acts as a management company for numerous other properties in Westchester County, engaged in a pattern and practice of discriminatory conduct by maintaining a stated policy of not considering requests for reasonable accommodations by applicants like the Complainant. Following Defendants’ unlawful denial of the Complainant’s application for housing, the Complainant was forced to continue living in a boarding house with abysmal conditions, grew increasingly depressed, and suffered another heart attack.
* * *
Under the terms of the Settlement Agreement, filed yesterday with an order resolving the case entered by U.S. District Judge Nelson S. Román, West-Ex and 505 Central Ave. must:
- Pay a total of $125,000, including compensatory damages and attorney’s fees to the Complainant and civil penalties to the United States;
- Adopt reasonable accommodation policies and application forms approved by the United States, which must be included with all future applications for housing handed out to prospective buyers; and
- Provide annual training regarding the Fair Housing Act and reasonable accommodation policies to all current and future employees and agents.
In addition, 505 Central Ave. must only employ property management companies with adequate reasonable accommodation policies in place, and West-Ex may not take any action as property manager for any other property that violates its newly adopted reasonable accommodation policy.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Stephen Cha-Kim is in charge of the case.
Acting U.S. Attorney Announces Filing of Motion to Dismiss Pending Charges in United States V. Javier Martin-Artajo and Julien GroutRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the Office has filed a proposed order to dismiss the outstanding charges against JAVIER MARTIN-ARTAJO and JULIEN GROUT, two former derivatives traders at JPMorgan Chase & Company (“JPMorgan”). MARTIN-ARTAJO and GROUT were indicted on September 16, 2013, for their alleged participation in a conspiracy to hide losses in a credit derivatives trading portfolio at JPMorgan. MARTIN-ARTAJO, a Spanish citizen, and GROUT, a French citizen, have not appeared on these criminal charges. On April 23, 2015, a court in Spain rejected the Government’s request to extradite MARTIN-ARTAJO, and a prior determination had been made that attempts to extradite GROUT from France would have been futile. The motion to dismiss is subject to the approval of United States District Judge Lorna G. Schofield.
As set forth in the proposed order, the Government sought charges in this matter based in part on the Government’s anticipated ability to call as a trial witness Bruno Iksil, a former colleague of the two defendants at JPMorgan. Based on a review of recent statements and writings made by Iksil, however, the Government no longer believes that it can rely on the testimony of Iksil in prosecuting this case, even if the defendants appeared. Based on these developments, among other factors, the Government has decided not to keep these charges pending, but rather to seek their dismissal at this time.
Arizona Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Oscar David Zuniga-Chavez , A/K/A Oscar David Chavez-Zuniga age 37, of Tolleson, Arizona, was sentenced today to 121 months in federal prison followed by three years of supervised release and was ordered to pay a $2,400.00 fine on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November 2017, during the course of an investigation into the criminal activities related to the distribution of methamphetamine, the Drug Enforcement Administration, (DEA) identified Oscar David Zuniga-Chavez as a source of supply of methamphetamine. During the investigation, agents were able to seek and obtain a federal search warrant for Zuniga's residence in Peoria, Arizona as well as a federal arrest warrant for Zuniga. On December 8, 2016, agents with the DEA Fayetteville Resident Office traveled to Arizona, where they assisted DEA agents and task force officers from Phoenix, Arizona in the execution of the search warrant and arrest warrant. Agents made contact with the Zuniga at the residence, and advised him of his Miranda rights. During the interview with Zuniga, he waived his Miranda rights and admitted to sending multiple pounds of methamphetamine to the Western District of Arkansas for distribution.
Zuniga was indicted by a federal grand jury in January, 2017 and pleaded guilty in March, 2017.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Thursday 20 July 2017
“YGz” Gang Member Sentenced to 33 Years in Prison for Stomping Murder of 16-Year-Old and Other CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM BRACY, a/k/a “Rel,” was sentenced yesterday to a prison term of 396 months for his crimes as a member of the “Young Gunnaz” or “YGz” gang, including the April 16, 2012, murder of Moises Lora, a/k/a “Noah,” 16, during which BRACY and several other YGz gang members stomped Lora to death in a courtyard in the Melrose housing projects in the Bronx. BRACY was sentenced in Manhattan federal court by United States District Judge Valerie E. Caproni, before whom he previously pled guilty. For purposes of the sentencing, Judge Caproni found, following an evidentiary hearing held yesterday, that BRACY was one of the YGz members who kicked Lora while he lay on the pavement during the attack that resulted in Lora’s death.
Acting Manhattan U.S. Attorney Joon H. Kim said: “William Bracy and his fellow gang members stomped 90-pound, 16-year-old Moises Lora to death a few yards from a playground in a South Bronx housing complex. While we cannot bring Moises Lora back, we hope that his family finds justice, and a measure of solace, in today’s sentence. Together with our law enforcement partners, we will continue to aggressively prosecute all those who inflict this deadly violence on our communities.”
According to the charging and other documents filed in the case, as well as the evidence presented at BRACY’s presentencing hearing and statements made during BRACY’s guilty plea, sentencing proceedings, and other court proceedings in this case:
BRACY was a member of the Bronx-based street gang known as the YGz. From at least 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committing acts of violence, including the murder of rival gang members, rival drug traffickers, and innocent bystanders. As part of his involvement in the YGz gang, BRACY participated in numerous acts of violence, as well as crack cocaine distribution, in the South Bronx.
For example, as part of his involvement in the YGz gang, BRACY and several other YGz gang members murdered Moises Lora, a member of a rival gang, on April 16, 2012, in the South Bronx. On the date of the murder, a group of YGz members, including BRACY, got drunk, and began arguing among themselves about who had done the most violence for the YGz. This group of YGz members went to the territory of a rival gang in the Melrose housing projects to settle their dispute. Upon arriving at the Melrose projects, BRACY and other members of the YGz saw Lora and attacked him. During the attack, Lora’s skull was fractured in several places. BRACY and the group left Lora to die. Following the stomping, BRACY and several of his confederates bragged to fellow YGz members about what they had done.
* * *
BRACY, 23, of the Bronx, is the fourth defendant to be sentenced this year by Judge Caproni for participation in a YGz-related murder. Judge Caproni sentenced BRACY’s co-defendant Anthony Scott, a/k/a “Tyson,” to 23 years in prison primarily for Scott’s role in shooting and killing Darrel Ledgister on June 27, 2009, in the South Bronx during an attempted robbery. Judge Caproni sentenced BRACY’s co-defendant Paul Gilbert, a/k/a “2Fly Tay,” to more than 30 years in prison primarily for Gilbert’s role in the murder of Cody Dubose on September 27, 2014, near the Taft Houses in Manhattan during an attempted robbery. Finally, Judge Caproni sentenced BRACY’s co-defendant Terrance Williams, a/k/a “TA,” to more than 33 years in prison primarily for Williams’s role in the murder of Curtis Smith on July 3, 2011, near the Jackson housing projects in the South Bronx.
Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
Williamsburg Attorney Sentenced for Timeshare FraudRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg lawyer guilty of her role in a conspiracy to fraudulently transfer of hundreds of timeshare units was sentenced today to 50 months in prison.
Deborah Wagner, 45, pleaded guilty on September 9. According to court documents, Wagner conspired with others in a wide-ranging scheme to engage in the fraudulent transfer of timeshare units into the names of stolen identities and straw owners. Over the several years that the scheme operated, Wagner and her conspirators caused over $2 million in losses to resorts and owner associations while earning hundreds of thousands from individuals who sought a legitimate means to divest their timeshare ownership, but were persuaded to pay hundreds or thousands of dollars to transfer companies. These transfer companies, with Wagner’s involvement, then transferred these time share units into unqualified straw owners with no ability or intention to make the required maintenance fee payments.
Wagner worked with two Williamsburg based businesses - GoodBye Timeshare, LLC, and Exotic Equity Transfers, LLC, in conducting the transfers. The owners of these businesses, Brendan Hawkins and Keith Kosco, were prosecuted separately and received sentences of 46 months and 74 months in prison, respectively, in 2015. These other businesses paid Wagner’s law firm hundreds of thousands of dollars in fees for conducting the fraudulent transfers. Additionally, Wagner created a nominee company for the purpose of recruiting additional straw owners to use in the scheme.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brain J. Samuels and Howard J. Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-28.
Wholesale Jewelry Distributor Charged in Multi-Million Dollar Fraud SchemeRead the Press Release
PROVIDENCE – Gerald Kent, 51, of Groton, CT, owner and operator of Kent Jewelry in Johnston, RI., made an initial appearance in U.S. District Court in Providence today and was ordered detained in federal custody, charged by way of a criminal complaint with wire fraud and aggravated identity theft.
It is alleged in court documents that Kent, through his company, which primarily sells jewelry on the internet using websites such as Groupon.com and Zulily.com, orchestrated a long running, multi-million dollar fraud scheme that defrauded a debtor finance company of more than $3.6 million dollars.
The charges are announced by Acting United States Attorney Stephen G. Dambruch; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation Boston Division.
According to an affidavit in support of the criminal complaint, it is alleged that Kent submitted fraudulent invoices to a factoring (debtor finance) company based in Chicago, Ill., mostly from Groupon and Zulily, which resulted in payments to Kent of nearly $5 million dollars.
According to the affidavit, it is alleged that to execute the fraud scheme, Kent created hundreds of fraudulent invoices which were submitted to the factoring company for which he received payment; created and used a fraudulent clone of Groupon, Inc.’s website; enlisted coconspirators to pose as Groupon employees; and opened bank accounts in the names of Groupon and Zulily, Inc., in order to deceive the debtor finance company into believing it was receiving payments from these companies.
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. Factoring companies work with businesses to provide working capital in order to grow their businesses without having to wait for outstanding accounts receivables to be paid.
Kent, who was arrested on Wednesday evening at Foxwoods, appeared today before U.S. District Court Magistrate Judge Patricia A. Sullivan and was ordered detained pending a detention hearing on July 26, 2017.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams.
The matter was investigated by agents from the U.S. Secret Service and the FBI.
###
Wheeling man sentenced for illegal possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Jeffrey Moran, 45, of Wheeling, West Virginia, was sentenced today to 37 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Moran, who had previously been convicted of a felony offenses of drug possession in Ohio County and a misdemeanor conviction of domestic violence, is prohibited from possessing a firearm. He admitted to possessing a .22 caliber pistol, a 12-guage shotgun and a 20-guage shotgun in Ohio County, West Virginia in December 2016.
Moran pled guilty to one count of “Unlawful Possession of a Firearm” in May 2017.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Department of Natural Resources investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Man Indicted on Fraud Charges Tied to Stolen Gardner Museum PaintingsRead the Press Release
BOSTON – A Beckley, W.Va. man was indicted today by a federal grand jury in Boston in connection with his scheme to sell paintings stolen from the Isabella Stewart Gardner Museum in 1990, on Craigslist.
On May 22, 2017, Todd Andrew Desper, a/k/a “Mordokwan,” 47, was arrested and charged in a criminal complaint. He was released on bond the day after his arrest and remains on pre-trial release. Today, a federal grand jury returned an indictment charging Desper with four counts of wire fraud and attempted wire fraud.
According to court documents, Desper, acting under the pseudonym “Mordokwan,” solicited foreign buyers for both the Storm on the Sea of Galilee and Vermeer’s The Concert on Craigslist in a number of foreign cities including Venice and London. Desper directed interested buyers to create an encrypted email account to communicate with him. Authorities were notified of the foreign Craigslist notices by individuals seeking to assist in the recovery of the artwork, as well as those seeking the multi-million dollar reward offered by the Museum. At the time of the crime, the Museum was offering a $5 million reward. The Museum has since increased that reward to $10 million.
At the direction of federal authorities, the security director for the Gardner Museum engaged in encrypted communications with Desper in an attempt to determine whether Desper had access to the stolen masterpieces. Desper allegedly instructed the security director to send a cashier’s check for $5 million to a location in West Virginia and that Storm on the Sea of Galilee would then be sent in return, concealed behind another painting. It is alleged that the investigation ultimately revealed that Desper had no access to, nor information about, the stolen paintings, but was instead engaged in a multi-million dollar fraud scheme targeting foreign art buyers.
On March 18, 1990, 13 pieces of artwork were stolen from The Isabella Stewart Gardner museum in the early morning hours. According to security guards, two white males dressed in Boston Police uniforms gained entrance to the Gardner Museum by explaining that they were responding to a report of a disturbance within the museum compound. Upon entry, the thieves subdued and secured the guards and went on to commit the largest art theft in history, taking 13 works of art including Rembrandt’s Storm on the Sea of Galilee and Vermeer’s The Concert. The combined value of the art stolen during the Gardner theft is estimated at $500 million, although several of the works are considered priceless within the art community.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided the Isabella Stewart Gardner Museum, the U.S. Attorney’s Office for the Southern District of West Virginia, the FBI Pittsburgh Field Division, and the Beckley Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. McNeil of the U.S. Attorney’s Office Criminal Division.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Woman Sentenced to Eight Years in Federal Prison for Sex Trafficking a 16 Year Old GirlRead the Press Release
July 20, 2017
FOR IMMEDIATE RELEASE Contact BAILEY DRUMM
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Heather Wagoner, age 31, of Buchanan, Virginia was sentenced to eight years in prison, followed by 10 years of supervised release by U.S. District Judge Ellen L. Hollander. Wagoner pleaded guilty to a sex trafficking conspiracy involving a 16 year old girl.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Edward G. Hargis of the Frederick City Police Department.
According to court documents, Wagoner and a co-conspirator conspired to engage in sex trafficking of a minor who was 16 years old at the time. From October 15, 2014 through December 19, 2014, Wagoner and her co-conspirator used the internet to solicit individuals for prostitution in Maryland. Wagoner instructed the victim to engage in sexual acts and provided condoms.
For two weeks in December 2014, the victim resided with Wagoner at various hotels in West Virginia and Maryland. Wagoner received calls from customers inquiring about the victim, and then relayed the information to her co-conspirator who facilitated the victim’s “date” with the customers. Wagoner and the victim would split the proceeds from the dates, and Wagoner would use some of her proceeds to pay her co-conspirator for driving the victim.
On December 19, 2014, detectives, acting in an undercover capacity, contacted the phone number provided on the website for the victim and spoke with Wagoner. The detectives arranged a meeting at a hotel in Frederick, Maryland, where investigators subsequently identified the victim as a minor and arrested the co-conspirator.
On the same day, investigators obtained a search warrant for the co-conspirator’s phone, which indicated numerous communications between the co-conspirator and Wagoner regarding sex trafficking of the victim. After police seized the co-conspirator’s phone, Wagoner continued to text the co-conspirator regarding the conspiracy to sex traffic the victim. Investigators arrested Wagoner on July 1, 2016.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI and Frederick City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who worked on the case, and Assistant U.S. Attorney Zachary A. Myers who prosecuted the case.
Ukrainian “Casher” Sentenced for Role in Worldpay Hacking SchemeRead the Press Release
ATLANTA- Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R, has been sentenced to 46 months in federal prison for conspiracy to commit bank fraud for his role as a “casher” (one who withdraws cash using stolen bank account information) in the 2008 hack of RBS WorldPay.
“The 2008 hack of RBS WorldPay was one of the world’s most sophisticated hacking and cashing schemes,” said U. S. Attorney John Horn. “The team of hackers not only stole financial data from an American payment processor’s private servers, they were able to work in concert with a team of cashers stationed around the world. The cybercriminals stole over $9 million dollars in 12 hours from 2100 ATMs worldwide.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “Cyber crime and computer intrusions are no longer executed by lone individuals. Instead, they rely upon a complex online and real world ecosystem of criminal goods and services for hire, such as the cashing service operated by Mr. Levitskyy. His cashing service was a key component in an organized network of criminal services, which was leveraged to withdraw over $9 million dollars from RBS WorldPay. Outstanding levels of global cooperation among US and international law enforcement culminated in the arrest and sentencing of Mr. Levitskyy, which removed a key criminal service from the cyber criminal underground, thereby reducing the ability for cyber criminals to monetize cyber attacks.”
“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, United States 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 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 with 44 counterfeit payroll debit cards, which were used to withdraw 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 stole 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 cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number. He was sentenced by U.S. District Court Judge Steven C. Jones to 46 months in prison and ordered to pay restitution of $499,518.51.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian 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 was investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant U.S. Attorney Kamal Ghali prosecuted the case. Assistance was provided by the Justice Department’s Office of International Affairs, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), the Czech Republic’s Policie Ceske Republiky (“PCR”), 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
Two More Plead Guilty in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – A Texas man and an Indian national have each pleaded guilty to conspiracy charges this week for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas made the announcement along with Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), 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).
Nilesh Pandya, 54, of Stafford, and Montu Barot, 30, an Indian national most recently residing in Glendale Heights, Illinois, each pleaded guilty to one count of conspiracy to commit fraud and money laundering. The pleas were entered before U.S. District Judge David Hittner of the Southern District of Texas. Barot agreed to deportation following his sentence. Sentencing dates are pending.
According to admissions made in connection with their respective pleas, Barot, Pandya 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.
According to Barot’s guilty plea, beginning in or around June 2012, Barot served as a runner and coordinated the liquidation of victim scam funds by other runners per the instructions of conspirators from both India-based call centers and within the United States. Barot communicated via phone, text and email in furtherance of the criminal scheme with both domestic and India-based associates. , and he and his conspirators used 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. Barot also admitted to sending financial ledgers to his conspirators detailing the movement of scam victim funds.
Based on admissions in Pandya’s guilty plea, beginning in or around March 2014, he served as a runner liquidating victim scam funds within the Southern District of Texas. At the direction of two of his co-defendants, Pandya used stored value cards that had been loaded with victim funds to buy money orders and then deposit them into various bank accounts.
To date, Barot, Pandya, 54 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. Including this week’s pleas, a total of 13 defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, Bhavesh Patel and Asmitaben Patel previously pleaded guilty 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.
HSI, 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 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.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case along with Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.
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.
Two Linn County Men Charged with Theft of Forty-Eight FirearmsRead the Press Release
John Gillespie, age 18, from Cedar Rapids, Iowa, and Jeremy Reynolds, age 18, from Hiawatha, Iowa, have been charged with one count each of theft of firearms from a licensed firearms dealer in United States District Court in Cedar Rapids. Reynolds is charged in an Indictment filed on July 18, 2017. Gillespie is charged in an Information filed on July 14, 2017. Both Reynolds and Gillespie were previously charged in complaints and were previously detained by the court.
If convicted, both defendants face not more than 10 years’ imprisonment without the possibility of parole, a $250,000 fine, $100 in special assessments, and not more than 3 years of supervised release following any imprisonment.
Reynolds appeared on July 19, 2017, in federal court in Cedar Rapids for his arraignment. Reynolds’ next appearance for trial is set for September 18, 2017.
Gillespie is scheduled to appear in federal court in Cedar Rapids for an arraignment on August 3, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hiawatha Police Department, the Cedar Rapids Police Department, and the Loves Park Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
Gillespie’s case file number is 17-Cr-00050 and Reynolds’ case file number is 17-Cr-00051
Follow us on Twitter @USAO_NDIA.
Two Indicted After Delivering 15 Pounds of Methamphetamine in Kern CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Oscar Ivan Salazar-Avalos (Salazar), 27, a native and citizen of Mexico, and Jose Manuel Sotelo-Mendoza, aka Jose Manuel Mendoza-Sotelo (Sotelo), 25, of Modesto, charging them with conspiring to distribute and possess with intent to distribute and possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Salazar and Sotelo delivered 15 pounds of methamphetamine to an undercover officer in Delano, California after Salazar negotiated for the delivery of the drug for $3,400 per pound.
This case is the product of an investigation by the High Intensity Drug Area Fresno Methamphetamine Task Force, consisting the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, the California Department of Justice’s Bureau of Investigation, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted, the defendants face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine for each count. 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.
Twenty People Convicted and Sentenced in Long Term Methamphetamine Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – The last of twenty defendants have been sentenced for their involvement in a large-scale, methamphetamine trafficking organization operating primarily within Taylor County. During the fall of 2014, an Organized Crime Drug Enforcement Task Force began investigating the distribution of methamphetamine—commonly referred to as “ice”—within Taylor County and the surrounding area. The defendants were charged in a series of indictments returned over the course of 2016. In total, twenty defendants were convicted and sentenced to conspiracy to distribute and possess with intent to distribute varying amounts of methamphetamine. The investigation also involved numerous undercover controlled purchases by law enforcement made during the trafficking conspiracy. The convictions and sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants are:
-
Joshua Oneal Faulk, 26, Zephyrhills, Florida, 240 months in prison;
-
Robby Lynn Wilson, 36, Perry, Florida, 180 months in prison;
-
Camelia Faulk, 49, Zephyrhills, Florida, 144 months in prison (84 months from the Northern District consecutive to 60 months from the Middle District of Florida);
-
Fairley Trey Pitts, 31, Perry, Florida, 108 months in prison;
-
Cody Aaron Jacobs, 26, Perry, Florida, 108 months in prison;
-
Darrius Demond Beasley, 26, Perry, Florida, 101 months in prison;
-
Kendall Lamar Smith, 29, Perry, Florida, 66 months in prison;
-
Micah Todd Archer, 34, Perry, Florida, 60 months in prison;
-
George Kevin Cook, 40, Perry, Florida, 60 months in prison;
-
Craig Michael Hathcock, 47, Tallahassee, Florida, 60 months in prison;
-
Bryan Joseph Bowden, 29, Perry, Florida, 48 months in prison;
-
Dewey Randall Bright, Jr., 39, Perry, Florida, 48 months in prison;
-
Nicholas Wayne Pharr, 35, Perry, Florida, 48 months in prison;
-
Corey James Rucker, 22, Perry, Florida, 48 months in prison consecutive to 27 months in state prison;
-
Christopher Ryan Sessions, 35, Perry, Florida, 48 months in prison;
-
James Oglesby Stephens, 53, Perry, Florida, 39 months in prison;
-
Lindsay Anne Overstreet, 33, Perry, Florida, 24 months in prison;
-
Shanna Nicole Leigh Pittman, 23, Perry, Florida, 24 months in prison;
-
Michael Jared Borklund, 30, Perry, Florida, 12 months and 1 day in prison; and
-
Calista Bryce Hedricks, 36, Perry, Florida, 1 day in prison.
This case resulted from an investigation by the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, Florida Highway Patrol, Leon County Sheriff’s Office, Taylor County Sheriff’s Office, Lafayette County Sheriff’s Office, High Springs Police Department, and with the assistance of the State Attorney’s Offices in Taylor, Lafayette, and Alachua counties. Assistant United States Attorney Christopher J. Thielemann prosecuted the cases.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
-
Twelve Indicted on Federal Drug Trafficking Charges in West TennesseeRead the Press Release
Jackson, TN - Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today the unsealing of an indictment charging 12 suspects with federal drug trafficking violations.
The suspects were arrested earlier today during a round-up conducted by members of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Tennessee Bureau of Investigation (TBI), the Tennessee Highway Patrol (THP), the 24th Judicial District Drug Task Force, the Jackson-Madison County Metro Narcotics Unit, both the Jackson and Madison County SWAT teams, and the McNairy County Drug Task Force. The twelve defendants named in the indictment are crystal methamphetamine traffickers.
The indictment was returned by a federal grand jury in Jackson on July 17, 2017, but remained sealed until today’s arrests. The indictment contains counts alleging violations of the Controlled Substances Act, counts alleging illegal possession of firearms after being convicted of a felony, as well as counts for possession of firearms in furtherance of a drug trafficking crime.
The suspects arrested during the operation are:
• Kevin Smith, 44, Saltillo, TN;
• Phillip Steely, 51, Jackson, TN;
• Deena Orr, 38, Huntingdon, TN;
• Steven Jones, 41, Reagan, TN;
• Heather Walker, 36, Parsons, TN;
• Dina Evans, 54, Decaturville, TN;
• Doug Evans, 52, Bath Springs, TN;
• Rhonda Carter, 48, Iuka, MS;
• Ashley Sweat, 39, Adamsville, TN (already in custody on state charges);
• David Mathis, 50, Lexington, TN;
• Jennifer Holley-Melton, 42, Lutts, TN
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "Along with our federal, state and local partners, the U.S. Attorney’s Office will continue to use every lawful tool we have to take violent offenders and drug traffickers off our streets. We will bring criminals to justice. That’s our commitment to the citizens in the Western District."
Count 1 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine.
Count 2 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with aiding and abetting each other to possess with the intent to distribute 50 grams or more of actual methamphetamine.
Count 3 and 4 charges Kevin Smith with knowingly distributing actual methamphetamine and knowingly distributing over 50 grams of actual methamphetamine.
Count 5 charges Kevin Smith, Deena Orr and Phillip Steely with knowingly possessing with intent to distribute 5 or more grams of actual methamphetamine.
Count 6 charges Joshua Tucker with knowingly possessing with intent to distribute 50 grams or more of actual methamphetamine.
Counts 7 and 8 charge Joshua Tucker with being a felon in possession of an AR-15 style rifle and a 9 mm pistol.
Counts 9 and 10 charge Joshua Tucker with possessing two firearms in furtherance of a drug trafficking offense.
During the course of the over 9-month investigation, law enforcement officials have seized illicit narcotics, 5 firearms, 5 vehicles and $7,600 dollars in cash.
The charges in the indictment stem from the illegal activity of participating in a conspiracy to distribute and to possess with the intent to distribute ice (methamphetamine with more than 80% purity).
"This case is a great example of local, state and federal agencies working together on multi-jurisdictional investigations, targeting violent drug organizations preying on the citizens of West Tennessee. The subjects of this investigation were responsible for the distribution of large quantities of crystal methamphetamine. The dismantlement of this
organization should send a clear message that law enforcement and federal prosecutors are here to attack these threats with everything at our disposal," said Jim Catalano DEA Resident Agent in Charge.
The case was investigated by the Drug Enforcement Administration, along with the Tennessee Bureau of Investigation, the 24th Judicial District Drug Task Force, and Jackson-Madison County Metro Narcotics. Assistant United States Attorneys Taylor Eskridge and Beth Boswell are prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
###
Three men indicted for illegally reentering the U.S.Read the Press Release
Three men were indicted for illegally reentering the United States, said Acting U.S. Attorney David A. Sierleja.
Jacinto Guzaro-Brito, 31, was last deported to Guatemala on December 4, 2013. He was recently found in Tuscarawas County, according to the indictment.
Fredy Said Maradiaga-Zambrano, 28, was last deported to Honduras on May 30, 2014. He was recently found in Ashland County, according to the indictment.
Juan Carlos Alvarez-Jocobo, aka Juan Carlos Alvarez, aka Juan C. Alvarez, 30, was last deported to Mexico on October 19, 2012. He was recently found in Mahoning County.
Assistant U.S. Attorney Karrie D. Howard is prosecuting the Brito and Zambrano cases following an investigation by Immigration and Customs Enforcement, Department of Homeland Security and the New Philadelphia Police Department (Brito) and the Ashland Police Department (Zambrano).
Assistant U.S. Attorney Brad J. Beeson is prosecuting the Jocobo case following an investigation by the Campbell Police Department and Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Third Defendant, Mortgage Broker, Pleads Guilty in Mortgage Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Gregory Gibbons, 51, of Pleasantville, N.Y., pleaded guilty to conspiracy to commit wire fraud affecting a financial institution, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Kathleen A. Lynch and Elizabeth Moellering, who are handling the case, stated that between June 2008 and February 2009, the defendant conspired with others, including Alagi Samba, a realtor, and Daniel Badu, to devise a scheme to obtain eight loans for unqualified borrowers for homes in the Bronx, NY. As part of the scheme, Gibbons acted as the mortgage broker and altered income and asset documents of the borrowers before they were sent to financial institutions.
For instance, Gibbons altered and created documents to make it appear that defendant Badu qualified for a mortgage on a property at 814 Faile Street in the Bronx. The defendant indicated that Badu was a research ophthalmologist and earned a specific income when in fact, Badu was not a research ophthalmologist nor did he receive the income stated on a loan application. Gibbons knew that these false loan documents were submitted to The Funding Source, a mortgage bank, in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved. The Funding Source then sold the loan on the secondary market to M &T Bank, which wired funds from New York through the State of Ohio to purchase the loan.
The defendant and his co-conspirators arranged for additional fraudulent loans to be approved, including another loan for Badu, and caused wire communications to be transmitted in interstate commerce for those loans. These fraudulent transactions caused losses of approximately $4,800,007 affecting M&T Bank and other financial institutions including SunTrust Bank, JPMorgan Chase Bank, and Citibank.
Defendants Badu and Samba have also been convicted and are awaiting sentencing. Charges are pending against co-defendants Julio Rodriguez, Laurence Savedoff, and Tina Brown. 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 United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Division, the Department of Housing and Urban Development, under the direction of Special Agent in Charge Brad Geary, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing for defendant Gibbons is scheduled for October 19, 2017, at 2:00 p.m. before Judge Geraci.
Texas Woman Charged in Virtual Kidnapping SchemeRead the Press Release
HOUSTON – A 34-year-old Houston woman has been taken into custody for her alleged involvement in a virtual kidnapping for ransom scheme that stretched to three states, announced Acting U.S. Attorney Abe Martinez of the Southern District of Texas.
A federal grand jury in Houston returned a 10-count indictment against Yanette Rodriguez Acosta aka Yanette Patino under seal on Tuesday, July 18, 2017. Authorities took her into custody today, at which time the indictment was unsealed. She is expected to make her initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
“These types of cases are tragic,” said Martinez. “It’s not the amount of money involved; it’s the fact that these people are tricked into believing their loved ones are in danger and the horror and helplessness they feel as they scramble to secure what they think is their release. It is important for people to know about these scams and to be cautious and mindful when getting these types of calls.”
According to the indictment, Acosta’s co-conspirators used Mexican telephone numbers and called numerous victims throughout the United States in Texas, California and Idaho in an attempt to extort money. They were allegedly told their child had been kidnapped and that they must pay money to secure their safe release. This scheme is commonly referred to as a “virtual kidnapping for ransom,” according to the indictment.
Victims were typically instructed to wire money to individuals in Mexico. However, two of those victims were directed to make money drops at specified locations in the Houston area on Sept. 17, and Sept. 30, 2015, respectively, according to the charges. Both victims were allegedly told their daughters had been kidnapped because they had witnessed a crime and that their fingers would be cut off if the parents did not comply with demands.
Acosta allegedly picked up the ransom payments following the victims’ money drops. The indictment alleges that after taking her portion of the ransom money, Acosta wired the remainder to her co-conspirators in Mexico. She also allegedly recruited others to send money to Mexico.
The two victims paid a total of approximately $28,000, according to the indictment.
Acosta is charged with one count of conspiracy to commit wire fraud, eight counts of wire fraud and one count of conspiracy to launder money. Each charge carries a possible maximum sentence of 20 years in federal prison.
The Los Angeles, California, Field Offices of the FBI and IRS - Criminal Investigations conducted the investigation along with the police departments in Los Angeles and Beverly Hills, California, and the Montgomery County, Texas, Sheriff’s Office with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations in Los Angeles.
Assistant U.S. Attorney Kate Suh is prosecuting the case. The Money Laundering and Asset Recovery Section of the Department of Justice also provided valuable assistance during the course of the investigation.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Texas Man Wanted by Federal Authorities Charged with Credit Card FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return on an indictment charging Jose Carlos Terra Izquierdo (23, Amarillo, TX) with credit card fraud. If convicted, he faces an enhanced penalty of up to 20 years in federal prison and forfeiture of his computer media.
According to the indictment and information presented in court, Izquierdo was in possession of multiple credit card account numbers from Wells Fargo, JP Morgan Chase, Capital One, Citibank, and City Credit Union. He was previously convicted of credit card fraud in 2016 in the District of Nebraska and sentenced to federal prison. As part of his sentence, he was required to turn himself into law enforcement on March 17, 2017, to begin serving his sentence. He was also limited in his ability to travel. In violation of these conditions, Izquierdo traveled to Florida and engaged in credit card fraud. Federal authorities in Nebraska subsequently issued a warrant for his arrest. He faces the enhanced penalty as a result of his prior fraud conviction.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Florida Highway Patrol and the U.S. Secret Service - Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Tampa Resident Indicted for Assaults on Delta Airlines Flight to ChinaRead the Press Release
A federal grand jury in Seattle returned a five count indictment yesterday charging 23-year-old JOSEPH DANIEL HUDEK, IV for the July 6, 2017, incident aboard a Delta Airlines flight to Beijing, China, announced U.S. Attorney Annette L. Hayes. HUDEK remains detained at the Federal Detention Center at SeaTac, and will be arraigned on Thursday, July 27, 2017, at 9:00 AM.
The indictment charges HUDEK with Interference with Flight Crew and Attendants and four counts of Assault within the Special Aircraft Jurisdiction of the United States. Some of the assault counts carry higher penalties because of the use of a dangerous weapon or the infliction of serious bodily harm. One passenger and one flight attendant had to be taken from the plane for medical attention immediately after the assaults.
According to records filed in the case, HUDEK was seated in first class on the Delta flight. The aircraft had just passed over Vancouver Island and was over the Pacific Ocean when HUDEK came out of the first class bathroom and in an agitated state attempted to open the exit door of the aircraft. Two flight attendants attempted to stop HUDEK and he threw one to the floor and punched the other. When a passenger attempted to assist the flight attendants, HUDEK hit him over the head with a wine bottle. Ultimately, multiple passengers were required to restrain HUDEK, and one had to re-lock the exit door as the aircraft returned to Seattle.
Interference with a flight crew is punishable by up to 20 years in prison. Three of the assault counts carry statutory maximum penalties of up to ten years in prison. One of the assault counts is a misdemeanor with a maximum penalty of one year in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Staten Island Man Indicted for Million-Dollar Real Estate Investment Scam Targeting Elderly VictimsRead the Press Release
A nine-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging the defendant Yevgeniy Braziler with securities fraud, mail fraud, and wire fraud for orchestrating a scheme to target elderly investors by selling them partnerships in three fraudulent real estate companies. Braziler was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
The indictment was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the United States Postal Inspection Service.
“As alleged, the defendant targeted the elderly with lies and deceit. We will bring the full force of the law to bear on those, such as the defendant, who take advantage of our vulnerable neighbors,” stated Acting United States Attorney Rohde.
“Mr. Braziler allegedly fleeced elderly investors when he devised a scheme to separate them from their hard earned money and secure retirements. Postal Inspectors will never tolerate the financial abuse of anyone regardless of their age,” stated Inspector in Charge Philip R. Bartlett.
According to the indictment, Braziler and his associates promised potential investors, many of whom were elderly, that the companies would purchase, renovate, rent and re-sell residential real estate in the Buffalo and Niagara Falls, New York areas. In response to Braziler’s solicitations, investors sent over $1.8 million to Braziler. Instead of using the money for the purposes he promised, however, Braziler stole the great majority of the funds. For example, investors sent one of Braziler’s investment vehicles at least $978,000, but Braziler purchased only one property for at most $12,000, and took most of the remaining funds for himself and his associates. The investors lost nearly all of their money.
The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew S. Amatruda is in charge of the prosecution.
The Defendant:
YEVGENIY BRAZILER
Age: 40
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-385 (AMD)
South Florida Man Charged with Credit Card Fraud and Identity Theft Involving Personal Information from VeteransRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Dwayne Thomas (21, Miami) with one count of credit card fraud and nine counts of identity theft. If convicted, he faces up to 10 years in federal prison for the credit card fraud count and up to 5 years’ imprisonment on each of the identity theft counts.
According to the indictment and information presented in court, Thomas was in possession of multiple credit card account numbers from Bank of America, Wells Fargo, and USAA. He also possessed the Social Security numbers of multiple former members of the military who were receiving healthcare through the Department of Veterans Affairs.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Veterans Affairs – Office of Inspector General Criminal Investigation Division, the United States Secret Service -Jacksonville Field Office, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Six Defendants Charged in Expanded Securities Fraud ConspiracyRead the Press Release
HOUSTON – Six individuals have been charged in a second superseding indictment for their role in a multi-million dollar securities fraud “pump-and-dump” conspiracy, announced Acting U.S. Attorney Abe Martinez.
The new indictment expands on the original charges which alleged a $6 million scheme involving one stock. The second superseding indictment alleges 12 stocks and more than $25 million.
A federal grand jury returned the original indictment Sept. 15, 2016, charging Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, both of Houston, for their roles in a securities fraud scheme involving the stock of Chimera Energy Corp. A federal grand jury returned a superseding indictment April 26, 2017, charging five additional individuals for their roles in the Chimera fraud - Eddie Douglas Austin Jr., 66, Carolyn Price Austin, 62, and Charles Earl Grob Jr., 37, all of Houston; John David Brotherton, 57, of League City; and Scott Russell Sieck, 58, of Winter Park, Florida.
Today, a grand jury returned a second superseding indictment against Farmer, Eddie and Carolyn Austin, Brotherton, Sieck and Grob for their role in a broader securities fraud conspiracy involving the stock of at least 12 different companies from 2011 to 2017, including Chimera.
In a typical “pump-and-dump” fraud scheme, the perpetrators engage in fraudulent trading practices in a company’s stock and publish false and misleading information about the company, all in order to fraudulently inflate the price of the stock. The perpetrators then sell the stock to unwitting investors at the inflated prices.
According to the charges in this case, the conspiracy involved a scheme to defraud investors in numerous companies by engaging in fraudulent trading practices, evading Securities and Exchange Commission (SEC) reporting requirements and publishing false and misleading information through press releases and advertisements about the companies. As a result of the scheme, the defendants allegedly defrauded investors that purchased shares of these companies out of more than $25 million.
Conspiracy to commit wire fraud and wire fraud each carry a possible term of imprisonment of up to 20 years in federal prison and a possible $250,000 fine.
Massey pleaded guilty to his role on April 18, 2017, and is set for sentencing June 4, 2018. The remaining defendants are presumed innocent unless convicted through due process of law.
The FBI conducted the investigation with the assistance of the SEC and Financial Industry Regulatory Authority. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Shelton Man Sentenced to More Than 15 Years in Prison for Robbing 4 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT TAYLOR, 47, formerly of Shelton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 188 months of imprisonment, followed by three years of supervised release, for robbing four branches of Chase Bank last year.
According to court documents and statements made in court, TAYLOR robbed the Chase Bank at 184 Main Street in Westport on June 2, 2016; the Chase Bank at 1561 Boston Post Road in Milford on June 24, 2016; the Chase Bank at 50 Washington Street in Norwalk on July 6, 2016, and the Chase Bank at 1855 Main Street in Stratford on July 13, 2016. During each of the robberies, TAYLOR handed a teller a note demanding cash and told the teller that he had a gun.
TAYLOR stole a total of approximately $23,300 during the first three robberies, and $1,000 during the July 13 robbery. When he was arrested at the Stratford train station shortly after the July 13 robbery, he possessed $998 in cash and 33 folds of heroin.
Judge Bryant ordered TAYLOR to make full restitution.
TAYLOR has been detained since his arrest. On January 30, 2017, he pleaded guilty to one count of bank robbery.
TAYLOR’s criminal history includes a 1999 federal conviction for bank robbery, stemming from his robbery of three Connecticut banks, for which he received a sentence of 37 months of imprisonment. In addition, in 2006, he was convicted in state court of robbing a bank in Milford in August 2005, and was sentenced to 20 years of imprisonment, with 12 years to serve. In February 2016, after his release from prison, he began serving a three-year term of probation.
This investigation was conducted by the Federal Bureau of Investigation and the Westport, Milford, Norwalk and Stratford Police Departments. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial Districts of Ansonia/Milford, Fairfield and Stamford/Norwalk.
Sexual Exploitation of 15-Month-Old Baby Nets Searcy Woman 20 Years in PrisonRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigation (FBI), announced today that Lacy Brooks, 31, of Searcy, was sentenced to 20 years’ imprisonment for producing live pornographic videos of a 15-month-old baby.
Brooks was charged in a superseding indictment on January 5, 2017, with one count of production of child pornography and one count of distribution of child pornography. On January 10, 2017, on the day trial was to begin, Brooks pleaded guilty to both counts of the superseding indictment. On Thursday, United States District Judge Billy Roy Wilson sentenced Brooks to 20 years’ imprisonment, and 10 years of supervised release.
The charges in the superseding indictment were based on an investigation that began in Tyler, Texas, when FBI agents arrested Brian Casper, who admitted that he requested child pornography from mothers he met on dating websites. A search of Casper’s phone revealed a series of screenshots dated August 25, 2015, which appeared to have been taken while Casper was using the Skype application and chatting with a female using the screen name “Lacy.” The screenshots depicted a baby, naked from the waist down, exposing her genitals. Some of the screenshots showed the baby lying naked on an open diaper underneath the buttocks of the baby. There were also multiple screenshots showing a sex toy being placed on the exposed genitals of the baby.
Further examination of the individual’s phone revealed multiple messages between Casper and Brooks on the KIK messaging application. During the course of the KIK messages, Brooks engaged in sexually explicit conversations with Casper, during which Casper told Brooks that “I love your videos,” and, “I hope that your coochie and her’s are mine. I love you so much.” Brooks responded, “Yes baby we are yours,” followed by a photograph of a baby lying on an open diaper displaying her genitals.
Casper subsequently pleaded guilty to the federal charge of conspiracy to produce child pornography and was sentenced in the Eastern District of Texas to 336 months’ imprisonment.
On September 22, 2015, Brooks was arrested and provided a Mirandized statement. Brooks admitted to meeting Casper online, communicating with him on the KIK application, and using Skype to send the individual live recordings of herself inappropriately touching the baby. Brooks admitted to placing the sex toy against the baby.
“The sexual exploitation of a baby for the gratification of someone Brooks met on the internet is disgusting and violates all sense of human decency,” Harris said. “Protecting children who cannot protect themselves remains a top priority of our office and we will relentlessly prosecute those who violate the trust that children inherently put in them.”
“The FBI is dedicated to investigating any instance where a young child is victimized for the sexual gratification of an adult,” SAC Upchurch said. “We’d like to thank the U.S. Attorney’s office for their continued work on these crimes. We’d also like to thank our FBI partners in the Dallas division, Tyler resident agency, as well as our state and local partners that assisted in the investigation.”
The investigation was conducted by the FBI field office in Little Rock and resident agency in Tyler, Texas, as well as the White County Sheriff’s Office, Arkansas State Police, and the White County Prosecuting Attorney’s office. The case was prosecuted by Assistant United States Attorneys Erin O’Leary and Kristin Bryant.
Seven men from Cuyahoga County indicted for firearms offensesRead the Press Release
Seven men from Cuyahoga County were indicted on federal firearms charges, said Acting U.S. Attorney David Sierleja and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Indicted are: Deonte Tate, 33; Michael Simpson, 38; Rondell Harris, 28; Isaac Hobbs, 34; Michael D. Gaines, 38; Russell G. Jackson, 32, and Andre Hatcher, 24. All the men live in Cleveland but Gaines, who lives in Maple Heights.
“This group of defendants included armed robbers, drug traffickers and a rapist, all of whom continued to carry guns and ammo the way other people carry a lunch box or briefcase,” Sierleja said. “We will keep working to take violent predators off the streets.”
“ATF is committed to combating gun violence throughout our country,” Velinor said. “We will continue to work with our law enforcement partners at the federal, state, and local level to make our communities safer.”
Tate had a .45-caliber pistol and ammunition on April 25, despite having prior felony convictions, including aggravated robbery with a firearm specification and felonious assault, drug trafficking and having weapons under disability, according to the indictment.
Simpson had a .38-caliber revolver on June 15, despite prior felony convictions for robbery, abduction, felonious assault and having weapons under disability, according to the indictment.
Harris had a 9 mm pistol on June 2 despite prior felony convictions for gross sexual imposition, having weapons under disability and possession of a deadly weapon while under detention, according to the indictment.
Hobbs had a .22-caliber long rifle on June 5 despite prior felony convictions including aggravated robbery with a firearms specification, attempted felonious assault and assault on a peace officer, according to the indictment.
Gaines had a 9 mm pistol and ammunition on June 14 despite prior felony convictions for rape, drug trafficking and assault on a peace officer, according to the indictment.
Jackson had a sawed-off shotgun, a .40-caliber pistol and ammunition on June 9 despite prior felony convictions for drug trafficking, according to the indictment.
Hatcher had a 9 mm pistol and ammunition on June 5 despite prior felony convictions for robbery with a firearms specification and felonious assault, according to the indictment.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the police departments of Cleveland, Solon and the Cuyahoga Metropolitan Housing Authority.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Seven Defendants Charged in Two Separate Armed Bank Robbery CasesRead the Press Release
CINCINNATI – A federal grand jury has charged seven defendants in armed bank robbery cases in two separate indictments returned in Cincinnati.
Malcolm Lorenzo Jones, 20, of Cincinnati, remains at large.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Cincinnati Police Chief Eliot K. Isaac, Colerain Police Chief Mark Denney, Green Township Police Chief James Vetter and Springfield Township Police Chief Robert Browder announced the indictments returned this week.
One indictment alleges that Keila D. Spurling, 26, Miguel Chiles, 27, and Sierra L. Leary, 23, all of Cincinnati, were involved in the armed robbery of Main Source Bank on Cheviot Road in Cincinnati on May 26 and Quincy Chiles, 21, also of Cincinnati, joined the trio in the armed robbery of the Wes Banco Bank on Winton Road in Springfield Township on June 6.
The second indictment, which is a superseding indictment, alleges that Nelson Jones, 25, and Hope Tolbert, 20, both of Cincinnati, were involved in the armed bank robbery of North Side Bank and Trust on Gregory Street in Cincinnati on May 13 and Nelson Jones and Malcolm Lorenzo Jones, 20, also of Cincinnati were involved in the armed bank robbery of Key Bank on Springdale Road in Colerain Township on May 22.
U.S. Attorney Glassman commended the investigation of these cases by the FBI and local police departments, as well as Assistant United States Attorney Anthony Springer who is prosecuting these cases.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you have information on the whereabouts of Malcolm Lorenzo Jones, please call FBI at 513-421-4310 and/or Crime Stoppers at 513-352-3040.
# # #
Sentencings for July 14 - 20, 2017Read the Press Release
Osvaldo Santos-Escarenio, 25, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 20, 2017, for illegal re-entry of a previously deported alien into the United States. Santos-Escarenio was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jeffrey Scott Lee, 61, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 20, 2017, on two counts of possession of child pornography. Lee was arrested in Laramie, Wyoming. He received 27 months of imprisonment, to be followed by seven years of supervised release, and was ordered to pay a $200.00 special assessment and $6,000.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Adam Michael Hansen, 28, of Camas, Washington, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 18, 2017, for unlawful possession of a destructive device. Hansen was arrested in Portland, Oregon. He received 37 months of imprisonment, to be followed by three year of supervised release, was order to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Matt Brandon Bell, 35, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 18, 2017 for attempting to access with intent to view child pornography. Bell appeared pursuant to a summons. He was placed on supervised probation for a term of ten years, with the first eight months of probation to be served on home detention. Bell was also ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Timothy Alan Lee, 37, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 14, 2017, for being a felon in possession of a firearm. Lee was arrested in Casper, Wyoming. He received 46 months of imprisonment, to be followed by 3 years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
School System Official and Former Middle School Principal Sentenced to 30 Years in Prison for Child Enticement and Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced former Jefferson County Schools’ human resources director and Hueytown Middle School principal to more than 30 years in prison for enticing a minor to engage in prostitution and possessing child pornography. Acting U.S. Attorney Robert O. Posey, FBI Acting Special Agent in Charge David W. Archey, Tuscaloosa Police Chief Steven D. Anderson and Hueytown Police Chief Chuck Hagler announced the sentence.
U.S. District Court Judge L. Scott Coogler sentenced BRETT WILLIAM KIRKHAM, 41, of Tuscaloosa, to 30 years and five months in prison. Kirkham pleaded guilty to the enticement and child pornography charges in March. Judge Coogler granted Kirkham credit for 13 months of time served since his arrest.
“Sexual predators often abuse a position of trust to meet, exploit and sexually abuse children,” Posey said. “Parents and education professionals should be alert to the possibility of improper relationships developing at school or online.”
According to court documents, Kirkham’s sexual conduct underlying the child enticement spanned years. The victim had been a student of Kirkham’s at Hueytown Middle School. Kirkham began sending the child messages on social media in 2011, where he solicited nude photos and sent pictures of his own genitalia in return, according to Kirkham’s plea agreement. Two years later, after the child turned 16, Kirkham again reached out through social media. He and the child met several times and engaged in sex acts, for which Kirkham paid the child hundreds of dollars, according to the government’s sentencing memorandum.
Among the more than 700 images and nearly 200 videos of child pornography that Kirkham possessed were images of Kirkham’s enticement victim and another of his former students, according to the sentencing memorandum. Other child pornography he possessed involved three children in Mississippi.
The FBI and the Tuscaloosa and Hueytown police departments investigated the case, which Assistant U.S. Attorneys John B. Ward and Jacqueline Hutzell prosecuted.
In an unrelated child exploitation case, former University of Alabama music professor NIKOS PAPPAS, 41, of Tuscaloosa, pleaded guilty today to charges of receiving and possessing child pornography. Pappas entered his plea before Judge Coogler. His sentencing date has not been set.
The penalty for receiving child pornography is five to 20 years in prison and a $250,000 fine. The maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations investigated Pappas’ case, which Ward is prosecuting.
###
Salvadoran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was charged today in federal court in Boston with a federal immigration crime.
Salvador Portillo-Diaz, 30, was charged with illegally reentering the United States after being deported.
According to the indictment, Portillo-Diaz was deported on March 8, 2006, and May 24, 2011. Federal agents in Boston recently discovered Portillo-Diaz and determined him to be illegally present in the United States.
Portillo-Diaz faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rochester Man Convicted of Drug Trafficking and Gun Possession OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Robert Swinton, 38, of Rochester, NY, of possession of cocaine with intent to distribute, maintaining a drug involved premises, possession of firearms in furtherance of drug trafficking crimes, and possession of firearms and ammunition as a previously convicted felon. The charges carry a maximum penalty of life in prison and a $2,000,000 fine.
Assistant U.S. Attorneys Katelyn Hartford and Charles E. Moynihan, who handled the prosecution of the case, stated that on October 16, 2012, members of the Greater Rochester Area Narcotics Enforcement Team and Violent Crime Task Force, pursuant to a search warrant, searched Swinton’s residence at 562 Maple Street in Rochester. As officers entered the residence, they saw co-defendant David Jones run from the kitchen into the living room. Officers arrested Swinton while he was standing in a doorway to a bedroom adjacent to the living room. A third defendant, Danielle Bowen, was also arrested in the living room.
Officers searched the location and found a rifle, which was loaded with 30 rounds of ammunition, and a revolver, which was loaded with six rounds of ammunition. Both firearms were found under the bedsheets and pillow in the defendant’s bedroom.
Roanoke Man Pleads Guilty to Theft of Social Security Administration FundsRead the Press Release
Roanoke, VIRGINIA – A Roanoke man pled guilty today in federal court in Roanoke to stealing over $100,000 of Social Security Administration funds intended for his deceased wife after he failed to report her death to that agency, Acting United States Attorney Rick A. Mountcastle announced.
Walter J. Doran, 76, of Roanoke, waived his right to be indicted and pled guilty today to a one count Information charging with theft of government money, willfully and knowingly steal and convert for his own use money of the Social Security Administration.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, Doran failed to report his wife’s death to the Social Security Administration in 2009. The defendant continued to receive his late wife’s Social Security Retirement benefits from 2009 through April 2016 and use the funds for his own use. In all, Doran received $108,787 in Social Security Administration benefits to which he was not entitled.
The investigation of the case was conducted by the Social Security Administration. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Receiving and Distributing Child Pornography Nets Michael Lee Cole 168 Months in Federal PrisonRead the Press Release
KNOXVILLE, Tenn. - On Wednesday, July 19, 2017, Michael Lee Cole, 39, of Maryville, Tennessee, was sentenced by The Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 168 months in prison, for receiving and distributing child pornography. Upon his release from prison, he will be supervised by U.S. Probation for 25 years.
In November 2017, Cole pleaded guilty to these charges, which were included in a federal indictment. In his plea agreement on file with U.S. District Court, he admitted to using the Internet and cloud based storage to trade child pornography with other collectors. As a result of their investigation, law enforcement agents seized a cell phone and laptop computer belonging to Cole that contained thousands of images and videos of child pornography, including the sexual exploitation and abuse of children younger than 12 years old.
“This case is a good example of how information sharing among local and federal agencies across geographic regions can bring dangerous criminals to justice. Every child deserves to grow up without the fear, humiliation, and trauma of being the victim of sexual exploitation. The U.S. Attorney’s Office will continue to aggressively pursue the predators in this world who seek to abuse the most innocent among us,” said Nancy Stallard Harr, U.S. Attorney.
The case was investigated by the U.S. Department of Homeland Security, and the Knoxville Police Department, Internet Crimes Against Children Task Force. Assistant U.S. Attorney Bart Slabbekorn represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
###
Queens Man Pleads Guilty to Selling Stolen Artwork from Prominent New York CollectionRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that LEON ZINDER pled guilty to the interstate sale of stolen property in connection with his theft and attempted sale of more than a dozen works of art. ZINDER pled guilty this morning in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Joon H. Kim said: “As he admitted today, Leon Zinder stole works of art worth more than $600,000 from his former employer, which he then sought to sell through a flea market in Manhattan. Thanks to the hard work and dedication of the FBI, nearly all of these works have been recovered, and will be returned to their rightful owner.”
FBI Assistant Director William F. Sweeney Jr. said: “Today’s plea marks the end of Leon Zinder’s tall tales of discovering treasured art pieces that were really in fact stolen from his employer with the goal of reselling to profit himself. We applaud the art dealer who brought this case to our attention after realizing Zinder’s stories behind the art were really too good to be true.”
According to the charging documents filed in the case, as well as statements made during the plea proceeding:
From approximately July 2010 through April 2012, LEON ZINDER was employed as an art handler by a New York-based company that manages an extensive art collection consisting of thousands of individual artworks, including an extensive collection of Native-American and African ethnographic artwork (the “Company”). During that time, ZINDER stole more than 70 works of art from facilities maintained by the Company.
Beginning in approximately September of 2015 through October 2016, ZINDER sold, or attempted to sell, the stolen artwork through a consignment relationship with an art dealer who conducted his business through an outdoor flea market in lower Manhattan (the “Dealer”). As part of his efforts to sell the stolen artwork, ZINDER falsely claimed he had obtained the works from the elderly widow of a sheriff in Phoenix, Arizona, and from a storage-unit close-out sale.
ZINDER attempted to sell more than a dozen of these works, worth more than $600,000, through the Dealer. This included at least three items that ZINDER had stolen from the Company’s Greenwich, Connecticut, facility and transported to Manhattan: a Fang Reliquary Guardian Head statue valued at approximately $85,000; a Native-American Mask valued at approximately $75,000; and a Pende mask valued at approximately $5,000.
Eventually, the Dealer became aware that several of the artworks he had helped ZINDER to sell had been reported stolen by the Company. At that point, the Dealer contacted the FBI and began assisting in the subsequent investigation, including turning over the majority of the stolen works to the FBI.
* * *
ZINDER, 48, of Queens, New York, faces a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the defendant’s gross gain or twice the victim’s gross loss resulting from the defendant’s conduct, whichever is greater. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by a judge. ZINDER will to be sentenced by U.S. District Judge Kimba M. Wood on a date to be determined.
Mr. Kim thanked the FBI’s Art Crime Team for its outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Noah Falk is in charge of the case.
Providence Resident Detained on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE – Sandro Martinez, 41, of Providence, today was ordered detained in federal custody on drug trafficking and firearm charges. Martinez was arrested on Wednesday by members of the Rhode Island Drug Enforcement Agency Task Force following the seizure of more than 650 grams of suspected fentanyl, more than 6 kilograms of a powdery substance suspected to be cocaine, heroin and/or fentanyl, and a loaded firearm.
Martinez’s arrest and the execution of court authorized search warrants on Wednesday at an alleged drug stash house in Cranston, and at Martinez’s residence and business in Providence, follow a 10-month DEA drug task force investigation into Martinez’s alleged drug trafficking activities.
Martinez’s arrest and initial appearance in federal court on charges of possession with the intent to distribute cocaine, heroin and fentanyl, and felon in possession of a firearm are announced by Acting United States Attorney Stephen G. Dambruch and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to court documents, it is alleged that on numerous occasions over the past 10 months individuals assisting the DEA drug task force in their investigation made controlled purchases of fentanyl, cocaine and heroin from Martinez totaling in excess of 100 grams. As a result of these alleged purchases and a significant amount of information gather by law enforcement during the investigation, the court authorized the search of an alleged stash house in Cranston allegedly used by Martinez for his drug trafficking activities, his Providence residence, his Providence business, and two vehicles.
On Wednesday, members of the DEA drug task force, with additional assistance from the Woonsocket, Cranston and Providence Police Departments, executed four of the search warrants. As law enforcement prepared to execute a search of the alleged stash house, agents and officers encountered and detained Martinez outside the building. From his person they allegedly seized nearly 103 grams of suspected fentanyl concealed inside his clothing. From inside the alleged stash house law enforcement seized approximately 6 kilograms of suspected cocaine and fentanyl, and a loaded firearm from inside a hidden compartment in a television stand; and nearly 573 grams of suspected fentanyl from a closet ceiling.
A search of Martinez’s business, residence and an automobile did not result in the seizure of any additional drugs. Law enforcement did discover an empty electronic hidden compartment inside of furniture at Martinez’s residence.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan
###
Prison Fight Results in Additional Sentence for Federal InmateRead the Press Release
BEAUMONT, Texas – A 28-year-old federal prison inmate has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Reginald Winfield Pablo pleaded guilty on Mar. 20, 2017 to possession of a prohibited object and was sentenced to 12 months and one day in federal prison today by U.S. District Judge Ron Clark. This sentence will be served at the conclusion of the sentence Pablo is currently serving.
According to information presented in court, on Sep. 22, 2016, Pablo, an inmate at the Federal Correctional Complex in Beaumont, was observed fighting with another inmate. After breaking up the fight, prison staff conducted a pat-down of the inmates and found two homemade weapons inside Pablo’s left pocket. The weapons had been constructed out of metal and sharpened to a point on one end. The weapons measured approximately 7 inches in length each. Such objects are prohibited in the Beaumont Federal Correctional Complex.
This case was investigated by the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Parrish Man Convicted of Retaliating Against A Federal Judge by Attempting to File A False LienRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Wayne St. Aubyn Smith (50, Parrish), a/k/a Wayne Smith El-Bey, guilty of attempting to file a false lien against a federal judge. He faces a maximum penalty of 10 years in prison. A sentencing hearing has not yet been set.
Smith was indicted on March 14, 2017.
According to testimony and evidence presented at trial, in May 2015, Smith filed a lawsuit against several New Jersey officials in U.S. District Court in New Jersey, claiming that his constitutional rights had been violated. However, Smith failed to pay the fee required to file a lawsuit in federal court. United States District Judge Jose L. Linares was assigned to the case. Judge Linares issued an order instructing Smith on how to file for indigent status to waive his filing fee and dismissed his lawsuit without prejudice. After several rounds of filings involving Smith claiming that Judge Linares was violating his constitutional rights, Judge Linares denied Smith’s motion to proceed in forma pauperis. Smith and Judge Linares never met in person and had no relationship outside of the court case.
On December 21, 2016, Smith attempted to record three separate liens against several individuals at the Manatee County Clerk’s Office. One of the documents claimed that Judge Linares owed Smith $750,000 for violating his constitutional rights. Furthermore, Smith claimed an interest in all of Judge Linares’s real and personal property and his checking and savings accounts up to the amount of $750,000. The other two documents were liens totaling more than $1 million against the State of Florida and several New Jersey government officials, including Governor Chris Christie. The deputy clerks refused to record the documents.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.
Ossian Brothers Charged with Distributing Heroin, Fentanyl and Illegally Possessing FirearmsRead the Press Release
Brothers Kaleb and Cole Breitsprecher, ages 22 and 24, respectively, from Ossian, Iowa, have been charged in a federal Indictment with distributing heroin and fentanyl, and possessing firearms as drug users. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about April 5, April 18, and May 19, 2017, Kaleb Breitsprecher distributed heroin to another person. It also alleges that on or about May 2, 2017, Cole Breitsprecher distributed fentanyl to another person. Both men are charged with being unlawful drug users in possession of multiple firearms on or about June 6, 2017.
If convicted on all charges, Kaleb Breitsprecher faces a possible maximum sentence of 70 years’ imprisonment, $3,250,000 in fines, $400 in special assessments, and up to a lifetime term of supervised release following any imprisonment. Cole Breitsprecher faces a possible maximum sentence of 30 years’ imprisonment, $1,250,000 in fines, $200 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
Both men appeared today in federal court in Cedar Rapids. Their next appearances for detention hearings are set for July 25, 2017, at 4:00 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Northeast Iowa Drug Task Force and Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2053.
Follow us on Twitter @USAO_NDIA.
North Providence Bank Robber Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Joseph W. Lavoie, a/k/a Tammy M. Lavoie, 49, formerly of Providence, was sentenced today to 60 months in federal prison for robbing and setting fire to a bank in North Providence on July 6, 2016, announced Acting United States Attorney Stephen G. Dambruch, Acting North Providence Police Chief Christopher J. Pelagio, and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation Boston Division.
At sentencing, U.S. District Court Judge John J. McConnell also ordered Lavoie to serve 3 years supervised release upon completion of his prison term and to pay $30,256. 80 in restitution to repair damage to the bank and to replace currency lost as the result of the fire. The U.S. Sentencing Guidelines range of imprisonment in this matter is 70-87 months. The government recommended the court impose a sentence of 60 months in prison.
Lavoie pleaded guilty on April 26, 2017, to bank robbery by force or violence and use of fire to damage property used in interstate commerce.
According to court documents and information presented to the court, on July 6, 2016, Lavoie telephoned the FBI and threatened to rob and burn down a bank. Lavoie made the call while at the North Providence branch office of Citizens Bank. Lavoie made the call moments before he jumped over a counter and announced to a teller, “This is a robbery.” Lavoie opened a cash drawer and began removing cash. During the robbery, Lavoie assaulted and threatened a female teller, and then ignited several items inside the bank.
North Providence Police Department patrol units were dispatched to the bank while the robbery was in progress. Officers entered the bank where they encountered and detained Lavoie who was located standing behind the teller counter.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
###
North Carolina Woman Sentenced to Prison for Tax EvasionRead the Press Release
GREENSBORO, N.C. – A Greensboro resident was sentenced to prison on July 19, 2017, for tax crimes, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
CHERYL ARRINGTON WHITE, 55, of Greensboro, North Carolina, was sentenced to 33 months in prison, followed by three years of supervised release, and ordered to pay $289,172 in restitution to the Internal Revenue Service for tax evasion.According to court documents and court proceedings, WHITE operated White’s Accounting, PA, from her house in Greensboro, North Carolina. WHITE earned money for providing bookkeeping and payroll services to multiple clients located throughout the Middle District of North Carolina. One such client who operated a restaurant and hospitality facility in Surry County, North Carolina received information that WHITE had embezzled from another client, and based on this information, started reviewing their bank statements and cancelled checks online. In doing so, the client found that WHITE was also embezzling from their company. WHITE utilized three separate methods to embezzle funds. WHTIE would write herself additional payroll check and paid personal expenses in her name and spouse’s name using the clients business checking account, forging the business owners’ signatures on those checks. White also paid her children as employees of the client. WHITE was found to have embezzled from at least two other companies. WHITE cashed and/or deposited these fraudulent checks into her or her children’s personal checking accounts.
WHITE admitted to investigators the above conducted and estimated embezzling approximately $1,000,000.00 from her clients. WHITE told investigators that she only calculated her Schedule C income by using figures derived from printing the vendor reports for her accounting business. For the calendar years 2010 through 2014, it was found that WHITE failed to report to the Internal Revenue Service $969,157.91 of income. The total tax loss in this case is $289,172.
The case was investigated by Internal Revenue Service-Criminal Investigation and prosecuted by Assistant United States Attorney Anand Ramaswamy.
###Norristown, PA Man Charged with Illegal Reentry After DeportationRead the Press Release
Cruz Eduardo Tinoco-Salvador, of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about June 20, 2017, Tinoco-Salvador, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 16, 2012, January 22, 2015, and February 26, 2015.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Homeland Security Investigations (“HSI”) and Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Newark Watershed Conservation and Development Corp. Contractor Gets Two Years in Jail for Role in Bribery SchemeRead the Press Release
NEWARK, N.J. – A former contractor of the Newark Watershed Conservation and Development Corporation (NWCDC) was sentenced today to 24 months in prison for his role in a bribery and kickback scheme involving an employee and consultant of the NWCDC, Acting U.S. Attorney William E. Fitzpatrick announced.
James Porter, 80, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring with Donald Bernard Sr., a former employee and consultant of the NWCDC, and others, to defraud the NWCDC and one count of tax evasion. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between October 2008 and April 2013, Porter conspired with Bernard to provide Bernard and others with a stream of concealed, undisclosed kickbacks in exchange for Bernard’s assistance in securing business opportunities and payments to two companies operated by Porter: Jim P. Enterprises LLC (JPE) and New Beginnings Environmental Services (NBES), a company in which Bernard was also a partner.
Both JPE and NBES purported to perform landscaping, snow removal, clean-up and sign posting services to the NWCDC from 2008 through 2013. JPE received payments from the NWCDC totaling more than $500,000 and NBES received approximately $290,000 from the NWCDC. Both companies submitted invoices to the NWCDC that were fraudulently inflated to cover kickback payments to Bernard and billed for some services, such as landscaping and snow removal, which were never performed.
Porter passed a stream of kickback payments to Bernard totaling more than $500,000, which was funded by the proceeds JPE and NBES obtained from the NWCDC, including cash withdrawn from the bank accounts of JPE and NBES totaling $378,867; Bernard’s use of an ATM card issued in his name to withdraw at least $74,681 directly from the NBES bank account; Bernard’s use of the NBES ATM card issued in Bernard’s name to pay personal expenses of nearly $5,000; and checks written from the accounts of JPE and NBES totaling $41,650, which were made payable to Bernard, or to companies he controlled, including a consulting company, Bernard & Associates, and the African American Heritage Parade Committee (AAHPC).
In August 2012, Porter also accepted a $5,000 check payable to JPE from Essex Home Improvements, another contractor of the NWCDC for work that was never performed, and delivered the proceeds to Bernard. The payment from Essex Home Improvements was provided to JPE, rather than to Bernard directly, as a means of concealing a kickback from Essex Home Improvements to Bernard.
From 2009 to 2012, Porter failed to report income of $767,750 from the proceeds that JPE and NBES received from the NWCDC. Porter also pleaded guilty to intentionally underreporting income for the 2012 tax year on his personal tax return by $151,603, resulting in tax due and owing of $48,971.
In addition to the prison term, Judge Linares sentenced Porter to two years of supervised release. Porter must also pay restitution of $711,083, which includes $539,583 towards the NWCDC and $171,500 to the IRS.
Bernard was sentenced by Judge Linares on July 13, 2017 to eight years in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John Grasso; U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi; IRS–Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Anthony Mack Esq., Newark
New York Man Gets 13 Months in Prison for Assault, Intent to Stalk on AirplaneRead the Press Release
NEWARK, N.J. – A Monsey, New York, man was sentenced today to 13 months in prison for assaulting a woman on a flight from Israel to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Yoel Oberlander, 36, previously pleaded guilty before U.S. District Judge Esther Salas to a superseding information charging him with assault with intent to commit stalking. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Oberlander admitted that while on an El Al flight from Tel Aviv to Newark on May 29, 2016, he knowingly and intentionally assaulted a woman seated next to him on the plane. He admitted that he touched her in the area of her chest, upper thigh, and hand without her consent, and that he did so with the intent to harass and intimidate her.
In addition to the prison term, Judge Salas sentenced Oberlander to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation.
The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Joyce M. Malliet of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Eric Kanefsky Esq., Newark
New Albany Man Sentenced to 200 Months in Prison for Role in Cocaine Trafficking ConspiracyRead the Press Release
COLUMBUS, Ohio – Oscar Collado-Rivera, 32, of New Albany, Ohio, was sentenced in U.S. District Court to 200 months in prison for conspiring with others to distribute more than 150 kilograms of cocaine.
A U.S. District Court jury convicted Collado-Rivera in November 2016 after a three-day trial for his role in the conspiracy, which involved at least $4 million in drugs and U.S. currency over a six-month period in 2015.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and agencies in a state and local task force announced the sentence handed down today by U.S. District Judge Michael H. Watson.
Evidence presented during the trial established that Collado-Rivera and others were responsible for arranging large shipments of cocaine from Mexico and Texas into the Columbus area.
The jury convicted Collado-Rivera of one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine. Task Force officers arrested Collado-Rivera in December 2015 based on a federal criminal complaint. He has been in custody since his arrest.
Glassman commended Franklin County Sheriff Dallas Baldwin’s Office, the Ohio State Highway Patrol, and the investigators with police departments in Pickerington, Upper Arlington and Westerville who conducted the investigation, as well as Deputy Criminal Chief Michael Hunter and Appellate Chief Mary Beth Young, who represent the United States in prosecuting the case.
# # #
Muscatine Man Sentenced to 240 Months in Prison for Possession and Distribution of Child PornographyRead the Press Release
DAVENPORT, IA- On July 20, 2017, Casey John Blain, age 36, of Muscatine, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 240 months in prison on the charge of Possession of Child Pornography and 240 months in prison on each of two counts of Distribution of Child Pornography announced United States Attorney Kevin E. VanderSchel. The three sentences will run concurrently. Blain was ordered to serve seven years of supervised release following his imprisonment and to pay $12,500 in restitution. Blain was also ordered to comply with the sex offender registry upon his release from prison.
On March 20, 2017, Blain pleaded guilty to the three offenses. He admitted to possessing at least 369 images and at least 267 videos of child pornography. He further admitted to distributing and sharing the images and/or videos with others via electronic applications utilizing the internet. The charges were the result of an investigation that began with a tip from the National Center for Missing and Exploited Children.
This investigation was conducted by the Muscatine Police Department, United States Department of Homeland Security, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.