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Thursday 20 July 2017
Minnesota Woman Sentenced to 27 Years in Prison for Child Sex ChargesRead the Press Release
DES MOINES, IA - On July 19, 2017, Cynthia Ann Mitteness, age 49, of Minnesota, was sentenced by United States District Court Judge Stephanie M. Rose to 27 years imprisonment for conspiring to transport a minor child with the intent to engage in criminal sexual activity, announced United States Attorney Kevin E. VanderSchel.
On March 7, 2017, Mitteness pleaded guilty to the charge and admitted that, between April 2016 and July 8, 2016, she conspired with another person to transport a minor child from Minnesota to Polk County, Iowa, with the intent to engage the minor in unlawful sexual activity. The charges were the result of an investigation by law enforcement in Polk County, Iowa, and Carver County, Minnesota.
The Polk County Sheriff’s Office, Carver County Sheriff’s Office, and United States Marshals Service conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Middle District of Florida’s Civil Division Advances Reverse Mortgage Fraud Enforcement Initiative by Resolving Civil Fraud Claims Against Tarpon Springs Condominium Complex OwnerRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces a civil settlement with Alexander Olympus Zarris that resolves alleged violations of the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) through reverse mortgage transactions engineered by Zarris at a Tarpon Springs condominium complex. Zarris will pay $475,000 to address the damage his conduct caused to a lending program overseen by the Department of Housing and Urban Development (HUD). This is the third civil settlement reached in this vital area of civil affirmative enforcement.
“HUD’s reverse mortgage lending program provides critical financial assistance to elderly borrowers in our district,” said Acting U.S. Attorney Muldrow. “This settlement reaffirms our commitment to civil mortgage fraud enforcement.”
“Reverse mortgage” loans provide elderly homeowners with access to the equity in their homes. In general, to be eligible for a reverse mortgage, the youngest homeowner must be at least 62 years old, live in the home as a primary residence, and have sufficient equity in the property.
Reverse mortgages insured by the federal government are called Home Equity Conversion Mortgages (“HECMs”) and are only available through a Federal Housing Administration (“FHA”) approved lender. FHA incentivizes reverse mortgage lending through mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months, or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan, and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan.
“FHA-backed reverse mortgages are intended to allow elderly homeowners to age in place, not to serve as a vehicle to defraud the federal government,” said Dane Narode, HUD’s Associate General Counsel. “HUD and the Justice Department are working together to protect FHA’s insurance fund and those seniors who depend on reverse mortgages to ease their financial burden.”
From 2008 to 2011, the United States Attorney’s Office and HUD’s Office of Inspector General (“OIG”) investigated Zarris’s practices and concluded that he had improperly obtained the proceeds of federally insured reverse mortgages that, but for his conduct, would not have been underwritten by the lenders. Investigators learned that Zarris had engaged in sales transactions where he concealed the amounts that he had paid to the buyers to artificially inflate the appraised values of condominium complex units. He recruited elderly buyers (over the age of 62) to purchase units at inflated values and, as part of those sales transactions, required them to immediately apply for reverse mortgages in the maximum amount possible. Zarris, or others working with him, would then assist the elderly buyers in applying for reverse mortgages, including filling out their loan applications. The applications submitted on behalf of these buyers failed to disclose certain information that was material to the bank’s decision to underwrite the reverse mortgages. Through these practices, Zarris was able to create the appearance of equity so that the elderly buyers could obtain the reverse mortgages. The proceeds of the mortgages were then wired to a company owned by Zarris at the reverse mortgage closing.
These practices led the FHA program to pay insurance claims on a number of defaulted reverse mortgages, and caused hundreds of thousands of dollars in losses to the United States. The settlement amount is based upon Zarris’s ability to pay and represents a recovery that more than replenishes the amount of the government’s known losses.
“This settlement demonstrates HUD-OIG’s continuing efforts to hold individuals accountable who orchestrate schemes, which victimize America’s seniors through reverse mortgage programs. The United States Department of Housing and Urban Development, Office of Inspector General is deeply committed to collaborating with the Department of Justice to ensure unethical individuals do not manipulate government rules for personal gain,” said Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General.
The settlement announced today with Zarris follows two other major reverse mortgage claim resolutions reached by the Civil Division in the Middle District of Florida. In September 2015, Walter Investment Management Corporation agreed to pay $29.63 million to resolve allegations that its subsidiary, Reverse Mortgage Solutions, Inc. (“RMS”), had violated federal law by not disclosing its failure to meet mandatory deadlines for obtaining an appraisal of the property within 30 days of the loan becoming due and payable. As a result of failing to disclose its non-compliance, RMS received millions of dollars in debenture interest payments from the FHA that it was not entitled to receive. The investigation of RMS stemmed from the allegations in a whistleblower lawsuit filed by a former executive of RMS.
In May 2017, the Middle District of Florida announced an $89 million settlement with another reverse mortgage servicing company, Financial Freedom. That investigation arose from allegations made by a consultant for the estates of borrowers who took out reverse mortgages. Similar to RMS, the United States alleged that Financial Freedom had claimed payments for interest from the FHA that it was not entitled to receive because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings.
These investigations have been handled by Assistant U.S. Attorney Kyle S. Cohen and the U.S. Department of Housing and Urban Development’s Office of Inspector General.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Metairie Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RANDOLPH B. MARTIN, age 39, of Metairie, was sentenced today after previously pleading guilty to a one-count Bill of Information for a violation of the Federal Gun Control Act.
U.S. District Judge Jane Triche Milazzo sentenced MARTIN to three years probation with the first six months to be served on home detention.
According to the court documents, Special Agents of the United States Secret Service ("USSS") investigated an allegation of access-device fraud involving MARTIN. Consequently, on April 18, 2012, the agents interviewed MARTIN, who denied that he was involved in the fraud as he was authorized to use the access device, and he consented to the search of his residence. The agents conducted a search at his residence located in Metairie. Agents found and seized a Hi Point Firearms Model CF380, .380 ACP Handgun inside the residence in MARTIN’s bedroom. On April 28, 1995, MARTIN was adjudicated guilty of burglary by the Superior Court of Gwinnett County, Georgia. Based on this adjudication, MARTIN was prohibited by federal law from possessing a firearm.
Acting U.S. Attorney Evans praised the work of the United States Secret Service, and the Bureau of Alcohol, Tobacco, and Firearms in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen was in charge of the prosecution.
Mercer County, New Jersey, Man Sentenced to 60 Months in Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 60 months in prison for his role in a conspiracy to sell more than 1.5 kilograms of cocaine and more than 87 grams of crack-cocaine in the Trenton area, Acting U.S. William E. Fitzpatrick announced.
William Enmond, 53, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
From September 2013 through his arrest on Jan. 13, 2016, Enmond conspired with co-defendants Bobby Williams, Khalfini Richardson and Capitol T. Wellons to distribute cocaine and crack-cocaine, primarily from two adjacent residences in Trenton. On Sept. 6, 2013, Enmond sold 446.5 grams of cocaine to a confidential informant in exchange for $17,320.
During his plea hearing, Enmond admitted conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and 87.9 grams of crack-cocaine.
Judge Shipp also sentenced Enmond to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
The government is represented by Assistant U.S. Attorneys Molly Lorber and Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Defense counsel: Mark G. Davis Esq., Hamilton, New Jersey
Merced County Residents Indicted for Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — On June 22, 2017, Jose Manuel Sanchez-Zapien (Sanchez), 37, a native and citizen of Michoacán, Mexico, residing in Dos Palos, was charged in an indictment with conspiring to manufacture marijuana and damaging public lands and natural resources. Today, a federal grand jury additionally charged him with manufacturing marijuana, and added co-defendant Maximiliano Farias-Martinez (Farias), 48, of Stevinson. Farias is charged with conspiring to manufacture marijuana, manufacturing marijuana, and damaging public lands and natural resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez was found in April and June of this year at a drop point delivering supplies to growers at a marijuana cultivation site in the Slick Rock Creek drainage in the Sequoia National Forest. The drop point has been used numerous times in the past as a supply drop point for marijuana growers to access grow sites in the Slick Rock Creek drainage. Law enforcement officers found over 20,952 marijuana plants at the Alder Creek site supplied by Sanchez. Follow-up investigation revealed that Farias supervised Sanchez and others associated with the grow site.
This case is the product of an investigation by the U.S. Forest Service with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Office of Investigations of Social Security Administration, Drug Enforcement Administration, the California Department of Fish and Wildlife, and the Merced Area Gang and Narcotics Enforcement Team (MAGNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug offenses, Farias and Sanchez face 10 years to life in prison, and up to a $10 million fine for each count. If convicted of the environmental crime, Farias and Sanchez face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 and restitution to the U.S. Forest Service. 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.
Mentor man indicted for having images of children being sexually exploitedRead the Press Release
A grand jury returned a one-count indictment charging Kenneth Ray Evans, 51, of Mentor, with receiving visual depictions of minors engaged in sexually explicit conduct, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
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.
This case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the Mentor Police Department and the FBI.
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.
Maryland Man Found Guilty of First-Degree Murder While Armed and Other Charges in 2015 Shooting in Northwest WashingtonRead the Press Release
WASHINGTON – Mark Beasley, 44, of Laurel, Md., has been found guilty by a jury of first-degree murder while armed, assault with intent to kill while armed, and related weapons offenses for a shooting in April 2015 in which one man was killed and another was injured, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Beasley was found guilty on July 19, 2017, following a trial in the Superior Court of the District of Columbia. The Honorable José M. Lopez scheduled sentencing for Oct. 13, 2017.
According to the government’s evidence, on Saturday, April 25, 2015, Darryn Conte, his older brother, and a close family friend went to the Takoma Station Tavern in Northwest Washington to support their friend, a percussionist in a band. At the end of the night, at about 2 a.m. on April 26, 2015, the close family friend was driving Mr. Conte to his truck that was parked nearby when they were approached by Beasley. An argument ensued. Mr. Conte and his close friend eventually drove into the next block, the 400 block of Butternut Street NW, where Mr. Conte’s vehicle was parked, to wait for Mr. Conte’s brother and the percussionist.
As they waited, Beasley approached their vehicle. While Mr. Conte’s brother and the percussionist looked on, Beasley opened fire on the vehicle. Mr. Conte, 39, was shot multiple times and died. His friend was shot once and survived his injury. Beasley was arrested on April 30, 2015 and has been in custody ever since.
In announcing the verdict, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Section; Assistant U.S. Attorney Nicholas Coleman; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Advocates Jennifer Clark and Diana Lim; Program Specialist Benjamin Kagan-Guthrie; Investigative Analyst Zachary McMenamin; Supervisory Litigation Technology Specialist Joshua Ellen; Litigation Technology Specialists Anisha Bhatia and Kimberly Smith; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialist Alesha Matthews-Yette, and Interns Sanjana Biswas, Alexandra Maher, and Simone Umwalla.
Finally, they commended the work of Assistant U.S. Attorneys Gary Wheeler and Michelle D. Jackson, who investigated and prosecuted the case.
Manchester Man Sentenced to 46 Months in Prison for Bank Robbery and Attempted Convenience Store RobberyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Jonathan Faucher, 39, of Manchester, New Hampshire, pleaded guilty to attempting to rob a convenience store and robbing a bank in Manchester.
Court filings and statements made in court established that shortly after midnight on September 28, 2016, Faucher entered a 7-Eleven on Maple Street in Manchester, New Hampshire. After ordering a pack of cigarettes, Faucher brandished a box-cutter and told the clerk to “give me all the money if you don’t want to get hurt.” The clerk behind the counter responded by brandishing a pizza cutter at Faucher, who fled the area without any money.
A few days later, on October 3, 2016, Faucher robbed a TD Bank branch on Franklin Street, in Manchester, New Hampshire. Faucher handed a note to a bank teller demanding money and claiming that he had a gun. The bank teller handed over $600 and Faucher fled the bank on foot, but Manchester Police responding to the robbery apprehended him just a few blocks from the scene of the crime.
The case was investigated by the Manchester Police Department, with assistance from the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Shane Kelbley.
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Man Who Started Shootout Leading to Friend's Death Sentenced to 100 Months' ImprisonmentRead the Press Release
GRAND RAPIDS, MICHIGAN —Chief U.S. District Judge Robert J. Jonker sentenced 24-year-old Demetrius Viney, Jr. of Holland, Michigan to 100 months’ imprisonment for being a felon in possession of a firearm, Acting U.S. Attorney Andrew Byerly Birge announced today. Judge Jonker also ordered Viney to serve three years of supervised release, forfeit the firearm, and pay a $1,200 fine.
Viney’s possession of the firearm resulted in a fatal shooting in the early morning hours of September 11, 2016 when he used it to shoot at a rival in the parking lot of the Hookah Lounge in Holland. The resulting shootout resulted in the death of Viney’s friend, Anthony Lamb.
The Court held that Viney’s actions in initiating the gunfire constituted attempted second-degree murder and were deserving of an enhanced sentence. The Government sought the attempted second-degree murder finding in its sentencing memorandum by pointing out that Viney "repeatedly threatened [his rival], pulled a firearm on him, pointed it at him, and shot."
"Instead of becoming a law-abiding citizen, Demetrius Viney, Jr. chose to continue a life of crime and it led to the death of his friend," said Thomas Chittum, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, and Firearms. "His lengthy prison sentence should serve as a warning to others who might consider making similar poor choices."
The Ottawa County Sheriff’s Office and ATF jointly investigated this case. Assistant U.S. Attorney Davin Reust prosecuted Viney’s federal case. The Ottawa County Prosecutor brought charges against others involved in the fatal shooting, some of which are still pending final resolution.
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Man Sentenced to 57 Months in Prison for Possession of Child PornographyRead the Press Release
St. Croix, USVI – Antonio Sanes-Carmona, 45, of St. Croix, was sentenced yesterday to 57 months in prison, five years of supervised release and a fine of $1,000 for possession of child pornography, Acting United States Attorney Joycelyn Hewlett announced. District Court Chief Judge Wilma A. Lewis also ordered Sanes-Carmona to pay a $100 special assessment.
On December 21, 2016, Sanes-Carmona pleaded guilty to one count of possession of child pornography. According to the plea agreement filed in court, Sanes-Carmona admitted to possessing child pornography images that showed minor males and females engaged in sexually explicit conduct with adults and other minors.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Los Angeles Man Pleads Guilty to Drug Conspiracy and Murder for Hire ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced DAVID SUIAUNOA, a/k/a “DAVE,” age 46, from Torrence, California, pled guilty today to conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and conspiracy to use interstate commerce facilities on the commission of a murder for hire.
According to court documents, since on or about December 17, 2015, SUIAUNOA, and co-defendants LUCKY FUA IOSUA and NADINE SAMALAULU PAALA, conspired to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. SUIAUNOA, IOSUA, and DAVID PHILLIPS were also charged with conspiring to commit a murder-for-hire from on or about July 27, 2016. The investigation revealed that PHILLIPS hired SUIAUNOA to kill an individual located in Los Angeles. SUIAUNOA and IOSUA later attempted to hire an undercover agent from Homeland Security Investigations to find a hitman to complete the murder. SUIAUNOA, IOSUA, and PHILLIPS were all arrested before the victim could be murdered.
SUIAUNOA faces a mandatory minimum of ten years and a maximum of life imprisonment, a fine of not more than $10,000,000 for conspiracy to distribute methamphetamine and a maximum of ten years imprisonment, and/or a fine of $250,000 for conspiracy to use interstate commerce facilities on the commission of a murder for hire. U.S. District Judge Eldon E. Fallon set sentencing for October 19, 2017. IOSUA, PAALA and PHILLIPS are scheduled for trial on September 11, 2017.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Lancaster, PA Man Charged with Illegal Reentry After DeportationRead the Press Release
Ruben Alvarado-Diaz, of Lancaster, 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 2, 2017, Alvarado-Diaz, 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 June 27, 2014, June 11, 2015, and February 21, 2016.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jacksonville Man Sentenced to 30 Years for Soliciting, Directing, and Paying for Live Molestation of Children over the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Justin Laurence McKinley (49, Jacksonville) to 30 years in federal prison for communicating over the Internet with foreign nationals and soliciting the live molestation of children for online viewing. He was also ordered to serve a life term of supervision upon his release and to register as a sex offender.
According to court documents, in 2015, the FBI began an investigation into a website engaging in the exploitation and enticement of children to participate in sexual activity. This investigation also revealed that several individuals in a foreign country were engaged in the molestation of young children for the purpose of broadcasting live streaming “sex shows” to online viewers who paid a fee to watch. These individuals were arrested and McKinley was identified for paying to view these live streams.
Between January 2014 and December 2015, McKinley sent a total of 100 electronic fund transfers, totaling $31,415, to the individuals who molested children in the “sex shows.” On May 18, 2014, an individual engaged in a live video session with McKinley where the individual sexually abused an infant child as McKinley watched. During this live session, McKinley instructed the individual as to what he wanted the individual to do with the baby. Between 2014 and early 2016, McKinley engaged in many other similar online conversations with several foreign nationals.
On May 27, 2016, law enforcement officers executed a federal search warrant at McKinley’s residence and seized computer media containing the abuse videos that he purchased and directed. The child victims depicted in the streaming videos ranged in age from a newborn to an 8-year-old child. Forensic analyses of McKinley’s computer media revealed at least 600 videos and 6,500 images depicting the sexual abuse of children.
“Today’s sentence reflects the horrific nature of this crime,” said Acting U.S. Attorney Stephen Muldrow. “We will continue to prosecute those who prey upon and violate our most vulnerable victims, wherever they are found.”
"This case demonstrates the relentless effort by the FBI Jacksonville Division and our law enforcement partners to identify and stop those who prey on our most valuable asset - our children," said Special Agent in Charge Charles P. Spencer. "We work hand in hand everyday to protect these innocent victims and seek justice for the egregious acts committed against them. Today's 30-year sentence is just one example of our dedication to this work, and the many successes in our partnership."
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and law enforcement authorities in several other countries. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
INTERPOL Washington Provides Support to 400th Foreign Fugitive Arrest by ICERead the Press Release
In February 2017, INTERPOL Washington—the U.S. National Central Bureau--and the Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) determined that a fugitive residing in the New York City area was a positive match for an INTERPOL Red Notice for a person wanted in Spain for a homicide. Last month, their investigative work resulted in the arrest of Rafael Alberto-Burgos, the 400th foreign fugitive arrest of the fiscal year for ERO. INTERPOL Washington played a key role in facilitating collaboration between ERO and the Spanish National Police in Barcelona. Read the ICE news release here.
ICE is the principal investigative arm of the U.S. Department of Homeland Security. A key partner of INTERPOL Washington, ICE details personnel to support the agency mission. ICE’s primary mission is to promote homeland security and public safety through the criminal and civil enforcement of federal laws governing border control, customs, trade and immigration.
One of the primary missions of INTERPOL and INTERPOL Washington is to seek the location, and ultimately the arrest, of fugitives wanted in the U.S. and in other countries. INTERPOL Washington assists federal, state, local, and tribal authorities in the U.S. seeking the location of fugitives who have fled the U.S., and assists foreign police in locating their fugitives believed to be in the U.S. INTERPOL Washington is also responsible for seeking the publication of all INTERPOL Notices, including Red or wanted fugitives Notices, on behalf of U.S. authorities, and alerting U.S. authorities to the existence of INTERPOL Notices published on behalf of other countries.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Photograph courtesy of ICE ERO. INTERPOL Washington provided critical support to ERO’s 400th foreign fugitive arrest of the fiscal year.Honduran National Sentenced for Illegal Re-Entry and Gun PossessionRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that REYNALDO BRAN FONSECA, age 36, a citizen of Honduras, was sentenced today after previously pleading guilty to a three-count Indictment charging him with illegal reentry of a removed alien and possession of firearms by an illegal alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced FONSECA to twenty-seven months in prison. Following the completion of his sentence, FONSECA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, FONSECA reentered the United States after he was previously deported on November 5, 2010. Court records also indicate that FONSECA illegally possessed a Colt .357 revolver on February 22, 2016 and a Glock semi-automatic pistol on April 7, 2016.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with a federal immigration crime.
Victor Deleon, 37, was charged with illegally reentering the United States after being deported.
According to the indictment, Deleon was deported on July 1, 2009, and Nov. 4, 2011. Law enforcement officers recently discovered Deleon and determined him to be illegally present in the United States.
Deleon faces a sentence of no greater than 10 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.
Getaway Driver in the Saks Fifth Avenue Smash and Grab SentencedRead the Press Release
St. Louis, MO – Mario Washington, 24, of Chicago, Illinois was sentenced to 24 months imprisonment for his role in the November 26, 2016 smash and grab theft of Chanel handbags from the Saks Fifth Avenue department store at Plaza Frontenac.
According to the plea agreement, Washington acted as the getaway driver and was waiting in the parking lot while 12 individuals entered the store, smashed fixtures and shelves and made away with numerous Chanel handbags. Other handbags were damaged in during the theft.
In addition to his term of imprisonment, Washington faces revocation of his Illinois state probation for drug offenses in Cook County, Illinois. Judge Audrey Fleissig also ordered that Washington serve three years supervised release after prison, forfeit his interest in the stolen goods and any other items seized by law enforcement, and pay $159,000 in restitution along with his co-defendants.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (Il.) County Sheriff’s Department, the Montgomery (Il.) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Georgia Man Sentenced in Honduran Cocaine Importation SchemeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ALFRED DENNISON, a/k/a “Uncle,” age 58, of Georgia, was sentenced yesterday for his role in a conspiracy to import cocaine from Roatan, Honduras, to the United States via cruise ships.
DENNISON previously pleaded guilty to conspiracy to import five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 952(a), 960(a)(1), 960(b)(1)(B), and 963. According to court documents, on January 3, 2016, agents and taskforce officers with the Homeland Security Investigations (HSI) Border Enforcement Security Taskforce were conducting routine surveillance at the New Orleans cruise ship terminal. Agents observed three cruise line workers, later identified as ASBERT LOWMANS, JEAN LOUIS, and ESIAS FELICIEN, enter a restroom where they began removing packages of cocaine from underneath their clothes. Agents detained them along with a fourth cruise line employee, KEVIN JOHN, who also transported cocaine from the ship. Agents seized a total of approximately 4.75 kilograms of cocaine.
A subsequent investigation revealed that DENNISON, a native of Jamaica with dual U.S. and Jamaican citizenship, was the intended recipient of the cocaine. DENNISON was arrested at a hotel in New Orleans the same day and he was found in possession of a black plastic bag holding $19,000 in U.S. currency. Agents determined that DENNISON had previously received cocaine shipments in New Orleans on at least four prior occasions. Each shipment of cocaine originated in Roatan, Honduras, and each shipment contained four to five kilograms of cocaine.
For DENNISON’s role in importing multiple shipments of cocaine into the United States, U.S. District Judge Ivan L.R. Lemelle sentenced him to 80 months incarceration, followed by four years of supervised release, a $5,000 fine, and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the HSI New Orleans Field Office. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
General Foreman at Port Elizabeth Arrested for Salary FraudRead the Press Release
NEWARK, N.J. – A member of the International Longshoremen’s Association (ILA) and general foreman for a Port Elizabeth terminal operator was arrested this morning for fraudulently collecting a nearly $500,000 annual salary, much of which was for work he never performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Paul Moe Sr., 66, of Atlantic Highlands, New Jersey, is charged in an indictment with one count of wire fraud conspiracy and 13 substantive counts of wire fraud. He appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on $250,000 unsecured bond. He will be arraigned at a later date.
According to the indictment:
From September 2015 through March 2017, Moe fraudulently collected a compensation package that paid him almost $500,000 annually while showing up at his job site for as little as eight hours per week. In order for Moe to collect his $9,300 weekly paycheck, other conspirators submitted false timesheets each day on his behalf and even credited him for up to 16 hours of overtime a day. The 13 substantive wire fraud counts consist of one-week increments in which Moe – having either failed to appear at the job site or while being out of state or out of the country – was paid as if he had been on the job for a minimum of 40 hours a week.
Each count is punishable by up to five years in prison and a $250,000 fine. The charges and allegations in the indictment are merely accusations, and Moe is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents and investigators with the U.S. Department of Labor Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Jonathan Kay, the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault, and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Tracey Agnew.
Defense counsel: Gerald McMahon Esq., New York
Former Virtual Currency CEO Pleads Guilty to $9 Million Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that HOMERO JOSHUA GARZA, 32, of Texas, formerly of Somers, Conn., waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of wire fraud related to his role in his companies’ purported generation and sale of virtual currency.
According to court documents and statements made in court, “virtual currency” is a digital representation of a value that can be traded and functions as a medium of exchange. Virtual currency generally is not issued or guaranteed by any jurisdiction or government, and its value is decided by consensus within the community of users of the virtual currency. A virtual currency generally self-generates units of currency through a process called “mining.” A virtual currency “miner” is computer hardware that runs special computer software to solve complex algorithms that validate groups of transactions in that virtual currency. Once a complex algorithm is solved, a unit of currency, such as a bitcoin, is awarded to the individual operating the miner. This process is known as “mining.”
Between approximately May 2014 and January 2016, GARZA, through GAW, GAW Miners, ZenMiner, and ZenCloud, companies he founded and operated, defrauded victims out of money in connection with the procurement of virtual currency on their behalf. The companies sold miners, access to miners, and the right to purchase a virtual currency called “paycoin,” as well as “hashlets.” A hashlet entitled an investor to a share of the profits that GAW Miners or ZenMiner would purportedly earn by mining virtual currencies using the computers that were maintained in their data centers. In other words, hashlet customers, or investors, were buying the rights to profit from a slice of the computing power owned by GAW Miners and ZenMiner.
To generate business and attract customers and investors, GARZA made multiple false statements related to the scheme, including stating that GAW Miners’ parent company purchased a controlling stake in ZenMiner for $8 million and that ZenMiner became a division of GAW Miners. In fact, there was no such transaction. GARZA also stated that the hashlets GARZA’s companies sold engaged in the mining of virtual currency. In fact, GARZA’s companies sold more hashlets than was supported by the computing power maintained in their data centers. Stated differently, GARZA’s companies sold the customers the right to more virtual currency than the companies’ computing power could generate. GARZA also stated that the market value of a single paycoin would not fall below $20 per unit because GARZA’s companies had a reserve of $100 million that the companies would use to purchase paycoins to drive up its price. In fact, no such reserve existed.
During the scheme, GARZA, through his companies, used money his companies had made from new hashlet investors to pay older hashlet investors. The payments were money that the companies owed the older investors based on the purported mining GAW Miners and ZenMiner had done on the investors’ behalf.
The loss attributable to GARZA from the scheme was $9,182,000.
GARZA is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 12, 2017, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Jonathan Francis.
Former Postmaster Sentenced for EmbezzlementRead the Press Release
BOSTON – The former Postmaster of the U.S. Postal Service Post Offices in Blackstone and Jefferson, Mass., was sentenced today in federal court in Worcester for stealing approximately $31,000 from the U.S. Postal Service.
Carlitos Molina, 36, was sentenced by U.S. District Court Judge Timothy H. Hillman to two years of probation, the first six months of which is to be served in home confinement, and ordered to pay restitution of $30,874. On April 27, 2017, Molina pleaded guilty to one count of misappropriating postal funds.
While he served as Postmaster, Molina stole 65 postal money orders and used them to obtain cash for personal use and to pay personal bills and debts, such as his home mortgage, water, cable, and electricity bills, back taxes, a collections agency to which he owed money, and for car repairs. In total, Molina embezzled approximately $31,000. In addition, when confronted by supervisors, Molina lied and stated that he had used certain money orders to pay for repairs at the post office facility.
Acting United States Attorney William D. Weinreb and Eileen Neff, Special Agent in Charge for the U.S. Postal Service, Office of Inspector General, made the announcement. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office prosecuted the case.
Former Postal Clerk Pleads Guilty to Stealing MailRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANA GUITY, 30, of West Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of theft of mail matter by a U.S. postal employee.
According to court documents and statements made in court, GUITY was employed by the U.S. Postal Service as a window clerk, primarily at the post office in Westbrook, but also at post offices in Chester, North Branford and Madison. In late 2016 and early 2017, GUITY stole numerous letters from the mail, primarily greeting cards that she suspected would contain gift cards or cash. GUITY also stole several packages from the mail.
Typically, GUITY selected letters that she believed would contain items of value, removed money or a gift card from the letter, and then returned the letter to the mail stream. At times, GUITY stole the entire letter and did not return it to the mail stream. When GUITY was confronted by authorities, she had more than 35 letters mailed by others in her personal vehicle. The letters included birthday cards, holiday cards, sympathy cards and get well cards.
The investigation revealed that GUITY also stole a letter from an individual to the Connecticut Department of Revenue Services.
In addition, at least five packages containing cell phones that had been removed from the mail were recovered from GUITY.
Judge Underhill scheduled sentencing for October 16, 2017, at which time GUITY faces a maximum term of imprisonment of five years. She is released on a $25,000 bond pending sentencing.
GUITY is a citizen of Honduras and a lawful permanent resident of the U.S.
This matter is being investigated by the U.S. Postal Service Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Ray Miller.
Former Otsego County Undersheriff Sentenced for Possession and Sale of Stolen FirearmsRead the Press Release
BINGHAMTON, NEW YORK – Arnold Bruce Carroll, 75, of Maryland, New York, was sentenced yesterday in federal court following his earlier plea of guilty to Possession of Stolen Firearms and Sale of a Stolen Firearm, announced Acting United States Attorney Grant C. Jaquith.
Senior United States District Judge Thomas McAvoy sentenced Carroll to five years probation as well as imposing a fine in the amount of $10,000 and ordered him to perform 150 hours of community service. Carroll surrendered the stolen firearms to the FBI in the early stages of the investigation.
As part of his guilty plea on February 3, 2017, Carroll admitted that between 1995 and 2007 he was employed as Undersheriff at the Otsego County Sheriff’s Office, where he was also the sole evidence custodian for the agency and was directly responsible for the maintenance and disposal of all evidence recovered by the agency, including firearms. On numerous occasions between 1995 and 2007, Undersheriff Carroll stole 73 firearms from the evidence locker and falsely recorded on Sheriff’s Office records that the firearms had been destroyed pursuant to departmental policy. Instead, without the knowledge, approval, or authorization of anyone at the Sheriff’s Office, Carroll took the firearms to his house, where he possessed them. Further, on a number of occasions, all of which took place after the defendant retired from the Otsego County Sheriff’s Department, Carroll sold some of the stolen firearms to a gun store. On September 28, 2012, Carroll sold a stolen Smith and Wesson .44 magnum revolver to a third party (as charged in Count 2 of the information).
This case was investigated by the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, the Otsego County Sheriff’s Office, and prosecuted by Assistant United States Attorneys Carl Eurenius and Carina Schoenberger.
Former New York City Public School Teacher Sentenced to 7 Years in Prison for Receiving Child PornographyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JON CRUZ, a former teacher and debate coach at the Bronx High School for Science, was sentenced today to seven years in prison for receiving images containing child pornography from minor teenage boys. CRUZ was initially arrested on March 6, 2015, and pled guilty on September 23, 2016, to one count of receipt of child pornography. He was sentenced today in federal court by U.S. District Court Judge P. Kevin Castel.
Acting U.S. Attorney Joon H. Kim said: “Jon Cruz, a high school teacher and debate coach, abused his position of trust and access to children in frightening way. He not only sought and purchased images of victims whom he knew to be underage, he also masqueraded online as one of his teen students to disguise his misdeeds. Today, he was sentenced to a lengthy prison term for his crimes. We will continue to do everything in our power to identify and stop those who solicit, produce and receive child pornography.”
According to the allegations contained in the Complaint and the Indictment as well as public court filings and statements made in connection with the plea and sentencing proceedings:
For years leading up to his arrest in March 2015, JON CRUZ, while employed as a teacher and debate coach at the Bronx High School for Science, engaged in multiple chats over a mobile communication application and social media service with minor victims from different states. CRUZ, who was aware of the victims’ ages, provided thousands of dollars in payments to the victims in exchange for nude and lascivious photographs of themselves. CRUZ often concealed his identity and posed as a teenager, using a photograph of a former student without that student’s knowledge, to create the online accounts he used to communicate with his victims.
* * *
In addition to his prison term, CRUZ, 34, of New York, New York, was sentenced to 10 years of supervised release, and ordered to provide $12,200 in restitution to his victims.
Mr. Kim thanked the Federal Bureau of Investigation for its work on the investigation. To report an incident involving the possession, distribution, receipt, or production of child pornography, file a report on the National Center for Missing & Exploited Children’s website at www.cybertipline.com, or call 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action.
The case is being prosecuted by the Office’s General Crimes Crime Unit. Assistant U.S. Attorney Shawn Crowley is in charge of the prosecution.
Former NYPD Officer Sentenced to Two Years in Prison for Insurance Fraud SchemeRead the Press Release
Carlos Becker, a former police officer with the New York City Police Department (“NYPD”), was sentenced earlier today to two years in prison for submitting a false insurance claim after directing accomplices to burn his car. On January 10, 2017, Becker pleaded guilty to conspiracy to commit mail fraud for his role in a scheme to defraud the Government Employment Insurance Company (“GEICO”). Today’s sentencing proceeding was held before United States District Judge Margo K. Brodie. Becker was also ordered to pay $34,261.19 in restitution to GEICO.
The sentencing was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York.
As set forth in court documents, in September 2012, Becker, while employed as a police officer with the NYPD, directed accomplices to set fire to Becker’s Range Rover so that Becker could file a fraudulent insurance claim with GEICO and collect the insurance proceeds. During the early morning hours of September 7, 2012, Becker’s accomplices set fire to the Range Rover on a residential street in Queens. New York City firefighters responded to a 911 call about the Range Rover fire and put it out. Becker then submitted a fraudulent claim to GEICO, claiming that the Range Rover had been stolen from a parking space in front of his house in Hempstead, New York, and that the car was later found burned. Based on his fraudulent claim, in January 2013, GEICO mailed two checks to Becker in the amounts of $29,480.86 and $4,780.33.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Alexander Solomon and Robert Polemeni are in charge of the prosecution.
The Defendant:
CARLOS BECKER
Age: 40
Residence: Hempstead, New York
E.D.N.Y. Docket No. 16-CR-460 (MKB)
Former Letter Carrier Pleads Guilty to Worker’s Compensation FraudRead the Press Release
BOSTON – A former U.S. Postal Service employee pleaded guilty today in federal court in Boston to fraudulently obtaining worker’s compensation for medical travel.
Joseph Scimone, 72, of Stoneham, pleaded guilty to one count of fraud in obtaining federal employee compensation and was sentenced by U.S. District Court Magistrate Judge Marianne Bowler to three months of probation and ordered to pay a fine of $2,500 and restitution of $24,906.
The Federal Employees’ Compensation Act (FECA) provides income replacement to civilian employees of the U.S. Government who sustain an injury while performing their official duty. From 2011 to 2017, Scimone, a former letter carrier who was eligible for compensation, submitted dozens of travel vouchers to FECA for travel to fitness centers in Lexington, Lynnfield and Bedford for dates when he did not actually use those gyms or used a different gym of closer proximity. Scimone’s fraudulent submissions totaled approximately $24,906.
Acting United States Attorney William D. Weinreb and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Former Jefferson Parish Sheriff’s Office Chief Deputy Indicted for Tax CrimesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CRAIG A. TAFFARO, age 70, of Harvey and a former Chief Deputy for the Jefferson Parish Sheriff’s Office, was charged today in a two-count Indictment with tax evasion and filing a false tax return.
According to the Indictment, TAFFARO willfully attempted to evade tax due and owing by, among other things, filing a return with false and exaggerated business expenses. If convicted, TAFFARO faces maximum terms of imprisonment of five years for tax evasion and three years for filing a false return.
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Chandra Menon, Tracey Knight, and David Sinkman are in charge of the prosecution.
Former Drug Enforcement Administration Task Force Officer Pleads Guilty to Firearm and Conversion ChargesRead the Press Release
A former Drug Enforcement Administration (DEA) task force officer pleaded guilty today to unlawfully possessing a firearm in furtherance of a crime of violence and later conspiring to misappropriate money seized by the DEA during the execution of a search.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge Monte Cason of the Department of Justice Office of the Inspector General (DOJ OIG), and Dallas Field Office and Chief Inspector Brian M. McKnight of the DEA’s Office of Professional Responsibility (OPR) made the announcement.
Karl Emmett Newman, 50, of Kentwood, Louisiana, pleaded guilty before U.S. District Judge Eldon E. Fallon of the Eastern District of Louisiana to a two-count superseding information. According to admissions made in connection with the guilty plea, Newman unlawfully carried a firearm in furtherance of an August 2015 robbery, which was disguised as an execution of a search warrant of a drug dealer. Newman further admitted to conspiring to misappropriate money that was confiscated by the DEA during an October 2015 search of the residence of another individual.
Newman was originally charged on May 13, 2016, in an indictment, and was charged with additional offenses on October 7, 2016, in a superseding indictment. Former DEA task force officer Johnny Jacob Domingue, 28, of Maurepas, Louisiana, was arrested on a criminal complaint on May 12, 2016, and was also charged in the October 7, 2016 superseding indictment with falsifying records in a federal investigation. Domingue’s case remains pending.
In addition to serving as DEA task force officers, Newman and Domingue previously served as deputies with the Tangipahoa Parish, Louisiana, Sheriff’s Office.
The FBI, DOJ OIG and DEA-OPR investigated the case. Assistant Chief Diidri Robinson and Trial Attorney Antonio Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
Former Des Moines Dentist Pleads Guilty to Drug and Firearm ChargesRead the Press Release
DES MOINES, IA – On July, 19, 2017, Shawn Michael Kerby, 38, of Des Moines, Iowa, pleaded guilty in United States District Court to one count of obtaining hydrocodone by misrepresentation and one count of being a user and addict of a controlled substance in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Kerby faces a maximum of four years and ten years in prison, respectively, on each charge. Sentencing is scheduled for November 17, 2017, at 9:30 a.m. before Chief United States District Court Judge John A. Jarvey.
According to the plea agreement, Kerby practiced dentistry in the Southern District of Iowa at two dental clinics, Kerby Family Dentistry and Bright Smiles Family Dental. Kerby admitted he was addicted to opiates, including hydrocodone. Through his dental practices, Kerby prescribed hydrocodone to patients, even though there was no medical need. He then arranged for these patients to provide the hydrocodone pills back to him after the patient filled the prescription at a local pharmacy.
On December 1, 2015, law enforcement executed search warrants at Kerby’s residence and practices. Kerby was found in possession of a Beretta handgun, a Heckler & Koch handgun, a Smith & Wesson snub-nose 38, a Browning Arms shotgun, two Benelli shotguns, and a Herington/Richardson shotgun. Kerby had been abusing hydrocodone, to which he was addicted, up through the preceding day.
This investigation was conducted by the United States Drug Enforcement Administration, and the case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Comanche Nation Employee Charged with Embezzling from the TribeRead the Press Release
Oklahoma City, Oklahoma – JULIEROSE BAQUERA MOLINA, 38, of Cache, Oklahoma, has been charged with felony embezzlement from the Comanche Nation Tax Commission, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an indictment returned by a federal grand jury yesterday, from October 2014 through March 2016, Molina was employed by the tribe’s Tax Commission, which funds government operations. The indictment alleges that she took more than $1,000 from the Tax Commission illegally.
If convicted, Molina could be sentenced to five years in prison, three years of supervised release, and a $250,000 fine. She will also be required to pay restitution to the Comanche Nation Tax Commission.
This case is the result of an investigation by the Federal Bureau of Investigation and the Comanche Nation Police Department. It is being prosecuted by Assistant U.S. Attorney Jessica Cárdenas Jarvis.
Former Bookkeeper Who Embezzled more than $750,000 from Orcas Island Couple Sentenced to PrisonRead the Press Release
A former resident of Eastsound, Orcas Island, Washington was sentenced today in U.S. District Court in Seattle to 33 months in prison and three years of supervised release for wire fraud in connection with her scheme to steal from her employers, announced U.S. Attorney Annette L. Hayes. SARAH ELIZABETH COFFELT, 42, who now resides in Seattle, worked for a retired couple and their business and non-profit entities as a bookkeeper from 2003 until she was terminated for theft in 2016. COFFELT stole more than $755,000 from the couple’s accounts by transferring money from their accounts to her own, by forging checks and by using business credit cards for her family’s personal expenses. At the sentencing hearing U.S. District Judge Thomas S. Zilly ordered her to pay $788,886 in restitution. In imposing the sentence, Judge Zilly noted that COFFELT “spent 90% of her time addressing the Court feeling sorry for herself and her family, and expressed too little concern for the real victims of her crime.”
According to records in the case, in 2003, COFFELT was hired to handle bookkeeping duties for the couple, and various entities they owned including Apogee Flight Incorporated, L.L.C. (Apogee) which owned aircraft and hangars, and the non-profit Heritage Flight Museum (HFM). COFFELT’s duties included handling the payroll for the couples’ house, Apogee and HFM employees as well as the bills for Apogee, HFM and other entities. Even as she worked as a bookkeeper, COFFELT and her husband owned Moon Glow Arts and Crafts, a store in Eastsound. COFFELT admits that she used money from her employers’ accounts to pay the expenses of the business, as well as other expenses such as trips for her family, her mortgage, her taxes and more than $30,000 in fuel charges.
COFFELT was able to hide her embezzlement by having the couple’s bank and business credit card statements sent to her home so that she was the only person reviewing them. She used a company credit card to charge more than $30,000 for her family’s expenses, and allowed a maintenance worker to charge a similar amount.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Susan Roe.
Federal Inmate Sentenced for Possessing Shank in Beaumont PrisonRead the Press Release
BEAUMONT, Texas – A 27-year-old federal prison inmate has been sentenced for possessing a shank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rafael Castillo, Jr., pleaded guilty on Feb. 28, 2017 to possession of a prohibited object and was sentenced to 20 months in federal prison today by U.S. District Judge Ron Clark. This sentence will be served at the conclusion of the sentence Castillo is currently serving.
According to information presented in court, on June 20, 2016, Castillo, an inmate at the Federal Correctional Complex in Beaumont, was found during a pat-down search, to be in possession of two homemade weapons measuring approximately 5.5 inches and 7 inches in length each. Castillo had the weapons concealed in his pants pocket. Each weapon, commonly referred to as a ‘shank,’ had been constructed out of metal material and had been sharpened to a point and designed to be used as a weapon. 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.
Federal Grand Jury Indicts 16 in Narcotics ConspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged sixteen individuals with charges related to distribution of fentanyl, maintaining drug-involved premises, firearms offenses and money laundering in a 45-count indictment filed here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and Cincinnati Police Chief Eliot K. Isaac announced the indictment.
Those charged include:
Name
Also Known As
Age
City of Residence
*Keysean Dearis Dickey
“Mike”
25
Mason, Ohio
Edmond Christian Hurt
“Eddie”
24
Cincinnati
Rajah Amire Swain
21
Mason, Ohio
Chrisette Camilla Wade
25
Cincinnati
Ari Naiem Hodges
“Big Mike, Fat Mike, Bundles”
23
Cincinnati
Da’Marco Martez Browner II
“Baby D, Kid”
24
Fairfield, Ohio
Dominic Dashawn Davis
26
Cincinnati
Chaz Niko Jones
“Juice, Z”
26
Cincinnati
Christopher Javar Mathews
“Jay, Smash”
29
Cincinnati
Kiarra C. Thomas
27
Cincinnati
Mykeal Dawshawn Parker
24
Cincinnati
Devonte Shaunquinn Walker
23
Cincinnati
*Damyia L. Engram
31
Cincinnati
Thomesha Walker
25
Cincinnati
Shonda Denise Jones
44
Cincinnati
Sherica Lynnae Shields
24
Cincinnati
*Two defendants – Dickey and Engram – are currently fugitives.
The indictment alleges that the drug trafficking organization distributed more than 400 grams of fentanyl from September 2016 until agents executed search and arrest warrants on June 26, 2017.
Each of the defendants is charged with participating in a drug distributing conspiracy through various roles such as leader, supplier of drugs, packager, holder, intermediary, helper, stash house operator and launderer of drug proceeds.
Text messages sent to various defendants’ cell phones revealed communications asking about the quantity and quality of fentanyl. “Customers” allegedly texted the defendants complaining about getting “shorted” and asking for “fronts” on drugs.
For example, on August 13, 2016, Mathews received a text message stating “Chris ur … scale is off. I can take my grand a week else where!”
A message received a month later stated: “bro I cant barely move im so sick but no money yet today. Can I get a little bit on credit?”
Walker received a similar message from a user saying the user was “going out of town” and “just don’t want to be sick.”
Defendants also allegedly received text messages complaining about the quality of the drugs, including messages like “this…getting supppeerr weak btw kinda sucks a lil” and “…that was pure garbage. Did absolutely nothing. Big waste of $70! Pure waste.”
The indictment alleges multiple other conversations between defendants discussing drug transactions, undercover police, surveillance and other dealers selling bad dope and its effect on their business.
“This indictment charges sixteen people in a conspiracy to traffic fentanyl in and around Cincinnati over the last nine months,” said U.S. Attorney Glassman. “Six of the defendants are also charged with laundering thousands of dollars of their drug money by renting dozens of cars, which were in turn used to support the drug-trafficking operation.”
U.S. Attorney Glassman commended the investigation of this case by the DEA, ATF, Ohio State Highway Patrol and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Federal Court Sentences Defendant for Failure to Pay Child SupportRead the Press Release
DES MOINES, IA – On June 19, 2017, Nicole Lynn Sanders, age 33, formerly of South Carolina, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to five years probation for failure to pay child support, announced United States Attorney Kevin E. VanderSchel. Sanders was sentenced to five years of probation for each of two charges of failure to pay child support, to be served concurrently. Sanders was ordered to serve six months of her probation in a halfway house, and six months in home confinement with GPS monitoring. Sanders was also ordered to pay restitution in the amount of the unpaid child support.
On March 17, 2017, Sanders pleaded guilty to two counts of failure to pay child support. Sanders admitted while she was living outside of Iowa, she failed to pay child support for two children for over two years. Sanders’ child support obligation for one of her children was over $10,000. Between June 2010 and January 2017, when she was arrested for these offenses, Sanders had made no child support payments for either child.
This investigation was conducted by the United States Department of Health and Human Services, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Farmington Man Sentenced to over 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Howard Christopher Melton, age 36, of Farmington, was sentenced today to 80 months in federal prison followed by 10 years of supervised release on one count of Receipt of Child Pornography. Melton also was ordered to pay $3,600.00 in fines. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in August 2016, the Northwest Arkansas Internet Crimes Against Children Task-force received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) about an individual later identified as Howard Christopher Melton, was using a Twitter account to upload images of child pornography to the internet.
On September 12, 2016, law enforcement officers executed a search warrant of Melton 's residence in Farmington Arkansas. A search of a hard drive seized from Melton's residence yielded numerous images depicting child pornography.
On November 21, 2016, Agents with Homeland Security Investigations (HSI) interviewed Melton where he admitted to searching for, downloading, receiving and saving child pornography from the internet.
Melton was indicted in January 2017 and plead guilty in March 2017.
This case was investigated by the Department of Homeland Security Investigations and the National Center for Missing and Exploited Children. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
East Greenwich Resident Sentenced to 10 Years in Prison for Enticing a Minor to Engage in Sexual ActivityRead the Press Release
PROVIDENCE – Stephen T. Ferrante, 62, of East Greenwich, was sentenced today to 120 months in federal prison for attempting to persuade, induce, entice or coerce a minor to engage in sexual activity, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Ferrante to serve 5 years of supervised release upon completion of his term of incarceration. The U.S. Sentencing Guidelines range of imprisonment in this matter is 168-210 months. The government and defendant jointly recommended the court impose a sentence of 120 months in prison.
Ferrante pleaded guilty on April 26, 2017, to use of any facility or means of interstate or foreign commerce to persuade, induce, entice or coerce a minor to engage in sexual activity.
At the time of his guilty plea, Ferrante admitted to the court that in January 2017, he communicated online, by text message and by telephone with an individual he believed to be arranging for him to have sexual contact with an 8-year-old girl.
Ferrante was arrested by members of the Rhode Island State Police Internet Crimes Against Children Task Force and Homeland Security Investigations agents, on January 12, 2017, when he arrived at a pre-determined location in Warwick where he believed he would be meeting with that person.
Ferrante has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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East Greenbush Man Resentenced to 20 Years for FraudRead the Press Release
ALBANY, NEW YORK – Scott Valente, age 60, of East Greenbush, New York, was sentenced today to 20 years in prison for running a large investment fraud scheme. Valente was also ordered to pay $8,616,113.39 in restitution to his victims.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation, New York Field Office; and Special Agent in Charge Vadim D. Thomas, Federal Bureau of Investigation, Albany Field Office.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Valente’s release from prison.
Valente was originally sentenced, on November 20, 2015, to 20 years in prison after pleading guilty to charges of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws. In April 2017, the United States Court of Appeals for the Second Circuit vacated the sentence and remanded the case for resentencing. Valente has been in custody since his original sentencing date.
Valente, working out of Albany, Schenectady and Warwick, New York, operated an investment fraud scheme that began in December 2010 and ended on June 16, 2014.
Through his investment company The ELIV Group, LLC, Valente received more than $10.6 million from more than 100 individual investors, many of them residing in Upstate New York. He told them that he had achieved annual investment returns of 36.38%, 48.27%, 44.56% and 45.11% for the years 2010 through 2013, respectively. In fact, Valente lost money in each of those years.
Valente also took about $2.2 million in unauthorized management fees, which he used to enrich himself through cash withdrawals totaling $230,000, personal credit card payments totaling $443,000, and the purchases of real estate (including a $117,000 condominium in Vermont), $424,000 in home improvements, $35,000 worth of jewelry, and $20,000 worth of liquor. In addition to taking $2.2 million, Valente made substantial investments in non-public companies, contrary to what he told investors he would do with their money.
Valente also falsely represented to more than 30 ELIV investors that he or his company were authorized to accept, hold and manage Individual Retirement Accounts (IRA), which get preferential treatment under U.S. tax law. In fact, neither Valente nor ELIV was authorized by the IRS to accept, establish or maintain IRA accounts. In an effort to obstruct and impede the IRS by preventing the IRS from learning of his unauthorized acceptance, holding and management of IRA accounts, Valente altered ELIV investment statements to make it appear as though ELIV had properly received certain investors’ IRA rollover investments, that ELIV was holding the investments as an IRA, and that there should be no taxable distributions to the ELIV investors.
ELIV ceased operations on June 16, 2014, when the U.S. Securities and Exchange Commission, in a separate civil proceeding, obtained a preliminary injunction enjoining ELIV’s operations and freezing its assets.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss.
District Man Sentenced to 42 Months in Prison for 18th Street Gang CrimesRead the Press Release
WASHINGTON – Bryan Montesino, 19, of Washington, D.C., was sentenced today to a total of 42 months in prison for two attacks he carried out last year at the Columbia Heights Metro station, announced U.S. Attorney Channing D. Phillips, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
For one of the attacks, a jury found Montesino guilty of assault with intent to commit robbery while armed, criminal street gang participation, felony threats, and a weapons offense. That verdict was returned on May 17, 2017. On the following day, Montesino pled guilty to a charge of assault with a dangerous weapon for his role in the other offense.
Montesino was sentenced in the Superior Court of the District of Columbia by the Honorable Maribeth Raffinan. Following his prison term, he will be placed on five years of supervised release.
In the trial, the government’s evidence established that on Sept. 15, 2016, at about 5:45 p.m., a group of men approached the victim as he entered the Columbia Heights Metro station. The men, including Montesino, repeatedly told the victim that they were members of the 18th Street gang and accused him of being a member of MS-13, a rival gang.
The group demanded the victim’s belongings and surrounded him as he tried to get away. When the victim refused to give the group his belongings, Montesino threatened to stab the victim and gestured as if he had a weapon. Another member of the group punched the victim in the face before the group dispersed and the victim was able to flee to safety.
Montesino was apprehended 15 minutes later, within blocks of the Metro station. He had a switchblade knife and a shank on his person at the time of his arrest. After his arrest and detention at the District of Columbia Jail, Montesino made a number of recorded jail calls, in which he referenced his involvement and participation in the 18th Street gang, as well as the gang’s rivalry with MS-13.
In his guilty plea, Montesino admitted that on Sept. 12, 2016, shortly after 4 p.m., he and six other men surrounded two victims after the victims got off a Metrobus at the Columbia Heights Metro station. They surrounded the victims and identified themselves as members of the 18th Street gang. Both victims observed Montesino pull out and display a black handgun before placing it back inside of a backpack. Montesino then approached one of the victims and threatened to kill him while gesturing towards his waistband as if concealing a weapon. Montesino explained that he was retaliating for an incident a couple of weeks earlier when he felt threatened by someone whom he believed to be a member of the rival MS-13 gang. Meanwhile, another assailant approached the second victim and demanded his belongings. Both victims were able to flee from the scene and notify police.
In announcing the sentence, U.S. Attorney Phillips, Chief Newsham, and Chief Pavlik commended the work of those who investigated the case from Metropolitan Police Department and the Metro Transit Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Daniel Lenerz, Fernando Campoamor-Sanchez, Kathryn Rakoczy, and Jennifer Kerkhoff; Victim/Witness Advocate Diana Lim; Paralegal Specialists Tiffany Fogle and Richard Cheatham; Criminal Investigators Mark Fitzgerald and Nelson Rhone, and Litigation Technology Specialist William Henderson.
Finally, they acknowledged the efforts of Assistant U.S. Attorneys Ahmed Baset, who prosecuted the case, and Monica Trigoso, who investigated and prosecuted the case.
Decatur Insurance Agent Sentenced for Fraud Scheme, Money LaunderingRead the Press Release
PEORIA, Ill. – Chief U.S. District Judge James E. Shadid today sentenced James P. Smith, an independent insurance agent, to 63 months in federal prison for defrauding his clients from February 2011 to July 2016. Smith, 61, of the 5400 block of Traughber Road, Decatur, Ill., was also ordered to pay $349,777 in restitution to victims of his crime. Upon release from prison, the court ordered that Smith remain on supervised release for three years. A condition of release is that Smith cannot work in insurance or other financial-related business.
On Mar. 23, 2017, Smith pled guilty to wire fraud (one count); mail fraud (two counts); and money laundering (one count.). Smith remains in law enforcement custody. Smith was previously charged in Macon County.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
Smith worked as an independent agent at the Prairie State Insurance Agency in Decatur. According to court documents and statements made in court, from at least February 2011 through July 2016, Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the scheme, Smith admitted that he falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, as promised, Smith used the money for his own benefit.
Smith requested that clients make payment to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually Main Street Marathon, a gas station in Mt. Zion, Ill., that Smith owned. Rather than use clients’ funds as represented, Smith used the money to finance the gas station and to make mortgage payments on his personal residence.
Smith also admitted he cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and then used the cash value and / or future premiums or payments for personal expenses. Smith admitted he used the money to pay his attorney’s fees, personal bankruptcy fees, and to make purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
Dark Net Vendor Indicted for Distributing Synthetic Fentanyl That Caused A Fatal OverdoseRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Jeremy Achey (43, Bethlehem, Pennsylvania) with conspiracy to distribute and distribution of controlled substance analogues. If convicted on all counts, he faces a maximum penalty of life in federal prison.
According to court documents, operating under the name “Etiking,” Achey distributed various synthetic substances over the Dark Net, an area of the Internet only accessible through the use of an encrypted browsing platform. In February 2017, a victim in Orange County, Florida died after ingesting tetrahydrofuran fentanyl, a synthetic substance similar to fentanyl, purchased from Achey on the Dark Net.
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 Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Nathan W. Hill.
DOJ Announces Today the Takedown of Alphabay, the Largest Online ‘Dark Market’Read the Press Release
The Justice Department today announced in Washington the seizure of the largest criminal marketplace on the Internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
Two matters investigated by the U.S. Attorney’s Office in Atlanta and the FBI-Atlanta Field Division have connections to the international investigation into AlphaBay announced today. First, an investigation conducted in Atlanta has identified an AlphaBay staffer living in the United States. That investigation is ongoing. Additionally, in 2016, the U.S. Attorney’s Office in Atlanta and FBI-Atlanta prosecuted Aaron Glende, a.k.a IcyEagle, who operated as a vendor on AlphaBay. Glende pled guilty to access device fraud and aggravated identity theft and was sentenced to four years and two months’ imprisonment on November 30, 2016.
On July 5, 2017, Alexandre Cazes, aka Alpha02 and Admin, 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-CR-00144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife's assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners – both domestically and abroad – IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Executive Director Rob Wainwright of Europol. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI, Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
Convicted Felon Sentenced to Fifteen Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Gregory Brown (28, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a Smith & Wesson model SW40VE .40-caliber pistol and 14 rounds of ammunition traceable to the offense. Brown pleaded guilty on March 21, 2017.
According to court documents, on August 5, 2016, Tampa Police officers conducted a proactive check in the North Boulevard Homes in Tampa. As the officers arrived, they observed a male, later identified as Gregory Brown, start to run, reach into his waistband, and throw a loaded Smith and Wesson firearm behind a building. When interviewed, Brown admitted that the firearm belonged to him. Brown had previously been convicted of at least four felony offenses, including three drug trafficking offenses. As a result of these convictions, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, and Explosives. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Connecticut Man Indicted for Robbery of North Greenbush StoreRead the Press Release
ALBANY, NEW YORK – David Daniel Hunter, age 53, of Enfield, Connecticut, was arraigned today on charges of robbery and transporting a stolen motor vehicle in interstate commerce.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
According to the indictment and previously filed complaint, Hunter robbed a Dollar Tree store in the Town of North Greenbush, New York, on May 6, 2017. Hunter brandished what appeared to be a handgun, demanded money, and received about $1,200 from the store’s register and safe, according to the complaint. Also on May 6, Hunter transported a 2017 Dodge Charger that he knew had been stolen, according to the indictment.
The charges are merely accusations. The defendant is presumed innocent until proven guilty.
Hunter was arraigned today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending trial.
If convicted on all charges, Hunter would face up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case is being investigated by the Federal Bureau of Investigation, the North Greenbush Police Department, and the Enfield (Connecticut) Police Department, and is being prosecuted by Assistant United States Attorney Sean O’Dowd.
Cleveland man indicted on child pornography chargesRead the Press Release
A Cleveland man was indicted on child pornography charges, said Acting U.S. Attorney David A. Sierleja.
Richard Nunez, 34, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Nunez knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between Dec. 17, 2016, through May 26, 2017. On June 22, 2017, Nunez also possessed a laptop computer and an external hard drive, each of which contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Ohio Internet Crimes Against Children Task Force and the Cleveland office of the Department of Homeland Security, Homeland Security Investigations.
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.
Cleveland man indicted for carjackingRead the Press Release
A Cleveland man was charged with carjacking, said Acting U.S. Attorney David A. Sierleja.
Shairon L. Motley-Lipscomb, 21, used violence on May 14 to take a 2008 Buick Enclave, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the Cleveland Police Department and the Bureau of Alcohol, Tobacco and Firearms.
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.
Cleveland man charged for failing to register as sex offenderRead the Press Release
A federal grand jury returned a one-count indictment charging Vernon L. Morris, 55, of Cleveland, with failure to register as a sex offender, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
The indictment charges that beginning on or about July 18, 2014, to on or about July 6, 2017, Morris failed to register, or update a registration, as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshals Service. The matter is being prosecuted by Assistant U.S. Attorney Brad J. Beeson.
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.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to four years in federal prison for a gun crime, announced United States Attorney Carol Casto. Shon Wayne Cobbs, 45, previously pleaded guilty to a single-count indictment charging him with being a felon in possession of a firearm.
Cobbs admitted that on February 3, 2013, he discharged a .40 caliber pistol inside his kitchen three times during an argument with a woman who was standing in the kitchen doorway. The Kanawha County Sheriff’s Department arrested Cobbs at the residence without further incident. While executing a search warrant, deputies located a Beretta .40 caliber pistol, three spent shell casings, and bullet fragments from the kitchen. A spent bullet was also recovered from the adjacent living room. Furthermore, deputies seized an additional 16 firearms from several locations throughout the residence.
Cobbs was prohibited from possessing any firearm under federal law because he was convicted in 2008 of the felony offense of unlawful wounding in Kanawha County Circuit Court after a jury found him guilty of assaulting a woman and breaking her arm by twisting it behind her back.
In August 2013, Cobbs pleaded guilty to wanton endangerment in Kanawha County Circuit Court as a result of the same conduct giving rise to the federal prosecution. He was sentenced to home confinement.
The Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Carroll County Business Owner Pleads Guilty to Federal ChargesRead the Press Release
Abingdon, VIRGINIA – A Carroll County business owner, who paid his employees in cash to avoid paying taxes to the Internal Revenue Service and later lied in a bankruptcy proceeding, pled guilty today in federal court in Abingdon to federal conspiracy, tax and bankruptcy charges, Acting United States Attorney Rick A. Mountcastle announced.
Jones Keith Andrews, 62, of Galax, Va., pled guilty today, without the benefit of a plea agreement, in the United States District Court for the Western District of Virginia in Abingdon to one count of conspiracy to defraud the United States by impeding, impairing, obstructing and defeating the lawful function of the Internal Revenue Service, 17 counts of failure to pay or collect tax, and one count of bankruptcy fraud. Sentencing has been scheduled for December 17, 2017, at 2:30 p.m. At sentencing, Andrews faces a statutory maximum sentence of 95 years in prison and a fine of $4.25 million.
Between 2009 and March 2015, Andrews, and others, executed a scheme in which a portion of the wages paid to employees of Andrews Farming was paid via paycheck and the remainder was paid in cash. For each quarter from 2009 through 2014, the conspirators caused IRS Forms 941 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms 941 only listed the wages paid to employees via paycheck and did not include the amounts paid via cash.
In addition, for each year from 2009 through 2014, the conspirators caused Forms W2 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms W2 listed only wages paid via paycheck and not the wages paid in cash.
The cash paid to employees was obtained by cashing of personal and company checks. Over $1 million in cash was obtained by the cashing of those checks.
In addition, Andrews knowingly made a false statement, under oath, during a bankruptcy hearing in May 2016. Andrews claimed at a May 5, 2016, bankruptcy hearing that Andrews Farming had lost approximately $1.3 million due to “embezzlement of employee, Robert Donald Morgan, III,” when in fact Andrews knew that was not true and correct. Andrews knew that a significant portion of the amounts he attributed to embezzlement by Morgan were, in fact, used to pay cash wages.
Robert Donald “Donnie” Morgan previously pled guilty for his role in the criminal activity and was sentenced to imprisonment for a term of six months on March 29, 2016.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The Blacksburg, Virginia, Police Department provided valuable assistance in forensically analyzing the computers seized in the case. Assistant United States Attorneys Zachary T. Lee, Jennifer Bockhorst, and Randy Ramseyer prosecuted the case for the United States.
Canton man indicted on child pornography chargeRead the Press Release
A Canton man was indicted on child pornography charges, said Acting U.S. Attorney David A. Sierleja.
Larry P. Smith, 65, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Smith knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between Oct. 7 and 10, 2013, according to the indictment.
The indictment also charges that on or about November 20, 2013, Smith possessed several laptop computers, an Apple computer and several external hard drives, each of which contained child pornography.
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.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Woman Sentenced to Eight Months for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – Okeyonna Njoku, 30, of Los Angeles, California, was sentenced today to eight months’ imprisonment and three years of supervised release for possession with intent to distribute marijuana, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also ordered Njoku to perform 300 hours of community service and pay a special assessment of $100.
On March 16, 2017, Njoku pleaded guilty to one count of possession with intent to distribute marijuana. According to the plea agreement, on October 15, 2016, at the Cyril E. King Airport on St. Thomas, a U.S. Customs and Border Protection (CBP) K-9 detected narcotics in a checked bag belonging to Njoku. Njoku had taken an American Airlines flight from Miami, Fla. to St. Thomas. CBP officers examined the contents of the bag, resealed the bag, and placed it on the carousel for retrieval. When Njoku retrieved the bag, CBP officers seized and field-tested approximately 5.9 kilograms of marijuana from Njoku’s bags.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Anna A. Vlasova.