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Wednesday 12 July 2017
Member of Lawrence Kidnapping Crew Sentenced to 23 Years in PrisonRead the Press Release
BOSTON – A member of a Lawrence-based kidnapping crew was sentenced today in federal court in Boston for his role in a 2012 kidnapping.
Gadiel Romero, a/k/a “TC,” 33, was sentenced today by U.S. District Court Judge Richard G. Stearns to 23 years in prison and three years of supervised release. Romero previously pleaded guilty to conspiracy to commit kidnapping.
Romero was charged in connection with a wide-ranging investigation targeting violent kidnapping and home invasion crews operating in Lawrence. According to court documents, these crews – often referred to as “joloperros,” which loosely translates to “stick-up guys” – were organized, armed and violent.
Romero was identified as part of a violent, sophisticated kidnapping crew that included Danny Veloz, a/k/a “Maestro,” Jose Guzman, a/k/a “Cano,” Jose Matos, a/k/a “Boyca,” and Luis Reynoso, a/k/a “Prieto,” all of Lawrence; Henry Maldonado, of Manchester, N.H., and Thomas Wallace of Raynham, N.H.
On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H. and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement. Several cooperating defendants advised that the July 23, 2012 kidnapping was one of several kidnappings or attempted kidnappings committed by this crew in Lawrence in 2012.
This crew was one of several kidnapping and home invasion crews identified during the federal investigation. The crews typically kidnapped drug dealers for large ransoms that were paid in cash or drugs; used safe houses to stash their victims; and used sophisticated tracking techniques, such as GPS devices, to follow their victims. The crews targeted drug dealers because they believed that the drug dealers were unlikely to cooperate with law enforcement, were subject to deportation, or feared reprisals, either against themselves or their families in Lawrence or in their native country. Numerous kidnapping victims described how they were abducted, tortured, and forced to pay ransoms of hundreds of thousands of dollars (either in the U.S. or in the Dominican Republic) to joloperros crew members. Victims were burned, scarred, bruised, and given other significant physical injuries marking them as kidnapping victims. During the investigation, law enforcement seized dozens of firearms, including shotguns, GPS devices, irons used to torture victims, masks, zip ties, t-shirts with the word “police” on them, fake police badges, handcuffs, and drugs.
Since the investigation began in 2012, more than 20 people have been convicted of either kidnapping-related offenses or being associated with members of Lawrence-based kidnapping or home invasion crews.
Matos was previously sentenced to 12 years in prison. Guzman, Maldonado, Wallace and Reynoso are scheduled to be sentenced in October 2017. Veloz is scheduled to stand trial on Aug. 7, 2017.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Essex County Sheriff Kevin F. Coppinger; Lawrence Police Chief James X. Fitzpatrick; and Manchester (N.H.) Police Chief Nick Willard made the announcement today. The cases are being prosecuted by Weinreb’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations and the remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Massachusetts Man Sentenced to over Seven Years for Violent Home Invasion RobberyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Juan Andino-Tirado, 25, of Lawrence, Massachusetts, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 85 months in prison for robbery and aiding and abetting the brandishing of a firearm in furtherance of a crime of violence.
According to court records, on November 15, 2015, Andino-Tirado and four other men drove from Massachusetts to Wells, Maine, for the purpose of committing a home invasion robbery. Andino-Tirado and two co-defendants, Carlos Diaz and Javier Pagan Gonzalez, broke into the victim’s home. Diaz and Gonzalez brandished firearms. Andino-Tirado brandished a knife. Co-defendants Anthony Arrendell Pena and Marcos Hernandez remained outside the residence. The co-defendants stole $2,389 and 861 Oxycodone pills.
and Hernandez were previously sentenced to six years for their roles in the offense. Pena and Gonzalez pled guilty to their involvement in the robbery and await sentencing.
The case was investigated by the U.S. Drug Enforcement Administration; the U.S. Bureau of Alcohol, Tobacco and Firearms; and the Wells Police Department, with assistance from the Ogunquit Police Department, the Maine State Police, the Office of the Maine Attorney General, and the York County District Attorney’s Office.
Maryland Man Sentenced to 10 Years in Prison for Conspiracy to Distribute and Possess HeroinRead the Press Release
WASHINGTON – James Durrette, 45, of Clinton, Md., was sentenced today to 10 years in prison on a federal drug charge stemming from his role in a drug trafficking organization that operated in the Washington, D.C. area.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Andre R. Watson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Baltimore, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Durrette was found guilty by a jury in March 2017 of conspiracy to distribute and possess with intent to distribute 100 grams of heroin. The verdict followed a trial in the U.S. District Court for the District of Columbia. With his prior conviction for a similar drug offense, Durrette faced a mandatory minimum of 10 years in prison. He was sentenced by the Honorable Amit P. Mehta. Following his prison term, Durrette will be placed on eight years of supervised release. The judge also ordered Durrette to pay a $5,000 forfeiture money judgment.
The government’s evidence established that Durrette and others participated in a conspiracy to distribute large amounts of narcotics between 2009 and 2014. This drug trafficking group mainly involved itself with trafficking very large quantities of marijuana, but also involved itself with redistributing various and significant quantities of heroin and cocaine. In that regard, during the conspiracy, California suppliers frequently sent – or conspired to send – large quantities of marijuana, heroin, or cocaine to the Washington, D.C., metropolitan area, where Durrette and others participated in the illegal redistribution of one or more of the controlled substances to others in the Washington, D.C., area for profit.
Several others previously pled guilty to charges in the investigation.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, Special Agent in Charge Watson, and Chief Newsham praised the work of the FBI Safe Streets Gang Task Force, which in this case involved work from the FBI, the Metropolitan Police Department, and HSI. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. In addition, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz, Candace Battle, Rommel Pachoca, Mary Downing, and Teesha Tobias; Legal Assistants Holly Crouse and Peter Gaboton; Intern Zachary Kaplan, and Litigation Technology Specialist Kimberly Smith. Finally, they commended the work of Trial Attorney Andrea G. Duvall of the Department of Justice’s Criminal Division, and Assistant U.S. Attorneys Kenneth F. Whitted and Emory V. Cole, who indicted and prosecuted the case.
Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Spouse of Lawyer at International Law FirmRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that FEI YAN, who works as a post-doctoral associate at a major research university in Cambridge, Massachusetts, was arrested this morning at his residence in Cambridge and charged with insider trading. YAN made approximately $110,000 in connection with trading in options to buy the stock of Stillwater Mining Company, based on misappropriated material nonpublic information.
YAN was presented earlier today in federal court in Boston, Massachusetts.
Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Fei Yan repeatedly traded on confidential corporate information obtained from his spouse, a lawyer at an international law firm. Armed with confidential information about a corporate acquisition his spouse was working on, Yan allegedly traded on that information over and over again during a three-week period. As alleged, some of these trades followed online research Yan conducted on how to avoid law enforcement detection, including an article entitled ‘Want to Commit Insider Trading? Here’s How Not to Do It.’ The answer to Yan’s online inquiry should have been clear, there is no proper way to commit insider trading.”
FBI Assistant Director-in-Charge William Sweeney said: “The charges, as described today, present a very specific timeline of events in which Fei Yan allegedly traded on inside information acquired from his spouse, who worked for a law firm representing a mining company in the middle of a major acquisition. But, as we allege today, Yan dug too deep. Researching how to evade detection, Yan allegedly used an Internet search engine as an accomplice. But it doesn’t take much to understand the rules against insider trading, or how to break them.”
According to the Complaint[1] filed today Manhattan federal court:
YAN’s spouse (the “Spouse”) worked at the New York office of an international law firm (the “Law Firm”). In the summer of 2016, a mining company (the “Mining Company”) retained the Law Firm to represent it in negotiations to acquire Stillwater Mining Company, a publicly traded company whose shares trade on the New York Stock Exchange under the symbol “SWC.” On or about August 25, 2016, in connection with the Spouse’s work at the Law Firm, the Spouse learned of the negotiations between the Mining Company and Stillwater Mining and continued to work on the transaction through December 9, 2016, the date on which it was first publicly announced that the Mining Company was going to acquire Stillwater Mining. While working on the transaction during the fall of 2016, the Spouse had access to material nonpublic information regarding the potential acquisition.
The Law Firm required its employees, including the Spouse, to abide by a confidentiality policy, which prohibited disclosure of “information received from and about . . . clients . . . [and] other parties involved in transactions with clients.” In addition, YAN and the Spouse had a history, pattern, and practice of sharing confidences.
In early and mid-November 2016, the Spouse billed dozens of hours working on the potential merger between the Mining Company and Stillwater Mining, and YAN and Spouse were in frequent phone contact. During this period, YAN conducted internet searches for “yahoo swc” and “stillwater merger,” even though the Mining Company’s potential acquisition of Stillwater Mining had not yet been publicly announced.
On November 22, 2016, the Spouse participated in a Law Firm call regarding the potential acquisition. That same day, YAN, using a brokerage account he had previously set up in his mother’s name, bought 71 options to buy Stillwater Mining stock. The next day, YAN and the Spouse spoke twice. After these calls, YAN bought an additional 200 options to buy Stillwater Mining stock.
Negotiations between the Mining Company, represented by the Law Firm, and Stillwater Mining continued to progress, and the Spouse continued to work on the transaction. On December 1, 2016, after a 78-minute phone call with the Spouse the previous evening, YAN purchased an additional 100 Stillwater Mining options.
The following day, YAN conducted multiple internet searches and research related to mergers and acquisitions, including searches for “process of acquisition” and “company acquisition process.”
YAN and the Spouse also spoke on the phone multiple times on the night of December 5 and the early morning hours of December 6, 2016. Later on the morning of December 6, YAN bought an additional 341 Stillwater Mining options. Later that day, YAN conducted internet research related to insider trading. For example, YAN searched for “how sec detect unusual trade” and accessed at least three articles on financial websites related to insider trading. YAN also searched for the name of an individual who was charged in this District in May 2016 with insider trading.
The next day, shortly after speaking with the Spouse by phone for approximately 30 minutes, YAN conducted an internet search for “insider trading with international account” and, shortly thereafter, viewed articles entitled “U.S. Insider Trading Enforcement Goes Global” and “Want to Commit Insider Trading? Here’s How Not to Do It.” The following day, YAN bought an additional 54 Stillwater Mining options.
Early on the morning of December 9, 2016, it was publicly announced that the Mining Company would acquire Stillwater Mining for $18 per share. Beginning at approximately 9:33 a.m. Eastern time, minutes after the open of regular market trading. YAN sold the Stillwater Mining options he had previously purchased, resulting in a profit of approximately $109,420. Also that day, YAN conducted Internet searches for “insider trading cases,” and “insider trading options.”
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YAN, 31, of Cambridge, Massachusetts, is charged with two counts of securities fraud and one count of wire fraud. The securities fraud counts carry a maximum sentence of 20 and 25 years in prison, respectively, and a maximum fine of $5 million and $250,000 respectively, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the SEC, which has filed a separate civil action. Mr. Kim also thanked the FBI’s Boston Office and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this investigation. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Luzerne County Men Indicted for Armed Bank RobberyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Luzerne County men were indicted on July 11, 2017, by a federal grand jury on bank robbery charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Doug Sickler, age 36, and Shawn Cavanaugh, age 35, both of Luzerne County, Pennsylvania, with the armed robbery of the PNC Bank in Avoca, Pennsylvania and taking more than $2,000 on June 21, 2017.
The charges stem from a joint investigation between the Federal Bureau of Investigation and Wilkes-Barre, Kingston and Pennsylvania State Police Departments. Assistant United States Attorney Evan Gotlob is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Sickler and Cavanaugh face a maximum of 25 years in prison as well as a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lemon Grove Woman Sentenced to 14½ Years in Prison for Using Stolen IDs to File Fraudulent Returns Seeking More than $2 Million in RefundsRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – July 12, 2017
SAN DIEGO – Cynthia Lozano of Lemon Grove was sentenced in federal court today to 175 months in prison in connection with two complex frauds involving identity theft, false tax returns and hundreds of unwitting victims. The second fraud scheme was committed while she was awaiting sentencing for the first one. In total, Lozano sought over $2 million in refunds from false tax returns
Lozano, who appeared before U.S. District Court Judge Anthony J. Battaglia, was also ordered to pay $1,479,134.77 in restitution to the Internal Revenue Service and Department of Housing and Urban Development (“HUD”). In all, the defendant was sentenced for 84 counts of mail and wire fraud, false claims and aggravated identity theft.
In April 2013, Lozano was charged in a 33-count indictment (13CR1354-AJB) for filing false tax returns in the names of persons who were often unaware that she used their names and Social Security numbers to defraud the IRS. Lozano directed the IRS to deposit tax refunds via electronic transfer into bank accounts opened under the names of her relatives and associates. For some actual tax-preparation clients, Lozano claimed a larger refund from the IRS than she represented to her clients. She directed the IRS to deposit the excess amounts in one of the bank accounts under her control without her clients’ knowledge.
On February 13, 2015, Lozano pleaded guilty to aggravated identity theft and participation in her fraudulent scheme. In total, Lozano used the identities of over 200 victims to file over 400 federal tax returns, resulting in her receipt of over $1.5 million in fraudulently-obtained tax refunds between 2008 and 2013. Lozano used the majority of the funds obtained from her initial scheme to purchase 20 properties in and around Phoenix, Arizona. But her criminal conduct did not stop.
In June 2015, while Lozano was awaiting sentencing, agents from the Internal Revenue Service - Criminal Investigations (“IRS-CI”) and Department of Treasury, Inspector General for Tax Administration (“TIGTA”) discovered that Lozano filed additional federal tax returns in a manner similar to her previous scheme. Lozano was subsequently charged in a second indictment (16CR1332-AJB) with 51 additional counts, including false claims to the IRS, wire and mail fraud, and aggravated identity theft.
Some of the victims of Lozano’s 2015 scheme were actual or prospective tenants at the Arizona properties purchased by Lozano with funds from her earlier scheme. After Lozano purchased the properties, she transferred titles to the name of her mother, who does not live in the United States. Using her mother’s name as an alias, Lozano obtained authorization to rent some of the Arizona properties under the Section 8 Tenant-Based Assistance Housing Choice Voucher Program (“Section 8 program”) administered by the Department of Housing and Urban Development (“HUD”). Through the Section 8 program, a local Public Housing Authority supplements rent to a qualifying property owner on behalf of qualifying tenants. Lozano submitted false documents under her alias to HUD, under penalty of perjury, to qualify for supplemental rental payments under the Section 8 program.
For the 2015 scheme, Lozano obtained the names and Social Security numbers from her Section 8 tenants, and others who submitted rental applications to Lozano. She used their names and numbers to submit additional false federal tax returns. Lozano then directed the IRS to deposit the tax refunds into new bank accounts she opened with the assistance of two co-conspirators, Gerardo Baker and David Hernandez. Baker and Hernandez have since pleaded guilty and been sentenced for their participation in the conspiracy.
Lozano pleaded guilty to two counts of the first indictment (13CR1354-AJB) on February 13, 2015, and the remaining 31 counts on August 31, 2016. She pleaded guilty to all 51 counts of the second indictment (16CR1332-AJB) on November 15, 2016.
At sentencing, Judge Battaglia took special account of the fact that Lozano committed additional criminal conduct while out on bail. He said it was “a unique case that needs to be treated uniquely.” As part of the sentence, Judge Battaglia ordered that the restitution include $107,194 to HUD for the supplemental rental payments that Lozano she received as a result of her false statements. A status hearing regarding forfeiture of the properties Lozano purchased with the proceeds from the original scheme is scheduled for August 25, 2017.
Acting U.S. Attorney Robinson said, “The lying, cheating defendant went on a white-collar crime spree that continued even after she got caught. It is astounding that she committed a second major fraud while awaiting sentencing for the first. Her greed-fueled rampage ends today, with a sentence that recognizes the significant losses suffered by her victims, including U.S. taxpayers.”
“Using stolen identities, Cynthia Lozano filed hundreds of fraudulent tax returns, cheating the U.S. Treasury out of more than $1.5 million,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “She preyed on low income individuals, ripping off their personal information to file bogus tax returns and brazenly continued her criminal conduct even while awaiting sentencing in federal court on tax fraud and identity theft charges. Her 14 1/2 year sentence sends a clear message that the Department and IRS will aggressively investigate and prosecute those who steal taxpayer identities and file fraudulent claims for refund.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney’s Office and the Justice Department’s Tax Division, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
“This is a case about the irresistibility of greed,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, TIGTA Office of Investigations. “Even though Ms. Lozano had pleaded guilty and awaited sentencing on 51 counts of aggravated identity theft, wire and mail fraud, she could not resist the temptation of engaging in additional criminal illegal schemes to steal more identities and file additional fraudulent tax returns -- 69 new fraudulent tax returns to be exact.
“Fortunately, we were able to bring this individual to justice for the additional crimes she committed. We wish to thank our law-enforcement partners at the Justice Department and IRS Criminal Investigation for their outstanding collaboration and teamwork during this long and complicated investigation.”
DEFENDANT
Cynthia Lozano Age: 35
SUMMARY OF CHARGE
Case Number: 13CR1354-AJB
- 1-13: Title 18, United States Code, Section 287 (false claims)
Maximum penalty: 5 years of custody; $250,000 Fine
Counts 14-25: Title 18, United States Code, Section 1343 (wire fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Count 26: Title 18, United States Code, Section 1341 (mail fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Counts 27-33 Title 18, United States Code, Section 1028A (aggravated identity theft)
Minimum penalty: 2 years of custody, consecutive to sentence for other crimes; No Probation; Fine same as for underlying offense
Case Number: 16CR1332-AJB
Count 1: Title 18, United States Code, Section 371 (conspiracy)
Maximum penalty: 5 years of custody; $250,000 Fine
Counts 2-15: Title 18, United States Code, Section 287 (false claims)
Maximum penalty: 5 years of custody; $250,000 Fine
Counts 16-17: Title 18, United States Code, Section 1343 (wire fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Count 18-29: Title 18, United States Code, Section 1341 (mail fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Counts 30-37: Title 18, United States Code, Section 641 (theft of government property)
Maximum penalty: 10 years of custody; $250,000 Fine
Counts 38-51: Title 18, United States Code, Section 1028A (aggravated identity theft)
Minimum penalty: 2 years of custody, consecutive to sentence for other crimes; No Probation; Fine same as for underlying offense
AGENCIES
Internal Revenue Service - Criminal Investigations (“IRS-CI”)
Department of Treasury, Inspector General for Tax Administration (“TIGTA”)
Ledyard Man Who Distributed Heroin Involved in Overdose Sentenced to 30 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY PAPROCKI, 33, of Ledyard, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by four years of supervised release, for distributing heroin involved in an overdose death last year.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male. The victim, who had used heroin, was transported to the hospital where he was pronounced deceased. The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim had arranged to purchase heroin from PAPROCKI. PAPROCKI then purchased the heroin from Rudy Hernandez and sold it to the victim.
PAPROCKI has been detained in state custody since his arrest on April 20, 2016. On December 20, 2016, he pleaded guilty in federal court to one count of distribution of heroin.
PAPROCKI has unrelated state charges pending, and Judge Shea ordered PAPROCKI to begin serving his 30-month federal sentence after he completes his state sentence.
On July 6, 2016, Hernandez, of New London, pleaded guilty to one count of distribution of heroin. On November 21, 2016, he was sentenced to 34 months of imprisonment.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Town of Groton Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Leader of Multi-State Drug Trafficking Organization Sentenced to Life in Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Eric Scott, age 40, was sentenced to life imprisonment without the possibility of parole in federal court in Greenville today. The Court also imposed a money judgment against Scott in the amount of approximately $ 1,300,000.
The evidence at trial showed that Scott participated in a drug conspiracy that spanned 13 years, beginning in 2003. Members of the conspiracy operated in South Carolina, Georgia, Alabama, Texas, and Louisiana. Testimony from numerous witnesses established that during the course of the conspiracy, members of the conspiracy distributed in excess of 100 kilograms of cocaine, over 1,000 pounds of marijuana, and in excess of 5 kilograms of crack cocaine.
Scott operated primarily in Anderson, South Carolina, as local distributors. The evidence showed that Scott entered the conspiracy in 2003 and continued participating in the conspiracy even while imprisoned on federal drug charges from 2007-2011 and after his release until his arrest in this case in 2015.
Law enforcement officers utilized remote surveillance, wiretaps, confidential sources and other investigative techniques to ultimately charge in excess of 20 defendants in the case. Scott and co-defendant Antonio Crawley were the only defendants who went to trial.
During the course of the investigation, law enforcement seized in excess of $1.5 million in U.S. Currency, over 5 kilograms of cocaine, quantities of marijuana and crack cocaine, and numerous firearms.
Assistant U.S. Attorney Andy Moorman, Deputy Narcotics Chief for the Narcotics Unit, was the lead prosecutor.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
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La Pine Man Sentenced to Federal Prison for Money LaunderingRead the Press Release
EUGENE, Ore. – On July 11, 2017, United States District Court Judge Ann Aiken sentenced Erik William Johnson, 44, of La Pine, Ore., to two years in federal prison for money laundering.
According to the government’s sentencing memorandum, Johnson defrauded ninety-one eBay customers of over $180,000 in payments for high-end digital cameras he advertised for sale on eBay. The wire fraud scheme occurred over a three-week period in June 2011. Johnson received $189,916.99 in payments but only shipped $5,245 worth of cameras to customers.
The basis of Johnson’s guilty plea to money laundering was his use of proceeds from the eBay scheme to pay for a sport utility vehicle. The defrauded customers received refunds from eBay totaling $103,838.98.
Johnson will remain out of custody until September 2018 to allow him to complete his studies at a local community college. The court ordered him to pay $103,838.98 to eBay and perform 150 hours of community service.
This case was investigated by IRS Criminal Investigation, the FBI and the Deschutes County Sheriff’s Office, and was prosecuted by William "Bud" Fitzgerald, Assistant United States Attorney for the District of Oregon.
Kentucky man sentenced for mailing threatening communicationsRead the Press Release
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today that Kevin Kyle McCaffrey, 22, Hickman, Kentucky, was sentenced to 30 months in prison by U.S. District Judge Richard L. Young for two counts of mailing threatening communications and one count of conveying false and misleading information. The case was the result of an investigation by the United States Postal Inspection Service and the Evansville Police Department.
On May 8, 2017, at the time of his guilty plea, McCaffrey affirmed to the court that he mailed threatening communications to the postmaster of an Evansville, Indiana, post office facility located at 600 Cross Valley Circle.
McCaffrey admitted that on or about May 17, 2016, he prepared and mailed an envelope addressed to the “United States Postmaster United States Postal Service Evansville, INDIANA 47711”, containing a letter stating “I wish death to all infidels!” The envelope also contained a simulated explosive device that McCaffrey admitted making, using wires and the parts of an e-cigarette.
McCaffrey admitted sending a second letter addressed to the “United States Postmaster United States Postal Service Evansville, INDIANA 47711,” containing the statement “If you continue to investigate my case and if you bring my case before the district attorney you and your family will not be safe.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also ordered McCaffrey to serve a period of 3 years of supervised released following his release from imprisonment. During his supervision, McCaffrey must submit to drug testing and participate in a substance abuse treatment program.
Jefferson County Man Arrested in Federal Mail Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 42-year-old Beaumont, Texas man has been arrested on federal charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Westley Judy Pollard, Jr., was indicted by a federal grand jury on July 6, 2017 and charged with 11 counts of mail fraud. Pollard was arrested in Beaumont this morning and went before U.S. Magistrate Judge Zack Hawthorn for an initial appearance.
According to the indictment, from 2011 to 2016, Pollard worked as a salesperson in the rare and precious coin field. During this time, Pollard was employed by various coin companies in Beaumont, Texas and the surrounding area, where he sold coins to individual investors. Beginning in early 2014, Pollard began contacting prior customers and telling them that he could find a purchaser for their coin collections at significantly higher prices than they originally paid, or that he could get their coins re-graded to a higher level of condition, which would increase their value. At Pollard’s direction, the customers would allow him to take possession of their coins so that he could sell or re-grade them, and then return the proceeds or re-graded coins to them. Pollard directed the customers to mail the coins to him via FedEx, or, in some instances, he would take possession directly from the customer. After receiving the coins, Pollard would then sell them to pawnshops or other coin retailers, at significantly lower prices than the investors originally paid and without their consent, using the proceeds from the sales for his personal benefit. In connection with this scheme, Pollard convinced four customers to send him their coins, with an approximate combined value of $5,480,000.
If convicted, Pollard faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
James Bristol Imprisoned for Attempted Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that James Bristol, 45, of Burlington, was sentenced today in United States District Court in Burlington to 30 months of imprisonment following his guilty plea to a charge of attempted bank robbery. Chief U.S. District Judge Christina Reiss also ordered that Bristol serve a three-year term of supervised release following completion of his prison term. Bristol has been in custody since his arrest last year.
According to court records, on June 3, 2016, a man entered the College Street branch of Citizens Bank in Burlington and presented the teller with a note which stated that he had a gun and wanted large denomination bills. The teller told the robber she did not have large bills, only $20s, whereupon the robber took back the note and left the bank without receiving any money. Less than an hour later, Burlington Police officers detained Bristol several blocks from the scene of the robbery. They later found the demand note in Bristol’s pocket. Bristol was originally charged in state court with attempted assault and robbery, but that charge was dismissed after a federal grand jury indicted Bristol for attempted bank robbery last fall.
Bristol is represented by Assistant Federal Public Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Illegal Alien Charged with Possessing and Attempting to Produce Child PornographyRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that a federal grand jury has indicted VICTOR ZELAYA-FUNEZ, age 37, a Honduran national residing in Zachary, Louisiana, for possessing and attempting to produce child pornography, in violation of Title 18, United States Code, Sections 2251 and 2252A. He faces a mandatory minimum 15-year prison term.
ZELAYA-FUNEZ also faces a separate federal indictment charging him with illegal re-entry into the United States by a removed alien. That charge, which was filed on December 8, 2016, remains pending. Both indictments were returned in the Middle District of Louisiana.
Acting U.S. Attorney Amundson stated, “The aggressive prosecution of illegal aliens engaged in the sexual exploitation of children is a top priority of the U.S. Department of Justice generally and this office in particular. I greatly appreciate the outstanding efforts of our excellent federal, state, and local partners in addressing this important criminal justice priority.”
This investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Ryan Rezaei.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.
Houma Man Pleads Guilty to Meth ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PHILIP BAKER, JR., age 43, pled guilty today to an Indictment charging him with violations of the Federal Controlled Substances Act, in violation of 21 U.S.C. § 841, 841(b)(1)(B) and 846 for conspiring to possess with the intent to distribute fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents, BAKER was arrested by law enforcement agents on June 5, 2016, with approximately a pound of methamphetamine in his vehicle after a concerned citizen contacted law enforcement about drug related trips back and forth from Louisiana to Texas by BAKER. BAKER then made calls from a recorded jail line in which he asked others to remove the contraband from his residence in an attempt to avoid further charges.
BAKER faces a minimum term of five years of imprisonment, a maximum term of forty years of imprisonment, a maximum fine of $5,000,000, at least four years of supervised release, and a mandatory $100 special assessment. Judge Ivan L. R. Lemelle set sentencing for October 18, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Honduran National Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JAIME AGUILAR-MENCIA, age 33, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Court Judge Susie Morgan sentenced AGUILAR-MENCIA to time served (3 months) and a $100 special assessment fee. AGUILAR-MENCIA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on April 5, 2017, AGUILAR-MENCIA was found in the United States after having been previously deported from the United States on March 19, 2012.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant U.S. Attorney Michael Simpson was in charge of the prosecution.
Honduran National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JAVIER CANIZALEZ-HERNANDEZ, age 40, from Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal use of a Social Security Number.
U.S. District Judge Sarah S. Vance sentenced CANIZALEZ-HERNANDEZ to a time served followed by a term of supervised release term of one year, and a special assessment of $100. CANIZALEZ-HERNANDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, CANIZALEZ-HERNANDEZ used a Social Security Number that was not assigned to him to obtain a Louisiana Identification card from the DMV office in Houma.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that HUGO TURCIO-CRUZ, age 35, a citizen of Honduras, pled guilty today to a one-count Bill of Information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to court documents, TURCIO-CRUZ reentered the United States on or about May 4, 2017, after having been previously removed therefrom on or about October 27, 2006.
TURCIO-CRUZ faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Susie Morgan set sentencing for September 1, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution
Honduran Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Martir Romano-Hernandez, age 46, a citizen of Honduras, was sentenced today to time served (4 months in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Romano-Hernandez admitted that he is a citizen of Honduras, and that he illegally returned to the United States after he was removed to Honduras on November 26, 1997.
On March 14, 2017, Romano-Hernandez was arrested by Border Patrol Agents in Champlain, New York, just south of the Canadian border. Romano-Hernandez had been residing in Salisbury, North Carolina, and was arrested by Border Patrol while attempting to illegally cross into Canada.
Following his sentencing, Romano-Hernandez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Holliston Man Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
BOSTON – A Holliston man pleaded guilty today in federal court in Boston to unlawful possession of ammunition after a substantial weapons trove was uncovered during a search of his home.
Joseph Gargiulo, 41, pleaded guilty to one count of possession of ammunition by a prohibited person. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Oct. 12, 2017. Gargiulo was prohibited from possessing firearms and ammunition due to an active restraining order issued against him in Wrentham District Court.
On July 27, 2016, federal agents received information that Gargiulo had acquired parts to make an AR-15 rifle and was stockpiling other weapons, including tasers, mace guns, hunting knives and incendiary chemicals. Around the same time, Gargiulo stated that he “will plant bombs in police stations…and kill as many homeland security officers as he can before they kill him.” Further investigation revealed that Gargiulo had stated that he wanted to attack a mosque and/or kill President Obama. Gargiulo said he wanted to “chain a mosque closed and burn it down,” but he never mentioned a specific mosque or time for such an attack.
A search of Gargiulo’s residence resulted in the seizure of parts needed to assemble an AR-15 rifle, over 250 rounds of ammunition for the AR-15 rifle, over 100 rounds of nine millimeter ammunition, chemicals that could be combined to create incendiary or explosive compounds, and hand written notes threatening violence against members of the Islamic faith.
The charge of unlawful possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Holliston Police Chief Matthew Stone; and Medway Police Chief Allen M. Tingley, made the announcement today. Assistant U.S. Attorney Mark Grady of Weinreb’s Criminal Division is prosecuting the case.
Henderson, North Carolina Couple Sentenced for Heroin and Firearms OffensesRead the Press Release
ELIZABETH CITY – United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced MICHAEL L. MILES and ROSLYN WYNN of Henderson, North Carolina for possession with intent to distribute heroin and firearms charges. MILES was sentenced to 108 months imprisonment for possession with intent to distribute heroin and possessing a firearm in furtherance of a drug trafficking crime. WYNN was sentenced to 5 years of probation for her role in the possession with intent to distribute heroin.
MILES and WYNN were named in a three-count Indictment filed in the Eastern District of North Carolina on June 28, 2016. Count one charged MILES and WYNN with Conspiracy to Distribute and Possession with the Intent to Distribute a Quantity of Heroin from April 1, 2016, to June 28, 2016.
On May 26, 2016, Henderson Police Department officers executed a search warrant at MILES and WYNN’s house in Henderson, North Carolina. As a result of the search, the following items were seized: a FN Five-seven semi-automatic handgun; a 9 mm firearm; 50 bindles of heroin; multiple rounds of ammunition; a digital scale; ten cell phones; and $4,684 in United States currency. Officers also executed a search warrant at the storage unit rented by WYNN, which resulted in the seizure of approximately 63.44 grams of heroin, a stolen AR-15 semiautomatic rifle, a stolen AK-47 semi-automatic rifle, and ammunition. During an interview with law enforcement, MILES informed officers that he directed WYNN to rent the storage unit on his behalf.
This investigation was part of the Strategic Heroin Initiative, initiated by the United States Attorney’s Office for the Eastern District of North Carolina in partnership with the Department of Justice's Organized Crime and Drug Enforcement Task Force (OCDETF).
The case was investigated by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The federal prosecution was handled by Assistant United States Attorney Edward D. Gray.
Hartford Man Charged with Threatening Federal JudgeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DUSAN MLADEN, also known as David Mladen, 62, of Hartford, was arrested yesterday and charged by federal criminal complaint with threatening a federal official.
As alleged in the criminal complaint, MLADEN is currently a litigant in a proceeding pending before the U.S. Bankruptcy Court in the District of Connecticut, captioned In re: Eternal Enterprise, Inc. MLADEN formerly owned Eternal Enterprise, Inc., which is the owner of eight apartment buildings in Hartford, and he has continued to be active in the management and decision making for the company.
On July 5, 2017, the judge presiding over the Eternal Enterprise matter discovered in the mailbox of her residence an anonymous handwritten note containing the phrases “BACK OFF,” “YOU ARE OVERSTEPPING AUTHORITY” and “JUST WARNING FOR NOW.”
On July 10, 2017, the judge received a phone call that had been placed to her home phone number. During the call, the caller stated that he had visited the judge’s house last week and “I left a message for you.” He said that he wanted her to file an order tomorrow “extending the deadline to September 30,” and “then maybe everything will be ok.” Although the caller refused to identify himself, the judge recognized the voice as MLADEN’s. The U.S. Marshals Service subsequently confirmed that the cell phone used to make the call was at a location in the vicinity of MLADEN’s residence.
On July 11, deputy U.S. Marshals interviewed MLADEN at his residence. MLADEN was arrested after he made additional threatening statements about the judge.
Following his arrest, MLADEN appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained. A detention hearing is scheduled for July 13 at 4:00 p.m.
The charge of threatening a federal official carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney William J. Nardini.
Harrisburg Man Indicted for Drug Trafficking and Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Darrian Walker, age 26, of Harrisburg, Pennsylvania, was indicted by a federal grand jury for possession of cocaine and heroin with intent to distribute, possession of a firearm by a felon, and possession of a firearm in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, Walker was found to possess heroin, cocaine, and a firearm on May 7, 2017, in Harrisburg.
The case was investigated by the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorney Scott Ford.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hammond Man Pleads Guilty to Gun ChargeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DEVONTE WEST, age 21, of Hammond, pled guilty today to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on February 20, 2017, WEST and his cousin MAURICE LLOYD, JR. were victims of a shooting in front of WEST’S residence after WEST and LLOYD completed a drug transaction. LLOYD was fatally wounded in the shooting.
A search of WEST’S residence revealed approximately two ounces of heroin and multiple firearms. Further investigation led to the recovery of additional heroin that WEST attempted to discard prior to the arrival of law enforcement to his residence after the shooting.
For the gun possession, WEST faces a minimum term of five years imprisonment to run consecutive to any other sentence imposed. U.S. District Judge Jay C. Zainey set sentencing for October, 3, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Gueydan man sentenced for shooting endangered whooping craneRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Gueydan man was sentenced last week to 45 days in prison for shooting a whooping crane and ducks.
Lane Thomas Thibodeaux, 21, of Gueydan, La., pleaded guilty and was sentenced Friday before U.S. Magistrate Judge Carol Whitehurst to one count of taking a migratory bird for which there is no season, one count of taking migratory game birds during closed season, one count of taking migratory game birds from a motor vehicle, one count of wanton waste of migratory game birds, and one count of taking game birds without state hunting license. He was also ordered to pay a $2,500 fine. According to the guilty plea, Thibodeaux shot at a group of birds on November 2, 2014 near a crawfish pond in Vermilion Parish. The shot crippled a whooping crane, which is protected under the Endangered Species Act. Thibodeaux admitted to shooting and killing multiple ducks from the driver’s seat of a moving vehicle on a public road during the closed season on February 14, 2015. Thibodeaux did not retrieve the ducks carcasses from the field, and he did not possess a required Louisiana hunting license.
The U.S. Fish and Wildlife Service and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Grand Rapids Bar Owner Sentenced to 18 Months for Obstructing an Internal Revenue Service AuditRead the Press Release
GRAND RAPIDS, MICHIGAN. – Michael Farah, 70, of Grand Rapids, Michigan, was sentenced to 18 months in federal prison, Acting U.S. Attorney Andrew Byerly Birge announced today. U.S.District Judge Paul A. Maloney imposed the sentence. In addition to the prison term, Farah was also ordered to serve a year of supervised release, pay a fine of $5,000, and pay restitution of $221,730.25.
Michael Farah and his son Brian skimmed cash from their Grand Rapids-area bars in 2013 and 2014, which they did not report on their business or individual tax returns. When they received notice of an Internal Revenue Service audit in August 2015, they tried to conceal their tax fraud by destroying all of their computerized point of sale records. They were caught when the company that maintained their business’s computerized sales records provided the Internal Revenue Service with recordings of the Farahs’ phone calls seeking assistance with the deletion of those records.
Judge Maloney said that Michael Farah “brazenly lied and destroyed records in an attempt to cover up his tax fraud.” The restitution amount, which Michael Farah has already paid, included $126,703.00 in federal taxes that he owed for the cash he skimmed from the bars in 2013 and 2014, plus $95,027.25 in penalties and interest. Michael Farah’s son Brian Farah was previously sentenced to 13 months in federal prison for his role in the crime.
“Michael Farah intentionally destroyed his records to avoid an IRS audit,” said IRS Criminal Investigation Special Agent in Charge Manny Muriel. “This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
This case was investigated by the Internal Revenue Service. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
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Grand Jury Indicts Champaign Man on Charge of KidnappingRead the Press Release
URBANA, Ill. – A federal grand jury today returned an indictment that charges Brendt A. Christensen, 28, of Champaign, Ill., with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017. Christensen was previously arrested and charged by criminal complaint on June 30. On July 5, U.S. Magistrate Judge Eric I. Long ordered that Christensen remain detained in the custody of the U.S. Marshals Service pending trial.
The date for arraignment for Christensen will be scheduled by the U.S. Clerk of the Court in Urbana. A preliminary hearing that had been scheduled on July 14, has been cancelled.
Acting U.S. Attorney Patrick D. Hansen and FBI Special Agent in Charge Sean Cox, Springfield Division, announced the indictment return.
The indictment alleges that Christensen kidnapped and held Yingying Zhang, identified as Y.Z. in the indictment, on June 9, and that he used a cellular telephone and Saturn Astra motor vehicle, both instruments of interstate commerce, to commit and in furtherance of the commission of the offense.
If convicted, the penalty for kidnapping is up to life in prison.
According to an affidavit previously filed with the court, security camera footage taken on June 9, shows Zhang entering the front passenger side of a black Saturn Astra allegedly driven by Christensen at approximately 2:00 p.m. The vehicle had stopped next to Zhang at the corner of W. Clark St. and N. Goodwin Ave., in Champaign. The vehicle then pulled away and proceeded northbound on N. Goodwin Ave.
At approximately 1:39 p.m., on June 9, according to the complaint affidavit, Zhang sent a text message from her cell phone to a manager of an apartment complex in Urbana. In the message Zhang said that she was running behind to meet the manager to sign a lease, and she thought she would arrive at approximately 2:10 p.m., for her appointment. At approximately 2:38 p.m., the apartment manager sent a text message to Zhang and received no response. Later on June 9, at approximately 9:24 p.m., a University of Illinois associate professor reported to University police that multiple colleagues had tried to reach Zhang by phone and she had not responded.
The Federal Bureau of Investigation; University of Illinois Police Department; and the Illinois State Police are continuing the investigation.
As stated in the complaint affidavit, law enforcement investigating Zhang’s disappearance believe Zhang is deceased. This determination is based on facts presented in court and court documents, and other facts uncovered during the ongoing investigation.
Assistant U.S. Attorneys Bryan D. Freres and Eugene L. Miller are representing the government on behalf of the U.S. Attorney’s Office, Urbana Division.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Girlfriend of Craigslist Robber Suspect Sentenced to Six MonthsRead the Press Release
Memphis, TN – A woman who made false statements during the purchase of a firearm has been sentenced to six months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on October 22, 2015, Ashley Jones, 27, purchased a Romarm Cugir 7.62 X 39mm caliber pistol from Guns & Ammo in Memphis, TN. At the time of purchase, Jones completed and signed a federal form indicating she was the actual buyer of the firearm and was not acquiring the firearm on behalf of another person. The defendant was charged with making a false statement during the purchase of a firearm, violating Title 18, United States Code, Section 922-(a)(6).
On February 25, 2016, two victims were robbed at gunpoint of $16,000 cash in the area of Joslyn Street and Hillwood. The victims planned to use the cash to purchase a 2010 Chevrolet Silverado pickup truck which had been listed on Craigslist. During the robbery, the victims were approached by three males armed with guns. The victims struggled with the robbers, closed the doors to their vehicle and sped away. One of the suspects fired several shots at the victims as they departed. The vehicle was hit by seven gunshots; however, there were no physical injuries to the victims.
At the crime scene, the investigating officers found nine shell casings and a Romarm Cugir that was left behind by the suspects. During the investigation, ATF learned Jones was the owner of the firearm.
On April 1, 2016, the defendant was arrested when an investigation of another Craigslist robbery led to her residence, where drugs and guns were recovered. During an interview with law enforcement, Jones stated that her boyfriend, Jackie Spears, gave her money to purchase the Romarm Cugir pistol. She also stated that Spears was present at the time of
purchase at the gun store and she subsequently gave him the firearm. According to Jones, Spears had given her money in the past to purchase firearms. It was later determined that at the time of purchase, Spears was a convicted felon. Spears is currently charged in state court for participating in one of the robberies.
On Friday, July 7, 2017, U.S. District Judge Sheryl H. Lipman sentenced Ashley Jones to six months in federal prison.
"This case shows that law enforcement officials throughout the Western District of Tennessee will work together to ensure that individuals participating in any criminal act with firearms will be brought to justice" said Lawrence Laurenzi, Acting U.S. Attorney, Western District of Tennessee.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Multi-Agency Gang Unit. Assistant U.S. Attorney Marques Young prosecuted this case on the government’s behalf.
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German Citizen Travels to the United States to Engage A Minor in Sexual ConductRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Meinrad Kopp (55), a German citizen and resident of Switzerland, with attempting to entice a minor to engage in sexual activity, traveling into the United States for the purpose of engaging in illicit sexual conduct, and transportation of child pornography. If convicted on all counts, he faces a maximum term of life in federal prison. The indictment also notifies Kopp that the United States intends to forfeit an iPhone, a laptop computer, and a camera, which are alleged to have been used in furtherance of the offenses.
According to court documents, from on or about April 26, 2017, to on or about June 16, 2017, Kopp engaged in communications, via the deep/dark web, with an agent acting in an undercover capacity as the father of a 13-year-old child, about engaging the child in a range of sexual activities, including sadomasochistic conduct. Kopp disclosed his intent to humiliate the child by treating her like a dog and causing her pain by using a certain instrument that he intended to bring with him. According to Kopp, he had previously given a hard beating to an 11-year-old child by using a leather belt.
Kopp traveled to Orlando, Florida, on June 16, 2017, and was arrested by agents working with Homeland Security Investigations. Inside his luggage, Kopp had weights, clamps, rope, tape, a bottle brush, and a flashlight that he intended to use with the minor. During an interview with law enforcement, Kopp admitted that he had traveled to Orlando for the purpose of engaging a minor in sexual activity.
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 U.S. Custom and Immigration Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office Child Exploitation Task Force. It will be prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Framingham Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Framingham man was sentenced today in federal court in Boston for possession and receipt of child pornography.
Richard Allain, 56, was sentenced today by U.S. District Court Judge Allison D. Burroughs to 87 months in prison and five years of supervised release. In March 2017, Allain pleaded guilty to two counts of receipt of child pornography and one count of possession of child pornography.
In June 2015, law enforcement received a report that on two occasions Allain showed a 14-year-old boy videos of prepubescent children engaged in sex acts with adults while the minor and his parents were visiting Allain’s home. During an interview with police, the minor stated that Allain invited the boy to go to the basement to play computer games, but instead Allain showed the boy videos of child pornography. Allain masturbated in front of the boy, asked the boy to masturbate, and performed oral sex on the boy, all of which Allain denies doing. Allain threatened the minor, saying: “Don’t tell anybody about this or I’ll [expletive] kill you.”
During a search of Allain’s residence three computers and seven USB thumb drives, on which Allain stored thousands of images of child pornography, were seized. When questioned by law enforcement officers, Allain admitted to possessing the images and to showing videos of child pornography to the minor on two occasions.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. The case was investigated by the FBI’s Child Exploitation Task Force, the Boston Police Department Child Abuse Unit, the Massachusetts State Police Special Investigations Unit, the Framingham Police Department, and the Middlesex County District Attorney’s Office Child Abuse Unit. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Prichard Police Officer Sentenced in Federal Court on Gun ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Robert Richey Golden, 63, of Chunchula, was sentenced today in federal court on charges involving his possession of two short-barrel firearms. Golden, a former Prichard police officer was implicated in state charges involving allegations of assault 2nd, animal cruelty, and intimidation of a witness during August of 2016. He was taken into state custody at that time, and a search warrant was executed on his residence by the Mobile County Sheriff’s Office. The two short-barrel firearms were discovered in the search, and the matter was referred to the Bureau of Alcohol, Tobacco, Firearms and Explosives for further investigation.
Golden was indicted in federal court in September of 2016 on two counts of illegal possession of the unregistered firearms, one for each of the short-barrel firearms. He pled guilty to the charges in December of 2016. United States District Court Judge Kristi K. Dubose imposed a sentence of 6 months this afternoon after a lengthy sentencing hearing. She ordered that Golden will serve a three-year term of supervision following his release from imprisonment. She further ordered that he pay $200 in special mandatory assessments but did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Former Port Authority Official Sentenced for His Role in Scheme to Punish Fort Lee Mayor for Not Endorsing Governor’s Re-ElectionRead the Press Release
NEWARK, N.J. – A former official of the Port Authority of New York and New Jersey was sentenced today to three years’ probation for using the authority’s resources to facilitate and conceal the cause of traffic problems in Fort Lee, New Jersey, to punish that borough’s mayor for not endorsing Gov. Chris Christie’s re-election.
David Wildstein, 55, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty on May 1, 2015, before U.S. District Judge Susan D. Wigenton to an information charging him with two counts of conspiracy for his role in the scheme. Judge Wigenton imposed the sentence today in Newark federal court.
Wildstein, William E. Baroni Jr., 45, former deputy executive director of the Port Authority, and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, engaged in a scheme to manufacture traffic problems in Fort Lee by reducing from three to one the number of local access lanes to the upper level of the George Washington Bridge. Baroni and Kelly were both convicted at trial for their respective roles in the scheme. On March 29, 2017, Judge Wigenton sentenced Baroni to 24 months in prison and Kelly to 19 months in prison.
“As we said in our motion to the Court, although David Wildstein was the architect of this criminal scheme and a force behind its cover-up, he accepted responsibility for his actions and admitted his guilt,” Acting U.S. Attorney William E. Fitzpatrick said. “His timely, complete and truthful cooperation was extraordinary and essential to the successful prosecution of Mr. Baroni and Ms. Kelly. The law requires the government and the court to take the nature and extent of Mr. Wildstein’s cooperation into account in fashioning an appropriate sentence.”
“This investigation has conclusively established that the conspirators, William Baroni, Bridget Anne Kelly, and David Wildstein misused their government positions to harm the very members of the public they were hired to serve,” Inspector General Michael Nestor of the Port Authority, Office of Inspector General, said. “By doing so, they put the interests of a few before the greater good of the public. They engaged in a cover-up of their scheme, and caused false information to be distributed to Port Authority employees, other government officials, and the public. The Port Authority Office of Inspector General and its professional staff continue to fulfill its mission of rooting out corruption, at no matter what level it may exist within the Port Authority. We commend and thank our law enforcement partners for their cooperative effort and tireless work.”
“Combating public corruption is one of the FBI’s top criminal investigative priorities. It strikes not only at the heart of good government, but it also jeopardizes the security of our communities and our nation,” FBI Special Agent in Charge Timothy Gallagher, Newark Division, said. “Public corruption erodes public confidence and diminishes the strength of our democracy. Today’s sentencing highlights our commitment to aggressively pursue those who engage in unethical and corrupt practices.”
According to documents filed in this case and statements made in court:
In August 2013, after Kelly confirmed that Fort Lee Mayor Mark Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, the conspirators caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, the conspirators caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes, and for residents, whose streets were choked with traffic.
The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety.
The conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
In addition to probation, Judge Wigenton sentenced Wildstein to 500 hours of community service, ordered restitution of $14,314 and fined him $10,000.
U.S. Attorney Fitzpatrick credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
Former Honolulu Police Department Officer Pleads Guilty to Honest Services Wire FraudRead the Press Release
HONOLULU – Maulia LaBarre, age 35, of Honolulu, Hawaii, pled guilty yesterday in federal court to one count of honest services wire fraud. LaBarre was formerly employed as a police officer with the Honolulu Police Department (HPD).
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that according to court documents and information presented in court, LaBarre was employed as a police officer for HPD and, as such, had a duty of honesty and loyalty to the citizens of the City and County of Honolulu and the HPD to act in the public’s interest and not for his own illicit enrichment. LaBarre admitted during the plea hearing that he secretly used his official position to enrich himself by soliciting and agreeing to accept sex from an individual (described as Individual A in the Indictment) in exchange for a promise of providing Individual A with favorable official action in a pending criminal case involving prostitution charges. More specifically, LaBarre admitted that he agreed with Individual A that, in exchange for sex, he would arrange to have Individual A’s arresting officer not appear at court in her pending criminal case.
LaBarre will be sentenced on October 23, 2017, by United States District Judge Susan Oki Mollway, and will face a maximum penalty of 20 years imprisonment.
The case was the result of a joint investigation conducted by the Federal Bureau of Investigation and the Investigations Division of the Department of the Attorney General for the State of Hawaii. Homeland Security Investigations also provided assistance during the joint investigation. The case is being prosecuted by Assistant U.S. Attorney Michael Nammar.
Former Dinner Cruise Ship Captain Sentenced to Prison for Using Stolen IdentityRead the Press Release
GALVESTON, Texas – A former ship captain for Majestic Ventures, Majestic Dinner Cruises and Majestic Yacht Charters dinner cruise lines has been ordered to federal prison following her conviction of aggravated identity theft and making false statements in a passport application, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Michael Perkins of the Department of State’s Diplomatic Security Service (DSS) and Captain Kevin Oditt, the commander of Coast Guard Sector Houston-Galveston.
Cynthia Lyerla, 53, of League City, pleaded guilty March 30, 2017.
Today, U.S. District Judge George C. Hanks ordered she serve 12 months for the false statements in a passport application as well as a mandatory 24 months for the aggravated identity theft which must be served consecutively. The total 36-month-term will be immediately followed by one year of supervised release.
At the hearing, the court heard that Lyerla stole the identity of a deceased child following an investigation into the death of her husband in 1988 and has used it ever since to obtain driver’s licenses, passports, merchant mariner licenses and transit worker identification credentials. She also purchased a firearm using the stolen identity.
Lyerla was further ordered to pay a $15,000 fine. In handing down the sentence, Judge Hanks noted the importance of the integrity of government records and that people’s safety depends on the information in those documents being accurate. He explained that the numerous documents Lyerla falsified and the importance of the documents warranted the sentence imposed.
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Michael Perkins, Special Agent-in-Charge of the Houston Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).
“The result of today's hearing was due to significant collaborative efforts from the Coast Guard Investigative Service partnering with the Diplomatic Security Service, the Transportation Security Administration as well as the United States Attorney's Office," said Oditt. “The Coast Guard is committed to a safe and secure maritime transportation system and this starts with ensuring mariners are properly licensed and credentialed.”
Lyerla admitted to obtaining the birth certificate of Christina White in 1992 and then using that identity to obtain a second Social Security number. She was also able to obtain driver’s licenses, passports, mariner licenses and Transportation Security Administration (TSA) documentation allowing her to enter secure port areas. Without a mariner license and TSA documentation, Lyerla would not be allowed to captain the ships for the dinner cruise companies.
The real Christina White died in 1965 on the same day she was born.
Cynthia Lynn Knox was born in 1964, later married Harold Lyerla and took his name. The marriage ended when Harold Lyerla was murdered in 1988 in Lompoc, California. Although another individual was convicted for that crime, Lyerla’s fingerprints were taken by the local police in the course of the investigation.
Since that time, Lyerla used the identity of Christina White, providing her date and place of birth, Social Security number and parents’ names in order to apply for and obtain various legal documentation.
Authorities discovered Lyerla’s true identity when her fingerprints were taken in connection with a mariner license application and compared to those taken in 1988 and 1989 during the investigation into the murder of her husband. Additionally, a retired California police detective, who investigated that murder, positively identified the defendant as Lyerla.
Previously released on bond, Lyerla was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of State - Diplomatic Security Service and U.S. Coast Guard Investigative Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Federal inmates plead guilty to possessing weapons in prisonRead the Press Release
CHARLESTON, W.Va. – Two inmates at the Federal Correctional Institution at McDowell pleaded guilty today to possessing weapons in prison, announced United States Attorney Carol Casto. Antonio Freeman, 30, entered his guilty plea to possession of a weapon by an inmate. In a separate prosecution, Robert Aguon, 42, also pleaded guilty to possession of a weapon by an inmate.
Freeman admitted that on August 25, 2016, he ran away from staff members of the prison and threw an object on the roof of a building. A staff member retrieved the object and found that it was a piece of wood over five inches long that was sharpened to a point. There was tape on the other end of the object to serve as a handle and a cord attached as a lanyard. The object was a handcrafted weapon commonly known as a “shank.”
In a separate prosecution, Aguon admitted that on February 24, 2017, during a search, a staff member of the prison discovered an object inside the seam of Aguon’s pants. The object was a “shank,” and was made from a piece of metal, approximately six inches in length, sharpened to a point on one end with duct tape around the opposite end to form a handle.
Both Freeman and Aguon face up to five years in federal prison. The inmates are scheduled to be sentenced on October 24, 2017.
These cases were investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecutions. The plea hearings were held before Senior United States District Judge David A. Faber.
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Federal Grand Jury Indicts Union Official for Allegedly Extorting Cash Payments from Local BusinessRead the Press Release
CHICAGO — A high-ranking official in a Chicago-area labor union threatened a local business with economic loss if it didn’t pay him quarterly cash payments of $25,000, according to a federal indictment returned today.
JOHN T. COLI SR. used the threat of economic harm to extort quarterly payments of $25,000 from a local company, according to the indictment. The attempted extortion occurred from approximately October 2016 to April 2017, while Coli served as President of Teamsters Joint Council 25, a labor organization that represents more than 100,000 workers in the Chicago area and northwest Indiana. The organization has approximately 26 local union affiliates, including Teamsters Local Union 727, where Coli also served as Secretary-Treasurer during the time period referenced in the indictment.
The indictment was returned today in U.S. District Court in Chicago. It charges Coli, 57, of Chicago, with one count of attempted extortion and five counts of demanding and accepting a prohibited payment as a union official. The indictment seeks forfeiture from Coli of at least $100,000.
Arraignment in federal court in Chicago will be held at a future time to be set by the Court.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.
According to the charges, Coli accepted a $25,000 cash payment on July 7, 2016; two cash payments totaling $25,000 on Oct. 4, 2016, and Nov. 29, 2016; and $25,000 cash payments on Dec. 22, 2016, and April 4, 2017. The indictment does not identify the individual who made the payments nor the company Coli allegedly extorted.
Coli previously served as International Vice President of the Central Region of the International Brotherhood of Teamsters, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Attempted extortion is punishable by a maximum penalty of 20 years in prison. Each count of demanding and accepting a prohibited payment is punishable by up to five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
Federal Grand Jury Indicts Decatur Man on Charges of Murder and Hobbs Act RobberyRead the Press Release
SPRINGFIELD, Ill. – A grand jury today returned a superseding indictment that charges Matthew J. Higgins-Vogt, 24, of Decatur, Ill., in the April 3, 2015, armed robbery of the Circle K convenience store and the April 5, 2015, murder of Paige Mars, also of Decatur.
The indictment alleges that on April 3, 2015, Higgins-Vogt and Kelton Snyder robbed the Circle K convenience store at 1685 S. Baltimore in Decatur, and took money, including the contents of the cash register, and alcohol, while brandishing a 12-gauge shotgun. On or about April 5, the indictment alleges that Higgins-Vogt killed Paige Mars to prevent Mars from communicating with law enforcement about the robbery.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Jason Bohm and Katherine Boyle. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Higgins-Vogt has been in the custody of the U.S. Marshals Service since his initial appearance on Feb. 17, 2017. He will be arraigned on the indictment in federal court in Urbana on a date to be determined by the U.S. Clerk of the Court. Trial for Higgins-Vogt is currently scheduled on Sept. 18. A jury previously convicted Snyder on similar charges and he is serving a life sentence.
The indictment returned today charges Higgins-Vogt with interference with commerce by violence, otherwise known as a Hobbs Act Robbery; killing a witness; use of a firearm resulting in death; brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a felon.
If convicted, the penalty for killing a witness is life in prison; use of a firearm resulting in murder is up to life in prison; brandishing a firearm during and in relation to a violent crime is a mandatory minimum of seven years and a maximum of up to life in prison, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence; Hobbs Act Robbery is up to 20 years in prison; and being a felon in possession of a firearm is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Fairhaven Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
BOSTON – A Fairhaven man pleaded guilty today in federal court in Boston to distributing methamphetamine.
Peter Lobo, 54, pleaded guilty today to one count of distributing methamphetamine before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Oct. 4, 2017.
In late 2016, an undercover agent posing as a Maine methamphetamine dealer met with Lobo, and on Dec. 12, 2016, Lobo distributed a half pound sample of methamphetamine to the agent. Two days later, the agent paid Lobo $4,000 for the half pound, and Lobo sold an additional four pounds of methamphetamine to the agent. A subsequent drug analysis determined that the substance consisted of 1,777 grams of 99% pure d-methamphetamine hydrochloride, also known as “Ice.”
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Elkton Man Sentenced on Methamphetamine, Gun ChargesRead the Press Release
Harrisonburg, VIRGINIA – An Elkton man, who was the driver of a car pulled over in Shenandoah County and found to be illegally in possession of a firearm and illegal drugs, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Blake Morgan Stroop, 22, of Elkton, was sentenced today to 130 months’ imprisonment, with a five-year period of supervised release to follow. Stroop previously pled guilty to one count of conspiring to distribute more than 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to evidence presented at previous hearings by Assistant United States Attorney Jeb Terrien, on October 12, 2015, officers in Shenandoah County stopped a rental vehicle drive by Stroop, in which Ernest Wayne Good was the passenger. After smelling marijuana and hearing Good admit to smoking “a little while ago,” officers searched Good and Stroop and found various items, including methamphetamine and firearms, among other items. Good was previously convicted and sentenced to 68 months in federal prison for his crimes.
Later, on November 13, 2005, again in Elkton, Stroop and Good were again apprehended by law enforcement. On this occasion, Stroop was found in possession of a large amount of methamphetamine, approximately $12,070, and a loaded .380 caliber pistol with an obliterated serial number. Good was also found in possession of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the RUSH Drug Task Force, Shenandoah County Sheriff’s Office, Elkton Police Department, and Strasburg Police Department. Assistant United States Attorney Jeb Terrien and Special Assistant United States Attorney Thomas Duncombe prosecuted the case for the United States.
Department of Justice Statement on the Closing of Its Investigation into the Possible Acquisition of Chicago Sun-Times by Owner of Chicago TribuneRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into the possible acquisition of the Chicago Sun-Times by tronc Inc., the owner of the Chicago Tribune:
On May 15, 2017, the Antitrust Division announced that it was investigating the possible acquisition of the Chicago Sun-Times by tronc because the merger of the two daily newspapers in Chicago would raise significant antitrust concerns.
The Division’s investigation focused on whether the Chicago Sun-Times was a failing company under the Department of Justice/Federal Trade Commission Horizontal Merger Guidelines, which provide that a transaction is not likely to be anticompetitive if the assets of one of the firms would otherwise exit the market. One of the conditions required to be met in order to establish the “failing firm” defense is that the failing firm “has made unsuccessful good-faith efforts to elicit reasonable alternative offers that would keep its tangible and intangible assets in the relevant market and pose a less severe danger to competition than does the proposed merger.” Horizontal Merger Guidelines at § 11. Because this condition may not be satisfied by a confidential sale effort, a seller may choose to undertake a public sale process to augment its effort to elicit reasonable alternative offers.
In this case, Wrapports LLC, the owner of the Chicago Sun-Times, launched a public sale process on May 16, 2017, which the Division monitored closely. This process resulted in Wrapports selling the Chicago Sun-Times to an alternative buyer, ST Acquisition Holdings LLC, which does not currently own an interest in any other newspaper. As a result, the Division will be closing its investigation of the possible acquisition of the Chicago Sun-Times by tronc.
The Division notes that some transactions that rely on a failing firm defense may not be reportable under the Hart-Scott-Rodino Act. Division encourages firms whose non-reportable transaction relies on a failing firm defense to: (i) inform the Division about the proposed transaction prior to consummation; (ii) allow for sufficient time for the Division to conduct a thorough investigation, which may decrease the possibility of a precipitous enforcement action; and (iii) plan in advance for the costs of undergoing such an investigation. At the same time, when voluntarily notified of such a transaction, the Division endeavors to conduct its investigation expeditiously under the circumstances. Here, Wrapports helpfully notified the Division of the Letter of Intent that it had entered into with tronc, which enabled the Division to open its investigation and monitor the public sale process.
The Antitrust Division is the agency responsible for investigating mergers involving newspapers.
Tronc is a Delaware corporation headquartered in Chicago. It publishes major daily newspapers across California, Illinois, Florida, Maryland, Connecticut, Virginia and Pennsylvania. Wrapports is a privately-held Delaware limited liability company based in Chicago. ST Acquisition Holdings is a privately-held Delaware limited liability company based in Chicago.
The Antitrust Division’s Closing Statement Policy
The Division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the Division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the Division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the Division in any future enforcement actions. Guidance on the division's policy regarding closing statements is available at www.justice.gov/atr/public/closing/index.html.
Del Rio Man Sentenced to 121 Months in Federal Prison for Possession of Child PornographyRead the Press Release
In Del Rio, a federal judge sentenced 30-year-old Ramiro Martinez to 121 months in federal prison followed by ten years of supervised release for possession of child pornography announced United States Attorney Richard Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
During Monday’s sentencing hearing, U.S. District Judge Alia Moses also ordered that Martinez pay a $2,000 fine and forfeit the computer and other property he used in the commission of the offense.
On May 21, 2015, Martinez pleaded guilty to one count of possession of child porn. By pleading guilty, Martinez admitted that from August 2014 through October 2014, he was in possession of child pornography.
On October 30, 2014, HSI agents executed a search warrant at the defendant’s residence and seized the defendant’s computer and other related material. A forensics examination of the seized items revealed the presence of more than 125 images and videos depicting the sexual exploitation of children.
“As this sentence makes clear, those who exploit innocent children will face serious consequences,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Targeting these crimes is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators that traumatize and victimize children.”
HSI conducted this investigation. Assistant United States Attorney Matthew H. Watters prosecuted this case on behalf of the Government.
Dallas Man Admits His Role in a $6.4 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — Jay Bruce Heimburger, 58, of Dallas, appeared yesterday before U.S. Magistrate Paul D. Stickney and pleaded guilty to his role in a diamond investment scheme that the indictment alleged ran from approximately March 2011 to November 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Heimburger pleaded guilty to one count of mail fraud. He faces a maximum penalty of not more than 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set for October 16, 2017.
Co-defendant Christopher Arnold Jiongo, 56, of Houston, pleaded guilty in May 2017 to one count of wire fraud. Jiongo is scheduled to be sentenced September 11, 2017.
Craig Allen Otteson, 65, of McKinney, is scheduled to plead guilty to his role in the scheme on July 18, 2017.
According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
According to the plea documents signed by Heimburger, during the period from February 20121 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises.
The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.
The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.
In plea papers filed with the court, Heimburger admitted that he and Otteson engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. Heimburger also admitted that as part of the scheme to defraud investors, Heimburger and Otteson caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.
The indictment alleged that during the period from 2011 through 2013, Otteson and Heimburger caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Twenty-six defendants have been charged as part of that initiative; 21 were convicted, one resulted in a mistrial and four are pending trial.
The U.S. Postal Inspection Service is conducting the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Cumberland County Man Indicted on Child Exploitation ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jesse Owen Maurice, age 27, of Carlisle, Pennsylvania, was indicted by a federal grand jury for offenses involving the sexual exploitation of a minor.
According to United States Attorney Bruce D. Brandler, Maurice is alleged to have coerced and enticed a minor to take sexually explicit photographs of herself and send them to him over the internet in November 2016. Maurice also is charged with distributing those sexually explicit photographs. The two-count indictment charges Maurice with production of child pornography and receipt and distribution of child pornography. The indictment also seeks forfeiture of all electronic equipment used to take those images.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the production of child pornography offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years. The receipt and distribution of child pornography charge is punishable by a maximum of 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of five years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Corporate Insiders and Managers of Long Island Boiler Room Indicted for Orchestrating $147 Million Stock Manipulation Scheme Involving Publicly Traded CompaniesRead the Press Release
A nine-count indictment was unsealed this morning in federal court in Brooklyn, New York, against 14 defendants: Jeffrey Chartier, Stephanie Lee, Lawrence Isen and Robert Gleckman, insiders and marketers of five publicly traded companies whose stock the defendants manipulated; Erik Matz and Ronald Hardy, managers of My Street Research and its predecessors (the “Boiler Room”); Brian Heepke, Dennis Verderosa, Emin L. Cohen, Paul Ewer, McArthur Jean, and Sergio Ramirez, Boiler Room cold-callers; Anthony Vassallo, owner of Elite Stock Research (“ESR”); and Robert Gilbert, owner of Accredited Investor Preview (“AIP”).[1]
The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and substantive securities fraud in connection with the stock manipulation of five publicly traded companies – National Waste Management Holdings, Inc., trading under the ticker symbol NWMH; CES Synergies, Inc., trading under the ticker symbol CESX; Grilled Cheese Truck, trading under the ticker symbol GRLD; Hydrocarb Energy Corporation, trading under the ticker symbol HECC; and Intelligent Content Enterprises, Inc., trading under the ticker symbol ICEIF. In addition, the government restrained Matz’s residence in Mt. Sinai, New York, Isen’s residence in San Diego, California, and a co-conspirator’s residence in Hicksville, New York, and seized bank accounts containing alleged criminal proceeds and automobiles purchased with alleged criminal proceeds.
Matz, Hardy, Heepke, Verderosa, Cohen, Ewer, Jean, Ramirez, Vassallo, and Gilbert will be arraigned this afternoon before Magistrate Judge Robert M. Levy, at the United States Courthouse in Brooklyn. Chartier’s and Gleckman’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 312 North Spring Street, Los Angeles, California. Lee’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 801 North Florida Avenue, Tampa, Florida. Isen’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 333 W. Broadway, San Diego, California.
The indictment was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, the defendants designed an elaborate, fraudulent scheme, to defraud the investing public, preying, in particular, upon unsuspecting and elderly investors. Specifically, the defendants obtained shares from corporate insiders at below-market prices and engaged in manipulative trading patterns to drive up the price of the shares, while aggressively and repeatedly calling and emailing victims to purchase those shares,” stated Acting United States Attorney Rohde. “Today’s 14 arrests, in three states, reflect the scope of this fraud and our commitment to aggressively locating and bringing to justice those who abuse our financial markets in order to fraudulently enrich themselves.” Ms. Rohde expressed her grateful appreciation to the FBI and the United States Securities and Exchange Commission for their significant cooperation and assistance in the investigation.
“Manipulating stock prices, as alleged in this case, to appear more attractive to investors, is a deliberate attempt at sabotaging fair market trading,” stated Assistant Director-in-Charge Sweeney. “And manipulation, at its core, is a true act of deception, especially when the elderly are targeted. This scheme involved an incredible amount of money, more than $147 million. That's no small change for even the savviest investor. As evidenced by our arrests today, we take these matters seriously, and will continue to pursue those who make victims out of unwitting participants in these schemes.”
Overview
As alleged in the indictment and court proceedings, between January 2014 and July 2017, the defendants, together with others, engaged in a $147 million scheme to defraud investors and potential investors in, among other companies, one or more of the following publicly traded companies: NWMH, CESX, GRLD, HECC, and ICEIF (collectively, the “Manipulated Public Companies”), by artificially controlling the price and volume of traded shares in the Manipulated Public Companies through, among other things, (a) artificially generating price movements and trading volume in the shares, and (b) material misrepresentations and omissions in their communications with victim investors about the stock of the Manipulated Public Companies, relating to, among other things, the advisability of purchasing such stock. To execute this scheme, the defendants fraudulently concealed their control of shares of the Manipulated Public Companies that were held in brokerage accounts in the names of other individuals or entities. In addition, in or about and between 2014 and 2017, defendants Chartier, Lee, Isen, Matz, and Hardy engaged in a scheme to launder approximately $14,714,493 in proceeds of the foregoing stock manipulation schemes.
The Stock Manipulation Scheme
In order to carry out the fraudulent pump and dump scheme, employees of the Boiler Room based in Melville, New York, obtained shares from insiders at the Manipulated Public Companies, including the defendants Chartier, Lee and Gleckman, at below-market prices through stock purchase and consulting agreements. Once employees of the Boiler Room obtained shares in the Manipulated Public Companies, the defendants engaged in manipulative trading patterns including wash trades and matched trades to drive up the price of the shares, while aggressively and repeatedly calling and emailing victims – many of whom were senior citizens – to purchase shares in the Manipulated Public Companies. When victims indicated a willingness to purchase a recommended stock, the defendants and their co-conspirators at the Boiler Room called the victims repeatedly, pressured them to follow through with their purchases and directed them to log into their trading accounts while still on the telephone to place purchase orders for the relevant stock. Many of the victims ultimately purchased stock in more than one of the Manipulated Public Companies. In some cases, the Boiler Room also charged the victims for “subscriptions” to receive stock recommendations.
The defendants did not disclose to the victims that, contemporaneously with or shortly after their recommendation to the victims of the stocks of the Manipulated Public Companies, the defendants and their co-conspirators sold their own shares in the same companies. The victims therefore were left with the false and misleading impression that the stocks of the Manipulated Public Companies were sound investments in which the defendants and their co-conspirators themselves firmly believed.
The defendants’ deceptive practices included using false names or the names of co-conspirators instead of their true names during their communications with victims. The defendants Matz, Heepke, Cohen and Jean most frequently employed those tactics by providing false names to victims and by using email addresses in other individuals’ names when communicating with victim investors. In addition, the defendants directed and controlled trading in shares of the Manipulated Public Companies in brokerage accounts with names that were not associated with themselves or the Boiler Room. Such trading, which included matching trades of both victims and co-conspirators as part of the scheme to manipulate the stock of the Manipulated Public Companies, appeared not to be linked to the defendants or the Boiler Room.
The Money Laundering Scheme
Between 2014 and 2017, the defendants Chartier, Lee, Isen, Matz and Hardy engaged in a scheme to launder approximately $14,714,493 in proceeds of the fraudulent schemes to manipulate the share prices of NWMH, CESX, GRLD, HECC and ICEIF. They laundered proceeds of their pump and dump schemes by transferring the proceeds from brokerage accounts that they and their co-conspirators controlled through, among other things, bank accounts in the names of companies controlled by the co-conspirators and other individuals, or by generating invoices to lend the appearance of legitimacy to the transactions.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn L. Cooley and Patrick T. Hein are in charge of the prosecution. Assistant U.S. Attorney Tanisha R. Payne is handling the forfeiture aspects of the case.
The Defendants:
JEFFREY CHARTIER
Age: 53
Residence: Los Angeles, CaliforniaSTEPHANIE LEE
Age: 46
Residence: St. Petersburg, FloridaLAWRENCE ISEN
Age: 63
Residence: San Diego, CaliforniaROBERT GLECKMAN
Age: 52
Residence: Tarzana, CaliforniaERIK MATZ
Age: 44
Residence: Mt. Sinai, New YorkRONALD HARDY
Age: 42
Residence: Port Jefferson, New YorkBRIAN HEEPKE, also known as “Brian Targis”
Age: 36
Residence: Farmingdale, New YorkDENNIS VERDEROSA
Age: 67
Residence: Coram, New YorkEMIN L. COHEN, also known as “Ian Grant”
Age: 33
Residence: Coram, New YorkANTHONY VASSALLO
Age: 54
Residence: Farmingdale, New YorkPAUL EWER
Age: 36
Residence: Massapequa, New YorkMCARTHUR JEAN, also known as “John McArthur”
Age: 34
Residence: Dix Hills, New YorkROBERT GILBERT
Age: 51
Residence: Cold Spring Harbor, New YorkSERGIO RAMIREZ
Age: 44
Residence: East Meadow, New YorkE.D.N.Y. Docket No. 17-CR-372 (JS)
[1] The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
Coopersville Man Sentenced to Prison in Scheme to Defraud Herman Miller Inc. of $1.77 MillionRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Kevin John Grimm, 61, was sentenced to serve 27 months in federal prison for his role in defrauding furniture manufacturer Herman Miller Inc. in a vendor invoicing scheme. The Honorable Paul L. Maloney, U.S. District Judge, imposed the sentence. In addition to the prison term, Grimm was ordered to serve two years of supervised release, pay $458,947.14 in restitution, and forfeit an additional $458,947.14 to the government.
Grimm pled guilty on March 21, 2017, to conspiracy to commit mail fraud and wire fraud. He admitted conspiring with Spring Lake resident Jerry Akers to devise and execute a scheme to defraud Herman Miller between June 2010 and July 2015 using Grimm’s company, KJ Gas Transportation, LLC. With Akers’s assistance as an employee at the company, Grimm submitted false and fraudulent invoices for payment for natural gas services he never provided. The fraud scheme generated $1,772,726 in payments to his company. Prior to Grimm’s sentencing, Akers and Grimm collectively returned $1,313,779 of the illegal proceeds they obtained during the fraud, with Grimm paying $1,223,779 of that amount.
This matter was investigated by the Grand Rapids office of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher O’Connor.
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Convicted Felon Sentenced in Federal Court on Drug and Gun ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Dereke Lamar Collins Carroll, 27, of Daphne, was sentenced today in federal court on charges involving his illegal possession of marijuana and ammunition. The federal indictment alleged that Carroll was previously convicted of two felony drug charges, and that he was found in possession of both crack cocaine and marijuana with the intent to distribute them. Court documents reflect that a Daphne police officer observed Carroll speeding in the Lake Forest subdivision. The officer pursued Carroll , who attempted to elude the officer until he turned into a cul de sac. Carroll jumped out of the car while it was still moving and ran between two houses, climbing two fences to avoid apprehension. He was caught and the police found a pink bag he discarded as he jumped one of the fences. Law enforcement recovered crack cocaine, marijuana, a marijuana grinder, a box of plastic bags used to package drugs, and a handgun magazine located with 10 rounds of 9 mm cartridges. Carroll’s wallet contained his identification and $435 in cash. In March of 2017, Carroll pled guilty to the count charging possession with intent to distribute marijuana and his illegal possession of the ammunition as a convicted felon.
Senior District Court Judge Callie V. S. Granade sentenced Carroll this morning to 130 months imprisonment, consisting of 60 months on the drug count and 70 months on the gun count, and ordered that they be served consecutively. The judge also ordered that Carroll will serve three years on supervised release following his release from imprisonment. She also ordered that Carroll undergo drug abuse treatment while in custody and when he is released on supervision. No fine was imposed, but the judge ordered that Carroll pay the special mandatory assessments of $200.
The case was investigated by the Daphne Police Department and the Federal Bureau of Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.Contractor Pleads Guilty to Making False Statements and Theft of Government FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, pled guilty today to one count of making false statements in violation of 18 U.S.C. § 1001 and one count of theft of government funds in violation of 18 USC § 641.
According to court documents, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program, also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. In 2011 and 2012, each elevation grant from HMGP was worth up to $100,0000 with contractors and homeowners being entitled to an advanced payment of 80% of the grant prior to a contractor doing any elevation work. The HMGP expected homeowners receiving HMGP grants to commit their $30,000 Road Home elevation grant to the total cost of the elevation.
In 2011, SPEARS signed contracts with multiple homeowners in the Eastern District of Louisiana to elevate their homes through the HMGP. For many of these contracts, SPEARS received advanced payments from the HMGP prior to starting the elevation work. For at least two contracts, the homeowners gave him Road Home elevation funds prior to HGMP approving their grants or giving them an advanced payment.
On or about May 5, 2012, SPEARS was placed on a restricted status with the HMGP that prohibited him from getting any advanced payments on new elevation contracts because he was significantly out of compliance with a number of his pending elevation projects. On or about July 20, 2012, in an effort to be removed from his restricted status with the HMGP, SPEARS falsely represented to the program that certain funding recipients had requested that their elevation be delayed when, in truth and in fact, they had not requested a delay. In August 2012, the HMGP removed SPEARS from restricted status on representations from him that he would have the properties completed by the end of 2012.
However, as of 2013, SPEARS had still failed to do any work on at least three properties for which he had received $118,000 in federal funds, including the two properties for which he had received the Road Home elevation funds as down payment. Despite demands, SPEARS has not returned the funds to the government or the homeowners.
A violation of 18 USC § 1001 carries a maximum term of imprisonment of not more than 5 years, a fine of $250,000, not more than three years supervised release after imprisonment, and a $100 special assessment. violation of 18 USC § 641 carries a maximum ten year term of imprisonment, a $250,000 fine, not more than three years of supervised release following any term of imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for November 8, 2017.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security-OIG and the Federal Bureau of Investigation for investigating this matter.
Complaint Filed Against Tulsa Man Alleged to Be Responsible for Explosion at Bixby Air Force Recruitment OfficeRead the Press Release
Today, Acting United States Attorney for the Northern District of Oklahoma, Loretta F. Radford, filed a four-count Federal Complaint against Benjamin Don Roden, a 28-year-old resident of Tulsa, Oklahoma, accused of using an explosive device to cause destruction of the Bixby Air Force Recruitment Office. The Federal Complaint charges Roden with Malicious Damage to Federal Property By Use of Explosive, Destruction of Federal Property, Use of Explosive to Commit Federal Felony, and Destruction of Federal Property.
The supporting affidavit to the Complaint generally alleges that Roden violated Federal laws associated with the destruction of Federal property and Federal laws prohibiting the manufacturing, possession, and use of explosives. The Complaint specifically alleges that on July 10, 2017, at approximately 10:28 p.m., an explosive device detonated outside of the Air Force Recruiting Station located at 10425 South 82nd East Avenue, Suite 103, Bixby, Oklahoma. Besides breaking windows, the resulting explosion from the detonation of the explosive device caused significant structural damage to the office front of the recruiting station. Roden was identified and later arrested, based upon leads obtained from Roden’s Facebook page and a witness who identified Roden’s motorcycle speeding away simultaneously with the sound of an explosion in the area; the execution of a Federal search warrant against Roden’s residence; and a consensual search of a residence belonging to Roden’s parents. The explosive, identified by law enforcement specialists as an improvised explosive device, is commonly referred to as a “pipe bomb”.
“The exacting and immediate response by the Federal Bureau of Investigation has led to the successful arrest and detention of an individual who would seek to do harm to the citizens of the Northern District by designing and creating a pipe bomb to target a Federal military recruitment facility. I view this conduct as not only a threat to the safety of the citizens of this district, but as an assault upon all of the dedicated men and women in this country who willingly support our military efforts,” Acting U.S. Attorney, Loretta F. Radford said. “I intend to seek a formal grand jury indictment.”
The Federal Bureau of Investigation is leading the investigation, assisted by Special Agents with the Alcohol, Tobacco, Firearms and Explosives Unit, the Tulsa Police Department Bomb Squad and the Bixby Police Department. Assistant United States Attorneys Allen J. Litchfield and R. Trent Shores will prosecute the case.
Coaldale Man Charged with Possessing Methamphetamine with Intent to DistributeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Breck, III, age 34, of Coaldale, Pennsylvania, was indicted on July 11, 2017, by a federal grand jury for possession of methamphetamine with the intent to distribute.
According to United States Attorney Bruce D. Brandler, Beck was found in possession of approximately 200 grams of methamphetamine at his home on July 5, 2017.
The charges stem from an investigation by the Drug Enforcement Administration and the Pennsylvania State Police Department. Assistant United States Attorney Evan Gotlob is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendant is facing a mandatory minimum of five years and maximum of 40 years in prison and a $5,000,000 maximum fine and lifetime maximum supervised release. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Canadian Man Sentenced on Drug Charges Following Extradition to United States in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr, announced today that Gursharan Singh, 34, of Brompton, Ontario, Canada, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 63 months in prison by U.S. District Judge Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2007 and May 2011, Singh conspired with others to smuggle cocaine into Canada from the United States via several international bridges located including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.
Singh was indicted along with Alvin Randhawa and Harinder Dhaliwal, all three have been convicted. Also charged and convicted in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu.
Today’s sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; Officers from the United States Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
California Tax Preparer Sentenced to More Than 14 Years in Prison for Using Stolen IDs to File Fraudulent Returns Seeking More Than $2 Million in RefundsRead the Press Release
A Lemon Grove, California woman was sentenced to serve 175 months in prison for her role in two stolen identity refund fraud schemes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Alana W. Robinson of the Southern District of California.
In April 2013, Cynthia Lozano was charged in a 33-count indictment for using stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS). According to the indictment as well as documents and information provided to the court, Lozano directed the IRS to deposit the refunds into bank accounts in the names of her relatives and associates. For some actual tax-preparation clients, Lozano claimed a larger refund from the IRS than she represented to her clients. She directed the IRS to deposit the excess amounts into a bank account she controlled without her clients’ knowledge.
On Feb. 13, 2015, Lozano pleaded guilty to aggravated identity theft and participation in her fraudulent scheme. In total, Lozano used the identities of over 200 victims to file over 400 returns, resulting in her receipt of approximately $1.5 million in fraudulently obtained refunds between 2008 and 2013.
In June 2015, while Lozano was awaiting sentencing, agents from the IRS Criminal Investigation (CI) and Department of Treasury, Inspector General for Tax Administration (TIGTA) discovered that Lozano filed additional fraudulent returns in a manner similar to her previous scheme. Lozano was subsequently charged in a second indictment with 51counts, including filing false claims for refund, wire and mail fraud, and aggravated identity theft.
Some of the victims of Lozano’s 2015 scheme were actual or prospective tenants of properties she purchased and titled in the name of her relative, who does not live in the United States. Using her relative’s name as an alias, Lozano obtained authorization to rent some of the Arizona properties under the Section 8 Tenant-Based Assistance Housing Choice Voucher Program (Section 8 program) administered by the Department of Housing and Urban Development (HUD). Through the Section 8 program, a local Public Housing Authority (PHA) supplements rent to a qualifying property owner on behalf of eligible tenants. Lozano submitted false documents under her alias to HUD, under penalty of perjury, to qualify for supplemental rental payments under the Section 8 program.
For the 2015 scheme, Lozano stole the names and social security numbers from her Section 8 tenants, and others who submitted rental applications to Lozano and used them to file additional false returns. Lozano then directed the IRS to deposit the refunds into bank accounts she opened with the assistance of two co-conspirators, Gerardo Baker and David Hernandez. Baker and Hernandez have since pleaded guilty and been sentenced for their participation in the conspiracy.
“Using stolen identities, Cynthia Lozano filed hundreds of fraudulent tax returns, cheating the U.S. Treasury out of more than $1.5 million,” said Acting Deputy Assistant Attorney General Goldberg. “She preyed on low income individuals, ripping off their personal information to file bogus tax returns and brazenly continued her criminal conduct even while awaiting sentencing in federal court on tax fraud and identity theft charges. Her 14 1/2 year sentence sends a clear message that the Department and IRS will aggressively investigate and prosecute those who steal taxpayer identities and file fraudulent claims for refund.”
“The lying, cheating defendant went on a white-collar crime spree that continued even after she got caught,” said Acting U.S. Attorney Robinson. “It is astounding that she committed a second major fraud while awaiting sentencing for the first. Her greed-fueled rampage ends today, with a sentence that recognizes the significant losses suffered by her victims, including U.S. taxpayers.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law,” said Special Agent in Charge R. Damon Rowe of IRS-CI. “IRS Criminal Investigation, along with our law enforcement partners and the U.S. Attorney’s Office and the Justice Department’s Tax Division, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the U.S. Treasury and blatantly disregard the victims of their schemes.”
“This is a case about the irresistibility of greed,” said Special Agent in Charge Rod Ammari of TIGTA Office of Investigations San Francisco Field Division. “Even though Ms. Lozano had pleaded guilty and awaited sentencing on 51 counts of aggravated identity theft, wire and mail fraud, she could not resist the temptation of engaging in additional criminal illegal schemes to steal more identities and file additional fraudulent tax returns -- 69 new fraudulent tax returns to be exact.”
In addition to the terms of prison imposed, U.S. District Court Judge Anthony J. Battaglia ordered Lozano to serve three years of supervised release, to pay $1.479 million in restitution to include the IRS and HUD. Lozano is alleged to have used illegal proceeds from the first scheme to purchase properties in and around the Phoenix, Arizona area. A forfeiture hearing will be scheduled at a later date. Lozano pleaded guilty to two counts of the first indictment on Feb. 13, 2015, and the remaining 31 counts on Aug. 31, 2016. She pleaded guilty to all 51 counts of the second indictment on Nov. 15, 2016.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Robinson commended special agents of IRS–CI and TIGTA, who conducted the investigation, and Trial Attorney Thomas Flynn of the Tax Division and Assistant U.S. Attorney Christopher Tenorio, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.