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25 August 2017
Berlin Man Pleads Guilty in Fatal Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Howard Hoisington, age 34, formerly of Berlin, pleaded guilty today in the United States District Court in Burlington to arson and robbery charges stemming from the fatal arson that occurred in Northfield in December 2015. Hoisington, who has been detained since his arrest in December 2015, appeared before Chief Judge Christina Reiss and pled guilty to arson with death resulting and conspiracy to commit robbery.
As described during the change of plea proceedings, in the fall of 2015, Jonathan Zampieri, Howard Hoisington, Tammy Wilder, Kevin Atwood and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Three of these robberies involved dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs and cash. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.
Also according to court records, on December 14, 2015, Zampieri, Howard, Tammy Wilder, Kim Hoisington and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. Zampieri, Howard and Atwood then drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, the men pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries, but he survived. Brittany Burt could not escape the building. She died on the bedroom floor.
This case was part of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. Acting United States Attorney Eugenia A. P. Cowles condemned the use of violence to further the illicit drug trade and noted that the United States Attorney’s Office will continue to prosecute those who, like the defendants in this case, disregard human life.
Under federal law, the arson charge carries a potential life sentence, but the plea agreement caps Hoisington’s sentence at twenty-five years in jail. Hoisington’s co-defendants, Jonathan Zampieri, Tammy Wilder, and Richard Hoisington, have all pleaded guilty to various charges. Kimberly Hoisington’s change of plea hearing is scheduled for next week.
The case was investigated by the Vermont State Police, Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The United States Attorney’s Office worked in partnership with the Washington County State’s Attorney Scott William to investigate and resolve this important matter. Howard Hoisington is represented by Steven Barth and Elizabeth Quinn of the Federal Public Defender’s Office. The United States is represented by Criminal Chief Paul Van de Graaf and AUSA John Boscia.
Benicia Woman Sentenced to Prison for Tax FraudRead the Press Release
SACRAMENTO, Calif. — Sherrell Davis, 43, of Benicia, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 18 months in prison and ordered to pay $210,320 in restitution for submitting false claims for tax refunds, U.S. Attorney Phillip A. Talbert announced. Davis was ordered to surrender to start serving her sentence on October 20, 2017.
According to court documents, from February 2011 through May 2013, Davis repeatedly engaged in tax fraud by submitting over 50 fraudulent claims for tax refunds in the names of other people to the Internal Revenue Service. The tax returns used fraudulent W-2 tax forms listing false wages and false withholdings in order to generate tax refunds to which the people named on the returns were not entitled. The fraudulent returns also claimed tax credits to which the taxpayers were not entitled, including the Earned Income Credit, the American Opportunity Credit, and the Making Work Pay Credit. In furtherance of her tax fraud scheme, Davis took over bank accounts in the name of another person and used those accounts to receive proceeds from the fraud.. In all, Davis submitted fraudulent tax returns seeking over $350,000 in tax refunds, of which at least $210,320 were paid out by the IRS.
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law, however, no one is entitled to defraud the United States and the American taxpayers,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “For approximately three years, Ms. Davis repeatedly filed numerous false income tax returns with the IRS claiming refunds based on false information. IRS CI will continue to aggressively pursue those who file false tax returns to claim refunds to which they are not entitled.”
Attempted tax refund fraud has been a significant problem in recent years, leading to increased efforts by the IRS and IRS Criminal Investigation to combat it. For example, the IRS has estimated that from 2011 through October 2014, it stopped 19 million suspicious returns and blocked more than $63 billion in fraudulent refunds. Many such tax refund fraud schemes depend on the use of stolen identities. For more information about tax-related identity theft, including warning signs, how to reduce your risk, and what to do if you suspect you have become a victim, visit the IRS Taxpayer Guide to Identity Theft at https://www.irs.gov/uac/taxpayer-guide-to-identity-theft.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales prosecuted the case.
Baltimore Man Exiled to 126 Months in Federal Prison for Conspiracy to Distribute HeroinRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – On August 24, 2017, U.S. District Judge James K. Bredar sentenced Tavon Holmes, age 29, of Baltimore, Maryland, to 10 years and 6 months in prison followed by 3 years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement on January 4, 2016, Baltimore City Police Department officers attempted to conduct a traffic stop, when Holmes ran from the car and into an adjacent alley. Holmes appeared to remove an item from his waistband area and then jumped onto the top of an unhinged basement door. When officers apprehended Holmes, they found, within close proximity, a black semi-automatic Cobra .380 caliber pistol with one round of .380 caliber ammunition in the chamber and a magazine with an additional five rounds of .380 caliber ammunition.
Prior to January 4, 2016, Holmes had been convicted in a court of the state of Maryland of a crime punishable by a term of imprisonment exceeding one year, and his civil rights had not been restored.
Following his arrest, the government obtained a search warrant for Holmes’ cell phone. Within that cell phone were multiple text messages in or about December 2015 where Holmes and at least one other individual conspired to distribute heroin.
On February 8, 2016, and still while incarcerated on his firearms related charges, Defendant Holmes called an individual and asked that individual to move the location of a “jimmy mac.” The government would have proved that a “jimmy mac” is often a code word for a firearm or narcotics.
Acting United States Attorney Stephen M. Schenning commended the ATF, the Baltimore City Police Department and the DEA for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Phil Selden, Aaron Zelinsky, David Metcalf and Mike Hanlon, who prosecuted the case.
Bail Bondsman and Secretary Sentenced for their Role in Bribery Scheme at Orleans Criminal District CourtRead the Press Release
U.S. Attorney Duane A. Evans announced that RUFUS JOHNSON, age 68, of New Orleans, was sentenced today. JOHNSON and his secretary, JOSEPHINE SPELLMAN, 57, also of New Orleans, pled guilty in the midst of trial for their roles in operating a long-running and extensive bribery and honest services fraud scheme related to JOHNSON’s bail bonds in New Orleans.
U.S. District Judge Ivan L.R. Lemelle sentenced JOHNSON to 74 months imprisonment, followed by 3 years of supervised release. Additionally, Judge Lemelle ordered preliminary forfeiture in the amount of $1.2M, forfeiture of the 536-538 Broad Street, and a $600 special assessment. On Wednesday, August 23, 2017, U.S. District Judge Ivan L.R. Lemelle sentenced SPELLMAN to 5 years of probation.
According to the court documents, JOHNSON operated as an unlicensed bail bondsman between 2003 and 2013, accepting money from customers in exchange for getting Orleans Parish Prison inmates released from jail, in violation of state law. To circumvent the prohibition against unlicensed individuals operating as bail bondsmen, JOHNSON, SPELLMAN, and others operated under the licenses and contracts of paid employee bail bondsmen. Certain employees in the Orleans Parish criminal justice system were corruptly paid by JOHNSON, SPELLMAN and other to release inmates on their own recognizance, to provide and alter information in protected computer systems, and to make false certifications on official bond documents. Specifically, JOHNSON, SPELLMAN, and others made cash payments to three deputy clerks in the Clerk’s Office of the Orleans Parish Criminal District Court in order to obtain documents and information, including sensitive and official-use-only information, from protected computer systems servicing the criminal justice system. This information was valuable to bail bondsmen who were seeking to post bonds for inmates and to address bond forfeitures. At JOHNSON’s request, these clerks also delivered to him official bail bonds that had been typed, signed, and certified by a bond clerk without having been signed by a bondsman. This permitted JOHNSON himself to sign the names of his licensed employee bondsmen to the bail bonds without the knowledge or involvement of the bondsmen.
Additionally, JOHNSON paid bribes and kickbacks to a deputy clerk at Criminal District Court who worked as a deputy at CINTAP. CINTAP is an office located in the Orleans Parish Prison’s Central Lockup where one or two deputy sheriffs on shift received and processed telephone orders from judges and other appropriate elected officials to release pre-trial prison inmates on their own recognizance, or to reduce or otherwise alter inmates’ bail amounts or bail status. Between 2008 and March 2010, JOHNSON often provided names of pre-trial inmates to the deputy clerk, who would then cause the inmates to be released by creating false paperwork and entering false information into the protected Sheriff’s computerized system to make it appear as though a judge had called in to order a recognizance bond. In most cases, these were inmates whose associates or family members had gone to JOHNSON as customers and paid him to bond the inmate out of jail. In exchange, JOHNSON paid the deputy clerk cash for securing the releases. JOHNSON paid the clerk between $6,500 and $15,000, and paid bribes and kickbacks to a variety of public officials totalling approximately $95,000 and $150,000.
After the scheme was unearthed in 2010, JOHNSON perceived that law enforcement agents were investigating his illegal bonding practices. Together with SPELLMAN and others, JOHNSON sought to obstruct the investigation by instructing other persons involved with his bail business to lie to law enforcement should they ask what JOHNSON did there. Employees were told they should say that JOHNSON was merely the janitor, or that his primary role at the office was cleaning up and sweeping, and that he did not sell, solicit, or negotiate bonds, and that he was not the primary operator of the bail bonds business. Several of these individuals subsequently repeated this lie to agents of the Federal Bureau of Investigation. JOHNSON himself lied to FBI agents during an interview on March 20, 2012, and SPELLMAN lied to FBI agents during an interview on December 13, 2012.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office, with the assistance of the Metropolitan Crime Commission. Assistant United States Attorneys Jordan Ginsberg, Harry W. McSherry, Brittany Reed, and Michael B. Redmann were in charge of the prosecution.
August Grand JuryRead the Press Release
Acting United States Attorney Robert C. Stuart announced the federal Grand Jury for the District of Nebraska has returned 21 indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Lorenzo Antonio-Martinez, age 27, is charged with illegal reentry after deportation on or about August 14, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Donald R. Bauermeister, Jr., age 44, of Omaha, is charged with conspiracy to distribute and possess with intent to distribute approximately 13 pounds of marijuana beginning on or about November, 2016, and continuing to on or about January 9, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jesse Bustos, age 26, of Bridgeport, Nebraska, is charged with conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture containing heroin beginning on or about May, 2017, and continuing to on or about July 19, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Brandon Carr, age 31, and Tiera Rowsey-Harris, age 24, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with transportation with intent to promote prostitution between on or about June 13, 2017 to on or about June 15, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $5,000 special assessment. Count II of the Indictment charges Carr and Rowsey-Harris with inducement to travel for prostitution between on or about June 13, 2017 to on or about June 16, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $5,000 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment and any property used to commit the offense should be forfeited to the United States.
* Leonardo Cervantes-Yepez, age 47, of Kearney, is charged with illegal reentry after deportation following an aggravated felony conviction on or about July 29, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jeffrey Stephen Conrad, age 52, of Elkhorn, is charged in a two-count Indictment. Both counts of the Indictment charge Conrad under the Assimilative Crimes Act with writing bad checks at the Offutt Air Force Base Exchange on or about December 16, 2016 and on or about December 19, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $10,000 fine, a 1 year term of supervised release, and a $100 special assessment for each count.
* Oscar Contreras-Parada, age 34, is charged with illegal reentry after deportation on or about August 9, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Hermogenes Orellana Del Cid, age 41, is charged with illegal reentry after deportation on or about July 19, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Luis Elias, age 25, of Bellevue, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to deliver a mixture containing methamphetamine on or about June 28, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Count II of the Indictment charges Elias with felon in possession of a firearm on or about June 28, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Steven Rodney Esch and Manuela Fernandez Villegas, a/k/a Nancy Roxas Fernandez and a/k/a Nancy Fernandez Esch , are charged in a four-count Indictment. Count I of the Indictment charges the defendants with false statement in an Immigration Matter beginning on or about a date unknown to the grand jury and continuing through August 23, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Villegas with False Statement Under Oath in a Matter Relating to Naturalization or Citizenship on or about January 11, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100
assessment. Count III of the Indictment charges Esch with False Statement Under Oath in a Matter Relating to Naturalization or Citizenship on or about January 11, 2011. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 assessment. Count IV of the Indictment charges Esch with Unlawful Procurement of Citizenship or Naturalization on or about January 11, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Felipe Gonzalez-Vasquez, age 31, of Schuyler, is charged with illegal reentry after deportation following a felony conviction on or about August 8, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Lester Moore, age 33, of Omaha, is charged with possession with intent to distribute 5 grams or more of methamphetamine on or about May 30, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Curtina Morris, age 48, of Macy, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with assault with a dangerous weapon on or about March 14, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Morris with assault resulting in serious bodily injury on or about March 14, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Eric T. Morris, age 34, of Macy, is charged with failure to register as a sex offender on or about August 2, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a life imprisonment, a 3 year term of supervised release, and a $100 special assessment.* Martha Elisa Pablo Garcia, a/k/a Yesenia Santiago Velez, a/k/a Hermelinda Lopez-Jimenez, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with false representation of a Social Security Number on or about February 29, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Garcia with fraud and misuse of a California Identification Card and a social security card that was not issued lawfully for her use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Fulgencio Ramirez Narvaez, age 45, of Ames, Nebraska, is charged with illegal reentry after deportation following an aggravated felony conviction on or about July 19, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Rodriguez-Tirado, age 28, of Grand Island, is charged with illegal reentry after deportation following a felony conviction on or about August 1, The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Paul D. Sellon, age 61, and Sue Ann Sellon, age 54, are charged in a thirteen-count Indictment. Count I of the Indictment charges Paul Sellon with receipt of a Bribe by an Agent of an Organization Receiving Federal Funds between on or about October 2010 and June 2014. The maximum possible if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendants with theft of government money between on or about 2010 and 2014. The maximum possible if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each defendant. Counts III through XII charges the defendants with wire fraud between on or about September 17, 2012 through October 18, 2013. The maximum possible if convicted is 20 years imprisonment, a $250,000 fine, or a combination of imprisonment and fines, and a $100 special assessment for each defendant for each count. Count XIII of the Indictment charges Paul and Sue Ann Sellon with making a False Statement to a Department or Agency of the United States on or about May 18, 2015. The maximum possible if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment for each defendant.
* Luis Varela, age 31, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a social security number on or about April 29, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Varela with falsely representing himself to be a citizen of the United States. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with use of a Social Security Number that was not lawfully issued for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Victor Ventura-Granados, age 27, of Bakersfield, California, is charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about August 9, 2017. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Joaquin Zarazua, age 46, of Omaha, is charged with False Representation of a Social Security Number on or about April 25, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Assisted Living Facility Manager Sentenced to 52 Months in Federal Prison for Identity TheftRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Salah Eldean Sood, age 35, of Lutherville, Maryland was sentenced to 52 months in prison followed by three years of supervised release by U.S. District Judge J. Frederick Motz. Sood pleaded guilty to bank fraud and aggravated identity theft in a scheme where he stole personally identifiable information from elderly persons who were in his care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General, Philadelphia Field Division (SSA).
According to court documents, Sood managed Holland Manor Eldercare in Towson, Maryland. In June 2015, P.J., a resident of Holland Manor, was transported to a local hospital. Baltimore County Fire Department personnel noted that conditions in the facility were unsanitary and that P.J.’s injuries were potentially indicative of a lack of proper care. P.J. died two days later. The State of Maryland Department of Health and Mental Hygiene revoked Holland Manor’s license to operate on September 25, 2015. On December 3, 2015, Baltimore County Fire Department and Baltimore County Police Department personnel responded to a fire alarm at Holland Manor and located two residents inside the facility without any staff present. An 80 year-old male resident, W.C., informed responders that no caretaker was generally present at the facility overnight. The second resident was restrained in a bed in a second floor bedroom, comatose, and unable to communicate. Responders were initially unable to reach Sood on his cell phone. Sood eventually responded to their calls, but refused to provide to his whereabouts.
Further investigation revealed that from July 2014 to January 2016, Sood opened credit card accounts using the names, dates of birth, and Social Security numbers of three elderly persons who resided at Holland Manor, including P.J. and W.C. Sood submitted the applications electronically, using Holland Manor as the home address. Sood obtained six credit cards in residents’ names, added himself as an authorized user on those accounts, and made over $74,000 in purchases using the accounts.
On August 3, 2016, Sood pleaded guilty in state court to abuse and neglect of a vulnerable victim and operation of an assisted living facility without a license.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Acting United States Attorney Stephen M. Schenning commended SSA OIG, HHS OIG, the Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren E. Perry and Roann Nichols, who prosecuted the case.
Assistant US Attorneys from South Carolina Recipients of National ATF Honor Award in Washington Ceremony Yesterday at ATF HeadquartersRead the Press Release
Columbia, South Carolina ---- United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Acting Director Thomas E. Brandon presented the ATF Honor Award to Assistant US Attorney Jamie Schoen, Assistant US Attorney Max Cauthen, and First Assistant US Attorney Lance Crick for their collective and ongoing efforts to partner with local, state, and federal law enforcement to secure communities through the expedited federal arrest, detention, and prosecution of violent, repeat gun offenders in upstate South Carolina, an initiative known as “Operation Real Time.” The awards were presented at the 21st Annual ATF Awards Ceremony yesterday at ATF National Headquarters in Washington, D.C. United States Attorney General Jeff Sessions was the featured speaker for the event and NBC News Justice Department Correspondent Pete Williams presented the awards.
The ATF Honor Award is given to a select few non-ATF government officials who have significantly contributed to ATF’s overall mission through long-standing support and cooperation. Operation Real Time, created by Crick in concert with the Greenville Police Department and ATF/Greenville in August 2015, hinges on constant communication between all levels of law enforcement and state and federal prosecutors, to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the upstate community.
Working together, this collaborative partnership has been able to identify violent felons with firearms in “real time,” swiftly arrest those individuals on federal charges, and seek detention pending trial or plea--effectively removing armed repeat offenders from the community from point of local arrest. Since its inception, the initiative has resulted in the expedited federal prosecution of over 125 defendants and the seizure of over 160 firearms as well as assorted ammunition from prohibited persons in the upstate. Based on the success of the program, the Real Time model is now being launched in other counties and cities across the state.
U.S. Attorney Beth Drake commended the work of Schoen, Cauthen, and Crick in praising the Real Time partnership. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing and we welcome the opportunity to work alongside our state chiefs, sheriffs, and solicitors in taking violent repeat offenders out of our communities.”
Pictured above, from left: NBC Correspondent Pete Williams, Acting ATF Director Thomas E. Brandon, First Assistant US Attorney Lance Crick, Assistant US Attorney Jamie Schoen, Assistant US Attorney Max Cauthen, and Associate Deputy Director Ronald D. Turk.
Another Sentenced and Two More Plead Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 74 of the 103 defendants charged as the result of this investigation have entered guilty pleas and 35 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This week, an Albuquerque resident who charged as the result of the investigation was sentenced in federal court. Jesus Ramirez, 21, was sentenced yesterday to five years in prison followed by five years of supervised release for violating the federal firearms laws.
In addition, two more Albuquerque residents entered guilty pleas in federal court this week. Felix Ulibarri, 39, pled guilty on Aug. 22, 2017, to a methamphetamine trafficking charge under a plea agreement that recommends a sentence within the range of 84 to 105 months in federal prison. Joshua Bright, 32, pled guilty today to methamphetamine trafficking offenses under a plea agreement that recommends a sentence within the range of 12 to 15 years in federal prison.
Ramirez and his co-defendants, Jonathan Griego, 28, and Richard Porras, 31, were arrested in Aug. 2016, on separate criminal complaints charging them with drug trafficking and firearms offenses. The three subsequently were jointly charged in a nine-count indictment filed on Aug. 9, 2016, with conspiracy and possessing methamphetamine with intent to distribute. The indictment also charged Porras with distributing methamphetamine on three occasions, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm, and Ramirez with possessing methamphetamine and heroin with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. On Jan, 25, 2017, Ramirez pled guilty to carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Ramirez admitted that on Aug. 4, 2016, he carried and used a loaded firearm while distributing methamphetamine and heroin.
Ulibarri was indicted on July 28, 2016, and was charged with distributing methamphetamine on July 11, 2016. The indictment subsequently was superseded on Aug. 9, 2016, to add Leo Lopez, 28, Joseph Sena, 40, and Jennifer Padilla, 39. The superseding indictment charged Ulibarri and Padilla with participating in a conspiracy to distribute methamphetamine in July 2016; Lopez, Sena and Padilla with participating in a different conspiracy to distribute methamphetamine in July 2016; Ulibarri with distributing methamphetamine on July 11, 2016; and Sena with distributing methamphetamine on July 26, 2016. According to the indictment, the defendants committed the crimes in Bernalillo County. On Aug. 22, 2017, Ulibarri pled guilty to one count of distributing methamphetamine and admitted that on July 11, 2016, he distributed more than 50 grams of methamphetamine to an undercover law enforcement agent. A sentencing hearing has yet to be scheduled.
Bright and co-defendant Jesse James Davis, 40, were indicted on June 30, 2016, and were charged with conspiracy and distributing methamphetamine on June 6, 2016. Bright also was charged with distributing methamphetamine on June 14, 2016. During today’s proceedings, Bright pled guilty to conspiracy and distribution of methamphetamine. In entering the guilty plea, Bright admitted that on June 6, 2016, he sold four bags of methamphetamine weighing approximately 115 grams to an undercover law enforcement agent. A sentencing hearing has yet to be scheduled.
Twenty-six of the defendants who were charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. One defendant is a fugitive and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. Ramirez was prosecuted by Assistant U.S. Attorney Paul H. Spiers. Ulibarri is being prosecuted by Assistant U.S. Attorney Edward Han, and Bright is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Albuquerque Man Sentenced to Five Years for Federal Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Pascual Cerpa-Coy, 55, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for his conviction on a cocaine trafficking charge. Cerpa-Coy will be on supervised release for five years after completing his prison sentence.
Cerpa-Coy was arrested in Jan. 2017, on a criminal complaint charging him with possession of cocaine with intent to distribute on Jan. 19, 2017, in Bernalillo County, N.M. Cerpa-Coy subsequently was indicted on the same charge on Feb. 7, 2017.
According to court documents, Cerpa-Coy was arrested after the Crimes Against Children Unit of the Albuquerque Police Department (APD) found approximately one kilogram of cocaine and drug paraphernalia at his residence while executing a state search warrant as part of an investigation into another matter.
On May 25, 2017, Cerpa-Coy entered a guilty plea to the indictment and admitted possessing more than 500 grams of cocaine on Jan. 19, 2017, that he intended to distribute to others.
This case was investigated by the Albuquerque office of the DEA and APD. Assistant U.S. Attorney Kimberly A. Brawley prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Acting Manhattan U.S. Attorney Announces Provisional Arrest in London of Pakistani National Muhammad Asif Hafeez for Drug-Trafficking on A Massive ScaleRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Raymond Donovan, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), today announced that MUHAMMAD ASIF HAFEEZ, a/k/a “Sultan,” was provisionally arrested in London pursuant to charges filed in the Southern District of New York, which were unsealed today, based on HAFEEZ’s participation in drug-trafficking activities involving large, and in some instances multi-ton, quantities of heroin, methamphetamine, and methamphetamine precursor chemicals. The United States plans to seek HAFEEZ’s extradition from the United Kingdom.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Muhammad Asif Hafeez, a long-time, priority target of the DEA known as the ‘Sultan,’ trafficked in drugs on a massive and global scale, working with transnational criminal organizations to manufacture and distribute enormous quantities of heroin and methamphetamine around the world and into the United States. From Kenya and Mozambique to London and New York, Hafeez’s alleged drug operation saw no borders or boundaries – until now. Thanks to the unwavering commitment of the DEA and the prosecutors in this Office, the ‘Sultan’ has been caught and will have to face American narcotics charges.”
Special Agent in Charge Raymond Donovan said: “The arrest of Muhammad Asif Hafeez is another win in the fight against global criminals and one of DEA’s priority targets. He has been allegedly linked to a transnational criminal organization responsible for manufacturing and distributing ton quantities of narcotics. Removing criminals like Hafeez benefits not just the citizens of London, but communities worldwide.”
According to the allegations contained in S5 and S7 Superseding Indictments filed in Manhattan federal court charging HAFEEZ and certain of his co-conspirators:
From 2013 through the date of his provisional arrest, HAFEEZ conspired to import methamphetamine into the United States. In connection with this conspiracy, HAFEEZ and certain of his co-conspirators sought to establish a methamphetamine-production facility in Mozambique. But HAFEEZ and his co-conspirators were forced to abandon their plan after law enforcement authorities seized approximately 18 tons of ephedrine from a factory in Solapur, India, including several tons of ephedrine that HAFEEZ and his co-conspirators planned to use as a precursor chemical to manufacture methamphetamine in Mozambique.
HAFEEZ is also charged with participating in a conspiracy with co-defendants Baktash Akasha Abdalla, Ibrahim Akasha Abdalla, Gulam Hussein, and Vijaygiri Anandgiri Goswami to import heroin into the United States. Baktash Akasha Abdalla was the leader of an organized crime family in Kenya (the “Akasha Organization”), which was responsible for the production and distribution of ton quantities of narcotics within Kenya and throughout Africa and maintained a network used to distribute narcotics for importation into the United States. In October 2014, Ibrahim Akasha Abdalla delivered a one-kilogram heroin sample, on behalf of HAFEEZ and the Akasha Organization, to confidential sources acting at the direction of the DEA in Nairobi. In early November 2014, Ibrahim Akasha Abdalla delivered 98 additional kilograms of heroin to the sources.
In November 2014, Baktash Akasha Abdalla, Ibrahim Akasha Abdalla, Hussein, and Goswami were provisionally arrested in Kenya. They arrived in the District for prosecution based on the pending drug-trafficking charges in January 2017.
* * *
HAFEEZ, 58, a Pakistani national residing in, among other places, London, is charged with conspiring to import heroin into the United States; conspiring to import methamphetamine into the United States; and aiding and abetting the distribution of heroin, knowing and intending that it would be imported into the United States. Each charge carries a mandatory minimum sentence of 10 years in prison. The potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the outstanding efforts of the Special Operations Division of the DEA, Bilateral Investigations Unit. Mr. Kim also thanked the United Kingdom’s National Crime Agency, the London Metropolitan Police Service – Extradition Team, the DEA London Country Office, the DEA Dubai Country Office, the DEA Nairobi Country Office, the DEA Pretoria Country Office, the DEA New Delhi Country Office, and the U.S. Department of Justice’s Office of International Affairs and London Attaché.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Patrick Egan, and Amanda L. Houle are in charge of the prosecution.
The charges contained in the Superseding Indictments charging HAFEEZ, Baktash Akasha Abdalla, Ibrahim Akasha Abdalla, Gulam Hussein, and Vijaygiri Anandgiri Goswami are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Aberdeen Woman Sentenced for False StatementsRead the Press Release
United States Attorney Randolph J. Seiler announced that an Aberdeen, South Dakota, woman convicted of False Statements was sentenced on August 17, 2017, by U.S. District Judge Charles B. Kornmann.
Sherrae Two Hearts, a/k/a Sherrae Twohearts, age 38, was sentenced to time served, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Two Hearts was indicted by a federal grand jury on February 14, 2017. She pled guilty on May 18, 2017.
The conviction stems from an incident on June 28, 2016, when Two Hearts called the Bureau of Indian Affairs to report that her children were being abused by their guardian and locked in the basement. An investigation was done and the children were observed to be safe, clean, and well fed. Two Hearts admitted to lying to the Special Agent.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
19 Defendants Facing Federal Criminal Charges for Alledgedly Defrauding Bank of America in Bank Card SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN—Nineteen defendants residing in Michigan, Illinois, and Georgia have been charged by a federal Grand Jury with conspiracy to commit bank fraud and executing a scheme to defraud Bank of America, Acting U.S. Attorney Andrew Birge announced today. Special Agents of the Federal Bureau of Investigation (FBI), assisted by the U.S. Postal Inspection Service in Chicago, the Kalamazoo Department of Public Safety, and several state law enforcement officers assigned to the FBI’s Grand Rapids Violent Crime and Fugitive Task Force, Muskegon Safe Streets Task Force, and St. Joseph Violent Crime Task Force, began arresting the defendants yesterday.
The 28-count indictment alleges that, since at least November 2015 to December 2015, the defendants conspired with each other to open bank accounts at Bank of America to facilitate the deposit of fraudulent checks. Once a fraudulent check was deposited into an account and the bank temporarily credited the account with funds, the accountholder and others allegedly used a debit card associated with the account to obtain, and attempt to obtain, money and funds belonging to Bank of America. The charges allege that the defendants conducted numerous cash withdrawals at ATM machines and bank branches, and conducted cash advance transactions at FireKeepers Casino near Battle Creek, Michigan, to unlawfully obtain money belonging to the bank. As a result, the defendants allegedly caused a loss of more than $200,000 to Bank of America. Law enforcement refers to this type of bank fraud scheme as "Cracking Cards."
The charges in an indictment, which carry a maximum penalty of 30 years in prison, are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
This matter is being investigated by the FBI and the U.S. Postal Inspection Service with assistance from the Nottawaseppi Huron Band of Potawatomi Tribal Police Department. The criminal case is being prosecuted by Assistant U.S. Attorneys Kate Zell and Christopher O’Connor.
The FBI requests the public’s assistance in locating the following defendants charged with conspiracy to commit bank fraud and executing a scheme to defraud a federally-insured financial institution:
Tirell Perry Thomas Jerome Datra Perry Dwayne Edward PerryAnyone with information related to the whereabouts of any of those individuals is encouraged to call the FBI Detroit Office at 313-965-2323.
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18-Month Prison Sentence for Man who Illegally Bought and Smuggled Guns for Members of the Indonesian Secret ServiceRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney John J. Farley announced today that Audi N. Sumilat, 37, of El Paso, Texas, was sentenced to 18 months in federal prison for participating in a scheme to illegally buy guns that were then smuggled to Indonesia by members of the security detail of the Indonesian President and the Vice President -- also known as the Presidential Guard of the Republic of Indonesia. Sumilat previously pleaded guilty to a charge that he conspired to make false statements in connection with the purchase of export controlled firearms and smuggling them out of the country.
According to court documents and statements made during court proceedings, Sumilat conspired to buy guns in Texas and New Hampshire for members of the Presidential Guard with the understanding that the guns then would be smuggled out of the U.S. Specifically, Sumilat – while on active duty with the U.S. Army – admitted that he and three members of the Presidential Guard came up with the plan in October 2014, when they were all stationed together for training in Fort Benning, Georgia. As part of the plan, in the summer of 2014 and in September and October 2015, Sumilat purchased guns in Georgia and Texas for members of the Indonesian Presidential Guard that they could not lawfully buy in the U.S. themselves. To facilitate those purchases, he falsely certified to the gun dealers that he was the actual buyer of the guns. Sumilat delivered some of the guns to co-conspirators in the New York City area and shipped others to a co-conspirator, Feky R. Sumual, in New Hampshire. Sumual, in turn, delivered the guns and other firearms he illegally purchased to members and representatives of members of the Presidential Guard, who were in the U.S. on official state visits in Washington, D.C., and with the U.N. General Assembly in New York, N.Y. Finally, Sumilat acknowledged that, he understood that the members of the Presidential Guard then would smuggle the illegally purchased guns from the U.S. to Indonesia on the Indonesian president’s official government airplane. The firearms were listed as defense articles on the U.S. Munitions List. To export them legally, an exporter’s license and a license covering the specific guns was required. No such licenses had been issued.
Diplomatic negotiations between the Department of State and the Republic of Indonesia resulted in the recovery and destruction of twenty-three of the illegally purchased and exported firearms.
Acting United States Attorney Farley noted, “Firearms exported illegally can easily end up in the wrong hands. The U.S. Attorney’s Office will vigorously prosecute international gun trafficking to protect innocents, both American and foreign, from the criminal use of U.S. weapons abroad.” Farley added, “The fact that the guns were bought for, and transferred to, members of another country’s security force presented some unique challenges in the investigation that led to this prosecution. The diligent work of our law enforcement partners allowed them to detect this scheme and develop the evidence needed to shut it down, in spite of those challenges.”
United States District Judge Paul J. Barbadoro, who sentenced Sumilat, also ordered Sumilat to serve two years of supervised release upon completing his prison term.
Sumilat’s co-conspirator, Feky R. Sumual, previously pleaded guilty to a conspiracy charge and was also sentenced to 18 months in prison.
This matter was investigated by the Bureau of Alcohol, Tobacco and Firearms in both Manchester, N.H., and in El Paso, Texas, as well as Immigration and Customs Enforcement, Homeland Security Investigations, in Manchester, N.H., and the U.S. Department of State's Diplomatic Security Service. The Dover (N.H.) Police Department and the Indonesian National Police provided important support. The case was prosecuted by Assistant U.S. Attorney Bill Morse
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11th International Law Enforcement Intellectual Property Crime ConferenceRead the Press Release
The 11th International Law Enforcement Intellectual Property (IP) Crime Conference will take place August 28th-29th, 2017, at the United Nations Headquarters in New York.
The Deputy Attorney General, Rod Rosenstein, will deliver a keynote speech on the second day of the conference. INTERPOL Washington Director, Wayne Salzgaber, and senior leadership will also attend.
This year’s event is co-hosted by INTERPOL, U.S. Immigration & Customs Enforcement (ICE) of the Department of Homeland Security, and the National Intellectual Property Rights Coordination Center (NIPRCC) in partnership with Underwriters Laboratories (UL) and the International AntiCounterfeiting Coalition (IACC).
The event will assemble senior police leaders, government officials, security and industry experts, and private-sector organizations from around the globe. Themed “Uniting Nations for the Next Decade,” the conference enables participants to share best practices and foster stronger relationships in the fight against transnational organized IP crime.
24 August 2017
Yakima Man Sentenced to Thirty Years Imprisonment for Soliciting Murder for Hire and Methamphetamine ConspiracyRead the Press Release
Yakima – Today, Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that United States District Judge Salvador Mendoza, Jr. sentenced
Gerardo Maderos Loreto, age 32, of Yakima, Washington, to a thirty-year term of imprisonment for attempting to hire a person to murder his ex-girlfriend, and for attempting to pay for the murder with a pound of methamphetamine.
According to information disclosed during court proceedings, in March, 2016, Loreto was serving a state prison sentence for violating a protective order relating to his ex-girlfriend. While in prison Loreto, who is a Norteno gang member, continued to violate the protective order by contacting his ex-girlfriend, more frequently after he learned that she was pregnant with another man’s child. Loreto’s intent towards his ex-girlfriend became more violent, and he attempted to hire someone to kill her. He mailed a letter to an individual from the state prison facility detailing the ex-girlfriend’s name, where to find her, and why he wanted her murdered. In the letter Loreto also explained that he would pay a pound of methamphetamine in return for the murder.
Detectives with the Yakima Police Department Gang Unit obtained the letter before any harm came to the ex-girlfriend. On July 12, 2016, a federal Indictment was filed charging Loreto with use of the mail to commit murder for hire. Loreto was arrested on this charge on the day he completed his state prison sentence. Following his arrest, Loreto was detained at the Yakima County Jail. While there, he continued to use his gang connections to try to hire someone to murder his ex-girlfriend. Law enforcement agents were again able to foil Loreto’s plans before any physical harm came to his ex-girlfriend. A superseding federal Indictment was filed on January 10, 2017, charging Loreto with use of the mail to commit murder for hire, use of a telephone to commit murder for hire, conspiracy to possess methamphetamine with intent to distribute, and attempt to possess methamphetamine with intent to distribute.
On May 22, 2017, a trial commenced and on May 24, 2017, a jury found Loreto guilty of all the charges.
Joseph H. Harrington said, “The United States Attorney’s Office and our law enforcement partners are committed to ensuring the safety of our community and aggressively prosecuting perpetrators of violence against women. The United States Attorney’s Office will continue to seek lengthy sentences to remove dangerous gang members from our streets. In this case, the Yakima Police Department Gang Unit and Washington Department of Corrections worked together to identify the Loreto as a threat to public safety. The Federal Bureau of Investigation, Homeland Security Investigations, and Yakima Police Department followed through with completing this important investigation in a thorough and professional manner.”
The investigation was conducted by the Federal Bureau of Investigation, the Yakima Police Department, Homeland Security Investigations, the Washington Department of Corrections, Yakima County Department of Corrections, and the Washington State Patrol Crime Lab. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Woodbury Woman Sentenced to Prison in Labor Trafficking CaseRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of LILI HUANG, 36, for withholding documents as well as enslaving, starving and beating the victim in a forced labor case. HUANG, who pleaded guilty on May 31, 2017, was sentenced today before U.S. District Senior Judge David S. Doty in Minneapolis, Minn.
“With today’s sentencing, Lili Huang must accept the consequences of committing such an egregious crime – not only financial repayment, but also the loss of liberty and property,” said Acting U.S. Attorney Gregory Brooker. “I am grateful for the dedicated work of the ACTeam and our local law enforcement partners for their collaborative efforts in bringing this case to a successful resolution.”
“Homeland Security Investigations is committed to investigating and prosecuting all forms of human trafficking, including forced labor,” said Special Agent in Charge Alex Khu of HSI St. Paul. “Lili Huang’s prison sentence, and the forfeiture of her home and other assets, can never fully restore all that she took from her victim, but it shows that her actions will not be tolerated in our community. HSI is proud of the work accomplished in this case with the U.S. Attorney’s Office, the Washington County Attorney’s Office and the Woodbury, MN Police Department.”
“In February 2016, the Woodbury Public Safety Department received training on investigating human trafficking cases and identifying trafficking victims. As a result of this critical training, the responding officers quickly recognized that this individual was a victim of human trafficking and were able to access the appropriate help and resources for the victim,” said Woodbury Police Commander Steve Wills. “The Woodbury Police Department and Washington County Attorney’s Office remain committed to putting resources into combatting all forms of human trafficking.”
According to the defendant’s guilty plea and documents filed in both state and federal court, on February 25, 2016, HUANG brought the victim (identified as F.L.) from Shanghai, China to her home in Woodbury, Minn. to work as a nanny and housekeeper. Although F.L. had previously worked for the defendant in China where she cooked, cleaned and cared for the defendant’s children, the scope of work and the defendant’s treatment of F.L. was significantly different once she arrived in Minnesota. HUANG forced F.L. to work up to 18 hours a day cooking, cleaning, and providing childcare. HUANG was very demanding about household tasks and became emotionally and physically abusive toward F.L. if she did not do exactly what was asked.
According to the defendant’s guilty plea and documents filed in both state and federal court, on April 23, 2016, due to the repeated physical abuse, F.L. asked HUANG to buy her an airplane ticket so she could return home to China. Instead of buying her a ticket, HUANG took F.L.’s passport and told F.L. that she was not leaving. HUANG continued to physically abuse F.L. by kicking, punching, grabbing F.L. by her hair, and subjecting her to other abuse. F.L. was able to document the physical abuse by using her cell phone to take photographs of the bruises and other injuries. F.L. also hid clumps of her hair under her mattress, which had been grabbed and torn out by the defendant.
On July 13, 2016, F.L. fled the house after HUANG approached her with a large kitchen knife. Just after midnight on July 14, 2016, F.L. was found wandering the streets several miles from the defendant’s home walking in the direction of the airport. F.L., who was visibly shaken and crying, was taken to United Hospital for medical treatment. The victim sustained several bruises and injuries to her face, including two black eyes, significant weight loss, and fractures to her sternum and ribs.
HUANG was also pleaded guilty in Washington County to one felony count of third-degree assault and was sentenced on August 11, 2017.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This case is the result of an investigation conducted by Homeland Security Investigations, Woodbury Police Department, U.S. Department of State Diplomatic Security Service, U.S. Department of Labor, and the Washington County Attorney’s Office.
Assistant United States Attorneys Laura M. Provinzino and Manda M. Sertich prosecuted this case.
Defendant Information:
LILI HUANG, 36
Woodbury, Minn.
Convicted:
- Unlawful conduct with respect to documents in furtherance of forced labor, 1 count
Sentenced:
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12 months and 1 day in prison
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Forfeiture of the defendant’s house
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$95,944.80 in restitution paid to the victim
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$27,344.73 in restitution paid for third-party victim services
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Removal from the United States to China following the defendant’s prison sentence
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Women Sentenced for Conspiracy to Receive Illegal Kickbacks and Misprision of a FelonyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ELEISHA WILLIAMS, age 45, of Harvey, and CAREN BATTTAGLIA, age 50, of New Orleans, were sentenced yesterday for their roles in a $30,052,295 Medicare fraud scheme.
According to court documents, WILLIAMS was a marketer for Abide Home Health Care Services, Inc. (Abide), a Louisiana home health agency owned and operated by LISA CRINEL. WILLIAMS contacted an Abide employee to confirm that the person she fraudulently referred for home health was a Medicare beneficiary. Once it was determined, the referred individual was a Medicare beneficiary, an Abide co-conspirator scheduled a physician visit, usually with an Abide House Doctor – also a co-conspirator – well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional. WILLIAMS pled guilty on March 30, 2016, to conspiracy to pay and receive illegal health care kickbacks. U.S. District Judge Susie Morgan sentenced WILLIAMS to two years probation and a $2,000 fine.
BATTAGLIA was a Licensed Practical Nurse at Abide Home Care Services. BATTAGLIA’s guilty plea on September 8, 2016, involved her care for Medicare beneficiaries and failure to notify officials of the ongoing health care fraud at Abide. BATTAGLIA pled guilty to misprision of a felony. U.S. District Judge Susie Morgan sentenced BATTAGLIA to a $2,000 fine.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden M. Brockett, Sharan Lieberman and Maria Carboni were in charge of the prosecution.
Wallingford Man Sentenced to Prison for Distributing Heroin and Fentanyl Involved in Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIEL GUILLEN, 28, of Wallingford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 41 months of imprisonment, followed by four years of supervised release, for distributing heroin and fentanyl 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 August 31, 2016, the Wallingford Police Department and medical personnel responded to a residence after a report of an untimely death of a 30-year-old male. At the scene, officers seized 12 wax paper folds, eight of which contained a powdery substance. The State of Connecticut Forensics Laboratory subsequently reported that the substance tested positive for the presence of fentanyl and heroin. The investigation revealed that GUILLEN had provided the drugs to the victim shortly before the victim’s death.
GUILLEN has been detained since his arrest on January 19, 2017. On April 19, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Wallingford Police Department, U.S. Postal Inspection Service and State of Connecticut Department of Parole and Community Services. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Utica Man Arrested on Federal Child Exploitation ChargesRead the Press Release
SYRACUSE, NEW YORK – Shawn Bunnell, 34, of Utica was charged yesterday in United States District Court with sexual exploitation of a child, and the commission of a felony offense against a minor as a registered sex offender, announced Acting United States Attorney Grant C. Jaquith.
A criminal complaint filed yesterday accuses Bunnell of sexual exploitation of a child for producing lewd and lascivious images of a two-year old child, and uploading the images through Google. The investigation is ongoing, and the Oneida County Child Advocacy Center requests anyone who may have information to call 315-732-3990.
United States Magistrate Judge Thérèse Wiley Dancks ordered Bunnell detained without bail pending trial.
If convicted, Shawn Bunnell faces a mandatory minimum term of 25 years and a maximum sentence of 50 years in prison for the exploitation offense, and because he is accused of committing the offense as a person required to register as a sex offender, he faces an additional and mandatory consecutive term of 10 years in prison. He also faces a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Oneida County Sheriff’s Office, Oneida County Child Advocacy Center, Whitesboro Police Department, Utica Police Department, New York State Police, and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
U.S. Marshals Fugitive Task Force Arrests Two Convicted Sex OffendersRead the Press Release
BOISE – Yesterday, the United States Marshals Service (USMS) Fugitive Task Force arrested two convicted sex offenders on separate parole warrants, Acting U.S. Attorney Rafael Gonzalez announced. They were arrested together at a residence in Nampa, Idaho.
Corry Williams, 35 years of age, of South Carolina, was convicted in 2010 under the Uniform Code of Military Justice for rape of a child under 12 years, aggravated sexual assault of a child under 16 years and abusive sexual contact with a child under 16. The USMS arrested him on a federal parole warrant.
Dauna Miller, 42 years of age, of Idaho, was convicted in Canyon County in 2005 for lewd conduct with a minor child under 16. The USMS arrested her on an Idaho Parole Commission warrant.
The USMS had been looking for Williams since August 8, 2017. According to Idaho Parole Commission records, Miller also was wanted since August 8, 2017. The USMS believes the two traveled through multiple western states and attempted to cross the Canadian border before returning to Idaho.
The USMS Fugitive Task Force consists of deputy U.S. Marshals working hand-in-hand with deputies and officers from the Ada and Canyon County Sheriffs’ Offices, and the Boise City, Garden City and Nampa City Police Departments. The Task Force focuses on locating and arresting violent federal, state and local fugitives.
Two Ohio Businessmen Associated with Demolition Companies Pleaded Guilty to Tax ChargesRead the Press Release
Two former Cincinnati, Ohio residents pleaded guilty today to tax and structuring charges, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Vito Stramaglia, 49, owner of Vito Contracting Companies Inc., pleaded guilty to tax evasion and structuring cash transactions to avoid currency transactions reports. His associate, Hugo Oliver Morales-Santamaria, 31, pleaded guilty to structuring cash transactions to avoid currency transactions reports and conspiring to defraud the United States.
Since at least 2006, Stramaglia owned approximately 20 demolition businesses and other businesses, including the Ice Box, an ice cream dairy bar located in Cleves, Ohio, a car wash and an adult toy store and nightclub in Florida. Stramaglia had not filed an individual or corporate income tax return with the Internal Revenue Service (IRS) since 1992, until he learned of the IRS’s criminal investigation. Between 2008 and 2013, his demolition businesses earned over $12 million. Stramaglia admitted his failure to file returns and pay taxes during this period caused a loss to the U.S. Treasury of between $1 million and $2.5 million.
To hide his income from detection, Stramaglia placed his businesses in the names of nominees, to include Santamaria. Santamaria opened bank accounts in his name, while Stramaglia controlled the funds in the accounts. Both Stramaglia and Santamaria wrote, signed, and cashed numerous checks and made cash withdrawals in amounts less than $10,000 on consecutive days to evade bank-reporting requirements. In 2011 and 2012 alone, they engaged in cash transactions that exceeded $1.4 million. To further conceal his use of funds, Stramaglia also provided false social security numbers to banks and car dealers when forms were prepared and filed with the IRS reporting cash transactions in excess of $10,000 and provided false employer identification numbers to contractors with whom he did business. In all, Stramaglia used more than $3.4 million from his businesses to purchase in others’ names over 20 luxury vehicles and at least four residences.
Stramaglia and Santamaria also paid day laborers in cash and failed to withhold or report payroll taxes. Santamaria also admitted to paying himself a weekly salary from the demolition company bank accounts, and paying personal expenses including food, lodging, clothing, gym memberships, and tuition for private school out of the business bank accounts, all in an effort to avoid paying personal income taxes.
District Judge Timothy Black stated that sentencing would be scheduled in 70 days. Both Stramaglia and Santamaria face a statutory maximum sentence of five years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Richard M. Rolwing of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two More Defendants Sentenced for Conspiring to Manufacture Marijuana in Rockford WarehouseRead the Press Release
ROCKFORD — Two out-of-state residents were sentenced this week by U.S. District Judge Frederick J. Kapala for their roles in a conspiracy to manufacture and distribute marijuana.
DESTINY FREEMAN, 24, of Palmer, Alaska, was sentenced today to 23 months in federal prison, to be followed by two years of supervised release.
CASEY S. WILLIAMS, 30, of Great Falls, Montana, was sentenced Wednesday to 57 months in federal prison, to be followed by three years of supervised release.
The sentencings were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Derek Bergsten, Chief of the Rockford Fire Department; and Anthony Scarpelli, Chief of the Skokie Police Department. The Winnebago County Sheriff’s Department Narcotics Unit and the Rockford Police Department Narcotics Unit assisted in the investigation.
In 2016, Williams and Freeman pleaded guilty to conspiring with five other individuals to manufacture, possess and distribute marijuana plants. The superseding information alleged that between Jan. 2, 2013, and Jan. 6, 2015, the pair conspired to illegally grow and store marijuana in a warehouse at 1916 11th St. in Rockford. The warehouse was destroyed by fire on Jan. 6, 2015.
The five co-defendants are YOUSIF Y. PIRA, 64, of Chicago, JEREMIAH N. CLEMENT, 39, formerly of Des Plaines, GEORGE H. BACUS, 53, of Niles, JUSTIN T. PAGLUSCH, 36, of Ingleside, and SHLIMON SHIMON, 49, of Chicago.
According to Williams’ and Freeman’s written plea agreements, in August 2014 Williams’ former employer, Jeremiah N. Clement, asked Williams to travel to Rockford to assist Clement with cleaning out a building and some irrigation construction inside a building in Rockford. At the time, Williams was living in Montana and dating Freeman. Clement recruited Williams to join the conspiracy, and Williams in turn recruited Freeman. Williams and Freeman lived in the warehouse while they assisted in the marijuana-growing operation by watering and caring for the marijuana crop and later assisting in harvesting and processing the marijuana.
In July 2017, following a four-day jury trial in U.S. District Court in Rockford, Pira was found guilty of conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. Pira is scheduled to be sentenced on Oct. 17, 2017, at 2:30 p.m.
Bacus pleaded guilty on July 6, 2016, and is scheduled to be sentenced on Sept. 22, 2017, at 2:30 p.m.
Clement pleaded guilty and was sentenced to ten years’ imprisonment on June 3, 2016.
Paglusch pleaded guilty and was sentenced to ten years’ imprisonment on June 23, 2016.
An arrest warrant has been issued for Shimon, who is still at large.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Two Men Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JEREME VAUGHN, age 37, of Shreveport, and MELVIN STEEN, age 35, of Slidell, were sentenced yesterday after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine.
U.S. District Judge Sarah S. Vance sentenced VAUGHN to 33 months of incarceration, to be followed by 3 years of supervised release. STEEN was sentenced to 57 months of incarceration, to be followed by 3 years of supervised release.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA), the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
Two Men Plead Guilty in Methamphetamine-Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TRUNG PHAM, age 38, of Los Angeles, California, and TOMMY WELLS, age 40, of New Orleans, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, PHAM pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, and WELLS pled guilty to conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine.
According to court documents, in 2016, PHAM was a California-based drug trafficker who was sending parcels of methamphetamine via common carriers to codefendant STEVEN LYONS in New Orleans. LYONS would then sell quantities of methamphetamine to WELLS and others, who would redistribute the methamphetamine in the New Orleans area. LYONS previously pled guilty to conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine and is scheduled to be sentenced on November 1, 2017.
For his role in the conspiracy, PHAM faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release. WELLS faces a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison, a fine of up to $5,000,000, and at least four years of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for PHAM and WELLS on November 15, 2017.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Drug Enforcement Administration - New Orleans Division Office, and the New Orleans Police Department, in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Two Local Men Plead Guilty to a Drug-Related HomicideRead the Press Release
St. Louis, MO – Jessie Hampton, 26; and Malcom Johnson, 26, both of St. Louis City, pled guilty to one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder. Hampton appeared today before United States District Judge E. Richard Webber. Johnson pled guilty on August 11, 2017. The sentencings have been set for November 8, 2017.
According to court documents, during 2012, Hampton and Johnson were engaged in drug trafficking. In the early morning hours of July 15, 2012, Hampton, Johnson and two others robbed Scipio Vaughn. During the course of the robbery, Hampton shot and killed Vaughn.
Possession of a firearm in furtherance of a drug trafficking crime, resulting in murder carries a penalty of life in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird is handling the case for the U.S. Attorney’s Office.
Two International Bank Managers Charged in Libor Interest Rate Manipulation SchemeRead the Press Release
Two French bank managers were indicted today for participating in a scheme to transmit false and misleading information related to the London Interbank Offered Rate (LIBOR), a global benchmark interest rate to which trillions of dollars of financial transactions are tied.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
“The allegations in today’s indictment suggest complete and total disregard for the integrity of the financial markets and for innocent consumers and everyday people whose personal finances hinge on the interest rates they pay on various loans,” said Acting Assistant Attorney General Blanco. “Cases like this demonstrate the crucial role of the Department in protecting people and their hard earned money, securing our financial markets for economic growth and prosperity, and for fighting white collar crime to protect our nation from bad actors, wherever they may reside.”
“The integrity of our global financial markets relies upon each of its participants providing complete and accurate information,” said Acting U.S. Attorney Rohde. “As alleged, the defendants acted in contravention of this principle and the laws designed to uphold it by causing their employer, Société Générale, to submit falsified USD LIBOR rates, which in turn effected financial transactions across markets worldwide. We will continue to vigorously root out and prosecute such crimes.”
“Fraudulently manipulating the LIBOR and deceiving the financial market to affect world-wide financial transactions have far reaching consequences, and such criminal activity will not be tolerated,” said Assistant Director in Charge Vale. “Today’s indictment should stand as a warning that the FBI remains committed to holding those accountable who flout the law in their attempts to take advantage of international financial markets. The FBI Washington Field Office has dedicated significant time and resources, to include the expertise of special agents, forensic accountants, and analysts, to investigating these complex financial schemes, and I want to thank the tireless investigative team as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”
Danielle Sindzingre, 54, and Muriel Bescond, 49, both of France, were charged in the Eastern District of New York with one count of conspiring to transmit false reports concerning market information that tends to affect a commodity and four counts of transmitting such false reports. Sindzingre and Bescond were, respectively, the Global Head of Treasury and the Head Treasury Paris at French financial institution Société Générale, S.A.
According to the indictment, LIBOR was a benchmark interest rate that was calculated for various currencies and maturities. The U.S. Dollar LIBOR was constructed by compiling submissions from leading banks around the world (“contributor panel banks”), excluding the four highest and lowest submissions, and averaging the remainder to obtain each day’s LIBOR “fix.” Each contributor panel bank was required under the rules of the British Bankers’ Association (BBA) to submit the rate at which it believed it would be charged if it sought offers to borrow money from other banks in the London interbank market. LIBOR was used to price futures contracts, interest rate swaps and other financial products worldwide. It was also used to calculate some consumer interest rates, including certain home mortgage and credit card interest rates. In February 2009, Société Générale joined the contributor panel for U.S. Dollar LIBOR.
As alleged in the indictment, between approximately May 2010 and approximately October 2011, Sindzingre and Bescond knowingly instructed their subordinate employees at Société Générale’s Paris treasury desk to submit inaccurately low LIBOR contributions in an effort to make it appear that Société Générale was able to borrow money at more favorable rates than it actually was. This was allegedly done with knowledge that the true rates at which Société Générale was borrowing money were higher than the rates it was submitting as part of the LIBOR calculation. On numerous occasions, the false information submitted at the direction of Sindzingre and Bescond altered the day’s final U.S. Dollar LIBOR calculation, thus affecting all financial transactions tied to U.S. Dollar LIBOR on that day, the indictment alleges. Among the allegedly affected financial products were Eurodollar futures, a commodity that was traded on the Chicago Mercantile Exchange. In total, it is estimated that the defendants’ misconduct caused over $170 million in harm to the global financial markets, according to the indictment.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this matter. Assistant Chief Carol Sipperly and Trial Attorneys Gary A. Winters and Timothy A. Duree of the Fraud Section of the Justice Department’s Criminal Division, and Assistant U.S. Attorney Matthew Amatruda of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
Two International Bank Managers Charged in Interest Rate Manipulation SchemeRead the Press Release
BROOKLYN, N.Y. – Two French bank managers were indicted today for participating in a scheme to transmit false and misleading information related to the London Interbank Offered Rate (LIBOR), a global benchmark interest rate to which trillions of dollars of financial transactions are tied.
Acting United States Attorney Bridget M. Rohde of the Eastern District of New York, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Assistant Director-in-Charge Andrew Vale of the Federal Bureau of Investigation’s (FBI) Washington Field Office made the announcement.
“The integrity of our global financial markets relies upon each of its participants providing complete and accurate information,” stated Acting United States Attorney Rohde. “As alleged, the defendants acted in contravention of this principle and the laws designed to uphold it by causing their employer, Société Générale, to submit falsified USD LIBOR rates, which in turn effected financial transactions across markets worldwide. We will continue to vigorously root out and prosecute such crimes.”"The allegations in today’s indictment suggest complete and total disregard for the integrity of the financial markets and for innocent consumers and everyday people whose personal finances hinge on the interest rates they pay on various loans,” said Acting Assistant Attorney General Blanco. “Cases like this demonstrate the crucial role of the Department in protecting people and their hard earned money, securing our financial markets for economic growth and prosperity, and for fighting white collar crime to protect our nation from bad actors, wherever they may reside.”
“Fraudulently manipulating the LIBOR and deceiving the financial market to affect world-wide financial transactions have far reaching consequences, and such criminal activity will not be tolerated,” said Assistant Director in Charge Vale. “Today’s indictment should stand as a warning that the FBI remains committed to holding those accountable who flout the law in their attempts to take advantage of international financial markets. The FBI Washington Field Office has dedicated significant time and resources, to include the expertise of special agents, forensic accountants and analysts, to investigating these complex financial schemes, and I want to thank the tireless investigative team as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”
Danielle Sindzingre, and Muriel Bescond, both of France, were charged in the Eastern District of New York with one count of conspiring to transmit false reports concerning market information that tends to affect a commodity and four counts of transmitting such false reports. Sindzingre and Bescond were, respectively, the global head of treasury and the head of the Paris treasury desk at French financial institution Société Générale, S.A.
According to the indictment, LIBOR was a benchmark interest rate that was calculated for various currencies and maturities. The U.S. Dollar LIBOR was constructed by compiling submissions from leading banks around the world (“contributor panel banks”), excluding the four highest and lowest submissions, and averaging the remainder to obtain each day’s LIBOR “fix.” Each contributor panel bank was required under the rules of the British Bankers’ Association (BBA) to submit the rate at which it believed it would be charged if it sought offers to borrow money from other banks in the London interbank market. LIBOR was used to price futures contracts, interest rate swaps and other financial products worldwide. It was also used to calculate some consumer interest rates, like certain home mortgage and credit card interest rates. In February 2009, Société Générale joined the contributor panel for U.S. Dollar LIBOR.
As alleged in the indictment, between approximately May 2010 and approximately October 2011, Sindzingre and Bescond knowingly instructed their subordinate employees at Société Générale’s Paris treasury desk to submit inaccurately low LIBOR contributions in an effort to make it appear that Société Générale was able to borrow money at more favorable rates than it actually was. This was allegedly done with knowledge that the true rates at which Société Générale was borrowing money were higher than the rates it was submitting as part of the LIBOR calculation. On numerous occasions, the false information submitted at the direction of Sindzingre and Bescond altered the day’s final U.S. Dollar LIBOR calculation, thus affecting all financial transactions tied to U.S. Dollar LIBOR on that day, the indictment alleges. Among the affected financial products were Eurodollar futures, a commodity that was traded on the Chicago Mercantile Exchange. In total, it is estimated that the defendants’ misconduct caused over $170 million in harm to the global financial markets, according to the indictment.
An indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.The FBI is investigating this matter. Assistant Chief Carol Sipperly and Trial Attorneys Gary A. Winters and Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Amatruda of the United States Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Defendants: DANIELLE SINDZINGRE
Age: 54
Country: FranceMURIEL BESCOND
Age: 49
Country: France
E.D.N.Y. Docket No. 17-CR-464 (JS)Two Charged in Drug Distribution ConspiracyRead the Press Release
Concord, New Hampshire – Acting United States Attorney John J. Farley announced that Lindsey Parziale-McDonald, 28, and Larry Delgado, 29, both of Manchester, New Hampshire, were arrested on charges that they participated in a conspiracy to distribute fentanyl in violation of federal law.
According to the criminal complaint, an undercover law enforcement officer purchased a controlled substance from Delgado and Parziale-McDonald on four separate occasions between July 26, 2017 and August 7, 2017. Each time, the undercover officer entered a vehicle driven by Delgado or McDonald and exchanged money for drugs while inside the car. Laboratory analysis confirmed that the drug involved in two of the transactions was fentanyl. Laboratory analysis is pending with respect to the other transactions. On two occasions, Parziale-McDonald’s two-year-old son was also present in the vehicle.
Chief Enoch “Nick” Willard is “extremely proud of the dedication and hard work by all involved, especially the undercover detective who worked this case.” Chief Willard also wanted to reiterate the fact that the “Manchester Police Department will continue its efforts to combat the drug epidemic plaguing New Hampshire by working with all state, local and federal law enforcement agencies.”
The charge carries a maximum term of imprisonment of twenty years and a fine of up to $1,000,000. Actual sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Farley stressed that a complaint is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Transportation Services Provider and Its Principal Agree to Settle False Claims Act AllegationsRead the Press Release
Nashville based Employment & Assessment Solutions, Inc. (“EASI”), and its principal, Chris Manus, have agreed to pay $550,000 to settle allegations that they violated the False Claims Act, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The alleged conduct involved the submission of false claims for payment to TennCare, Tennessee’s Medicaid Program, for the provision of transportation services to TennCare beneficiaries. Mr. Manus and EASI have each also agreed to a nine-year exclusion from Medicaid, Medicare, and all Federal Health Care programs.
“Enforcement of the False Claims Act is a priority of the Department of Justice and this Office,” said Acting U.S. Attorney Jack Smith. “The already overburdened Medicaid Program simply cannot withstand making payments for services that were never rendered. Anytime we discover violations of the False Claims Act, where corporations are seeking to enrich themselves through dishonest methods, we will seek the appropriate remedy for the offending corporation and its principals.”
The settlement resolves allegations by the United States and State of Tennessee that EASI and Manus, caused the submission of false claims to TennCare for transportation services which were never provided, including claims for patients who were actually incarcerated or hospitalized at the time of the purported transport. The alleged conduct occurred between January 2, 2010, and April 30, 2014.
Under the terms of the settlement, the United States will receive $302,775 and the State of Tennessee will receive $247,225.
"This company allegedly billed TennCare for ghost transports where the program was paying for an empty seat as if it contained a patient," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "This is the most egregious type of False Claims Act violation - where no service was actually provided and the company got paid for doing nothing."
“The public rightfully expects funds to go to those patients who need these services,” said TBI Director Mark Gwyn. “We are fortunate to have a strong relationship with our federal and state law enforcement partners in continuing to pursue allegations of false claims.”
“Pursuing violations of the False Claims Act protects Tennessee tax dollars and sends a strong message to individuals attempting to take advantage of the system,” Attorney General Herbert H. Slatery III said. “Our office will continue to work with our state and federal partners to combat healthcare fraud.”
This matter was investigated by the Tennessee Bureau of Investigation, Department of Health and Human Services Office of Inspector General, Tennessee Attorney General’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Texas Man Sentenced to Prison for Federal Cocaine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Mario Moreno, Jr., 35, of El Paso, Tex., was sentenced today in federal court in Las Cruces, N.M., to 36 months in prison for his conviction on a cocaine trafficking charge. Moreno will be on supervised release for three years after completing his prison sentence.
Moreno and his six co-defendants, Jesus Armendariz, 33, of Anthony, N.M., Erubiel Esquivel, 30, of Kansas City, Kan., Abdon Armendariz, 45, of Canutillo, Texas, Rafael Portillo, 27, a Mexican national, and Luis Daniel Villegas, 32, of Las Cruces, N.M., were charged with cocaine trafficking offenses in a three-count indictment filed on July 20, 2016. The indictment charged all six co-defendants with conspiring to distribute cocaine between Oct. 27, 2015 and Nov. 26, 2015. It also charged Jesus Armendariz and Villegas in individual counts with possessing cocaine with intent to distribute. According to the indictment, the defendants committed the crimes in Dona Ana County, N.M.
On Feb. 8, 2017, Moreno pled guilty to Count 1 of the indictment charging him with participating in a cocaine trafficking conspiracy. In entering the guilty plea, Moreno admitted that from Oct. 27, 2015 to Nov. 26, 2015, he conspired with his co-defendants to distribute cocaine in Dona Ana County. Moreno further admitted that on Nov. 10, 2015 he negotiated the sale of one kilogram of cocaine and on Nov. 11, 2015, he sold one kilogram of cocaine for $22,000.
Two of Moreno’s co-defendants have entered guilty pleas: Armendariz-Ruiz pled guilty on June 7, 2017, and Villegas pled guilty on Feb. 17, 2017. Armendariz and Esquivel have entered pleas of not guilty to the indictment and are awaiting trial. Portillo has yet to be arrested and is considered a fugitive. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorneys Dustin Segovia and Terri Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
Texas Man Charged with Online Enticement of a Minor and Traveling to Engage in Illicit Sexual Conduct with a Sacramento MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Christopher L. Crawford, 36, of Houston, Texas, charging him with online enticement of a minor and traveling in interstate commerce to engage in illicit sexual conduct with minor, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between March 7, 2017, and April 21, 2017, Crawford enticed a minor online to engage in sexual activity, and between April 18, 2017, and April 21, 2017, Crawford traveled from Harris County in Texas to Sacramento County for the purpose of engaging in illicit sexual conduct with a minor.
This case is the product of an investigation by the Internet Against Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
If convicted of the federal charges, Crawford faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Steelton Man Convicted on Insurance and Social Security Fraud ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mohammed Rizk, age 53, Steelton, Pennsylvania, was convicted of fraudulently obtaining Social Security benefits and wire fraud. The jury returned a verdict of guilty after one and a half hours of deliberation following a four-day trial in Harrisburg before Chief United States District Court Judge Christopher C. Conner.
According to United States Attorney Bruce D. Brandler, Rizk obtained approximately $64,000 in benefits under the Social Security Administration’s Retirement, Survivors and Disability Insurance Program (RSDIP) between 2014 and 2015, by falsely representing that the minor children of his deceased spouse were living with him when in fact they were living elsewhere. Rizk, as representative payee, took the funds that the children were entitled to and converted them to his own use. Rizk was convicted of wire fraud for forging his minor daughter’s signature on insurance surrender documents, submitting the documents to Prudential insurance, and thereby fraudulently obtaining $57,982 in insurance proceeds left to the daughter by her deceased mother. Rizk thereby defrauded his two minor daughters out of approximately $122,000.
The government is also seeking forfeiture of the funds obtained through the fraud.
The case was investigated by the Social Security Administration’s Office of Inspector General and the Dauphin County District Attorney’s Office Criminal Investigation Division. Assistant United States Attorneys William A. Behe and Scott Ford prosecuted the case.
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 is 20 years imprisonment on the wire fraud charge and 10 years imprisonment on the theft and Social Security fraud charges, 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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Six Anchorage Residents Charged in a 29-Count Indictment with Conspiracy, Bank Fraud, Mail Theft, Aggravated Identity Theft, and Passing Counterfeit MoneyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that six Anchorage residents were charged in a 29-count indictment alleging that the six conspired to obtain checks stolen from the mail and vehicle break-ins, and then they negotiated the stolen checks at different banks and stores in Anchorage.
Sara James, 30, Jonathan James, 34, David Gonzales, 36, Brandon Madrid, 28, Braden Asbury, 20, and Karri Embach, 34, all of Anchorage, were charged in a 29-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, aggravated identity theft, and passing counterfeit money.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, from August 2016 to May 2017, Sara James and Jonathan James conspired together with Gonzales, Madrid, Asbury, and Embach to negotiate checks stolen from the mail and from vehicle break-ins that were falsely altered. Most of the stolen checks were falsely altered to make the payee a separate stolen identity that was used by the defendants to negotiate the stolen checks. The defendants negotiated the stolen and falsely altered checks at banks and stores throughout Anchorage. Sara James and Jonathan James also passed counterfeit money to make a purchase on Craig’s List.
Sara James and Jonathan James are scheduled to appear in court today on the charges, at 1:00 p.m. and 1:30 p.m., respectively. Gonzales, Madrid, Asbury and Embach remain fugitives at this time.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Anchorage Police Department and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case, with assistance from the Palmer Police Department, investigators from the State of Alaska Department of Revenue, and the Anchorage District Attorney’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Senior MARTA executive charged with a false invoice scam causing MARTA to pay $500,000 for work never performedRead the Press Release
ATLANTA - Joseph J. Erves, MARTA’s former Senior Director of Operations, has been charged with conducting a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.
“Erves was entrusted to safeguard the taxpayer funds used to run our public transportation authority, and instead he is charged with stealing a half million dollars to buy a Porsche and other high-end purchases. This is a classic case where a public official’s short-term gain in stealing from taxpayers comes crashing down and ends with criminal charges,” said U.S. Attorney John A. Horn.
“The federal investigation and resulting federal charges against Mr. Erves will hopefully send a message to others that such ill-conceived schemes to redirect corporate or public funds to their own accounts is a criminal act with tough consequences. The FBI would like to thank the MARTA Police and their investigators for their invaluable assistance in getting this matter advanced for prosecution,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.
From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.
Beginning in or about 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.
Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.
After being paid, the three vendors funneled most of the money received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no worked was actually performed.
Erves, 52, of Lithonia, Georgia, has been charged in a criminal information with one count of Federal Program Theft. Erves is expected to plead guilty to the charge shortly after arraignment.
This case is being investigated by the Federal Bureau of Investigation and the MARTA Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Repeat Tax Fraud Offender Returns to Prison for Thirty-Month SentenceRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced that U.S. District Judge Shelly D. Dick sentenced BELVIN F. TYSON, age 61, of Baton Rouge, Louisiana to serve thirty (30) months in federal prison following her conviction for tax fraud. TYSON was ordered to make restitution to the United States Treasury totaling $100,077 and pay a special assessment of $200. Finally, following her release from prison, TYSON will be required to serve a two-year term of supervised release.
On March 30, 2017, TYSON plead guilty to one count of impeding the due administration of the IRS laws, in violation of 26 U.S.C. § 7212, and one count of access device fraud, in violation of 18 U.S.C. § 1029(a)(3).
As TYSON, a professional tax preparer, admitted in court in connection with her guilty pleas last March, she fraudulently manipulated her clients’ Schedule A deductions and Schedule C income amounts, and added fraudulent dependents to their returns, in order to decrease their tax liability and increase their tax refunds.
To add the fraudulent dependents, TYSON obtained and then sold the personal identifiable information of other individuals to her clients, and then used the information in preparing her clients’ tax returns. TYSON’s fraudulent conduct in tax years 2011 and 2012 resulted in a loss of approximately $100,077 to the United States Treasury. At the time she committed this offense, she was still on federal supervised release for a prior federal tax crime, which she committed in 2009 and for which she was sentenced to serve ten (10) months in federal prison.
Acting U.S. Attorney Amundson stated, “We will continue to aggressively prosecute individuals who interfere with the Internal Revenue Service’s ability to collect taxes. It is critical to this nation that all citizens comply with our revenue laws. This defendant’s pattern of fraudulent conduct cannot be tolerated, and her stiff sentence in this case should send her and other fraudulent tax preparers a strong message. I appreciate the work and effort of the special agents and prosecutors in bringing this defendant to justice.”
Special Agent-in-Charge Jerome R. McDuffie stated, “To the repeat tax cheats, tax fraudsters, and individuals that willfully prepare fraudulent Federal Income Tax Returns for themselves or others, know this: the Special Agents of IRS-Criminal Investigation are watching and doing everything within the power of the law to protect the nation's taxpayers from those who would pilfer and steal from the U.S. Treasury. You can run, but you can't hide.”
This case was investigated by the Internal Revenue Service—Criminal Investigation Division (IRS-CI) and the United States Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Jessica M.P. Thornhill.
Real Estate Investor Sentenced in Mortgage Fraud SchemeRead the Press Release
Memphis, TN – A Memphis real estate investor has been sentenced to 30 months in federal prison for his role in a scheme to fraudulently obtain mortgage loans. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the sentence today.
An indictment returned last September by a federal grand jury alleged Thomas L. Boyd, 44, the owner of Wonderful Properties, LLC, made false statements and presented false documents to Regions Bank, First Tennesse Bank, Bank of America and Oak Tree Funding on behalf of persons who were financing the purchase of properties from Boyd and Wonderful Properties.
Boyd pled guilty in May to a charge of bank fraud and admitted at his plea hearing to making false statements to Regions Bank in connection with a mortgage loan being made to an individual who was financing the purchase of a property from Boyd.
In imposing the sentence yesterday, U.S. District Judge Sheryl H. Lipman also ordered Boyd to pay total restitution in the amount of $383,375.43 and to serve a 3-year term of supervised release following his release from prison.
The case was investigated by the FBI; Federal Housing Finance Agency (FHFA) – OIG; Department of Housing and Urban Development (HUD); Postal Inspection Service and IRS. Assistant U.S. Attorneys Carroll L. Andre III and Lorraine Craig prosecuted this case on the government’s behalf.
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Pottawattamie County Men Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On August 23, 2017, Jeffrey W. Porterheather Jean Reekr, 41, and Gregory T. McCoy, 62, both from Council Bluffs, Iowa, were sentenced individually by Senior United States District Court Judge James E. Gritzner for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Porter was sentenced to 120 months in prison and five years of supervised release following his imprisonment. McCoy was sentenced to 57 months in prison and to three years of supervised release following his imprisonment.
This case resulted from a large-scale law enforcement investigation of methamphetamine trafficking occurring in the Omaha-Council Bluffs metro area for approximately one year. Beginning at least as early as November of 2014, and continuing through September of 2015, these defendants conspired with other individuals who, as a group, distributed nearly 40 kilograms of methamphetamine in the Southern District of Iowa and elsewhere.
Last year, on June 27, 2016, a jury convicted co-defendants Jose Luis Tizoc and Manuel Espinoza at trial, finding them guilty of conspiracy to distribute methamphetamine and prohibited persons in possession of a firearm. Senior United States District Court Judge James E. Gritzner sentenced Jose Luis Tizoc to 300 months of in prison and five years of supervised release and Manuel Espinoza to 240 months of in prison and five years of supervised release.
Other defendants who pleaded guilty for conspiring to distribute methamphetamine and have been sentenced by Senior United States District Court Judge James E. Gritzner included the following:
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Richard Hull, Jr., 150 months of imprisonment, followed by five years of supervised release;
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Salvador Nunez Trejo, 120 months of imprisonment, followed by five years of supervised release;
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Jessica Moreno, 35 months of imprisonment, followed by three years of supervised release;
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Jaime Castillo Gomez, 168 months of imprisonment, followed by five years of supervised release;
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Kristopher Hatch, 151 months of imprisonment, followed by five years of supervised release;
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Jane Song, 60 months of imprisonment, followed by five years of supervised release;
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Grant M. Carman, 120 months of imprisonment, followed by five years of supervised release;
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Greg M. Price, 120 months of imprisonment, followed by five years of supervised release; and,
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Amelia J. Lesemann, 120 months of imprisonment, followed by five years of supervised release.
The Federal Bureau of Investigation’s Greater Omaha Safe Streets Task Force and Southwest Iowa Narcotics Enforcement Task Force conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
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Philadelphia Police Sergeant Charged with BriberyRead the Press Release
PHILADELPHIA – A federal indictment was unsealed yesterday charging Philadelphia Police Sergeant Brian Smith with two counts of bribery and two counts of making material false statements to the FBI, announced Acting United States Attorney Louis D. Lappen.
According to allegations contained in the indictment, the defendant accepted weekly bribe payments over the course of approximately 11 months in return for providing confidential law enforcement information on accident locations to certain tow truck drivers, in violation of the Police Department’s rotational tow policy. The policy was instituted in 2008 as a public safety and consumer protection measure, following a series of highly-publicized violent encounters between tow truck operators competing for highly lucrative towing work.
The charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine; the charges of making false statements carry a maximum sentence of 5 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Michelle L. Morgan of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Internal Affairs Division.
Philadelphia Man Charged with Hobbs Act RobberyRead the Press Release
Koren Jones, a/k/a “Kuron Jones”, 25, of Philadelphia, Pennsylvania was charged today by Indictment[1] with two counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence, announced Acting United States Attorney Louis D. Lappen. The indictment specifically charges that the defendant Koren Jones committed a gun-point robbery of A & A grocery store, located at 2000 North Gratz Street, on November 4, 2016 and German grocery store, located at 2267 North 16th Street, on November 5, 2016. During the commission of robbery of the A & A grocery store, a customer was shot in the leg. During the commission of the robbery of the German grocery store, a shot was fired at the employee victim, but no injuries were sustained. Jones is also charged with attempted robbery of Fontain deli, located at 2027 North 16th street, on November 5, 2016. Additionally, Jones is charged with using and carrying a firearm during the robberies and attempted robbery charged in the indictment.
If convicted of all counts, Jones faces a maximum sentence of life imprisonment, with a mandatory 60-year minimum sentence, consecutive to any other sentence imposed, a $1,500,000 fine, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Katherine Driscoll.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Petaluma Resident Sentenced to 3.5 Years in Prison for Role in Wire Fraud SchemeRead the Press Release
SAN JOSE – Robert Stephens was sentenced to 42 months in federal prison for conspiracy to commit wire fraud, wire fraud, and money laundering, announced United States Attorney Brian J. Stretch, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Lucy H. Koh, U.S. District Judge, after Stephens pleaded guilty to the charges on June 15, 2016.
Stephens, is a 65 year-old resident of Petaluma, California. According to his guilty plea, since at least 2009 and continuing through December of 2015, he defrauded scores of victims of at least $5.6 million. Stephens admitted that along with his four co-defendants, Laurence Miles, 76, now living in Arizona, Shirley Molina, 70, of Hawthorne, Calif., Munsif Shirazi, 49, of Bell Canyon, Calif., and Rayan Lakshmanan, 48, of Davis, Calif., he told people that an heiress to a billion-dollar estate was very ill and was in need of medical attention. Stephens and his co-defendants convinced their victims that the heiress’s money was tied up in a secret probate case and that, in return for money to help pay for the heiress’s medical costs, Stephens and his accomplices would return to their victims $1,000 for every $1 they invested in the heiress’s estate. Stephens and his accomplices promised their victims that they would see the returns on their investments after the money was released from probate. In truth, there was no dying heiress with a large estate. Instead, Stephens and his codefendants used the victims’ money to support their own lifestyles. On December 3, 2015, a federal grand jury indicted Stephens and charged him with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; 22 counts of wire fraud, in violation of 18 U.S.C. § 1343; and 1 count of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to his plea agreement, Stephens pleaded guilty to one count of each of the charges and the remaining charges were dismissed. Each of Stephens’s co-defendants has pleaded guilty to their respective roles in the conspiracy. Judge Koh sentenced Miles to 108 months in prison and sentenced Lakshmanan to 18 months in prison. Shirazi and Molina will be sentenced later this year.
In sentencing Stephens, Judge Koh found that he had been conducting the scheme since 2007. The Court concluded that Stephens and his co-defendants obtained almost $8 million dollars from the scheme and that Stephens was responsible for recruiting most of the victims.
In addition to the 42-month prison term, Judge Koh ordered Stephens to serve a three-year period of supervised release, to pay restitution in the amount of $7,901,081, and to pay a forfeiture money judgment of $5,628,765. Judge Koh ordered Stephens to begin serving his sentence October 20, 2017.
Assistant U.S. Attorneys Amber Rosen and Patrick Delahunty prosecuted the case with the assistance of Nina Williams and Susan Kreider. The prosecution is the result of an investigation by the FBI and IRS.
Perris Man Charged with Smuggling Tiger CubRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – August 24, 2017
SAN DIEGO – Luis Eudoro Valencia, of Perris, California, was charged yesterday with smuggling a Bengal tiger cub into the United States from Mexico.
According to the complaint, Valencia drove into the Otay Mesa Port of Entry with the tiger cub on the floor of the vehicle. It is alleged that Valencia failed to declare the tiger cub to Customs and Border Protection officers. The tiger cub was discovered in the secondary inspection area.
According to the complaint, the defendant stated that he had purchased the tiger for $300 from an individual he encountered walking a full-sized tiger on a leash in Tijuana. All species of tigers are listed as endangered under the Endangered Species Act, and are protected under Appendix I of the Convention on International Trade in Endangered Species. To legally import an endangered species into the United States requires a permit from the U.S. Fish & Wildlife Service, and the importation must be accompanied by a Declaration Form 3-177 filed with Fish & Wildlife. According to the complaint, the defendant lacked the required permit and did not file the required declaration.
The Bengal tiger (Panthera tigris tigris) is the most populous subspecies of tiger. The Bengal tiger is native to India, Bangladesh, Nepal and Bhutan. According to the World Tiger Recovery Project, there are only 2,500 wild specimens on earth and the population of Bengal tigers is decreasing.
Valencia was released on a $10,000 personal surety bond and ordered to appear for a preliminary hearing on September 5, 2017, at 1:30 pm before U.S. Magistrate Judge Bernard Skomal.
DEFENDANT Case No. 17-MJ-3013
Luis Eudoro Valencia Age: 18 Perris, California
SUMMARY OF CHARGES
Smuggling, 18 U.S.C. § 545
Maximum penalty: 20 years’ prison, fine of $250,000, or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.
Unlawful Importation of Wildlife, 16 U.S.C. §§1538(a)(1)(A) and 1540(b)
AGENCIES
U.S. Fish & Wildlife Service
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Pagans Associate Sentenced to 15 years in Prison for Prescription Pill MillRead the Press Release
PHILADELPHIA – Today, a federal judge sentenced Joseph Mehl, a/k/a “Joseph Montanero” to 180 months in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids. In addition, the Honorable Nitza I. Quiñones Alejandro, United States District Judge, ordered the defendant to serve three years of supervised release upon release from prison, and pay a special assessment of $100, as well as entering a judgment of forfeiture.
On July 14, 2015, a grand jury in Philadelphia charged Mehl, along William O’Brien, a former doctor of osteopathic medicine, and members of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing, with conspiring to distribute controlled substances. Mehl was a long-time associate of the Pagans. Together with the Pagans, O’Brien operated a “pill mill” out of his medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for as much as $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans resold the pills on the street. The investigation showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by members of the conspiracy.
On October 5, 2016, O’Brien, who was convicted by a jury in summer 2016, was sentenced to 30 years in prison. Pagans members Joseph Mitchell and Patrick Treacy were sentenced to 9 nine years’ and 20 years’ imprisonment, respectively, for their roles in the conspiracy.
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.
Norwalk Man Pleads Guilty to Heroin Distribution Charge Stemming from Bridgeport Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD PISKE, 34, of Norwalk, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin.
This prosecution is part of 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, early in the morning of June 29, 2016, Bridgeport Police and emergency medical personnel responded to a report of an apparent overdose and found a 25-year-old female dead on a bedroom floor
The investigation revealed that, on June 28, 2016, the victim’s boyfriend purchased a quantity of heroin from PISKE. Later that day, the victim and her boyfriend ingested some of the heroin that had been purchased from PISKE.
The boyfriend reported that he passed out from the heroin that he had ingested and, when he awoke, his girlfriend was dead.
The Office of the Chief Medical Examiner has determined that the victim died from acute heroin, cocaine and alcohol intoxication.
PISKE was arrested on a criminal complaint on September 29, 2016.
PISKE is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on November 15, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $25,000 bond.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Bridgeport Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
North Texas Woman Sent to Prison for Trafficking HeroinRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old woman has been ordered to prison for possession with intent to distribute heroin through the Sarita checkpoint, announced Acting U.S. Attorney Abe Martinez. Ma Dolores Martinez, of Hurst, pleaded guilty Nov. 29, 2016, to possession with intent to distribute 6.28 kilograms of heroin.
Today, U.S. District Judge Hilda G. Tagle ordered Martinez to serve 70 months in federal prison. The sentence will be immediately followed by five years of supervised release.
On Sept. 15, 2016, Martinez drove a vehicle into the primary inspection area of the Border Patrol (BP) checkpoint located near Sarita. During a search of her vehicle, agents discovered four bundles of heroin concealed within a new car battery located inside the trunk. The drugs had a gross weight of 6.28 kilograms.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
New Orleans Man Sentenced for Heroin Trafficking via MegabusRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that THOMAS GORDON, a/k/a “Ice,” age 33, of New Orleans, was sentenced today after previously pleading guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced GORDON to 72 months imprisonment, along with five years of supervised release.
GORDON was one of eight defendants charged in a 21-count superseding indictment on September 18, 2015. According to court documents, this indictment sprung from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City, New Orleans. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
The group’s two Houston-based heroin suppliers, defendants MARTHA QUINONES and KEVIN GONZALEZ, each pled guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin, and were sentenced to 120 months and 57 months imprisonment, respectively. Defendant DONALD EALY pled guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin, and was sentenced to 60 months imprisonment. Defendant REGINALD WASHINGTON pled guilty to conspiring to distribute and possess with intent to distribute 100 grams or more of heroin, and was sentenced to 120 months imprisonment. Defendants EARL BROWN and WILBERT CLARK pled guilty to conspiring to distribute and possess with intent to distribute a quantity of heroin, and were each sentenced to 30 months imprisonment. KENNETH HARRIS has pled guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin, and will be sentenced on November 30, 2017.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force (NOGTF), which includes FBI, the Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Brandon S. Long was responsible for the prosecution.
Mexican national pleads guilty to immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Hermino Camacho-Diaz, 41, entered his guilty plea to illegally reentering the United States.
Camacho-Diaz admitted that he was not lawfully present in the United States when he was encountered by Department of Homeland Security agents on June 8, 2017. Camacho-Diaz was living in Nitro when Homeland Security Agents received a tip that he was present in the country unlawfully. Agents conducted surveillance, confirmed his identity, and placed him under arrest. Camacho-Diaz had previously been removed from the United States on three different occasions in 2010. On all three occasions, he was returned to his home country of Mexico. Camacho-Diaz then illegally reentered the United States. Camacho-Diaz had not formally applied for permission to legally reenter the United States, and was not otherwise in the United States by any legal process.
Camacho-Diaz faces up to two years in federal prison when he is sentenced on September 27, 2017. He is also subject to deportation proceedings at the conclusion of the criminal case.
The Department of Homeland Security conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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Member of Trenton Drug Trafficking Organization Sentenced to Seven Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 84 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced.
Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod,” 23, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of his guilty plea, Rogers admitted possessing at least one firearm during the conspiracy. Judge Wolfson imposed the sentence today in Trenton federal court.
In December 2016, Rogers and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Since then, six of the 10 defendants, including Abdullah, have pleaded guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Rogers and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Rogers.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Rogers and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Rogers to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: David R. Oakley Esq., Princeton
Maryland man admits to distributing heroinRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Gwynn Oak, Maryland man pled guilty today to heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Dennis Royster, age 41, pled guilty to one count of “Distribution of Heroin.” Royster admitted to distributing heroin in Berkeley County in August 2014.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney Carrie Lehman prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Marion Pair Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Marion residents were sentenced today in the United States District Court for the Western District of Virginia in Roanoke on federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Charles J. Wojciechowicz, 33, of Marion, was sentenced today to 60 months in federal prison. Wojciechowicz previously pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture containing methamphetamine.
In a separate hearing today in U.S. District Court in Roanoke, Danny Douglas Meadows Jr., 41, of Marion, was sentenced to 66 months in federal prison. Meadows also previously pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Smyth County Sheriff’s Office and the Claytor Lake Drug Task Force. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Sentenced to over 11 Years in Prison for Coin and Jewelry Store Armed RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 135 months in prison and five years of supervised release for robbing a coin and jewelry store while pointing a firearm at the elderly store owner and a customer, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Noah Patrick Fields, 23, pleaded guilty on May 17, 2017, to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence. United States District Judge James C. Mahan presided over the sentencing hearing.
According to the plea agreement, Fields admitted that on Oct. 14, 2016, he and a co-conspirator robbed Fremont Coin Company, a coin and jewelry store at 3375 Glen Avenue in Las Vegas, at gunpoint. Fields admitted that he held the 90-year-old store owner and a customer at gunpoint while his co-conspirator stole $3,500 in cash and approximately $42,424 worth of valuable coins and silver and gold bullion from the front display case.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. Assistant U.S. Attorney Kilby Macfadden prosecuted the case.
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