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17 August 2017
Louisville Man Sentenced to 51 Months in Prison for Being A Convicted Felon in Possession of A FirearmRead the Press Release
Federal prosecution resulted following the use of a firearm during a road rage incident on I-265 in Louisville
LOUISVILLE, Ky. – A convicted felon was sentenced in United States District Court today, by Senior Judge Thomas B. Russell, to 51 months in prison followed by three years of supervised release, for unlawful possession of a firearm by a felon, announced United States Attorney John E. Kuhn, Jr.
“One can only imagine how terrified the victim of this crime must have felt not only for herself, but for the safety of her two children,” stated U.S. Attorney John Kuhn. “In this case, no one was injured, but this community well knows how dangerous and deadly the outcome could have been. For the safety of our communities, we will continue to enforce the laws that keep felons from possessing firearms.”
Timothy Wayne Corbin, 45, from Louisville, previously admitted, in United States District Court, that on September 9, 2016, on I-265 in Louisville, Kentucky, that he pointed and fired a gun at a vehicle driven by Jacqueline Morris and occupied by her and her two children. The projectile penetrated the engine compartment and radiator of the vehicle, but Ms. Morris was able to safely exit the interstate and call 911. Mr. Corbin then hid the gun inside the home of his girlfriend and texted her, asking her to provide an alibi for his whereabouts that evening. The gun, a Smith and Wesson, 40 caliber semiautomatic pistol and ammunition with magazine, was determined to have traveled in interstate commerce by an interstate nexus expert with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
In 2010 Corbin was convicted in Jefferson Circuit Court Case No. 07-CR-2677 of Manufacturing Methamphetamine, a felony offense punishable by more than one year.
This case was prosecuted by Assistant United States Attorney Erin McKenzie and was investigated by ATF.
Loris Man Sentenced in Federal Court on Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Emmanuel Lamar Bellamy, age 28, of Loris, was sentenced in Florence to 108 months imprisonment followed by a three-year term of supervised release. On April 18, 2017, Bellamy entered a guilty plea in federal court to conspiracy to possess with intent to distribute a quantity of marijuana, cocaine, cocaine base and oxycodone. United States District Judge R. Bryan Harwell imposed the sentence.
The evidence presented at the change of plea hearing and sentencing hearing established that members of ATF and the Horry County Police Department were investigating illegal drug activity in the Loris, South Carolina area. As part of that investigation, agents made two controlled buys of cocaine base from Bellamy in October and November 2015.
On September 7, 2016, agents were investigating information that Bellamy and others were using a hotel in Loris for illegal drug activity. Agents set up surveillance on the hotel and observed Bellamy entering and leaving the hotel. Agents stopped Bellamy as he drove away from the hotel. After the initial stop, Bellamy fled the scene in his vehicle and led agents on a brief chase before his vehicle struck another vehicle ending the pursuit. At that point, a passenger in Bellamy’s vehicle jumped out of vehicle and fled the scene but was apprehended. Bellamy and the passenger were arrested. Officers searched Bellamy and found over $3,000 in cash on him. Police also searched the vehicle and found marijuana and oxycodone pills. A firearm and drugs were also found near where the passenger was apprehended. Agents also found Bellamy in possession of a room key to the hotel. Agents obtained a search warrant for the hotel room and located nearly 800 grams of cocaine, 78 grams of cocaine base, $80,000 in cash, two handguns and more oxycodone pills.
The case was investigated by agents with ATF and the Horry County Police Department. Assistant United States Attorney Chris Taylor of the Florence office prosecuted the case.
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Lithuanian Man Extradited for Theft of over $100 Million in Fraudulent Business Email Compromise Scheme Against Multinational Internet CompaniesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that EVALDAS RIMASAUSKAS was extradited from Lithuania. In March 2017, RIMASAUSKAS was arrested in Lithuania on the basis of a provisional arrest warrant for orchestrating a fraudulent business email compromise scheme that induced two U.S.-based Internet companies to wire more than $100 million to bank accounts controlled by RIMASAUSKAS. RIMASAUSKAS arrived in the Southern District of New York last night, and will be presented today in Manhattan federal court before the Honorable Barbara Moses, U.S. Magistrate Judge.
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RIMASAUSKAS, 48, of Vilnius, Lithuania, is charged in an Indictment with one count of wire fraud and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the Prosecutor General’s Office of the Republic of Lithuania, the Lithuanian Criminal Police Bureau, the Vilnius District Prosecutor’s Office and the Economic Crime Investigation Board of Vilnius County Police Headquarters, the International Assistance Group at the Department of Justice, Canada, and the Department of Justice’s Office of International Affairs for their assistance in this matter.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Eun Young Choi is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Last Co-Conspirator of Loren Toelle Drug Trafficking Organization Sentenced to PrisonRead the Press Release
COEUR D'ALENE – The last co-conspirator from the Loren Toelle drug trafficking organization was sentenced yesterday to prison, Acting U.S. Attorney Rafael Gonzalez announced. The sentence was part of a significant drug investigation and prosecution under the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The sentence was handed down by Chief U.S. District Judge B. Lynn Winmill.
Jessica Nadine Frederick, 27, of Liberty Lake, Washington, was sentenced to 37 months prison and 3 years supervised release for her role in the drug conspiracy. Frederick became involved in 2011 when she began dating Loren Toelle’s brother and co-conspirator, Robert Hill. In November of last year, Frederick pleaded guilty to conspiracy to distribute heroin, oxycodone and methamphetamine.
Overall, the ten defendants in the Loren Toelle drug trafficking organization were sentenced to a total of 729 months in prison, or over 60 years. Throughout the sentencings, Judge Winmill noted the devastating effect the opioid epidemic has had on individuals.
Judge Winmill also ordered Frederick to forfeit $355,000 in cash proceeds.
The case is a result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force. The OCDETF program is a federal multi-agency, multi-jurisdiction task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Several federal, state and local agencies participated in the investigation and prosecution: the FBI North Idaho Violent Crime Task Force, consisting of the FBI, the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, and the Post Falls Police Department; the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation (IRS-CI), the U.S. Marshals Service and the Department of Homeland Security. Other agencies involved included the Williston, North Dakota, Police Department; the United States Attorney’s Offices in the Districts of Nevada and North Dakota; the Williams County, North Dakota Sheriff’s Office in South Dakota; the U.S. Border Patrol; the North Dakota Bureau of Criminal Investigation; the Northwest Narcotics Task Force; and the Washington State Patrol.
Las Vegas Man Pleads Guilty to Robbing over $200,000 from Armored Vehicle and Stealing 18 Firearms from Gun StoreRead the Press Release
LAS VEGAS, Nev. – A man pleaded guilty on Wednesday to using a baseball bat to rob over $200,000 from an armored vehicle and for stealing 18 firearms, including a suppressor, from a gun store, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Anthony Jovan Greene, 31, of Las Vegas, pleaded guilty to one count each of interference with commerce by robbery and theft from a Federal Firearms Licensee. United States District Judge James C. Mahan accepted the guilty plea and scheduled sentencing for Nov. 16, 2017.
According to admissions made in the plea agreement, Greene and at least one other co-conspirator were both armed with baseball bats and robbed a Garda Cash Logistics armored truck on Oct. 5, 2012. One of the robbers used a baseball bat to strike the driver causing the driver to drop a bag containing approximately $210,889. Greene and the co-conspirator grabbed the moneybag and fled. Greene further admitted that on Sept. 8, 2016, he robbed the 2nd Amendment Gun shop at 4570 N. Rancho Drive, Suite #4, in Las Vegas. Greene stole a total of 18 handguns, rifles, and a suppressor from the display cases and racks inside of the business.
At the time of sentencing, the interference with commerce by robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine and the theft from a Federal Firearms Licensee charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Phillip N. Smith Jr.
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Justice Department Announces Actions to Strengthen Public Safety in Indian CountryRead the Press Release
The Justice Department today announced recent developments under the Task Force on Crime Reduction and Public Safety to strengthen law enforcement and public safety in Indian country, including the continued expansion of a program that gives tribes access to federal crime data, addressing the opioid crisis, serving victims of sex trafficking, and strengthening investigations into crimes against children.
“We have listened to the concerns of tribal law enforcement, who are dealing with public safety challenges including rising violent crime, the opioid crisis, and human trafficking, often with limited resources and manpower,” said Associate Attorney General Rachel Brand. “The Justice Department is committed to a strong government-to-government partnership with tribal nations, including sharing valuable crime data and supporting Native American victims of crime.”
Listening sessions with tribal law enforcement in May and June clarified some of the most pressing public safety issues in Indian country. The following actions will strengthen efforts to address these challenges.
The Department of Justice is expanding the Tribal Access Program (TAP) for National Crime Information in Fiscal Year 2018. TAP provides federally-recognized tribes access to national crime information databases for both civil and criminal purposes. TAP supports the selected tribes in analyzing their needs for national crime information and provides access, technology and training.
In its first two years, the department has worked collaboratively with tribal governments on the TAP program to help resolve long-standing public safety issues in Indian country, such as the inability to access national crime information databases.
Any federally-recognized tribe interested in joining TAP is invited to submit an expression of interest between Aug.16, 2017 and Sept. 15, 2017. For more information about TAP and instructions on submitting a statement of interest, please visit www.justice.gov/tribal/tribal-access-program-tap.
The Department of Justice and the Department of the Interior are hosting two upcoming Opioid Awareness Outreach meetings in August. The Drug Enforcement Administration (DEA), Executive office for the U.S. Attorneys (EOUSA), and the United States Attorney’s Offices (USAOs) in Alaska and Eastern California, in conjunction with the Department of the Interior’s Bureau of Indian Affairs Office of Justice Services (OJS), are sponsoring and co-hosting these important events. The outreach meetings will commence immediately after tribal consultations on Aug.16 in Anchorage, Alaska and on Aug. 29 in Sacramento, California. The opioid awareness outreach will include presentations from DEA on the signs of opioid abuse, especially heroin and fentanyl awareness; from BIA’s OJS on Narcan deployment initiatives in Indian country; and from the USAOs on federal drug laws. These discussions are part of an inter-departmental initiative to address the opioid crisis in Indian country.
“The developments announced today by Attorney General Sessions are vitally important to aiding tribal governments in dealing with and seeking solutions to serious drug, sex trafficking, and crimes against children issues afflicting their communities,” said acting Assistant Secretary of the Department of the Interior for Indian Affairs Michael S. Black. “I urge tribal leaders and their police departments to take advantage of upcoming opportunities to provide their input on and learn more about ways of addressing these critical areas of public safety in Indian country. I also want to thank Attorney General Sessions and DOJ for their work in supporting BIA and tribal law enforcement efforts to strengthen public safety in these vulnerable communities.”
The Justice Department’s Office of Justice Programs Diagnostic Center, a training and technical assistance resource, is expanding its presence in Indian country. At the request of interested tribes, the Diagnostic Center provides customized assistance on a wide range of public safety issues. Among the issues being addressed in current tribal engagements include information sharing in tribal justice systems and jurisdictional coordination among tribal and local police departments. For more information about the Diagnostic Center, please see www.ojpdiagnosticcenter.org.
The Office for Victims of Crime (OVC) is developing programs in partnership with Native organizations in Seattle, Chicago, and Albuquerque to provide urban American Indian and Alaska Native victims of sex trafficking with access to culturally appropriate, comprehensive victim services. Funded under OVC’s Project Beacon grant award program, these organizations will work collaboratively with state and local human trafficking task forces, as well as tribal communities, to ensure that American Indian and Alaska Native victims have an opportunity to receive a full complement of services designed to aid them in their recovery and healing from the experience of being trafficked.
Associate Attorney General Brand added: “We are committed to partnering with tribal nations, Native American organizations and others to meet the particular needs of Native American victims of sex trafficking, and to end the scourge of human trafficking more broadly.”
The Department of Justice’s National Indian Country Training Initiative, together with the FBI’s Indian Country Crimes Unit, recently co-sponsored an Indian Country Homicide and Child Abuse Training Seminar. The seminar was attended by FBI Special Agents, Assistant United States Attorneys, Bureau of Indian Affairs Agents and tribal law enforcement from across the country. The training covered a variety of topics meant to strengthen investigations into crimes against children, such as crime scene management, evidence collection, forensics, interviews, and dealing with victims of violent crime and sexual abuse.
The Attorney General remains committed to combatting violent crime and maintaining public safety in tribal lands, and will continue to pursue partnerships in support of American Indian and Alaska Native communities.
Jury Convicts Honduran Man of Assaulting Federal OfficerRead the Press Release
BROWNSVILLE, Texas – A 35-year-old illegal alien from Honduras has been convicted of assaulting a U.S. Border Patrol (BP) agent, announced Acting U.S. Attorney Abe Martinez. A federal jury returned a guilty verdict today against Hernan Cortez-Mazariegos following a one-day trial and approximately two hours of deliberations.
On Nov. 15, 2016, BP agents responded to illegal alien traffic south of the border fence near Azucena street in Brownsville. A BP agent attempted to apprehend Cortez-Mazariegos, but he fled. The agent followed and attempted to arrest him, at which time Cortez-Mazariegos struck him on the side of his face, sustaining minor injury. Cortez-Mazariegos was eventually subdued and apprehended with the assistance of another BP agent.
U.S. District Judge Andrew S. Hanen presided over the trial and has set sentencing for Nov. 21, 2017, at which time Cortez-Mazariegos faces up to eight years in prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI and U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys David Coronado and Jody Young are prosecuting the case.
Johnson City Resident Sentenced to Serve over Twenty-Two Years in Prison for Role in Conspiracy to Distribute Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On August 17, 2017, Lamont Darnell Fortune, 37, of Johnson City, Tennessee, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Judge, to serve 272 months in federal prison for his role in a conspiracy to distribute crack cocaine in east Tennessee. Fortune was convicted of conspiracy in April 2017, following a two-day jury trial.
The evidence presented at trial showed that, from January 2011 to November 2015, Fortune conspired with others to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. During this period, he made regular trips from Johnson City to Winston-Salem, North Carolina, to obtain multi-ounce quantities of crack cocaine to supply his coconspirators, who then sold those drugs in Johnson City and Bristol, Tennessee. Fortune supplied crack cocaine to an individual working on behalf of law enforcement on two occasions. In May 2015, he led Virginia law enforcement on a high-speed chase on I-77, at speeds of over 120 mph, as he returned from picking up a shipment of crack cocaine. Three of Fortune’s coconspirators pleaded guilty prior to his trial and have been sentenced.
This long-term investigation was the product of a partnership between the Johnson City Police Department and Federal Bureau of Investigation. Assistant U.S. Attorneys David Gunn and Christian Lampe represented the United States at trial.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Investment Advisor Who Stole Millions in Ponzi Scheme Sentenced to 9 Years in Prison for Wire Fraud and False StatementRead the Press Release
A long-time Bellevue investment advisor was sentenced today in U.S. District Court in Seattle to nine years in prison, three years supervised release, and $3,660,216 in restitution for wire fraud and making false statements, announced U.S. Attorney Annette L. Hayes. CHRIS YOUNG YOO, 44, pleaded guilty in March 2017, admitting he raised millions of dollars in investments by promising to invest his clients’ money in funds he managed. However, YOO never actually invested the money of certain clients, and instead used their money to pay his own living and business expenses, resulting in a loss of over $3.6 million to those clients. To conceal his fraud YOO provided false information to Securities and Exchange Commission (SEC) regulators in connection with an SEC investigation. At the sentencing hearing, U.S. District Judge Thomas S. Zilly said, “you’ve destroyed (the victims) lives, financially, emotionally and physically . . . your scheme went on for nine years. I think a nine-year sentence is appropriate.”
“This defendant thought he could lie, steal, and live the good life off his clients’ life savings,” said U. S. Attorney Annette L. Hayes. “Instead, he will be spending nine years in prison and many more years working to pay his clients back. Sadly, no matter what he does, he will never be able to make up for the betrayal and loss of peace of mind that he caused those who trusted him.”
According to records filed in the case, between 2006, and 2015, YOO was the majority owner and operator of Summit Asset Strategies, a Bellevue investment company. The company operated two funds that invested primarily in South Korea. After opening Summit, YOO realized that the management fees he was permitted to charge investors would not support his company or lifestyle, so he began funneling some investors’ money into a separate bank account, rather than into the Summit investment funds as promised. YOO misused the investments of 17 investors in this manner. YOO sent those investors fake account statements making it appear they were invested in the funds as he promised. Instead their money went to pay for luxury cars, and the rental of a $4 million Bellevue home.
YOO identified those investors he thought he could manipulate, and encouraged them to invest their life savings with him. Some sold their homes and invested the proceeds, while others drained their retirement accounts, trusting YOO with their futures. One of the victims wrote to Judge Zilly saying, “I have lost everything I worked for, including money gifted to me by my grandparents and parents. I have lost my future. I worked an honest job, packing my lunch to work each day to save. I thought I was making sound financial decisions, and trusting Yoo cost me everything. . . . My life savings. Gone.”
In 2014, YOO was required to disclose all of his bank accounts to the SEC as part of an SEC investigation into YOO’s management of two investment funds. YOO submitted misleading documents to the SEC to conceal the bank account he was using to commit his fraud. In 2015, YOO reached a settlement with the SEC in which he was ordered to pay restitution to Summit Asset Management investors because he had fraudulently inflated the fees he charged the funds. YOO has not paid the restitution, and even after this settlement YOO continued to fraudulently solicit investments and use the funds for his own purposes. In all, some 17 investors were defrauded of $3,660,216.
The case was investigated by the FBI, the Washington State Department of Financial Institutions, and the Bellevue Police Department. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Individual Convicted Overseas of Being Terrorist Who Participated in the 1969 British Consulate, Supermarket Bombings in Jerusalem SentencedRead the Press Release
Rasmieh Yousef Odeh, 70, was sentenced today, lost her United States citizenship, and will be deported from the United States for having obtained her United States citizenship unlawfully, Daniel L. Lemisch, acting United States Attorney announced.
Joining Lemisch in the announcement was Steve Francis, Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
Odeh, a Chicago-area resident, was sentenced by United States District Judge Gershwin A. Drain. During the sentencing hearing, Judge Drain indicated that he would sign an order, today, revoking Odeh’s United States citizenship. As a result of that order, Odeh will no longer have legal status in the United States, will be deported to her nation of citizenship, Jordan, and is barred for life from reentering the United States. Judge Drain said Odeh intentionally falsified her U.S. citizenship documents and this sentence should be a deterrent to others thinking of lying to gain admission into the United States and citizenship.
Before immigrating to the United States, Odeh had been convicted overseas for participation in two terrorist bombings and for having been a member of the Popular Front for the Liberation of Palestine (PFLP), which has been designated a Terrorist Organization by the United States.
Acting U.S. Attorney Lemisch stated, “In 1969, the Popular Front for the Liberation of Palestine conducted two bombings in Jerusalem, Israel. One was at a Supersol supermarket, in which two individuals were killed and many more wounded. The second bombing was at the British Consulate. Defendant Odeh was arrested and charged with participation in the bombings, and in 1970 was convicted. She was sentenced to life imprisonment, but was released in 1979 after ten years’ imprisonment, as part of a prisoner exchange. In numerous television and video interviews throughout the years, other admitted participants in the bombings named Odeh as the person who chose the supermarket as a target, scouted the location and placed the bomb.”
“Today’s court action clears the way for this defendant’s removal from the United States and should serve as an unequivocal message that the U.S. will never be a haven for those seeking to distance themselves from their past atrocities,” said Steve Francis, HSI special agent in charge.
Odeh obtained a United States immigrant visa in 1994 and has lived in the United States for the last 22 years. In 2004, she obtained United States citizenship. She unlawfully failed to disclose her arrest and convictions regarding the bombings in both her application for her visa and her separate application for United States citizenship.
According to the plea agreement signed by Odeh and accepted by the court, Odeh admitted that in those applications, she lied about her criminal history by falsely denying that she ever had been arrested, charged with a crime, convicted, or imprisoned. In her plea, Odeh also admitted that “At the time she made the false statements, Defendant knew the statements were false, and that she made the false statements intentionally and not as a result of any mistake, Post-Traumatic Stress Disorder or any other psychological issue or condition, as she had previously claimed in court proceedings, or for any innocent reason. Odeh also admitted that at the time she made the false statements, she knew that it was unlawful for her to provide false information to the United States government in connection with her application for Immigrant Visa and her application for naturalization. Had Odeh revealed the truth about her criminal history, as she was required to by law, she never would have been granted an immigrant visa, admitted to the United States, allowed to live here for the last 22 years, or granted United States Citizenship.”
Acting U.S. Attorney Lemisch commended Immigration and Customs Enforcement, Homeland Security Investigations, and particularly Special Agent Stephen A. Webber, for the outstanding investigation which led to Odeh’s conviction. The prosecution was conducted by Assistant U.S. Attorneys Jonathan Tukel and Michael Martin.
Hialeah Woman Charged with Embezzling over $2.6 Million from Local BusinessRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of federal charges against Carmen Silvia Rodriguez in connection with a fraud scheme to steal over $2.6 million from her employer.
Rodriguez, 55, of Hialeah, was charged with two counts of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the information, from April 2010 through May 2016, Rodriguez worked for Starboard Cruise Services, Inc. (“SCS”), a Florida company that operates tax- and duty-free retail stores aboard cruise ships.
During the course of the alleged scheme, Rodriguez worked in SCS’s Finance and Administration Department. There, Rodriguez accessed company records related to two former SCS vendors (“SCS Vendor #1” and “SCS Vendor #2”) and added her own bank account information to the two vendors’ accounts. SCS Vendor #1 and SCS Vendor #2 did not do business with SCS after 2010.
The information further alleges that between April 1, 2010, and May 31, 2016, Rodriguez created false internal invoices that inflated the price of certain products purchased by SCS, often by overstating the shipping and handling costs associated with SCS’s purchase of the products. Rodriguez also created false internal invoices that purportedly reflected the purchase of certain products by SCS. For each of the inflated and/or false internal invoices, Rodriguez created a false purchase order, listing either SCS Vendor #1 or SCS Vendor #2 as the payee, for the difference between the money actually owed to the vendor, if any, and the inflated and/or false invoice price.
By creating the false purchase orders and making them payable to SCS Vendor #1 and/or SCS Vendor #2, Rodriguez caused approximately $2,669,372.30 in electronic Automated Clearinghouse payments to be transmitted from SCS’s bank account to Rodriguez’s personal bank accounts.
Each count of wire fraud carries a maximum term of twenty years in prison. Rodriguez made her initial appearance in Federal court on August 16, 2017 before U.S. Magistrate Judge Edwin G. Torres.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Christopher Browne.
An Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Harvey Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER ORGERON, age 34, of Harvey, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Mary Ann Vial Lemmon sentenced ORGERON to seventy-five (75) months incarceration and five (5) years of supervised release. ORGERON was also ordered to pay restitution in the amount of $5,000.00 and he must register as a sex offender.
According to court records, beginning at an unknown time and continuing to on or about June 25, 2015, ORGERON knowingly received child pornography. On June 25, 2015, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations executed a federal search warrant at ORGERON’s Harvey home. Computer forensic agents located over 26,000 images and 612 videos depicting the sexual exploitation of minors on ORGERON’s computers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Harford County Man Sentenced to 10 Years in Prison for Using a Computer to Attempt to Coerce a Minor to Engage in SexRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On August 16, 2017, U.S. District Judge George L. Russell III sentenced William Ray Wagner, age 34, a resident of Harford County, Maryland, to 10 years in prison followed by a lifetime of supervised release for the use of interstate facilities to coerce a minor to engage in sex.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea agreement, in the fall of 2014, Wagner was communicating on Facebook with an individual he believed was a 14-year-old girl who lived with her parents. The individual was actually an undercover Harford County detective.
In early October 2014, Wagner attempted to meet the individual to engage in sex, and used his computer to initiate graphic discussions about sex. He ultimately arranged to meet the individual at a restaurant in Bel Air on October 13, and then walk to a nearby trail to engage in sex. On that date, Wagner arrived at the agreed upon meeting location with a blanket and two condoms. He was arrested.
Wagner had previously been convicted of unlawful contact with a minor in 2009 and as a result, was required to register as a sex offender in Maryland. In April 2014, Wagner was arrested in Harford County and charged with failure to register as a sex offender.
As part of his plea agreement, Wagner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, Harford County Sheriff‘s Office and Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Fresno Man Charged with Laundering over $800,000 in Marijuana Trafficking ProceedsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Omar Manuel Ramirez, 34, of Fresno, charging him with conspiracy to distribute marijuana, manufacture of marijuana, money laundering conspiracy, and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ramirez grew marijuana in Fresno County and shipped it to states around the country, including Illinois, Virginia, and North Carolina. Ramirez’s customers deposited their payments for the marijuana into a bank account in Ramirez’s name. Typically within a day, Ramirez withdrew the deposits in Fresno. Over the course of two and a half years, Ramirez and co-conspirators used this technique to launder more than $800,000 in proceeds from selling marijuana.
This case is the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
If convicted, Ramirez faces a mandatory minimum penalty of five years in prison, a maximum statutory penalty of 40 years in prison, and a $5 million 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.
Four Defendants Indicted for Growing Marijuana in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Guillermo Rubio-Alvarado, 43; Omar Rubio-Alvarado, 28; Sebastian Rubio-Aboyte, 23, all of Sinaloa, Mexico; and Fortino Chavarin-Parra, 19, of Jalisco, Mexico, charging them with conspiring to manufacture marijuana and manufacturing marijuana, and damaging public lands, U.S. Attorney Phillip A. Talbert announced.
According to court documents, all four defendants were arrested by law enforcement on July 31, 2017, following a search of a marijuana-cultivation site in the Lassen National Forest in Tehama County. Law enforcement eradicated approximately 15,000 marijuana plants at this cultivation site. A large quantity of additional plants was left undisturbed after agents discovered they were allegedly contaminated with Carbofuran (Furadan), a dangerous neurotoxic pesticide that has been banned in the United States, Canada, and the European Union.
This case is the product of an investigation by the United States Forest Service, the Tehama County Sheriff’s Office, and the California Department of Fish and Wildlife. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
If convicted of the marijuana charges, the defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, all four defendants face a maximum statutory penalty of 10 years 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 several variables. The charges are only allegations; the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Senior VP of Sales of Hudson County, New Jersey, Scrap Metal Company Admits 17-Year Conspiracy to Defraud CustomersRead the Press Release
NEWARK, N.J. – The former senior vice president of sales at Cinelli Iron & Metal Co. (CIMCO) today admitted participating in a 17-year conspiracy that defrauded customers out of millions of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael A. Valenti III, 43, of Hasbrouck Heights, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Valenti, Craig Cinelli, Joseph Cinelli Sr., David Barteck and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul.
The wire fraud conspiracy count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
During his plea hearing, Valenti admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million. His sentencing is scheduled for Nov. 21, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Linda George Esq. Hackensack, New Jersey
Former Officials of Central United Talmudic Academy Indicted in $3 Million Fraud SchemeRead the Press Release
A five-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Elozer Porges and Joel Lowy, the former Executive Director and former Assistant Director, respectively, of the school system known as Central United Talmudic Academy (CUTA) in Brooklyn, New York, with one count of conspiracy to commit mail and wire fraud and four counts of mail fraud. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the Brooklyn federal courthouse.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Mark Peters, Commissioner, New York City Department of Investigation, and Special Agent-in-Charge, Bethanne M. Dinkins, United States Department of Agriculture, Office of Inspector General.
As alleged in the indictment, between 2013 and 2015, Porges and Lowy submitted documents to the New York State Department of Health (NYSDOH) that falsely claimed that school children had received meals which, in fact, they had never been served. The defendants fraudulently inflated the number of meals served at various CUTA schools in order to obtain larger reimbursement payments pursuant to the federal government’s Child and Adult Care Food Program (CACFP). The CACFP is a program designed to assist schools and other institutions in providing meals to, among others, at-risk children. In total, Porges and Lowy, based on their false representations, fraudulently obtained approximately $3 million in reimbursement payments to CUTA.
“Former CUTA Executive Director Porges and Assistant Director Lowy allegedly obtained $3 million from a federal program designed to fund meals for needy children by claiming to have served meals they did not serve, thus undermining a program designed to assist the most vulnerable members of our community,” stated Acting United States Attorney Rohde. “We will continue to work closely with our law enforcement partners to root out fraudulent schemes that misuse public funds.”
“The Child and Adult Care Food Program strives to provide for at-risk children, and as school officials, Porges and Lowy should have strived to do the same,” stated Assistant Director-in-Charge Sweeney. “Instead, they allegedly falsified documents to gain approximately $3 million in reimbursement for meals that were never served. To defraud programs designed to help those in need is simply inexcusable, and we will work relentlessly with our law enforcement partners to thoroughly investigate these frauds.”
“As charged, these defendants stole food from children in need by diverting millions of dollars in public funds intended to pay for their dinners,” stated DOI Commissioner Peters. “Public funds must be spent for public purposes and, when they are not, DOI will expose the fraud and arrest the wrongdoers. DOI thanks our dedicated law enforcement partners on this case: the United States Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, and the Office of the Inspector General for the United States Department of Agriculture.”
“The Child and Adult Care Food Program (CACFP) was created to provide nutrition assistance to children and adults who are truly in need,” stated Special Agent-in-Charge Dinkins. “Those involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. In this joint investigation with the Federal Bureau of Investigation and the New York City Department of Investigation, we worked together to identify and hold accountable those who sought to profit from the CACFP through illegal schemes. The USDA, Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, to protect the integrity of these programs and bring to justice those who commit fraud.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years’ imprisonment on the conspiracy to commit wire fraud and mail fraud count, as well as on each of the mail fraud counts.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Maria Cruz Melendez are in charge of the prosecution.
The Defendants:
ELOZER PORGES
Age: 43Brooklyn, NY
JOEL LOWY
Age: 29
Brooklyn, NY
E.D.N.Y. Docket No. 17-CR-431 (NGG)
Former Manhattan City Attorney Pleads Guilty to Child Porn ChargesRead the Press Release
WICHITA, KAN. - A former city attorney of Manhattan pleaded guilty today to federal child pornography charges, U.S. Attorney Tom Beall said.
Bill Raymond, 55, Andover, Kan., pleaded guilty to three counts of transporting child pornography and one count of possessing child pornography. Raymond admitted that he emailed child pornography to himself using a cellular telephone and a computer on Nov. 9, 2014, Feb. 28, 2015 and May 17, 2015. He also admitted that on July 30, 2015, he possessed child pornography.
The crimes occurred in Butler and Riley counties. Raymond became the city attorney in Manhattan after serving as an assistant county counselor in Sedgwick County.
Sentencing is set for Nov. 6. He faces not less than five years and not more than 20 years in federal prison and a fine of up to $250,000 on each distribution count, and up to 10 years and a fine up to $250,000 on the possession count. Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Former Lutonix Executive Sentenced to A Year and A Day in Prison for Stealing Trade SecretsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of CHRISTOPHER BARRY, 46, to 12 months and 1 day in prison for stealing trade secrets from his former employer, Lutonix, Inc. BARRY pleaded guilty on May 9, 2017, and was sentenced today before U.S. District Judge Paul J. Magnuson in St. Paul, Minn. BARRY was also ordered to pay $533,842 in restitution to his former employer, the victim of his crime, representing the fees incurred by his former employer to detect and investigate his crime.
“Christopher Barry stole valuable intellectual property from his former employer in an effort to benefit himself,” said Acting U.S. Attorney Greg Brooker. “The theft of trade secrets is an offense that threatens individuals, businesses and the economy and we are committed to investigating and prosecuting these types of crimes.”
“Theft of trade secrets is a serious federal crime which harms businesses and the hard-working people of Minnesota,” said FBI Special Agent in Charge Richard T. Thornton of the Minneapolis Field Office. “The sentence handed down today which includes a prison term underscores the seriousness of this crime. The FBI will continue to work closely with our law enforcement partners and the business community to hold accountable those who steal trade secrets.”
According to the defendant’s guilty plea and documents filed in court, from 2007 until May 1, 2015, BARRY was the Vice President of Research & Development for Lutonix, Inc. (“Lutonix”), a company based in New Hope, Minn. that develops, manufactures, and sells drug coated balloon (“DCB”) medical products. In his role, BARRY was responsible for all research and development, quality assurance, and manufacturing activities for the company, among other things. BARRY was also directly involved in the development of Lutonix’s primary product, an extremely valuable proprietary DCB called the Lutonix 035 DCB.
According to the defendant’s guilty plea and documents filed in court, in May 2015, BARRY left Lutonix and accepted employment as CEO of Urotronic, a start-up medical device company founded by a former Lutonix employee. As BARRY was planning to leave Lutonix, he stole numerous trade secret files belonging to the company so that he could utilize the proprietary information in connection with his next job. During his employment with Urotronic, BARRY transferred the stolen trade secret files from his portable hard drive onto his Urotronic work computer. Additionally, while BARRY was employed at Urotronic, he shared several procedural documents containing Lutonix trade secrets with other Urotronic employees.
This case was the result of an investigation conducted by the FBI, the Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant United States Attorney Benjamin Langner prosecuted this case.
Defendant Information:
CHRISTOPHER BARRY, 46
Medina, Minn.
Convicted:
- Theft of Trade Secrets, 1 count
Sentenced:
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12 months and 1 day in prison
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Three years of supervised release
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$533,842 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former IRS Revenue Officer in Prestonsburg Convicted of Defrauding United StatesRead the Press Release
ASHLAND, Ky. – A federal jury has convicted a former revenue officer assigned to the Prestonsburg, Ky., office of the Internal Revenue Service of defrauding, and making false statements to, the United States government.
On August 17, 2017, the jury returned its guilty verdict against 32-year-old Jason Helton of Louisa, Ky. U.S. District Judge David Bunning set Helton’s sentencing for December 18, 2017.
The evidence at trial established that on several occasions, from 2014 to 2016, Helton submitted false time sheets and false travel vouchers to the IRS, in order to receive salary, benefits, and travel expense reimbursements for work that he did not perform. Specifically, the evidence revealed that several taxpayers had confirmed that they did not receive visits from Helton on the dates he claimed to have visited and that Helton had falsely claimed to be reporting for work in the Prestonsburg office, on dates when he had not.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky and Rodney Davis, Special Agent in Charge, Washington Field Division, Treasury Inspector General for Tax Administration jointly announced the verdict.
Former Ector County Sheriff’s Deputy Sentenced to Federal Prison for Extortion Under Color of LawRead the Press Release
In Midland today, a federal judge sentenced 47-year-old former Ector County Sheriff’s Deputy David Oscar Limon to 15 months in federal prison for extortion under color of law announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Special Agent in Charge Waldemar Rodriguez, Homeland Security Investigations (HSI), El Paso.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Limon pay a $13,200 fine and perform 100 hours of community service while on three years of supervised release after completing his prison term. Judge Junell also ordered that Limon surrender within the next 60 days to federal authorities in order to begin serving his prison term.
On May 11, 2017, Limon pleaded guilty to one count of Hobbs Act extortion under color of law, or affecting commerce by extortion. By pleading guilty, Limon admitted that while serving as an Ector County Sheriff’s deputy between January 2010 and June 10, 2016, he extorted over $13,000 from several Odessa game room owners in exchange for protection for their game rooms and information about law enforcement actions that affected their operations.
“David Oscar Limon, a Sheriff’s deputy charged to lawfully protect the citizens of Ector County, was motivated by his own self-interest and greed,” stated Emmerson Buie, Jr., FBI El Paso. “The FBI is pleased Mr. Limon is being held accountable for these criminal actions. We will continue to root out public corruption, whether it is officials who violate their oath and the law, or citizens who bribe them to do so.”
“This sentence sends a clear message to law enforcement who choose to break the laws they were sworn to uphold,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “HSI special agents will continue to build strong relationships with our law enforcement partners to hold individuals in positions of public trust to the highest of standards.”
The FBI and HSI investigated this case with assistance from the Ector County Sheriff’s Office. Assistant United States Attorney LaTawn Warsaw prosecuted this case on behalf of the Government.
Former Charleston-Based NOAA Employee Sentenced to 4 Years Prison for Possession of Child Pornography Involving Prepubescent MinorsRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Clayton A. Norfleet, age 55, of West Columbia, South Carolina was sentenced today in federal court in Charleston, South Carolina, for Possession of Child Pornography Involving a Prepubescent Minor, a violation of 18 U.S.C. §§ 2252A(a)(5)(B) and (b)(2). Senior United States District Judge Patrick Michael Duffy, of Charleston, sentenced Norfleet to 4 years of prison followed by a lifetime of supervised release.
Evidence presented at the change of plea hearing established that on March 22, 2015, a Department of Commerce (DOC), National Oceanic and Atmospheric Administration (NOAA) Security Operations Center analyst discovered a computer user onboard NOAA ship Ron Brown, Office of Marine and Aviation Operations (OMAO), connected to an internet relay chat (IRC) website. The website allows users to chat online as well as upload and download images. The website is notorious for a prevalence of child pornographic images and is frequented by pedophiles. The analyst also discovered log files that indicated that the user’s web traffic and website contained entries related to child pornography and pedophilia. Further investigation revealed that the defendant, Clayton A. Norfleet, Electronics Technician, NOAA, OMAO was the user that accessed the IRC website using a government computer while on board the NOAA Ship Ron Brown.
When this incident occurred on March 22, 2015, the NOAA Ship Ron Brown was in the Pacific Ocean and scheduled to arrive in port at Ford Island, Hawaii on May 13, 2015. On May 13, 2015, NOAA, Office of Law Enforcement (OLE) agents seized the government computer assigned to Norfleet, from the NOAA Ship Ronald H. Brown, which was docked at Ford Island, Hawaii.
A forensic analysis of the government computer indicated that Norfleet logged in using the “Administrator” account and viewed child pornography. Some of the images and videos were stored in the thumb cache. Furthermore, link files associated with child pornography were located on the computer. Forensic analysis also showed Norfleet was utilizing portable web browsers operated from external drives that do not cache any internet history or browser files to the local computer.
On July 14, 2014, DOC-Office of Inspector General (DOC-OIG) agents interviewed Norfleet at NOAA Port Office, located in Charleston. Norfleet admitted that he used the government computer while aboard NOAA Ship Ron Brown to view child pornography on the IRC website, and he admitted he ran portable web browsers from a removable thumb drive. Norfleet then turned over a thumb drive containing child pornography to the agents.
Norfleet also told agents that he had a personal desktop computer at his residence in West Columbia, South Carolina that contained evidence of child pornographic material. Norfleet indicated that he did not have any data stored on his computer but that agents would find “links” to child pornographic material on his computer. Agents then traveled to Norfleet’s residence and seized his personal desktop computer.
DOC-OIG agents conducted digital data analysis on the personal thumb drive and personal desktop computer owned and used by Norfleet. The results revealed 62 child pornography images and 23 child pornography videos, including images and videos involving prepubescent minors.
The case was investigated by agents of the Department of Commerce-Office of Inspector General. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Former Bank Vice President Guilty of Identity Theft and FraudRead the Press Release
ALEXANDRIA, Va. – A former banking executive pleaded guilty today to a fraud and identity theft scheme that caused over $3 million in losses.
According to the statement of facts filed with the plea agreement, Kirk Russel Marsh, 39, of Oakton, was a former vice president at Virginia Commerce Bank (VCB) and later at Fulton Bank. Virginia Commerce Bank and Fulton Bank’s parent company, Fulton Financial Corporation, received $71 million and $376.5 million, respectively, in Troubled Asset Relief Program funds from the United States Treasury. At VCB, Marsh forged the signatures of senior bank officers to cause the fraudulent issuance of over $1.25 million in loans to small businesses. At Fulton Bank, Marsh used the name and personal identifying information of a former client to fraudulently apply for and obtain a $1 million line of credit, which he used to purchase another client’s software company, Wave Software, and make the down payment on his house. Marsh also made unauthorized draws on a $485,000 line of credit of another client, which he used to pay Wave Software operating expenses. After being fired by Fulton Bank, and while purportedly cooperating with the United States, Marsh pretended to buy a company that sold beauty products, Revive You Media. He then requested real financial information as part of purported due diligence. Marsh used that financial information to hold himself out as the owner of Revive You Media and seek financing. As part of those attempts to secure financing, Marsh also used the identities of other former clients and family members. The attempted loss is over $10 million.
Marsh pleaded guilty to wire fraud, bank fraud, and aggravated identity theft. He faces a maximum penalty of 30 years in prison when sentenced on November 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Katherine Wong is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-122.
Former Bail Bondsman Pleads Guilty in Federal Court to Conspiring to Obstruct JusticeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Former Bail Bondsman conspired with Licensed Drug Counselor to conceal violations of federal defendants from United States Probation and Pretrial Services and Federal Judges
Baltimore, Maryland –Anthony Evans Owings Seen, a/k/a “Tony”, age 31, of Glen Burnie, Maryland, pleaded guilty today in federal court to conspiring to obstruct of justice and obstruction of justice, in connection with concealing violations by both pretrial and supervised release defendants from United States Probation and Pretrial Services and Federal Judges.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; William F. Henry, Chief, U.S. Probation and Pretrial Services Office, District of Maryland; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
Co-conspirator Jennifer Hamersky, a/k/a Jennifer Maroney a/k/a Jennifer Hurt, age 33, of Severn, Maryland previously pled guilty and is scheduled to be sentenced on November 14, 2017 at 9:15 a.m.
According to Seen’s plea agreement, at the time of the conspiracy Seen was on supervised release in an unrelated case in the United States District Court for the District of Maryland for conspiracy to distribute and possess with intent to distribute more than 100 kilograms of marijuana. While on supervised release, Seen was under the supervision of the United States Probation and Pretrial Services (“USPO”). Seen’s conditions of supervised release included that he was not permitted to possess or use controlled substances as well as act as a bail bondsman or in the bail bond industry. Seen was previously a licensed bail bondsman by the State of Maryland’s Insurance Administration.
Co-conspirator Hamersky, a Clinical Professional Addictions Counselor, licensed by the State of Maryland’s Department of Health and Mental Hygiene, was also a contractor who provided services for USPO. Specifically, Hamersky worked with defendants in the United States District Court for the District of Maryland, including mental health and substance abuse counseling, and urinalysis testing.
Person A was on pretrial release under the supervision of USPO with conditions which included attending individual and group counseling sessions and submitting to random urinalysis testing. Person S was on supervised release under the supervision of USPO with conditions that included not possessing or using controlled substances.
Hamersky served as Person A’s pretrial release substance abuse and mental health counselor from September 2015 through February 2016, and again from August 2016 through February 2017. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions regarding potential violations involving counseling and urinalysis testing to USPO. As part of her duties as a substance abuse counselor Hamersky also had access to Person S’s urinalysis testing schedule.
According to court documents, Seen and Hamersky conspired to obstruction of justice in an effort to conceal from USPO officers and U.S. Magistrate and District Court Judges, Person A’s and Person S’s violations of their conditions of release including the use of narcotic drugs, failure to appear for urinalysis testing, and failure to appear for counseling sessions.
From September 2016 through February 2017, Seen conspired with Hamersky to prevent the communication to a law enforcement officer and U.S. Magistrate and District Court Judges information relating to violations of Person A’s and Person S’s conditions of release. Seen and Hamersky also used cocaine, oxycodone and methylenedioxy-methamphetamine, otherwise known as MDMA, while Defendant Seen was on federal supervised release.
In November 2016, Seen met with Person A at Seen’s bail bonds shop in Glen Burnie, Maryland so that Person A could sign his USPO November 2016 and December 2016 reports reflecting Person A’s attendance at urinalysis testing and counseling sessions. At the time Seen knew that Person A had not attended urinalysis testing and counseling sessions. Seen then provided Person A’s reports to Hamersky who submitted them to USPO. Following his meeting with Person A and in an effort to conceal Seen and Hamersky’s conspiracy, Seen sent a text message to Person A asking Person A to delete any text messages between Seen and Person A and any texts messages between Hamersky and Person A.
In November 2016, Person S asked Seen for information about his urinalysis testing schedule so that Person S could consume controlled substances and avoid detection by USPO. Seen then contacted Hamersky who informed Seen that Person S would not have an upcoming urinalysis test. Seen then provided this urinalysis testing information to Person S.
In December 2016, after learning that Special Agents from the Federal Bureau of Investigation were investigating, Seen then told Hamersky to go onto a federal court website to determine if Person A was meeting with law enforcement representatives.
In January 2017, Person A missed a urinalysis test and contacted Seen for help in covering-up the missed test. Hamersky and Seen then discussed whether to help Person A and Hamersky then left a voicemail message for Person A’s USPO agent stating that Person A was in compliance when both Hamersky and Seen knew that Person A had missed his urinalysis test.
Seen faces a maximum sentence of five years in prison for the conspiracy count and twenty years in prison for the obstruction of justice count. Seen remains detained pending sentencing, which is scheduled for November 15, 2017 at 9:30 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI, USPO, and DEA for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Phil Selden and Rachel Yasser, who prosecuted the case.
Federal Jury Convicts Dallas Man of Child Pornography ChargesRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge David C. Godbey, a federal jury has convicted Hugh Michael Glenn, 47, of Dallas, Texas, of two child pornography offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Specifically, this morning, the jury convicted Glenn of one count of transporting and shipping child pornography and one count of accessing with intent to view child pornography. Glenn faces a maximum statutory penalty of 20 years in federal prison for the access count, 40 years in federal prison for the transportation count, and a $250,000 fine. Glenn will remain in custody pending sentencing, which is set for November 20, 2017.
The government presented evidence at trial that on August 1, 2016, Glenn transported child pornography by uploading an image of child pornography using Chatstep. Law enforcement obtained Glenn’s laptop computer, which contained the transported image and over 2,000 other images of child pornography. Glenn confessed to law enforcement that he had gone to chatrooms and viewed child pornography on the Internet.
In 2003, Glenn was convicted in the United States District Court for the Eastern District of Texas for transporting child pornography. In that case, he was sentenced to ninety-seven months of imprisonment.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Dallas Police Department investigated this case. Assistant U.S. Attorneys Camille Sparks and Jamie L. Hoxie are in charge of the prosecution.
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Dominican National Sentenced for Distributing HeroinRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for distributing heroin.
Luis Humberto Arias Lara, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to five months in prison, three years of supervised release, and will face deportation proceedings upon completion of his sentence. In July 2017, Arias Lara pleaded guilty to two counts of possession with intent to distribute and distribution of heroin.
On two occasions in September 2016 and January 2017, Arias Lara distributed heroin to an undercover officer in Waltham.
United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
District Man Pleads Guilty to Fatally Shooting Man in Broad Daylight in Southwest WashingtonRead the Press Release
WASHINGTON – Seth Holmes, 25, of Washington, D.C., pled guilty today to a charge of voluntary manslaughter while armed for killing a man earlier this year in Southwest Washington, U.S. Attorney Channing D. Phillips announced.
Holmes pled guilty in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of at least 10 years and up to 14 years in prison. The Honorable Lynn Leibovitz set a hearing for Oct. 13, 2017 to determine whether to accept the plea and sentence.
The government’s evidence demonstrated that on May 9, 2017, at approximately 2:05 p.m., officers with the Metropolitan Police Department (MPD) received a call to respond to a shooting that occurred in the 100 block of Irvington Street SW. Upon arrival, officers found the victim, Damonta Thompson, semi-conscious and unresponsive suffering from a gunshot wound to his body. The District of Columbia Department of Fire and Emergency Medical Services transported Mr. Thompson to a hospital, where he was pronounced dead. An autopsy later determined that Mr. Thompson, 25, died from a gunshot wound to the back.
Further investigation by MPD officers revealed that just prior to the shooting, Holmes pulled his vehicle into the 100 block of Irvington Street SW, where he observed Mr. Thompson. Holmes and Mr. Thompson exchanged words. Holmes then pulled his vehicle down the street, got out, and shot his gun four times in the direction of Mr. Thompson, hitting him one time in his back. Mr. Thompson died a short time later.
Approximately, three days after the shooting, Holmes fled the Washington, D.C. metropolitan area to a relative’s residence in St. Petersburg, Fla. On June 5, 2017, Holmes was located by the U.S. Marshals Service and arrested at the residence. He was then transported back to the District of Columbia and was formally charged.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Marshals Service. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Allen and Jennifer Clark, and Assistant U.S. Attorney Alicia M. Long, who investigated and prosecuted the matter.
Credit Union Employee and her Online Boyfriend Face Charges of Fraudulently Obtaining Lines of Credit Worth over $2.6 MillionRead the Press Release
LOS ANGELES – An Orange County woman who worked at a local credit union in Hawthorne and her online boyfriend have been named in a superseding indictment that alleges a conspiracy in which the woman secretly opened more than 30 fraudulent lines of credit for her boyfriend, who was able to draw down approximately $1.1 million before the scheme was discovered.
The indictment returned yesterday afternoon by a federal grand jury charges Indira Mohabir, 41, of La Habra, and Phillip Cook, 50, who appears to have recently resided in Ohio and Georgia.
Mohabir was initially charged in the case last year, and Cook was arrested in Ohio on July 28 after federal prosecutors filed a criminal complaint in this case. Mohabir, who is free on bond, is currently scheduled to go on trial on October 31. Cook, who has been ordered held without bond, is being transported to Los Angeles by the United States Marshals Service.
The 15-count superseding indictment charges the two defendants with conspiracy to commit financial institution fraud, eight counts of unauthorized issuance of credit union obligations and six counts of financial institution fraud.
Mohabir, who worked as a business loan processor at Western Federal Credit Union, entered into an online relationship with Cook in November 2014 and agreed soon after to open lines of credit without the necessary oversight and approval from the credit union, according to the indictment. The scheme lasted about three months, from late 2014 to early 2015, but the majority of the credit lines allegedly were established – or were doubled – over just a few days in January 2015.
In exchange for opening the lines of credit and concealing them from the credit union, Cook promised to take Mohabir on trips, and sent her a $50,000 check and flowers, according to court documents.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of charges in the indictment, Mohabir and Cook each would face a statutory maximum penalty of five years in federal prison on the conspiracy count and up to 30 years for each of the substantive fraud charges.
This case is the result of an ongoing investigation being conducted by the FBI and the Federal Deposit Insurance Corporation, Office of Inspector General. The Hawthorne Police Department provided substantial assistance.
The case against Cook and Mohabir is being prosecuted by Assistant U.S. Attorneys Kerry L. Quinn and Scott Paetty of the Major Frauds Section.
Compounding Pharmacy Sales Representative Pleads Guilty to Prescription Fraud ConspiracyRead the Press Release
TUSCALOOSA – A sales representative for a Haleyville, Ala.-based compounding pharmacy pleaded guilty today in federal court to participating in a conspiracy to generate prescriptions and defraud health care insurers and prescription drug administrators out of tens of millions of dollars in 2015.
U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, U.S. Postal Inspector in Charge Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey announced the plea.
BRIDGET McCUNE, 41, of Destin, Fla., pleaded guilty before U.S. District Court Judge L. Scott Coogler to conspiracy to commit health care fraud, wire fraud and mail fraud and to conspiring to solicit and receive kickbacks in return for referring prescriptions under Medicare and TRICARE, a U.S. Department of Defense health care program. McCune also pleaded guilty to four counts of health care fraud, and to two counts of money laundering for spending proceeds of the crimes. She remains out on bond pending sentencing, which is not yet scheduled.
McCune worked for Northside Pharmacy, an Alabama company doing business as Global Compounding Pharmacy. Global’s compounding and shipping facility was in Haleyville. The pharmacy did its prescription processing, billing and customer service at its “call center” in Clearwater, Fla.
Global hired sales representatives, including McCune, who were located in various states and were responsible for generating prescriptions from physicians and other prescribers. To bill insurance providers, including Blue Cross Blue Shield of Alabama, Medicare and TRICARE, for these prescriptions, Global contracted to enter the pharmacy networks of their third-party administrators, known as “pharmacy benefit managers” or “PBMs. These PBMs included Prime Therapeutics, Express Scripts Incorporated and CVS/Caremark.
McCune’s plea agreement with the government describes a conspiracy at Global that centered on generating and billing PBMs for fraudulent, often high-reimbursement prescriptions. To generate prescriptions, Global hired sales representatives who were married or related to doctors and other prescribers. Global also encouraged sales representatives to volunteer at doctors’ offices where they would review patient files and push Global’s products to patients. Global executives also frequently instructed employees to obtain high-reimbursing prescriptions that Global would fill and bill for reimbursement. The plea agreement describes a Global executive instructing sales representatives to obtain certain prescriptions and, shortly after, McCune obtained those prescriptions for herself and her dependents.
When billing, Global engaged in various fraudulent practices, including splitting drug quantities to evade PBM billing safeguards and automatically refilling and billing for prescriptions regardless of patient need, according to court documents. Global routinely waived co-pays to encourage patients to accept unnecessary medications and refills.
As part McCune’s plea, she agrees to forfeit $401,628 to the government as proceeds of illegal activity.
Global paid McCune a base salary plus a monthly commission for prescriptions that she obtained, according to court documents.
McCune began as a sales representative for Global’s Florida region in September 2014, working from Destin. Global promoted her to national field trainer in January 2015, but she also continued to function as a sales representative until she left the company in July 2016. McCune had a “close familial relationship” with a Florida physician, according to her plea agreement, and the “overwhelming majority of prescriptions she obtained” were issued under her family member’s signature.
At the same time that the U.S. Attorney’s Office for the Northern District of Alabama charged McCune, it separately charged another Global sales representative, KELLEY NORRIS, also known as KELLEY NORRIS-HARTLEY, 41, of Tuscaloosa. Norris faces the charge of conspiracy to commit health care fraud, wire fraud and mail fraud, as well as charges of health care fraud for submitting fraudulent prescription reimbursement claims to Blue Cross Blue Shield of Alabama. Norris also entered a plea agreement with the government.
The charges against McCune and Norris followed charges brought by the U.S. Attorney’s Office in May against Global sales representative Robin Gary Lowry, 49, of Columbus, Miss. Lowry was charged with conspiracy to defraud BCBS of Alabama and Prime Therapeutics. She also faced three counts of health care fraud for submitting fraudulent claims for payment to BCBS of Alabama.
Lowry pleaded guilty to the charges in June. She is scheduled for sentencing Nov. 7.
FBI, U.S. Postal Inspection Service, U.S. Department of Health and Human Services Office of Inspector General, U.S. Defense Criminal Investigative Service and Internal Revenue Service, Criminal Investigation investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor and Nicole Grosnoff are prosecuting.
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Columbia Man Charged Federally with 2008 Drug Related Kidnapping and Murder of Aiken VictimRead the Press Release
United States Attorney Beth Drake stated today a Federal Grand Jury in Columbia, South Carolina, returned a multiple-count indictment in connection with a drug-related murder in Aiken:
Antonio Miller, age 38, of Columbia, South Carolina was charged in a three-count indictment with use of a firearm in furtherance of a crime of violence and drug trafficking causing death (a violation of 18 U. S. C. §924(j)); kidnapping resulting in death (a violation of 18 U. S. C. §1201); and drug conspiracy resulting in death (a violation of 21 U. S. C. §846). Miller could receive life without the possibility of parole on each of these charges.
The indictment alleges that on September 15, 2008, Miller kidnapped and restrained the victim Fred Tucker, binding his hands and feet and torturing him with a hot screwdriver. After so torturing Tucker, Miller maliciously killed Tucker by shooting him in the chest. The indictment also alleges that Miller and others conspired to distribute crack cocaine and, while engaged in this conspiracy, Miller intentionally killed Tucker.
Miller will be arraigned on the indictment by the Honorable Shiva V. Hodges, United States Magistrate Judge on Thursday, August 17, 2017 at 2:30 pm at the Mathew J. Perry Federal Courthouse located at 901 Richland Street, Columbia, South Carolina.
The case was investigated by the Aiken County Sheriff’s Office, the Richland County Sheriff's Office, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Aiken Department of Public Safety, North Augusta Department of Public Safety, and the Federal Bureau of Investigation. Assistant United States Attorneys JD Rowell and Jay N. Richardson of the Columbia office are prosecuting the case.
The United States Attorney stated that all charges in Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Colin Chisholm Sentenced to 48 Months in Prison for Stealing More Than $2 Million from Investors in Television Network StartupRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of COLIN ALEXANDER CHISHOLM, 65, to 48 months in prison for stealing more than $2.1 million from victims by convincing them they were investing in a television network when in fact, CHISHOLM was using the funds for his own personal gain. CHISHOLM pleaded guilty on January 24, 2017, and was sentenced yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minn.
“Colin Chisholm ripped off people with a long trail of lies about himself and his fraudulent investments,” said Minnesota Commerce Commissioner Mike Rothman. “As a result of Chisholm’s lies, dozens of victims lost the money they had entrusted to him for what they believed was a legitimate investment. Stopping this investment scam and bringing this white-collar criminal to justice demonstrate the strong partnership between the Commerce Fraud Bureau and federal authorities.”
“Postal Inspectors are committed to protecting the U.S. Mail and postal customers from criminal attack,” said Craig Goldberg, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service, which includes Minnesota. “This sentence reflects the successful teamwork between the Postal Inspection Service and the Minnesota Department of Commerce who worked together to bring justice to the victims in this case and to help restore the public’s trust in the U.S. mail.”
According to the defendant’s guilty plea and documents filed in court, since 2004, CHISHOM used The Caribbean Television Network, Inc., (TCN) an entity he formed purportedly to broadcast satellite television throughout the Caribbean, to solicit funds from investors. Throughout the scheme, CHISHOLM told investors that TCN was on the verge of securing between $20 million and $100 million in funding to begin broadcasting, and that their investment would be used as interim financing for TCN.
According to the defendant’s guilty plea and documents filed in court, as part of his scheme to obtain money from potential investors, CHISHOLM lied to them about the progress and viability of the main funding sources for TCN. CHISHOLM also lied to investors about his personal background, telling some investors that he was the grandson of Hugh J. Chisholm, Jr., and the son of William Chisholm, of the Oxford Paper Company. In falsely claiming this family lineage, CHISHOLM gave the impression that he came from considerable family wealth. CHISHOLM also claimed to be a Scottish Chieftain of the Clan Chisholm and claimed to have close personal ties to members of the Bush family, specifically to Prescott S. Bush, Jr., the deceased brother of former President George H.W. Bush.
According to his guilty plea and documents filed in court, CHISHOLM also lied about his professional background, most notably by making the claim to potential investors that he had worked as Vice President for Turner Program Services, that he had a relationship with Ted Turner, and that he participated in the development and launch of CNN and CNN Headline News, including writing the business plan for CNN.
Over the course of 10 years, CHISOLM stole a total of more than $2.1 million from at least 38 investors and used the money to support a lavish lifestyle consistent with the false persona he created.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the United States Postal Inspection Service, with substantial assistance from the Hennepin County Attorney’s Office.
Assistant United States Attorney Lola Velazquez-Aguilu prosecuted this case.
Defendant Information:
COLIN ALEXANDER CHISHOLM, 65
Minneapolis, Minn.
Convicted:
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Mail fraud, 1 count
Sentenced:
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48 months in prison
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Three years of supervised release
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$2,106,687.98 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Cleveland man likely faces 17 years in prison for selling heroin that caused three overdoses in WoosterRead the Press Release
A Cleveland man will likely be sentenced to 17 years in prison after pleading guilty to selling heroin that caused three overdoses in Wooster, law enforcement officials said.
Demetrius L. Frizzell, 30, pleaded guilty to one count of conspiracy to distribute heroin and one count of attempted witness tampering.
He is scheduled to be sentenced Nov. 29. The plea agreement calls for a recommended sentence of 204 months in prison.
Wooster police learned about a heroin overdose victim who on Nov. 3 was brought to an emergency room unresponsive and appeared to be deceased. He was revived after emergency-room staff administered 12 doses of Narcan. Investigators traced the sale of heroin to Frizzell, according to court documents.
Frizzell also sold heroin on Oct. 29 and Nov. 2 that resulted in overdoses. All three people who overdosed were revived with Narcan, according to court documents.
Frizzell made a call from jail to an unknown male and instructed him to go to the home of one of the people who overdosed called and get him “in line,” according to court documents.
“Heroin has caused devastation throughout Ohio and no corner of the state is immune,” said Acting U.S. Attorney David A. Sierleja. “Aggressive enforcement, combined with increased treatment, prevention and education, is our best chance to turn around this epidemic.”
DEA Special Agent in Charge Timothy Plancon stated: “Overdoses and overdose deaths related to heroin have become an epidemic across the country and Ohio has been hit particularly hard by this problem. Identifying and bringing to justice those individuals that distribute illegal drugs that result in an overdose, is one of DEA’s top priorities.”
MEDWAY Director Donald Hall said: “The MEDWAY Drug Enforcement Agency will continue to collaborate and work closely with our federal partners to hold people accountable for their actions who are involved in trafficking drugs in our communities.”
This case was investigated by the Drug Enforcement Administration, the MEDWAY Drug Enforcement Agency, the Wooster Police Department and the Wayne County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Justin Seabury Gould.
Buffalo Man Sentenced in Connection with Drug Trafficking Ring Linked to A Mexican Drug CartelRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Manuel Lua Guizar, 27, of California, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more or cocaine, and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine. In addition, co-defendant Bryant Hudson, 37, of Tonawanda, NY, who was convicted of structuring transactions, was sentenced to 33 months in prison by Judge Wolford.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between February 2014, and April 2015, the defendant obtained multiple kilograms of cocaine to distribute in cities including Buffalo, and Chicago, IL. Guizar received Fed-Ex packages, which typically contained two kilograms of cocaine. The packages were addressed to his name or the name of a co-conspirator. The defendant would then sell the cocaine to local area drug traffickers.
In August 2014, the defendant was detained in the Minneapolis Airport with a co-defendant on their way to Chicago after the two had been in Buffalo just days prior. During this detention, a drug ledger was seized along with over $12,000 in U.S. currency, which were the proceeds of drug sales. Most of the drug proceeds were sent back to California by structured deposits under the $10,000 reporting requirement in Bank of America accounts. The defendant made over 40 structured deposits (mostly amounts of $9,900) in Buffalo alone. Guizar traveled, sometimes with co-defendant Hudson, to various Bank of America branches to make these deposits. Surveillance footage shows the defendant making such deposits. Hudson assisted in the depositing of drug proceeds in accounts at Bank of America branches in the Buffalo area in order to move the proceeds from Buffalo to California and avoid detection.
Guizar and his co-conspirators accounted for over $1,000,000 in structured deposits in Buffalo, and over $10,000,000 in structured deposits nationwide during this timeframe. A ledger for structured deposits was recovered from a stash house in California. This ledger listed deposits made into various accounts. In that stash house, law enforcement recovered Fed-Ex packaging materials, 21 kilograms of cocaine, and three kilograms of heroin. Law enforcement also recovered multiple kilograms of cocaine and heroin from packages that were supposed to be shipped to co-conspirators of the defendant.
A total of nine defendants have been indicted in this sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of the Los Angeles, California area. The organization shipped drugs to various states including New York, New Jersey, Illinois, Colorado, and Ohio. To date, two defendants have been convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea and sentencing are the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.Guizar’s sentencing is scheduled for December 12, 2017, at 10:00 a.m. before Judge Wolford.
Brazilian National Charged with ATM SkimmingRead the Press Release
BOSTON – A Brazilian national was indicted today in federal court in Boston in connection with using gift cards to withdraw over $6,000 from bank accounts that did not belong to him.
Hellison Benazi de Souza, 37, was indicted on one count of using counterfeit access devices (debit cards); one count of possessing fifteen or more counterfeit access devices (debit cards); three counts of possessing device-making equipment (skimming devices installed on ATMs in Malden and Saugus); one count of illegal transactions with an access device (other persons’ debit cards); and two counts of aggravated identity theft.
According to the complaint affidavit, on May 25, 2017, Benazi de Souza used ATMs at three banks in Lynn to withdraw over $6,000 from various accounts that did not belong to him. Law enforcement officers immediately apprehended Benazi de Souza, arrested him, and impounded his rental car.
While executing a search warrant for the car, officers found thousands of dollars in cash, all in $20 bills. Officers also found over 200 gift cards with small stickers on them. Agents learned that 15 of the cards matched debit cards associated with valid JPMorgan Chase bank accounts from which unauthorized withdrawals had been made at the three banks in Lynn on May 25, 2017. When questioned, Benazi de Souza admitted using the cards to withdraw money from ATMs and admitted that the stickers on the cards contained the cardholders’ PINs.
The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release, and a fine of up to $250,000. The charges of using counterfeit access devices and possessing fifteen or more counterfeit access devices provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charges of possessing device-making equipment and illegal transactions with an access device provide for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. Benazi de Souza will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore Man Sentenced to 15 Years in Prison in Violent Crack Cocaine and Heroin ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On August 15, 2017, U.S. District Judge James K. Bredar sentenced Theodore Smith (AKA Money), age 41, of Baltimore, Maryland, to 180 months in prison followed by 5 years of supervised release for conspiracy to possess with the intent to distribute crack cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA) Baltimore District Office; Baltimore Police Commissioner Kevin Davis and Chief James W. Johnson of the Baltimore County Police Department.
Smith was a member of a drug trafficking conspiracy, which, according to his plea agreement, operated an open-air drug market near the 600 block of Glenwood Avenue in the Woodbourne-McCabe neighborhood of Baltimore. Smith and his co-conspirators oversaw the distribution of the organization's signature orange-top vials of crack cocaine throughout various locations in Baltimore. Members of the conspiracy purchased cocaine and converted it to crack by cooking it in their stash houses. Smith and his co-conspirators used residences in and around North Baltimore to cut, package, and store the narcotics.
According to the plea agreement, Smith was in charge of overseeing and managing the distribution of crack cocaine on the streets, collecting proceeds from sales, making sure the organization had a sufficient supply of cocaine, and cooking cocaine into crack cocaine.
On June 16, 2016, law enforcement seized over 1100 orange-top vials of crack cocaine from a stash house used by the organization.
Some members of the conspiracy committed acts of violence in furtherance of the organization's activities and routinely carried firearms. In an attempt to avoid detection, Smith and his co-conspirators frequently changed phones and conducted counter surveillance of law enforcement. The proceeds from the sale of the narcotics were used to expand the drug operation and to pay for legal counsel for other members who were arrested for trafficking narcotics.
The other members of the conspiracy included
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Darryl Scott, age 32, of Baltimore, Maryland
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Sentenced to 135 months in prison, followed by 5 years of supervised release
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Anthony Hart, age 34, of Baltimore, Maryland
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Sentenced to 168 months in prison, followed by 5 years of supervised release
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Tarik Brooks, age 42, of Baltimore, Maryland
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Sentenced to 151 months in prison, followed by 5 years of supervised release
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Jermaine Epps, age 42, of Baltimore County, Maryland
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Sentenced to 108 months in prison, followed by 4 years of supervised release
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Darren Farmer, age 27, of Baltimore, Maryland
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Sentenced to 120 months in prison, followed by 4 years of supervised release
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Terry Downs, age 24, of Baltimore, Maryland
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Sentenced to 60 months in prison, followed by 4 years of supervised release
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Asante Leroy Marshall, age 23, of Baltimore, Maryland
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Sentenced to 50 months in prison, followed by 4 years of supervised release
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Eddie Lewis, age 25, of Baltimore, Maryland
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Sentenced to 106 months in prison, followed by 4 years of supervised release
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Charles Gilliam, Jr, age 49, of Baltimore County, Maryland
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Has pled guilty, awaits sentencing
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Leon Koger, age 46, of Baltimore, Maryland
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Has pled guilty, awaits sentencing
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Akia Owens, age 31, of Baltimore, Maryland
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Has pled guilty, awaits sentencing
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Gilliam, Koger and Owens remain detained while they await sentencing.
Acting United States Attorney Stephen M. Schenning commended the DEA, the Baltimore City Police and the Baltimore County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Derek Hines and Leo Wise, who prosecuted the case.
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Arcadia Residents Pleads Guilty to Filing False Tax ReturnRead the Press Release
SAN FRANCISCO – Anthony Arroyo and Maria Maybelene Arroyo pleaded guilty in federal court in San Francisco today to filing false tax returns, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable William H. Orrick, U.S. District Judge, following the June 16, 2017, filing in federal court charging the Arroyos with filing false tax returns.
According to the plea agreement, the Arroyos, residents of Arcadia, Calif., filed joint federal income tax returns for 2006 through 2010 that underreported their income. Specifically, the Arroyos worked together to hide more than $690,000 of the couple’s income from the Internal Revenue Service. The defendants concealed the income from the individual who prepared their tax returns and then signed and caused to be filed tax returns which omitted the income.
The Arroyos were both charged in an information with a single count of filing false tax returns, in violation of 26 U.S.C. § 7206(1). Pursuant to today’s agreement, the both defendants pleaded guilty to that count. The Arroyos both are scheduled to appear Judge Orrick on November 30, 2017, at 1:30 PM for sentencing.
The maximum penalty for a violation of 26 U.S.C. § 7206(1), is three years’ imprisonment and a fine of $250,000. In addition, a fine and a term of supervised release may be imposed; however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.Assistant U.S. Attorneys Gary Fry and Michael G. Pitman are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Albuquerque Felon Pleads Guilty to Federal Commercial Armed Robbery, Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Virgal Malott, 23, of Albuquerque, N.M., pled guilty today in federal court to armed robbery of a commercial business, carjacking and firearms charges under a plea agreement that recommends a prison sentence within the range of 15 to 20 years.
In announcing the guilty plea, Acting U.S. Attorney James D. Tierney said that Malott, whose criminal history includes at least three prior felony convictions, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
On Feb. 14, 2015, officers of the Albuquerque Police Department (APD) arrested Malott on outstanding state felony warrants. Following Malott’s arrest, APD executed a state search warrant at Malott’s residence as part of its ongoing investigation into a series of armed robberies of Albuquerque-area businesses. During the search, APD found a loaded firearm, which provided the basis for a federal criminal complaint charging Malott with being a felon in possession of a firearm and ammunition that was filed on Feb. 18, 2015, by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). In June 2015, Malott was charged in an 11-count indictment with violating the Hobbs Act by robbing seven businesses engaged in interstate commerce, carjacking, using and brandishing a firearm during crimes of violence, and being a felon in possession of a firearm. The indictment alleged that Malott committed the crimes in Bernalillo County, N.M., from Dec. 2014 to Jan. 2015.
The indictment was superseded in Aug. 2015, to add two more defendants, Gabriel Sanchez, 28, and Paul Lujan, 22, both of Albuquerque, and two more charges. The superseding indictment charged the three men with conspiring to violate the Hobbs Act by robbing businesses engaged in interstate commerce in Jan. 2015, the armed robbery of five Albuquerque-area businesses, and using and brandishing firearms during crimes of violence. It also charged Malott alone with the armed robbery of two additional Albuquerque-area businesses, carjacking, and with being a felon in possession of a firearm. The superseding indictment alleged that the three men committed the crimes charged in Bernalillo County between Dec. 2014 and Jan. 2015.
During today’s proceedings, Malott entered a guilty plea to three counts of the superseding indictment charging him with the armed robbery of a business engaged in interstate commerce, carjacking, and using and brandishing a firearm during a crime of violence. In entering the guilty plea, Malott admitted robbing a title loan business located in Albuquerque on Dec. 22, 2014. Malott acknowledged being armed with a firearm when he committed the robbery. He also acknowledged pointing the firearm at the business’s three employees and threatening to kill them. Malott also admitted committing a carjacking on Jan. 19, 2015, by pointing a firearm at an individual who was at an Albuquerque convenience store and demanding the individual’s wallet and keys. Malott fled from the scene in the individual’s vehicle.
On Aug. 15, 2017, Lujan pled guilty to a felony information charging him with using and carrying a firearm during a crime of violence. In entering the guilty plea, Lujan admitted that on June 30, 2015, he acted as the getaway driver during the armed robbery of the Loan Max Title Loan in Albuquerque. Lujan further admitted that he discarded a firearm while running from the police following the armed robbery. Under the terms of his plea agreement, Lujan will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
Malott was arrested in Nov. 2015, and Lujan was arrested in Dec. 2015. Both men remain detained pending sentencing hearings, which have yet to be scheduled.
Sanchez was arrested on Dec. 31, 2015, and has entered a not guilty plea to the superseding indictment; he remains in custody pending trial, which has yet to be scheduled. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and by APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Rumaldo A. Armijo and David M. Walsh are prosecuting the case.
31 Members and Associates of Two Rival Poughkeepsie Street Gangs Charged in Federal Court with Murders, Attempted Murders, Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), William V. Grady, Dutchess County District Attorney, Thomas Pape, Chief of Police for the City of Poughkeepsie, Adrian Anderson, Dutchess County Sheriff, and George P. Beach, the Superintendent of the New York State Police (“NYSP”), announced today the unsealing of two indictments charging 31 members and associates of two rival street gangs operating in Poughkeepsie, New York: Uptown and Downtown. The gangs are charged in two separate Indictments – United States v. Douglas Owens et al., 17 Cr. 506 (NSR) (the “Uptown Indictment”), and United States v. Ronald Johnson et al., 17 Cr. 505 (the “Downtown Indictment”) – with murders, attempted murders, racketeering conspiracy, narcotics conspiracy, and firearms offenses.
Acting U.S. Attorney Joon H. Kim said: “As alleged in the indictments unsealed today, two violent Poughkeepsie street gangs have been at war with each other for the last several years. Their war has left in its wake a bloody trail of tragedy – alleged murders, attempted murders, shootings, and rampant drug dealing. One of the innocent victims of this alleged gang war was Caval Haylett, an 18-year-old basketball star whose bright future and promise was extinguished on March 9, 2016, in a hail of senseless gunfire. With today’s charges and arrests, we seek to dismantle these gangs from the top down, and together with our federal and local law enforcement partners, we seek to stem the tide of gun violence and drug dealing in Poughkeepsie. When gangs flourish, neighborhoods suffer, parents grieve, and children die; it is as simple as that. And we will not sit by and let that happen.”
FBI Assistant Director William F. Sweeney Jr. said: “Two young lives were lost in the alleged ongoing criminal activity of these street gangs. We will not sit idly in the midst of violence, as shown by the diligent and dedicated work of our FBI Hudson Valley Safe Streets Task Force and our law enforcement partners. As gang rivalry continues to stir strife in our community, we won't stop or slow down in our pursuit to take these members off the streets and keep our residents safe.”
District Attorney William V. Grady said: “There is no question that gang activity in our community has resulted in drug dealing, shootings, violent crimes and homicides, and this cannot be tolerated. All possible efforts must and are being made to insure that our community is a safe place to live and work. These indictments today send a clear message that law enforcement agencies at all levels will join forces to insure that these violent offenders are held accountable and removed from our streets.”
Chief of Police Thomas Pape said: “On December 23, 2012, a senseless act of violence took the life of a young resident of Poughkeepsie. This act was the beginning of many more shootings and homicides that plagued our City and took the lives of too many young men. Today, through the cooperation of federal, state and local law enforcement, the persons responsible have been taken into custody and will have to answer for their actions. I want to personally thank the United States Attorney, Mr. Kim, his office, and all of the law enforcement agencies that through a collaborative effort, removed these violent individuals from our community.”
Dutchess County Sheriff Adrian Anderson said: “Today was an enormous victory for law enforcement by the taking of these individuals off of our streets. These charges are evidence of the strong commitment that we share with other law enforcement agencies, both local and federal, and should serve as a great example of what can be achieved when everyone works together. I commend all of those involved for their outstanding efforts to remove dangerous individuals from our communities and prosecute them to the fullest extent.”
NYSP Superintendent George P. Beach said: “This investigation is another example of our law enforcement partners working collaboratively to put an end to the dangerous gang activity that brings violence and crime into our neighborhoods. I commend all of our law enforcement partners for their hard work in dismantling these rival gangs and for their commitment to making our neighborhoods safer. We have no tolerance for those who bring drugs and the threat of violence to our communities.”
According to the Indictments[1] unsealed today in White Plains and Manhattan federal court and other documents in the public record:
The Indictments arise from a joint investigation by the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County District Attorney’s Office, and the Dutchess County Sheriff’s Office into the gang war between Uptown and Downtown, which has led to multiple fatal and non-fatal shootings between 2012 and the present in the City of Poughkeepsie.
Uptown is a criminal organization whose members referred to themselves by, and were known by, several different names. Those names include the “Spready Gang,” the “400 Savages,” the “Boogotti Boys,” and the “Mob Stars.” Uptown gang members referred to themselves by different combinations of these names, all of which referred to the same criminal enterprise: the Uptown street gang. Uptown is based within the eastern portion of Poughkeepsie, from east of Hamilton Street to the city line and, more specifically, within the Hudson Gardens housing development (commonly referred to as the “Bricks”). Uptown gang members and associates control the narcotics trade within the Bricks, distributing primarily heroin, crack cocaine, and marijuana. Uptown gang members stored shared guns in various locations known to gang members to protect the narcotics business, to protect each other from rival gangs, and to strike against rival gangs. The case of United States v. Douglas Owens et al. charges 12 members and associates of Uptown, including its leaders: DOUGLAS OWENS, a/k/a “Born Truth,” and JIHAD WILLIAMS, a/k/a “Goodie.”
Downtown, like Uptown, is the name of a large-scale criminal organization that went by many different names. Those names include the “420 Boys,” “L-Block,” “Most Hated,” “Hamo Gang,” the “C-Eazy Gang,” and the “Bully Hard Hunna” faction of the Bloods street gang. Despite the existence of several different names, each one referred to the same criminal enterprise: the Downtown street gang. Downtown’s base of operations was located in the western portion of Poughkeepsie, from west of Hamilton Street to the Hudson River and, particularly, within the Martin Luther King and Rip Van Winkle housing developments (commonly referred to as the “Ville” and “Rip,” respectively). Downtown gang members and associates controlled the narcotics trade within the Ville, Rip, and the surrounding area, also distributing primarily resale amounts of heroin, crack cocaine, and marijuana. Downtown gang members also stored their shared firearms in different locations known to members and associates. This allowed Downtown gang members to arm themselves quickly when confronted by rivals and to protect each other and their narcotics business. The case of United States v. Ronald Johnson et al. charges 19 members and associates of Downtown, including its leader: RONALD JOHNSON, a/k/a “Top Gun.”
In addition to countless non-fatal acts of violence against rival gang members and innocent victims, the rivalry between Uptown and Downtown has led to the following two murders:
- The murder of Downtown gang member Daquell LeBlanc, a/k/a “Hamo,” who was killed by a single gunshot wound to the chest at the age of 16 in the vicinity of Main Street, between Academy and North Hamilton Streets, on or about December 23, 2012.
- The murder of Caval Haylett, 18, an innocent bystander and local high school basketball star, who was killed by a single gunshot wound to the head while attending a barbeque in the vicinity of Winnikee Avenue and Harrison Street, on or about March 9, 2016.
* * *
In a coordinated operation, 11 defendants were arrested in and around Dutchess County yesterday and early this morning, one defendant was arrested in North Carolina, and one defendant was arrested in Florida. The Uptown defendants will be presented later this afternoon in Manhattan federal court, while the Downtown defendants will be presented later this afternoon in White Plains federal court. Eighteen defendants were in custody on state charges and will be transferred to federal custody in the next day. Charts identifying each defendant, the charges, and the maximum penalties are below.
Mr. Kim praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the Dutchess County Drug Task Force, as well as the United States Marshals’ Service, the New York State Police, and the New York State Department of Corrections and Community Supervision for their assistance in today’s arrests. Mr. Kim also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Christopher J. Clore and Maurene Comey are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Douglas Owens et al.
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Racketeering Conspiracy
DOUGLAS OWENS
a/k/a “Born Truth”
JIHAD WILLIAMS
a/k/a “Goodie”
NICHOLAS HARRIS
a/k/a “Bados”
DIMETRI MOSELEY
a/k/a “Pancho”
JAQUEZ HILL
a/k/a “Quezzy”
a/k/a “Quez”
MARKEL GREEN
a/k/a “Booge”
RAHEIM MILLER
a/k/a “Bigs”
a/k/a “Bigs Miller”
a/k/a “Trippy”
CHRISTIAN BLADES
a/k/a “C Blades”
a/k/a “JT”
ASHANTI BUNN
a/k/a “Shan D”
RAYSHAWN CASANOVA
a/k/a “Cass”
a/k/a “Uber Jack”
TREQUON DANCY
a/k/a “Trigga Tre”
a/k/a “Tre Pound”
RASHMI RUPARELIA
a/k/a “Baby Rash”
20 years in prison
Count Two
Murder in Aid of Racketeering
MARKEL GREEN
RAHEIM MILLER
Life in prison
Count Three
Murder in Aid of Racketeering
NICHOLAS HARRIS
DIMETRI MOSELEY
JAHQUEZ HILL
Life or the death penalty with a mandatory minimum of life
Count Four
Firearms Offense
RASHMI RUPARELIA
JIHAD WILLIAMS
Life in prison with a mandatory minimum of 5 years’ in prison
Count Five
Firearms Offense
CHRISTIAN BLADES
ASHANTI BUNN
RAYSHAWN CASANOVA
Life in prison with a mandatory minimum of 10 years’ in prison
Count Six
Firearms Offense
MARKEL GREEN
RAHEIM MILLER
Life in prison with a mandatory minimum of 10 years’ in prison
Count Seven
Firearms Offense
NICHOLAS HARRIS
DIMETRI MOSELEY
JAHQUEZ HILL
Life in prison with a mandatory minimum of 10 years’ in prison
DEFENDANT
AGE
DOUGLAS OWENS
34
JIHAD WILLIAMS
26
NICHOLAS HARRIS
25
DIMETRI MOSELEY
23
JAHQUEZ HILL
19
MARKEL GREEN
21
RAHEIM MILLER
21
CHRISTIAN BLADES
24
ASHANTI BUNN
30
RAYSHAWN CASANOVA
21
TREQUON DANCY
22
RASHMI RUPARELIA
41
United States v. Ronald Johnson et al.
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Racketeering Conspiracy
RONALD JOHNSON
a/k/a “Top Gun”
MARKUS ANDERSON
a/k/a “Sparks”
SAVON BAGBY
a/k/a “Baggs”
NATQUAN CATTS
a/k/a “Nate”
a/k/a “Scoop”
JAHQUEZ COLEMAN
a/k/a “Quez the Rapper”
a/k/a “Quez”
WALTER COLEMAN
a/k/a “BB”
CHEVEZ DERELLO
a/k/a “Vezy”
LEONARD DERELLO
a/k/a “Lenny Boy”
TYRECK DOUGLAS
a/k/a “Little Ty”
ERVING FERZAN
a/k/a “Erv”
RAKEE JOHNSON
a/k/a “Spaz”
a/k/a “Zetho”
COREY LATIMER
a/k/a “Fonzi”
ANTOINE MCKINNON
a/k/a “Twon”
a/k/a “Cuzzi”
WAYNE MORGAN
a/k/a “Chum Chum”
GORDON RIDDICK
a/k/a “Stacky G’s”
a/k/a “Stacks”
KEENAN WATTS
a/k/a “Milleone”
a/k/a “Mills”
20 years in prison
Count Two
Attempted Murder in Aid of Racketeering
TYRECK DOUGLAS
GORDON RIDDICK
MARKUS ANDERSON
10 years in prison
Count Three
Attempted Murder in Aid of Racketeering
TYRECK DOUGLAS
10 years in prison
Count Four
Narcotics Conspiracy
CARLOS OCASIO
a/k/a “Pimp”
a/k/a “Leak”
KWAMENE WILLIAMS
a/k/a “Kwa”
a/k/a “Rich Quality”
GLORIOUS LANDUM
a/k/a “Gus”
RAKEE JOHNSON
a/k/a “Spaz”
a/k/a “Zetho”
Life in prison with a mandatory minimum of 10 years’ in prison
Count Five
Firearms Offense
MARKUS ANDERSON
JAHQUEZ COLEMAN
CHEVEZ DERELLO
LEONARD DERELLO
RAKEE JOHNSON
COREY LATIMER
ANTOINNE MCKINNON
GORDON RIDDICK
Life in prison with a mandatory minimum of 5 years’ in prison
Count Six
Firearms Offense
TYRECK DOUGLAS
Life in prison with a mandatory minimum of 10 years’ in prison
Count Seven
Firearms Offense
GLORIOUS LANDRUM
Life in prison with a mandatory minimum of 5 years’ in prison
DEFENDANT
AGE
RONALD JOHNSON
33
MARKUS SPARKS
24
SAVON BAGBY
19
NATQUAN CATTS
22
JAHQUEZ COLEMAN
22
WALTER COLEMAN
43
CHEVEZ DERELLO
25
LEONARD DERELLO
22
TYRECK DOUGLAS
23
ERVING FERZAN
27
RAKEE JOHNSON
25
GLORIOUS LANDRUM
27
COREY LATIMER
23
ANTOINNE MCKINNON
43
WAYNE MORGAN
21
CARLOS OCASIO
36
GORDON RIDDICK
23
KEENAN WATTS
23
KWAMENE WILLIAMS
27
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
300th Bay Area Resident Prosecuted for Federal Passport OffensesRead the Press Release
SAN FRANCISCO – Federal authorities continue to devote resources to investigating and prosecuting federal passport offenses, announced United States Attorney Brian J. Stretch and U.S. Department of State, Diplomatic Security Service Special Agent in Charge Matthew Perlman.
The below listed defendants are part of more than 300 Bay Area residents who have been charged with false passport-related offenses since 2007. Illustrative of the cases being pursued are the following seven cases, each of which involves a defendant accused or convicted of misrepresenting their identity on applications for United States passports or committing related offenses in violation of either 18 U.S.C. § 1542, pertaining to making false statements on an application for a passport, or 18 U.S.C. § 1028, pertaining to fraud in connection with identification documents:
CONVICTED:
Victor Ortiz Soto, of San Jose, Calif., was convicted of applying for a United States passport using a fraudulent California ID card. In December of 2016, Ortiz Soto was sentenced to three years of probation.
Judith Hernandez-Castaneda, of San Jose, Calif., was convicted of applying for a United States passport using an unlawfully issued driver’s license. Hernandez-Castaneda was sentenced in May of 2017 to serve four months of home confinement and three years of probation.
Tendai Mashamba, of Mountain View, Calif., was convicted of possessing an unlawfully issued United States passport. Mashamba was sentenced to three years of probation in August, 2016.
Juan Palaminos Torres, of Sunnyvale, Calif., pleaded guilty in June of 2017 to applying for a United States passport using a previously unlawfully issued passport. He is scheduled to be sentenced by the Honorable Lucy H. Koh, United States District Judge, in San Jose on October 11, 2017.
Sukhvinder Singh, of Livermore, Calif., is alleged to have applied for a United States passport and to have made several false statements, including that he was born in the United States. Singh was arrested in January 2017, and pleaded guilty on June 28, 2017. Singh’s sentencing is set for 10:30 a.m. on October 11, 2017, before the Honorable James Donato, United States District Judge, in San Francisco.
CHARGED (Please note, charges described in this document contain only allegations and, as with all defendants, the defendants in the cases listed below must be presumed innocent unless and until proven guilty beyond a reasonable doubt.):
Efrain Cagal, of Sunnyvale, Calif., is alleged to have applied for a United States passport and to have made several false statements, including that he was born in the United States. Cagal was arrested in April, 2017, and his case remains in progress. Cagal’s next scheduled appearance is set for 9:30 a.m. on July 17, 2017 before the Honorable Kandis Westmore, United States Magistrate Judge, in Oakland.
Laura Selene Rios Flores, formerly of San Jose, Calif., is alleged to have applied for a passport in another person’s name and also is alleged to have used a fraudulently obtained a passport to travel. In addition, Flores has been charged with aggravated identity theft, in violation of 18 U.S.C. § 1028A. Flores was arrested in June, 2017, in Antelope, Calif., and her case remains in progress. Flores’ next appearance is scheduled for September 26, 2017, before the Honorable Beth Labson Freeman, United States District Judge, in San Jose for a status conference.
Anyone with information about false or fraudulently issued passports or entry visas, or the whereabouts of the above fugitives, is encouraged to contact the Diplomatic Security Service at (415) 705-1176.
16 August 2017
Woodford County Man Sentenced to 28 Years for Distributing Fentanyl Resulting in Fatal OverdoseRead the Press Release
LEXINGTON, Ky. – The leader of a drug conspiracy in Versailles, Ky., has been sentenced to federal prison, for distributing fentanyl that resulted in the overdose death of a Woodford County woman.
Chief U.S. District Judge Karen K. Caldwell formally sentenced Luis Aguirre-Jerardo, age 29, of Versailles, Ky., to a term of 28 years. Aguirre-Jerardo had previously admitted that he distributed fentanyl – an extremely powerful opioid that can be as much as 50 times stronger than heroin – to Jolene Bowman, who died as a result of ingesting the drug. He specifically admitted that he distributed counterfeit pills, which were marked to resemble legitimate oxycodone tablets but instead contained the more-potent fentanyl. Aguirre-Jerardo distributed approximately 25 of these counterfeit pills to a co-Defendant, Gill Dewayne Garrett, who sold one to Jolene Bowman, causing her fatal overdose, on July 1, 2015, in Versailles. Garrett also pled guilty to the charge and was sentenced to 20 years. Aguirre-Jerardo pled guilty in August of 2016.
“This case is a direct result of the launch of our Overdose Prosecution Initiative and has taken both a dangerous drug dealer and his source of supply off our streets, for a very long time,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Eastern Kentucky has been devastated by opioid abuse and our office remains committed to its comprehensive approach to fighting the epidemic, including our continued emphasis on pursuing overdose prosecutions under federal law. The great work of our law enforcement partners in this case has helped make our overdose initiative a real success and a strong tool in combatting this scourge on our community.”
Under federal law, Aguirre-Jerardo must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for ten years.
Acting United States Attorney Shier; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; and Chief James Fugate, Versailles Police Department, jointly made the announcement.
The investigation was conducted by the Drug Enforcement Administration and the Versailles Police Department. The United States was represented by Assistant United States Attorney Todd Bradbury.
Woman Pleads Guilty, Man Sentenced in $2.25 Million Internet Steroids DistributionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Venice, Calif., woman pleaded guilty in federal court today to her role in a $2.25 million conspiracy to sell anabolic steroids over the Internet.
Brittainy N. Baker, 29, of Venice, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to manufacture and distribute anabolic steroids from December 2011 to February 2016.
In a separate but related case, Michael G. Peters, 29, of Pelham, New Hampshire, was sentenced today to three years in federal prison without parole. The court also ordered Peters to forfeit to the government $2.25 million, which was derived from the proceeds of the illegal drug trafficking.
Conspirators operated an Internet-based company, Power Trip, which sold various anabolic steroids to customers (including athletes and minors) throughout the United States. Conspirators required customers to pay for the steroids by using various debit cards. Customers used names and account numbers for these debit cards that were provided by conspirators. Conspirators used stolen identities to produce or obtain debit cards, such as Green Dot MoneyPak, MyVanilla, ReloadIT, NetSpend ReloadIT and BlackHawk. They required their customers to send payments to these cards in order to conceal and disguise the proceeds of the illegal transactions.
Aaron Vincent Schweidler, 32, of Smithfield, N.C., formerly of Weston, was sentenced to four years in federal prison without parole for his role in the conspiracy and for money laundering. The court also ordered Schweidler to forfeit to the government $2.25 million, which was derived from the proceeds of the illegal drug trafficking, and his residence in North Carolina. Nicole R. Lyne, 27, also of Smithfield, N.C., and formerly of Weston, was sentenced to five years of probation. Samuel C. Miller IV, 30, of Annapolis, Md., has also pleaded guilty and awaits sentencing.
Schweidler began operating this online anabolic steroid distribution business in late 2011 in Utah. Schweidler quickly sought out assistance from other conspirators, including Baker and Peters, to help collect the proceeds from the illegal drug sales. Eventually Schweidler, Baker and Peters relocated the operation to North Carolina. In 2013 Schweidler and Peters relocated the operation again to the Kansas City, Mo., area, but Baker did not relocate with them.
During Baker’s involvement in the conspiracy, she assisted in the operation by transferring over $9,000 in funds via Western Union from the United States to China to purchase raw materials utilized in the manufacture of anabolic steroids. Baker further assisted in the operation by collecting the proceeds from the illegal drug sales from customers.
Baker allowed her accounts (including Green Dot, Paypal, Bancorp, and US Bank) to be used for customer to make payments for the purchase of anabolic steroids. Baker received customer funds loaded to her Green Dot and Banccorp in excess of $30,000. Baker also received customer funds loaded to her Paypal account in excess of $35,000.
Baker assisted Schweidler by making cash deposits of drug proceeds in his bank account, purchasing postage for shipping anabolic steroids to customers and by dropping off packaged anabolic steroids for shipment at U.S.P.S. locations in Kansas City. In exchange for Baker’s services, Schweidler paid her a percentage of the proceeds collected and an amount per package she shipped.
During the early stages of the conspiracy Schweidler was the leader of the conspiracy. Over time Peters also became more involved with Schweidler in purchasing supplies and assisting in the steroid manufacturing process, as well as handling online customer orders and shipping steroids to customers.
Lyne became involved in the conspiracy when Schweidler and Peters relocated the operation to the Kansas City, Mo, area, in 2013. Lyne rented a residence in the Kansas City area that was used by conspirators to manufacture the steroids. Lyne also allowed conspirators to manufacture anabolic steroids at her residence in Weston.
Eventually Schweidler turned over more operational duties to Peters, who recruited Miller to move to Kansas City to assist in the operation. In the fall of 2014, Peters and Miller took over operational responsibilities for PowerTrip and relocated the operation back to North Carolina in an effort to avoid law enforcement detection of the operation.
During the conspiracy Schweidler personally sent in excess of $176,000 in drug proceeds to China via Western Union and MoneyGram to purchase additional raw materials to manufacture anabolic steroids.
According to Schweidler’s plea agreement, a reasonable conservative estimate of the dosage units of anabolic steroids which were reasonably foreseeable to Schweidler is over 60,000 dosage units of Testosterone Propionate, Halotestin, and other anabolic steroids. This estimate is based upon the ingredients and amounts indicated in the steroid recipe notebook recovered when Peters and Miller were arrested in North Carolina.
Utilizing the least expensive raw ingredients for the manufactured finished product (Testosterone Propionate), and utilizing the known dollar amount of raw ingredients purchased by conspirators (approximately $200,000, less shipping costs), would yield nearly 1 million grams of raw materials that could manufacture approximately 90,000 vials (approximately 900,000 dosage units based upon a 10 – 100mg dosage unit per vial). PowerTrip sold this product for $25 per vial, which results in a conservative estimate of gross proceeds of at least $2.25 million in sales.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
Wichita Falls Man Sentenced to 156 Months in Federal Prison for Charges Involving Promoting ProstitutionRead the Press Release
DALLAS — Joshua William Jackson, 29, was sentenced today by U.S. District Judge Sam A. Lindsay to 156 months in federal prison for promoting prostitution, cyberstalking and firearms offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Jackson pleaded guilty in January 2017 to one count of use of a facility of interstate commerce in aid of a racketeering enterprise, one count of illegal receipt of a firearm by a person under indictment and one count of cyberstalking. Jackson has been in custody since his arrest in April 2016.
According to plea documents filed in the case, in November 2013 Jackson began promoting V.N., an eighteen-year-old female, in prostitution. Jackson would post commercial sex advertisements on sex-based websites such as Backpage.com, and Jackson would communicate with commercial sex customers. Jackson benefitted financially from V.N.’s commercial sex activities. V.N. continued to engage in commercial sex acts at the direction of Jackson until November of 2015, when she terminated their relationship.
In January of 2016, V.N. moved into her parents’ home. Shortly after she moved in with her family, Jackson began posting commercial sex advertisements on Backpage.com for V.N. He posted such ads between January 22, 2016 and March 27, 2016, without her knowledge or permission. These advertisements contained photos of V.N. as well as V.N.’s parents’ address and Jackson’s cell phone number. Jackson, posing as V.N., communicated with commercial sex customers, and told them to go to her parents’ house where she would engage in commercial sex acts with them. Multiple men went to V.N.’s parents’ house with the intent to have sex with V.N.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the North Texas Trafficking Taskforce investigated. Assistant U.S. Attorney Cara Pierce prosecuted the case.
# # #
Virginia Man Pleads Guilty to Terrorism ChargesRead the Press Release
Lionel Williams, 27, of Suffolk, Va., pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security and U.S. Attorney for the Eastern District of Virginia Dana J. Boente; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; and Chief Thomas E. Bennett of Suffolk Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
According to the statement of facts filed with the plea agreement, Williams attempted to send money to a person he believed was an ISIS financier on two occasions, believing the money would be used to kill. In court documents, Williams admitted his interest in ISIS began in 2014. On Dec. 3, 2015, the day after the San Bernardino terrorist attack, he bought an AK-47 assault rifle. In March 2016, he publicly declared his support for ISIS on social media, described his hope that ISIS would take over the U.S., and stated he would decapitate any law enforcement agents he caught surveilling him. After donating money to an individual he believed to be an ISIS financier - but was actually a persona adopted by an FBI employee - Williams was told his donation had helped purchase a rocket-propelled grenade. He responded with an Arabic phrase meaning, “Praise be to Allah, and Allah is the Greatest.” Later in 2016, Williams began discussing plans for a martyrdom operation with a woman living outside the U.S. He asked an FBI confidential source to send him specific types of AK-47 ammunition and told an FBI employee that his plan was for a “local” operation. Williams was arrested and charged shortly thereafter. After his arrest, he told agents he supported ISIS and believed he was part of a “holy war.”
As part of the plea agreement, Williams agreed that he will receive the statutory maximum of 20 years in prison when sentenced on December 20.
Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, and Trial Attorneys Alicia H. Cook and Joshua D. Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.
Virginia Couple Pleaded Guilty to Tax Fraud and Structuring More Than $475,000Read the Press Release
A Concord, Virginia, couple pleaded guilty to tax and currency structuring charges, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
Barry Edwards, 53, pleaded guilty to corruptly endeavoring to obstruct the due administration of the internal revenue laws and Joanne Edwards, 50, pleaded guilty to filing a fraudulent tax return. Both also pleaded guilty to conspiring to structure cash transactions.
According to the plea agreements and information provided to the court, Barry and Joanne Edwards created two purported religious missions in 2006, which they used as nominees to receive income Barry Edwards earned selling nutritional supplements. The Edwards deposited this income into bank accounts they held in the nominee names. The Edwards withdrew more than $475,000 in cash from the nominee accounts, in increments less than $10,000, to evade bank-reporting requirements. They deposited the funds into their personal bank accounts to pay personal expenses including car payments and their children’s tuition. Barry also used cash to purchase a five-acre farm in Concord, Virginia. The Edwards filed fraudulent 2013 through 2015 tax returns with the Internal Revenue Service (IRS) that did not report all of their income.
Sentencing is scheduled for Jan. 18, 2018 before U.S. District Court Judge Norman K. Moon. The Edwards each face a statutory maximum sentence of five years in prison on the conspiracy count. Barry Edwards also faces a statutory maximum sentence of three years in prison for the corrupt endeavor to impair and impede the due administration of the internal revenue laws count and Joanne Edwards faces a statutory maximum sentence of three years in prison on the fraudulent return count. The Edwards also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Sean Beaty of the Tax Division and Special Assistant U.S. Attorney Kari Munro, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
U.S. Attorney’s Office and Hinesburg Police Department Resolve ADA Compliance ReviewRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that it has resolved its review of the Hinesburg Police Department’s compliance with the Americans with Disabilities Act (ADA). The compliance review focused on interactions with individuals with mental health disabilities and was initiated in January 2017, following a May 2016 incident between a Hinesburg police officer and a resident.
Throughout the compliance review, Chief Frank Koss made clear that the Hinesburg Police Department is committed to serving every member of the Hinesburg community equally and effectively. As part of the resolution of the review, the Hinesburg Police Department will revise its policies to ensure compliance with the ADA, receive additional training on interacting with individuals with mental health disabilities, and consider whether additional changes to its practices are appropriate. Chief Koss and the Hinesburg Police Department are to be commended for their collaborative approach to the compliance review.
This year marks the 27th anniversary of the passage of the ADA, which provides in part that no qualified individual with a disability shall, because of that disability, be excluded from participation in, denied the benefits of, or subjected to discrimination in the services, programs, and activities of all state or local government entities, including law enforcement.
Assistant United States Attorney Julia Torti handled this matter for the United States Attorney’s Office for the District of Vermont. The Hinesburg Police Department was represented by William Ellis of McNeil, Leddy & Sheahan PC.
For more information on the ADA, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at contact the ADA Information Line at
800-514-0301 (voice) 800-514-0383 (TTY).To file a civil rights complaint with the U.S. Attorney’s Office for the District of Vermont, visit https://www.justice.gov/usao-vt and click on “File a Civil Rights Complaint.”
U.S. Attorney’s Office Enters into Agreement with Peter Pan Bus Lines to Ensure Full Accessibility of BusesRead the Press Release
BOSTON – Peter Pan Bus Lines has entered into a settlement agreement with the United States Attorney’s Office to resolve allegations that the Springfield-based company violated Title III of the Americans with Disabilities Act (ADA) by discriminating against customers with disabilities.
Peter Pan is a major operator of fixed-route bus lines throughout the Northeast Corridor, carrying over four million passengers a year. Peter Pan allegedly failed to ensure that its motor coaches were accessible to individuals with disabilities. Although all coaches were equipped with wheelchair lifts as required by the law, lifts were not properly maintained and allegedly malfunctioned frequently, causing delays and disruptions for travelers using wheelchairs. Peter Pan drivers also allegedly failed to properly secure wheelchairs. Federal regulations under Title III of the ADA require that lifts and other accessibility equipment be properly and regularly maintained and prohibit private carriers from operating coaches with faulty equipment.
“Passengers with disabilities should be able to travel with the same convenience and dignity as other riders; they should not be subjected to delays and cancellations because of inoperable equipment,” said Acting United States Attorney William D. Weinreb. “We appreciate Peter Pan’s cooperation throughout this investigation and its commitment to ensuring that individuals with disabilities receive the same service as other passengers.”
Under the terms of the settlement agreement, Peter Pan will:
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train customer service agents, ticket agents, and bus operators on the requirements of the ADA;
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train drivers and other personnel on the use of wheelchair lifts and other accessibility equipment and institute testing of drivers’ knowledge of accessibility features; and,
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test all fixed-route coaches on a weekly basis to ensure accessibility features are operable and will remove faulty coaches from service until they are fully repaired.
Peter Pan has also agreed to pay damages to an individual identified during the investigation who encountered repeated delays due to defective accessibility equipment. On one occasion, the individual spent nearly eight hours trapped on a bus without access to essential medications due to a malfunctioning lift.
This matter was handled by Special Assistant U.S. Attorney Gregory J. Dorchak of the Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
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Two men indicted for credit card fraud and identity theft after traffic stop in BrecksvilleRead the Press Release
Two foreign nationals arrested in Brecksville after a traffic stop were indicted in federal court for having more than 370 stolen credit card account numbers and related information, said David A. Sierleja, Acting United States Attorney for the Northern District of Ohio.
A federal grand jury returned a three-count indictment charging Yasmany Luis Cabello-Morell, 29, a citizen of Cuba, and Honorio Mendoza-Herrara, 21, a citizen of Mexico, with possession of 15 or more counterfeit or unauthorized credit cards, possession of credit card-making equipment and aggravated identity theft.
Brecksville police stopped the vehicle driven by Cabello-Morell for speeding on I-77 on July 3. A search of the vehicle revealed five MasterCard gift cards that had been re-encoded with stolen credit card account information, as well as a laptop computer, a card reader/writer/encoder and two credit-card skimmer devices, according to court documents.
A subsequent search of the laptop computer revealed approximately 370 stolen credit card account numbers and related information, including the account holders’ names, according to court documents.
Assistant U.S. Attorneys Robert W. Kern and Megan R. Miller are prosecuting the case following an investigation by United States Secret Service and the Brecksville Police Department.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two charged with illegally reentering the U.S.Read the Press Release
Two Mexican nationals were charged with illegally reentering the United States, Acting U.S. Attorney David A. Sierleja said.
Jose Ramon Hernandez-Lopez, 33, who was last deported to Mexico on October 24, 2014, was found in Cuyahoga County this year, according to the indictment.
Juan Moreno-Amendariz, 38, was found in Ohio on July 18 after twice being deported from the U.S., according to a criminal information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Lopez case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the Cleveland Police Department and Immigration and Customs Enforcement, Department of Homeland Security.
The Amendariz case is being prosecuted by Assistant U.S. Attorney Gene Crawford following an investigation by Immigration and Customs Enforcement, Department of Homeland Security.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Defendants Sentenced to 20 and 4 Years for Child Sex TraffickingRead the Press Release
Oklahoma City, Oklahoma – MAURICE MORLEE JOHNSON, 37, of Oklahoma City, Oklahoma, was sentenced today to 240 months in federal prison for child sex trafficking of 14- and 15-year-old girls, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. In a related case, TONYA GAY GUM, 44, of Oklahoma City, Oklahoma, was sentenced today to 48 months in federal prison for conspiracy to commit child sex trafficking.
According to court records, in October 2014, Maurice Johnson, assisted by Hiram Mitchell, engaged in sex trafficking of two juvenile females (aged 14 and 15) and an adult female. As soon as the 14-year-old was recruited, Johnson instructed her to start calling phone numbers from the escort section of the Yellow Pages to find Tonya Gum, whom he knew as "Carmen." At the time, Gum operated at least twenty phone numbers listed in the escort section of the Oklahoma City Yellow Pages. The 14-year-old victim made contact with Gum and sent her photographs of herself and the adult female. After that, Gum began arranging commercial sex transactions between her established customer base (or new customers who called her phone lines) and the females under Johnson’s control. Johnson drove the girls to hotels, residences, and commercial spaces, where the customers paid in cash for sex. After each commercial sex transaction, Gum met the girls at different locations in the Oklahoma City metropolitan area to receive the proceeds, which Gum and Johnson split. They did not give any money to the victims they trafficked.
A federal grand jury indicted Johnson on December 3, 2014. He pled guilty to child sex trafficking on January 30, 2015, before U.S. District Judge Robin J. Cauthron. He will serve five years on supervised release after his 240-month prison term.
Gum was indicted by a federal grand jury on June 16, 2015, along with co-defendant customers. On November 19, 2015, she pled guilty to conspiracy to commit child sex trafficking, also before Judge Cauthron. She will serve three years on supervised release after her 48-month sentence.
Hiram Mitchell is currently serving a prison term of ten years after his guilty plea to child sex trafficking on January 29, 2015.
In June 2017, one of the group’s customers, Curtis Anthony, was found guilty of conspiracy to engage in child sex trafficking and the substantive offense of child sex trafficking after a jury trial. Trung N. Duong, another customer co-defendant of Gum and Anthony, pled guilty to conspiracy to commit child sex trafficking on May 9, 2017. Duong and Anthony await sentencing.
These cases are the result of an investigation conducted by United States Department of Homeland Security and the Oklahoma Bureau of Narcotics and Dangerous Drugs. The case against Johnson was prosecuted by Assistant U.S. Attorneys McKenzie Anderson and Brandon Hale. The case against Gum was prosecuted by Assistant U.S. Attorneys McKenzie Anderson and David Petermann.
Two Convenient Store Managers Sentenced on Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – Larry White, Sr., 63, and Erica White, 35, both of Sikeston, were sentenced today – Larry to 33 months in prison and Erica to 1 year and 1 day in prison on charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT), for the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Larry White was manager of Stop-n-Go Fish Market in Sikeston, and his daughter Erica White was manager of Stop-n-Go Mini Mart Store in New Madrid. Both admitted that they illegally redeemed up to $549,000 in SNAP benefits between December 2010 and March 2014 by exchanging SNAP benefits for cash and illegible items.
Both pled guilty in May to multiple felony counts of unauthorized use of SNAP benefits and conspiracy. Both appeared today before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety and the New Madrid County Sheriff’s Office. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
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