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Thursday 29 June 2017
Office Manager at A Tulsa Heating and Air Company Pleads Guilty to Wire FraudRead the Press Release
Cynthia Renee Scarsdale, 55, of Tulsa, pled guilty to two counts of Wire Fraud, announced Loretta F. Radford, Acting United States Attorney for the Northern District of Oklahoma. United States District Court James H. Payne will sentence Scarsdale on September 27, 2017.
Scarsdale was the office manager at A&R Mechanical, Inc. in Tulsa. Beginning as early as January 2005 and continuing until about March 2013, Scarsdale forged checks and fraudulently wired money from A&R’s corporate accounts into her own personal accounts. In order to disguise her schemes, she entered false data into A&R’s accounting records. Scarsdale embezzled at least $333,133 from her employers at A&R Mechanical, Inc.
She faces a maximum sentence of twenty years of imprisonment, a $666,266 fine, and three years of supervised release following a sentence of imprisonment. This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Joseph F. Wilson and Neal C. Hong.
New Milford Loan Shark Sentenced to 2 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES BRODERICK III, 59, of New Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for his role in an extortion conspiracy.
According to court documents and statements made in court, in late December 2015 to early January 2016, BRODERICK lent an individual approximately $1,500 with an understanding that the individual was required to pay Broderick $1,500, plus an additional $500 in interest, within four days of the initial loan. When the individual failed to pay the loan within four days, BRODERICK asked Howard Hammer to assist him in collecting on the loan. Hammer then sent text messages to the victim that threatened harm to the victim if he failed to pay his debt. Hammer took screen shots of the threatening text messages and forwarded them to BRODERICK. BRODERICK and Hammer also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.
On January 25, 2016, members of the New Milford Police Department received a 911 call and responded to a local hotel where they found the victim of this extortion scheme, beaten and bloodied, in a room at the hotel. The victim had been stabbed eight times in back, causing internal injuries, and had suffered severe fractures to his skull and facial bones. The investigation revealed that members of the Hells Angels motorcycle club had stabbed the victim and beaten him with a hammer in connection with this extortion scheme.
BRODERICK also made several extortionate loans to a second victim. When the victim was unable to repay the usurious interest amounts, which were at least 10 percent of the principal per week, BRODERICK repeatedly threatened to use force to collect the debt. Over the course of three years, BRODERICK collected more than $20,000 in interest payments from this second victim.
BRODERICK and Hammer were arrested on May 27, 2016.
On December 7, 2016, BRODERICK pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means.
On December 2, 2016, Hammer, of New Milford, pleaded guilty to the same charge. On June 1, 2017, he was sentenced to 30 months of imprisonment.
This matter was investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
New London Man Sentenced to Nearly 20 Years in Prison for Role in 2012 HomicideRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW AVILES, also known as “P.A.” and “Papo,” 30, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 237 months of imprisonment, followed by five years of supervised release, for his role in the September 2012 homicide of Javier Reyes of New London.
According to court documents and statements made in court, Oscar Valentin, also known as “Tato,” operated and managed a narcotics distribution enterprise at the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, Valentin was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. In September 2012, Valentin hired Nestor Pagan, also known as “Ernie” and “Naeem Medina,” to assault Javier Reyes. Pagan then hired Jose Rosado, Jr., also known as “Gugie,” and AVILES to carry out the assault of Reyes in exchange for cash.
On the evening of September 12, 2012, Reyes, 36, was stabbed multiple times outside of his apartment at 187 Huntington Street in New London, and died a short time later. He also had blunt force trauma to the back of his head.
Video surveillance at the time of the attack showed Rosado, carrying a baseball bat, and another individual, creeping toward Reyes and then running away from him about 15 seconds later.
The investigation revealed that Rosado hit Reyes with the bat, knocking him to the ground. AVILES then stabbed Reyes multiple times.
On January 22, 2015, AVILES pleaded guilty to violating the Travel Act by using a facility in interstate commerce, namely a cellular telephone, with the intent to commit a crime of violence in furtherance of an unlawful activity, and thereafter committed the crime of violence.
On May 2, 2016, a federal jury found Valentin guilty of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, but could not reach a verdict on charges against Valentin and Pagan related to the assault of Javier Reyes. Valentin subsequently agreed that the government could prove that the murder of Javier Reyes was related to Valentin’s drug trafficking enterprise and, on June 22, 2017, he was sentenced to 201 months of imprisonment.
On August 11, 2016, Pagan pleaded guilty in state court to one count of conspiracy to commit assault first degree-aided by others. On August 23, 2016, he was sentenced to 17 years of incarceration. On that same date, the federal charges against him related to the assault of Reyes were dismissed. On March 7, 2017, as part of an unrelated case, Pagan pleaded guilty in federal court to one count of possession of a firearm by a convicted felon. When he is sentenced on the firearm charge, as a result of a binding plea agreement, he will be sentenced to a 10-year concurrent sentence.
On July 22, 2014, Rosado pleaded guilty to one count of committing a violent crime in aid of racketeering, and aiding and abetting the same. On February 15, 2017, he was sentenced to 60 months of imprisonment.
This matter was investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service and the New London State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
Misdemeanor Immigration Prosecutions – June 2017Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from June 2017:
Citizen of Russia Sentenced For Illegal Entry into United States
Denis Gennadyevich Kiselev, age 25, a citizen of Russia, was sentenced on June 6, 2017 to 22 days in jail following his guilty plea to illegally entering the United States. Kiselev admitted that on May 25, 2017, he walked across the border approximately 3 miles west of the Champlain Port of Entry, Champlain, New York, and that he walked south until he was stopped and arrested by Border Patrol Agents.
Citizen of Hungary Sentenced For Illegal Entry into United States
Zslot Mihaly, age 31, a citizen of Hungary, was sentenced on June 6, 2017 to 36 days in jail following his guilty plea to illegally entering the United States. Mihaly admitted that on May 24, 2017, he illegally crossed the border by boat on the St. Lawrence River near Hogansburg, New York, and was in the process of leaving the border area by car when he was arrested by Border Patrol Agents in Bombay, New York.
Citizen of United Kingdom Sentenced For Illegal Entry into United States
Michael B. Forster, a citizen of the United Kingdom, was sentenced on June 13, 2017 to time served (12 days in jail) following his guilty plea to illegally entering the United States. Forster admitted that on June 2, 2017, he crossed from Canada and into the United States by walking through a wooded area of the border, and was arrested by Border Patrol Agents after he crossed.
Citizen of Guatemala Sentenced For Illegal Entry into United States
Sergio Abrahan Arriaza-Morales, age 23, a citizen of Guatemala, was sentenced on June 27, 2017 to 15 days in jail following his guilty plea to illegally entering the United States. Arriaza-Morales admitted that on June 12, 2017, he walked across the border approximately 1 mile west of the Champlain Port of Entry, Champlain, New York, and that he continued walking until he was arrested by a Border Patrol Agent.
Citizen of Hungary Sentenced for Illegal Entry into United States
Mihaly Balazs, a/k/a Gabor Honved, age 32, a citizen of Hungary, was sentenced on June 29, 2017 to 45 days in jail and to pay a $500 fine following his guilty plea to illegally entering the United States. Balazs admitted that on May 27, 2017, he illegally entered the United States from Canada, without reporting for inspection, by taking a boat ride to a car that drove him to a motel in Fort Covington, New York,. Balazs also admitted to being picked up at the motel by a driver prior to his arrest by Border Patrol Agents in Westville, New York.
Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Fausto Guzman Guzman, age 28, and a citizen of Mexico, was sentenced today to time served (31 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Guzman admitted that he was a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on May 24, 2008.
On May 30, 2017, Guzman was arrested by ICE officers in Saratoga Springs, New York.
Following his sentencing, Guzman-Guzman was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and prosecuted by Assistant United States Attorney Edward P. Grogan.
Merrick Doctor Indicted for the Overdose Deaths of Two Nassau County Residents and Illegal Distribution of Oxycodone to an Undercover Police OfficerRead the Press Release
An indictment was returned late yesterday in the United States Court for the Eastern District of New York charging Michael Belfiore, a Merrick, New York, doctor, with two counts of illegal distribution of oxycodone causing the deaths of two Nassau County residents, Edward Martin and John Ubaghs, and 26 counts of illegal distribution of oxycodone. The defendant is scheduled to be arraigned tomorrow at 10:00 a.m. before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip, New York.
The charge was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York, and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department.
“As alleged in the indictment, Dr. Belfiore’s illegal distribution of oxycodone tragically caused the overdose deaths of two young men,” stated Acting Unitied States Attorney Rohde. “Medical professionals who issue prescriptions without a legitimate medical purpose are violating the law and will be held accountable, especially when they cause the death of the very patients they have a duty to heal.” Ms. Rohde extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case. The case was investigated by the DEA Tactical Diversion Squad-Long Island District Office (TDS-LIDO), comprised of agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department, Rockville Centre Police Department, and the Internal Revenue Service.
“We hope the message is clear that law enforcement is zeroed in on opioid traffickers, whether a dealer, or a doctor,” stated Special Agent-in-Charge Hunt. “There is no excuse for medical professionals to engage in drug dealing, especially when that dealing ends lives.”
"The indictment of Dr. Belfiore during this multi-jurisdictional investigation is another reminder that we all have to continue to enforce the laws that will make society safer,” said Commissioner Krumpter. “These illegally prescribed drugs are detrimental to all and we need to continue to arrest the individuals responsible for their distribution.”
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum sentence of 20 years’ imprisonment and a $10 million fine.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals; taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain; removed prescription authority from numerous rogue doctors; and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and Charles N. Rose are in charge of the prosecution.
The Defendant:
Name: MICHAEL BELFIORE
Age: 51
Residence: Westbury, New York
Member of Sunland Park Heroin Trafficking Ring Sentenced for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Carlos Diaz., 37, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., for his conviction on heroin trafficking charges resulting from a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M. Diaz was sentenced to an 18-month term of imprisonment followed by three years of supervised release.
The DEA’s investigation targeted a heroin trafficking organization led by Raymundo Munoz, 69, of Sunland Park, N.M., that obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Texas. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten members of the heroin trafficking ring were charged in July 2016, in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The indictment charged all ten defendants with conspiring to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also included 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
On Jan. 24, 2017, Diaz pled guilty to Count 1 of the indictment charging him with conspiracy to possess heroin with intent to distribute. In entering the guilty plea, Diaz admitted that on May 13, 2016, he asked a male individual on the phone to obtain two ounces of heroin for Diaz from a source of supply in Mexico. Diaz further admitted that the male individual placed the order for heroin with the source of supply and a female courier smuggled the heroin across the border into the United States. Diaz then met the male individual and obtained the two ounces of heroin from him.
The following defendants previously entered guilty pleas in the case:
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Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and was sentenced on May 24, 2017 to time served followed by one year of supervised release;
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Blanca Elisa Tovar, 42, of El Paso, Texas, pled guilty on Dec. 13, 2016, and faces a sentence of 24 months in prison under the terms of her plea agreement;
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Juan Francisco Rivera pled guilty on Feb. 7, 2017, and faces a sentence of 108 months in prison under the terms of his plea agreement;
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Armando Daniel Marquez, 54 of Sunland Park, N.M., pled guilty on Feb. 23, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement.
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Munoz pled guilty on March 1, 2017, and faces a sentence of 72 months in prison under the terms of his plea agreement;
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Eleodoro Sanchez, 62, of Canutillo, Texas, pled guilty on March 7, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement; and
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Sandra Francis Guzman, 53, of El Paso, Texas, pled guilty on March 21, 2017, and faces a maximum sentence of 20 years under the terms of her plea agreement.
One of the two remaining co-defendants has entered a plea of not guilty to the charges in the indictment; the second has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
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Man Sentenced to 24 Months in Prison for Cocaine DistributionRead the Press Release
St. Thomas, USVI – Acio Richards, 26, of St. Thomas, was sentenced today to 24 months in prison for cocaine distribution, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced Richards to three years of supervised release.
On February 27, 2017, Richards pleaded guilty to three counts of cocaine distribution. According to the plea agreement filed in court, Richards admitted to distributing cocaine to an undercover agent on three different occasions in November 2016. Richards further admitted that during the third transaction, he exchanged a purported half-ounce of cocaine for a Glock pistol.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Meredith J. Edwards.
Leader of Violent Drug Crew Pleads Guilty to 2016 Murder of Nelson DubonRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the plea by KENNETH RUDGE, of the Bronx, New York, to firearms charges including RUDGE’s use of a firearm in the murder of Nelson Dubon on January 21, 2016.
As part of his guilty plea, RUDGE admitted to shooting and killing Nelson Dubon, a victim of RUDGE’s robbery plot, on Park Avenue near 187th Street at an underground billiards hall, in the course of a narcotics-related robbery. RUDGE further admitted using other firearms in the course of his criminal activities with the YNR drug crew between 2012 and January 2016. RUDGE faces a maximum term of life in prison and a mandatory minimum term of 35 years in prison. RUDGE is scheduled to be sentenced later this year by the Honorable Kimba M. Wood, U.S. District Judge.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Kenneth Rudge repeatedly engaged in gun violence in furtherance of his drug trafficking, including the murder of Nelson Dubon. Four days after the murder, Rudge pistol-whipped a livery driver in a robbery attempt. And even after his arrest, Rudge tried to have fellow gang members find and silence a witness to the murder. Now, thanks to the work of the NYPD and the ATF, Rudge awaits sentencing for his murderous conduct.”
ATF Special Agent in Charge Ashan M. Benedict said: “The defendant engaged in a gratuitous spree of violent crimes including multiple armed robberies and a homicide. is committed to targeting the most violent offenders and their co-conspirators for federal prosecution. I commend the outstanding work of the Special Agents, NYPD Detectives, and Assistant United States Attorneys in securing today’s plea and the prosecution of the defendant’s criminal associates. The residents of New York City are safer today because of their efforts.”
NYPD Commissioner James P. O’Neill said: “We remain deeply focused on those who commit violence and carry firearms in New York City. That focus is no more evident than today’s guilty plea in a 2016 murder of Nelson Dubon in Washington Heights. Thanks to the detectives, agents, and prosecutors who have worked on this case and whose work has resulted in the unprecedented reduction in violence in New York City so far this year.”
According to the charging documents filed in the case, as well as statements made during the plea proceedings and earlier court appearances:
Since at least 2012, a group of young men and women living in the vicinity of 188th Street and Webster Avenue, and referring to itself as “YNR,” engaged in a conspiracy to distribute crack cocaine and heroin to addicts in that area. YNR managed to bring large quantities of crack cocaine and heroin into its neighborhood and to inflict mindless and, ultimately, deadly violence on its community.
RUDGE personally participated in multiple acts of drug-related violence, including:: 1) a robbery in or about 2015, of a marijuana dealer in that marijuana dealer’s apartment, during which a victim was pistol-whipped by one of RUDGE’s co-conspirators; 2) a robbery, in or about 2015, of a marijuana dealer, resulting in a shooting by RUDGE and others to thwart the victim’s attempt to retaliate for that robbery; 3) an attempted armed robbery, on or about January 21, 2016, of a marijuana stash apartment; and 4) a robbery, on or about January 21, 2016, of a narcotics dealer and others located inside a billiards club, during which RUDGE shot and killed Nelson Dubon.
Following his arrest by the NYPD in connection with the murder of Dubon, RUDGE attempted to influence and silence witnesses against him, including by attempting to have other YNR members find and silence an eyewitness to the murder. RUDGE also continued his firearms use and violence in the days after the murder of Dubon, including through the pistol-whipping of a livery cab driver in a failed attempt to rob that person of his fares on or about January 25, 2016, in the Bronx.
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Mr. Kim praised the outstanding work of the NYPD and ATF for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams and Sarah Krissoff are in charge of the case.
Lawrence Man Sentenced for Money Laundering and Theft of Public FundsRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for money laundering, transacting in criminally-derived property, and theft of public funds.
Leonardo Lara, 36, was sentenced by U.S. District Court Judge Rya W. Zobel to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $67,871. In March 2017, Lara pleaded guilty to two counts of laundering monetary instruments, two counts of transacting in criminally-derived property, and five counts of theft of government funds.
On at least 10 occasions between January and March 2012, Lara converted fraudulent United States Treasury tax refund checks for his own use. He deposited into his personal checking account at least 10 fraudulent tax refund checks payable in the names of taxpayers in Puerto Rico and elsewhere that resulted from the filing of fraudulent tax returns in tax years 2010 and 2011. Each of the tax refund checks was endorsed with the purported signature of the payee taxpayer and the notation “pay to the order of Leonardo Lara” along with the defendant’s signature. The payees of the tax refund checks did not earn the wages reported in the tax returns and were unaware that the tax returns had been filed in their names. Shortly after the tax refund checks cleared, Lara made cash withdrawals from the account. In total, he converted at least $67,871 in government funds for his own use.
In addition, on two occasion, Lara purchased property in Lawrence through transactions designed to conceal the nature and source of his proceeds. On Feb. 12, 2012, he purchased a cashier’s check in the amount of $56,574 and used it to purchase property. The funds were withdrawn from an account controlled by Lara and held in the name of JZE LLC., a bank account funded, at least in part, by structured cash deposits, and the funds withdrawn from the bank had been derived, at least in part, from Lara’s theft of public funds. On March 16, 2012, Lara purchased another cashier’s check for $60,657 and used it to purchase another property in Lawrence.
Lara was also involved in certain drug activity involving the distribution of oxycodone pills. Over a two-year period, approximately $475,000 was deposited into accounts controlled by Lara, none of which was explained by any legitimate sources of income.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston; and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Kenner Woman Pleads Guilty to Theft of Bank FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARIA SPEARS, a/k/a MARIA BAQUEDANO, 52, of Kenner, pled guilty yesterday to defrauding Gulf Coast Bank in connection with writing fraudulent check.
SPEARS pled guilty to a one count Bill of Information charging her with Bank Larceny. According to court documents, SPEARS opened a checking account at Gulf Coast Bank, in the Eastern District of Louisiana. This account was closed in 2011 and contained no funds. The deposits of Gulf Coast Bank were insured by the Federal Deposit Insurance Corporation. (“FDIC”) when Spears wrote the fraudulent checks.
From on or about June 6, 2015 until on or about March 26 2016, SPEARS, wrote approximately $357,000 of bad checks. Each time a check was presented, the bank declined to release the funds as the account had been closed since 2011.
On June 26, 2015, SPEARS issued a check in Jefferson Parish in the amount of $5,000 to Party “A”, in order to purchase real estate in Kenner.
On December 12, 2015, SPEARS purchased a 2016 Chevrolet Corvette in Jefferson Parish from Dealer “A” with a check for $80,390.29 from the closed account.
On March 5, 2016, SPEARS purchased a 2016 Nissan GTR in Jefferson Parish from Dealer “B” with a check for $130,675 from the closed account.
On March 21, 2016, SPEARS purchased a 2016 Cadillac Escalade Premium in Jefferson Parish from Dealer “C” with a check for $97,590.75 from the closed account.
On March 26, 2016 in Tangipahoa Parish, SPEARS purchased a 2016 Nissan 370Z from Dealer “D” with a check for $44,000 from the closed account.
SPEARS faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000, and up to three years of supervised release. U.S. District Judge Kurt D. Engelhardt set sentencing for October 25, 2017.
SPEARS was on supervised release for another federal offense when she committed this crime. On December 6, 2012, SPEARS was sentenced to serve 21 months in the custody of the Bureau of Prisons for wire fraud in the Middle District of Louisiana. She was ordered to pay $176,267.96 in restitution and was placed on three years supervised release.
Acting U.S. Attorney Evans praised the work of the U.S. Probation Service in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Justice Department Secures the Denaturalization of a Repeat Child Sex AbuserRead the Press Release
On June 27, Judge Vanessa D. Gilmore of the U.S. District Court for the Southern District of Texas entered an order that revoked the naturalized U.S. citizenship of a child sex abuser, restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the Justice Department announced.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue denaturalization in cases where individuals lie on their naturalization applications, especially in a circumstance like this one, which involved a child sex abuser. Civil denaturalization cases are an important law enforcement tool for protecting the public, including our children.”
Jose Arizmendi, 54, a native of Mexico, pleaded guilty in April 1996 to aggravated sexual assault of a child in the District Court of Harris County, Texas. When Arizmendi applied for naturalized citizenship later that month and again when he was interviewed in connection with his application in October 1996, he answered “no” when asked if he had “ever been arrested, cited, charged, indicted, convicted, fined, or imprisoned for breaking or violating any law or ordinance excluding traffic regulations.” Relying on this answer, the U.S. government granted his naturalization application and Arizmendi became a U.S. citizen later that year. When the Department of Justice filed a complaint in federal court to initiate denaturalization proceedings in February 2015, Arizmendi was serving an 18-year prison sentence in Mexico for a separate sex offense of rape that he committed in that country.
To perfect service of process on Arizmendi and bring him within the jurisdiction of the U.S. District Court for the Southern District of Texas, the Department’s trial team invoked the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, commonly referred to as the “Hague Service Convention,” with the Mexican government to serve the complaint on Arizmendi in a Mexican prison. Judge Gilmore ruled that Arizmendi’s Texas conviction precluded him from demonstrating the requisite good moral character he needed to qualify for U.S. citizenship at the time he naturalized. Judge Gilmore also ruled that he did not meet the requirements for naturalization and unlawfully procured his citizenship because he concealed his conviction from federal immigration authorities.
“Applications for naturalization must be candid with all material facts,” said Acting U.S. Attorney Abe Martinez for the Southern District of Texas. “Like in this case, failing to disclose material data should result in denaturalization.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) conducted the investigation. Trial Attorney Troy Liggett of OIL-DCS’s National Security and Affirmative Litigation Unit and Assistant U.S. Attorney Adam Goldman of the U.S. Attorney’s Office for the Southern District of Texas jointly prosecuted the case with support from Paralegal Specialist Judith Cardona.
Justice Department Secures the Denaturalization of Repeat Sex OffenderRead the Press Release
HOUSTON - On June 27, Judge Vanessa D. Gilmore of the U.S. District Court for the Southern District of Texas entered an order that revoked the naturalized U.S. citizenship of a child sex abuser, restrained and enjoined him from claiming any rights, privileges or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the Justice Department announced.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue denaturalization in cases where individuals lie on their naturalization applications, especially in a circumstance like this one, which involved a child sex abuser. Civil denaturalization cases are an important law enforcement tool for protecting the public, including our children.”
Jose Arizmendi, 54, a native of Mexico, pleaded guilty in April 1996 to aggravated sexual assault of a child in Harris County. When Arizmendi applied for naturalized citizenship later that month and again when he was interviewed in connection with his application in October 1996, he answered “no” when asked if he had “ever been arrested, cited, charged, indicted, convicted, fined or imprisoned for breaking or violating any law or ordinance excluding traffic regulations.” Relying on this answer, the U.S. government granted his naturalization application and Arizmendi became a U.S. citizen later that year. When the Department of Justice filed a complaint in federal court to initiate denaturalization proceedings in February 2015, Arizmendi was serving an 18-year prison sentence in Mexico for a separate sex offense of rape that he committed in that country.
To perfect service of process on Arizmendi and bring him within the jurisdiction of the U.S. District Court for the Southern District of Texas, the Department’s trial team invoked the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, commonly referred to as the “Hague Service Convention,” with the Mexican government to serve the complaint on Arizmendi in a Mexican prison. Judge Gilmore ruled that Arizmendi’s Texas conviction precluded him from demonstrating the requisite good moral character he needed to qualify for U.S. citizenship at the time he naturalized. Judge Gilmore also ruled that he did not meet the requirements for naturalization and unlawfully procured his citizenship because he concealed his conviction from federal immigration authorities.
“Applications for naturalization must be candid with all material facts,” said Acting U.S. Attorney Abe Martinez for the Southern District of Texas. “Like in this case, failing to disclose material data should result in denaturalization.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) conducted the investigation. Trial Attorney Troy Liggett of OIL-DCS’s National Security and Affirmative Litigation Unit and Assistant U.S. Attorney Adam Goldman of the U.S. Attorney’s Office for the Southern District of Texas jointly prosecuted the case with support from Paralegal Specialist Judith Cardona.
Jefferson City Man Sentenced for Illegal Firearms After Posting Photos on FacebookRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man who posted photos of stolen property, illegal drugs, guns and cash on his Facebook page was sentenced in federal court today for illegally possessing two firearms.
Tremaine Cordell Smith, also known as “Sak Boy Fatt Maine,” 28, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to 12 years in federal prison.
On Feb. 14,2017, Smith pleaded guilty to being a felon in possession of firearms.
Jefferson City police officers executed a search warrant at Smith’s residence on Jan. 7, 2016. The warrant was based upon a Columbia, Mo., Police Department investigation of stolen property. Smith had posted photos of several stolen items on his Facebook profile.
During the search, several stolen items were recovered, including two stolen handguns – a Ruger 9mm pistol and a Springfield 9mm pistol.
Smith posted a picture on his Facebook profile on Oct. 5, 2014, that showed a pistol covered up with $100 bills. The handgun in the picture appeared to be a Springfield 9mm like the stolen firearm recovered from Smith’s residence. Smith also posted photos on his Facebook profile between Nov. 12, 2011, and Dec. 15, 2015, that showed what appeared to be large quantities of money, marijuana and firearms. One photo showed Smith with money inside a bag that appeared to be the same bag that contained the stolen firearms located during the search of his residence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has three prior felony convictions in Cole County, Mo., for distributing a controlled substance.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson City, Mo., Police Department and the Columbia, Mo., Police Department.
James Dean Trangsrud Sentenced to Prison in Failure to Register as a Sex Offender CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JAMES DEAN TRANGSRUD, age 51, from Santa Rita, was sentenced today in District Court to a 12-month term of imprisonment, to be followed by three years of supervised release for failure to register as a sex offender. The Court also ordered TRANGSRUD to pay a mandatory $100 assessment fee and to perform 25 hours of community service. In addition, defendant was ordered to register with the sex offender registry in every jurisdiction that he lives, resides, is employed, or attends school.
On March 31, 2017, TRANGSRUD entered a guilty plea to an Indictment charging him with Failure to Register as a Sex Offender, in violation of 18 U.S.C. §§ 2250(a)(1) and (2). The investigation revealed that in 2000, TRANGSRUD, was convicted of Indecent Exposure, Lascivious Acts with a Child, Sexual Abuse and Indecent Contact with a Child in the Iowa District in and for Black Hawk County and was required to register with the sex offender registry. August 12, 2016, TRANGSRUD absconded from Iowa and traveled to Guam where he failed to register and update his registration with the Guam Sex Offender Registry. United States Marshals located TRANGSRUD on February 15, 2017 in the village of Santa Rita, Guam.
The District Court noted the importance of the Guam Sex Offender Registry in the protection of the community. Court imposed sentence of 12-months imprisonment, a special assessment of $100, supervised release of three years, and ordered the defendant to undergo a sex offender assessment approved by the U.S. Probation Office. Additionally, the court restricted the defendant from employment with minors below the age of eighteen and ordered he have no contact with children.
The United States Marshals Service, Inspector Marciano Patricio and USMS Supervising Deputy John Untalan conducted the investigation. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.
Illinois Man Pleads Guilty to Attempting to Sexually Exploit Two Minors over X-Box LiveRead the Press Release
BOSTON – An Illinois man pleaded guilty yesterday in federal court in Springfield to two child exploitation charges.
Zack Sawyer, 32, pleaded guilty to two counts of attempted sexual exploitation of minors before U.S. District Court Judge Mark G. Mastroianni, who scheduled sentencing for Sept. 21, 2017.
Around May 2010, Sawyer used X-Box Live to contact two 13 year-old boys in Hampshire County, Mass., and asked them both to send him nude photographs. When the first boy refused, Sawyer threatened to rape and kill him. Sawyer then asked the second boy, and when he, too, refused, Sawyer again threatened rape, adding that he had a drug that would paralyze people.
Sawyer also admitted to enticing a third minor boy in Loudon County, Va., to pose for a sexually explicit picture over the internet. Sawyer met the boy while playing the online game Minecraft. Sawyer also sent a sexually explicit picture of himself to the boy, and Sawyer continued to ask the boy for sexually explicit videos.
The charging statute provides for a mandatory minimum sentence of 15 years and a maximum of 30 years in prison, a mandatory minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000 and restitution. If the plea agreement is accepted by the Court, Sawyer will be sentenced to 15 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; United States Attorney for the Eastern District of Virginia, Dana J. Boente; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office and Assistant U.S. Attorney Jay Prabhu of Boente’s Cybercrime Unit are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Huntingdon County Woman Charged with Misappropriation of Postal FundsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mandi Rice, age 34, of Three Springs, Pennsylvania, was charged in a criminal information on June 28, 2017, with misappropriation of postal funds by a postal employee.
According to United States Attorney Bruce D. Brandler, the information alleges that Rice, a former sales associate of the United States Postal Service, misappropriated approximately $1,900 between May 2016 and October 2016.
Under the terms of a plea agreement filed with the criminal information, Rice has agreed to enter a guilty plea and pay restitution. The plea agreement is subject to approval of the court.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Houma Man Sentenced to 5 Years Imprisonment for Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that REHER MORRIS, age 28, of Houma, was sentenced today after previously pleading guilty to crimes involving the sexual exploitation of children.
U.S. District Judge Jane Triche Milazzo sentenced MORRIS to 60 months, followed by 6 years of supervised release. Additionally, MORRIS was ordered to register as a sex offender under the Sex Offender Registration and Notification Act.
The joint U.S. Department of Homeland Security, Homeland Security Investigations and Louisiana Bureau of Investigations’ Cyber Crime Unit investigation began as a result of a complaint from the National Center for Missing and Exploited Children. Investigators determined MORRIS was downloading images of child pornography at his place of employment in Houma. On December 7, 2015, state and federal investigators executed a search warrant and found MORRIS in possession of an Apple iPhone containing over 12,000 images and 115 videos depicting the sexual exploitation of children.
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, the Terrebonne Parish Sheriff’s Office, and the Louisiana Bureau of Investigations’ Cyber Crime Unit 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.
Heroin and Methamphetamine Drug Trafficking Organization Dismantled in BakersfieldRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno indicted eight defendants today for their participation in a methamphetamine and heroin distribution conspiracy. U.S. Attorney Phillip A. Talbert and Special Agent in Charge John J. Martin of the Drug Enforcement Administration’s San Francisco Division made the announcement. The indictment charges Jose Luis Zambrano, 33; Juan Carlos Lopez, 28; Ruben Mojarro, 42; Adalberto Jacobo, 36; all of Bakersfield; Joel Melendez, aka Leonel Rodriguez, 33; Edgar Omar Rodriguez Parra, aka Jesus Burgos Luna, 36; and Alex Castro Portillo, 29, all Mexican nationals; and Manuel Teodoro Aros, 42, of Santa Maria; with conspiracy to distribute and possess with intent to distribute methamphetamine and heroin. Zambrano, Jacobo, Portillo, Parra, and Aros were also charged with other drug trafficking offenses, and Zambrano and Lopez were charged with firearm offenses. According to court documents, Zambrano was the head of a drug trafficking organization that from March 1, 2016, through June 16, 2017, imported and distributed large amounts of methamphetamine and heroin to the Bakersfield area and other locations. In order to intimidate others, protect their narcotics and cash, and enforce drug debts, some members of the organization carried firearms and wore protective body armor. On June 23, 2017, arrest and search warrants targeting the organization were executed and resulted in the seizure of narcotics. Zambrano, Lopez, Mojarro, Aros, and Jacobo, were arrested and remain in custody. Joel Melendez, Edgar Omar Rodriguez Parra, and Alex Castro Portillo are fugitives. This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, and the Bakersfield Police Department with assistance from Kern County Probation Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case. If convicted, all defendants face a maximum statutory penalty of life in prison and a $10 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fugitive Joel Melendez, aka Leonel Rodriguez fugitive Alex Castro Portillo, 29 fugitive Edgar Omar Rodriguez Parra, aka Jesus Burgos LunaGuatemalan man indicted on an illegal alien chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Guatemalan man has been indicted by a federal grand jury sitting in Clarksburg on a reentry of a removed alien charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ricardo Ramirez-Ramirez, age 34, was indicted on one count of “Reentry of Removed Alien.” Ramirez-Ramirez, having previously been removed from Arizona, allegedly was found in Ohio County in May 2017 without consent.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. Immigrations and Customs Enforcement and the Wheeling Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Noe Estuardo Castaneda Marroquin, 31, was charged today with one count of illegal reentry after deportation. Castaneda Marroquin was previously deported on May 19, 2005. On June 12, 2017, law enforcement encountered Castaneda Marroquin in Barnstable and determined him to be illegally present in the United States.
Castaneda Marroquin faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with a federal immigration crime.
Mario Antonio Najera-Salguero, 30, was charged today with one count of illegal reentry after deportation. Najera-Salguero was previously deported on Nov. 13, 2009. On June 14, 2017, law enforcement encountered Najera-Salguero in Boston and determined him to be illegally present in the United States.
Najera-Salguero faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Guatemalan Man Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that HECTOR BARRIOS-PATINO, age 37, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Indictment for illegal re-entry of removed alien.
U.S. District Judge Nannette Jolivette Brown sentenced BARRIOS-PATINO to 21 months’ imprisonment, followed by three years supervised release. Following completion of his sentenced, BARRIOS-PATINO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
BARRIOS-PATINO has a prior felony conviction for DWI and had been removed from the United States on multiple occasions.
Acting U.S. Attorney Duane A. Evans praised the work of the U.S. Immigration and Customs Enforcement in investigating this matter.
Government contractor indicted on charges involving the theft and sale of government propertyRead the Press Release
CLARKSBURG, WEST VIRGINIA - A Virginia man was indicted by a federal grand jury on theft charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Richard Alan Millette, of Winchester, Virginia, age 29, was indicted on one count of “Theft of Government Property” and two counts of “Unauthorized Sale, Conveyance, and Disposition of Government Property.”
From 2011 to May 2017, Millette was a government contractor with the U.S. Department of State (DOS). At DOS, Millette worked as a special skills tactics instructor at the DOS Diplomatic Security Interim Training Facility, located at Summit Point, Jefferson County, West Virginia.Millette allegedly acquired ballistic vests and combat helmets valued at more than $16,000. He is accused of selling them online and trading them for other items. The crimes are alleged to have occurred from March 2016 to March 2017.
Assistant U.S. Attorney Anna Z. Krasinski and U.S. Department of Justice Attorney Jennifer Ballantyne are prosecuting the case on behalf of the government. The U.S. Department of State Office of Inspector General is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Founder of DECA Financial Service in Fishers sentenced in fraud caseRead the Press Release
PRESS RELEASE
INDIANAPOLIS B United States Attorney Josh Minkler announced today the sentencing of a former financial institution owner after pleading guilty to wire fraud, bank fraud and bankruptcy fraud charges. Todd J. Wolfe , 54, was sentenced to 51 months (over four years) imprisonment by U.S. District Judge Tanya Walton Pratt.
“Defrauding a financial institution effects all honest, hardworking individuals,” said Minkler. “Anyone who uses their position to abuse the public’s trusts will be held strictly accountable.”
Since 2009, Wolfe operated DECA Financial Services in Fishers, Indiana. DECA was a full service credit collections company which at one time employed nearly 75 individuals and whose principal activity was to collect delinquent loans for health care, student loans and financial services.
On two occasions, Wolfe filed false financial reports to BMO Harris bank inflating the assets of his company. The false reports allowed Wolfe to obtain lines of credit which he in turn used for personal expenses. Over a two and one half year period, the credit extended to Wolfe increased from $1 million to $7.5 million. Affidavits show he used some of the money to make payments on his personal residence, an automobile, personal credit card accounts and a lake house.
In June 2013, Wolfe agreed to sell an individual $1 million in DECA stock which represented 5% ownership in the company. The victim was never repaid anything for his stock purchase. Wolfe used some of the $1 million to purchase a 2011 Audi 5S automobile. In February 2014, creditors forced Wolfe into bankruptcy. An attorney representing Wolfe and DECA filed a motion with the court stating Wolfe had a living trust worth over $14 million, which could be used to repay creditors. The actual value of the trust was $52,000. The misrepresentation delayed the appointment of an independent trustee to oversee the operation of and access to books and records.
This was a joint investigation with the Federal Bureau of Investigation and the United States Trustee for Region 10.
“Today’s sentence reaffirms the FBI’s commitment to finding those who use their positions of trust to pad their pockets and enhance their lifestyle by defrauding financial institutions,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I applaud the hard work of our agents and those of the Southern Indiana Bankruptcy Fraud group who dedicated many hours to this case.”
“Together with U.S. Attorney Minkler and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy Gargula, U.S. Trustee for Indiana and Central and Southern Illinois (Region 10)
U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill. charges resulted, in part, from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney. Assistance with the investigation was provided by members of the Southern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
Winfield Ong, Criminal Chief for the U.S. Attorney’s Office, said Wolfe must serve three years of supervised release following his sentence and make restitution of $5,023,613 to his victims.
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Former Steel Valley Authority Financial Manager Indicted on Fraud ChargesRead the Press Release
PITTSBURGH – A Westmoreland County resident has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud and mail fraud, Acting United States Attorney Soo C. Song announced today.
The five-count indictment, returned on June 27, named Nicolette Gizzi, age 44, of North Huntingdon, PA as the sole defendant.
According to the indictment, from December 2009 through approximately June 2016, Gizzi, who was employed as the Financial Manager for Steel Valley Authority, issued checks to herself and her credit card company, without authorization, and forged the required signatures. The checks were drawn on Steel Valley Authority’s PNC Bank business account. Steel Valley Authority is funded primarily by federal grants.
Also according to the indictment, Gizzi, who had a previous federal conviction in South Carolina, fraudulently completed and mailed an Answer to a Writ of Garnishment by forging a signature of a former employee, forging a notary public signature and understating her income. The Writ of Garnishment was issued in an attempt to collect restitution on the prior conviction.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both for each count of bank fraud and 20 years in prison, a fine of $250,000 or both for the single count of mail fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The U.S. Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Quincy Man Indicted for $1.7 Million Real Estate Fraud Scheme and Ex-Wife Indicted for LyingRead the Press Release
BOSTON – A man who had been a fugitive for more than 20 years before his arrest in Florida in April 2017, was indicted yesterday in connection with a $1.7 million real estate investment fraud scheme in Quincy, Mass. His ex-wife was also indicted for lying about the whereabouts of her former spouse prior to his arrest.
Scott J. Wolas, 68, who, according to court documents, also used aliases identified by initials EJD, DD, FA, EA, and CS, was indicted on seven counts of wire fraud and one count of aggravated identity theft. In April 2017, Wolas was arrested in Delray Beach, Fla., and charged in a complaint. He has been detained pending trial.
Cecily Sturge, 69, of Delray Beach, Fla., was indicted on charges of making a materially false statement to a federal agent about the whereabouts of her ex-husband, Scott J. Wolas. Earlier this month, Sturge was arrested and charged by criminal complaint.
According to court documents, from at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune Inc., and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property on Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.7 million from at least 20 investors and promised each of them a significant return on their investments. He allegedly promised to pay out at least 125% of the profits related to the single-family home construction. The court documents also indicate that the bank account into which Wolas deposited investor funds has been drained, and that Wolas used the money mostly for his personal expenses unrelated to development of the real estate projects.
Wolas was scheduled to close on the Beachcomber property on Sept. 15, 2016. A week before, however, he left Quincy and ceased all contact with his then-girlfriend, his co-workers, and his investors. Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real EJG resides in Florida and is known to Wolas.
According to court documents, law enforcement officers interviewed Sturge, Wolas’ ex-wife, on Nov. 17, 2016. During the interview, Sturge said that she had not been in contact with her ex-husband for approximately 15 years. Sturge continued to say that this was so, despite evidence of contact between her cell phone and one known to belong to Wolas that demonstrated more recent communication between the two.
After further investigation, Wolas was arrested on April 7, 2017, at a condominium he was renting in Delray Beach, Fla. Investigators learned that Wolas had first rented the room in the condo from Nov. 12 through Nov. 21, 2016, through an online rental website in the name of Cecily Sturge. Messages exchanged between the condo owner and Sturge depicted a photo of Sturge and messages claiming that Wolas (using the name Cameron Sturge) was Sturge’s brother and a retired paleontologist in need of a place to stay. The owner of the condo told authorities that Sturge and Wolas arrived at the condo together in the same car on Nov. 12, 2016, five days before Sturge’s interview with law enforcement.
Sturge was divorced from Wolas in 2001 by default judgment in Palm Beach County, Fla. In February 2017, Sturge filed a petition to modify the judgment in order to obtain the contents of Wolas’ retirement account, which had a balance of approximately $647,000, from the New York law firm where he worked prior to being indicted in 1997 by New York authorities. In pleadings filed in February and March 2017 regarding that matter, Sturge swore that Wolas’ whereabouts were unknown to her, despite telephone records showing frequent contact between the two. In addition, copies or drafts of documents filed in the Florida proceeding, along with a thumb drive, were found in the room where Wolas was arrested. The United States has obtained a court order freezing the retirement account until the resolution of the criminal proceedings.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of aggravated identity theft provides for a minimum of two years in prison, which must be served consecutively to any term for the wire fraud, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Quincy Police Chief Paul Keenan, made the announcement. Assistant U.S. Attorneys Sandra S. Bower of Weinreb’s Criminal Division and David G. Lazarus and Brendan Mockler of Weinreb’s Civil Division are prosecuting the case.
Former Prison Transport Officer Indicted for Sexual Assault and Threatening the Victim with a FirearmRead the Press Release
A federal grand jury in Phoenix, Arizona, returned a three-count indictment against Eric Scott Kindley, 49, a prison transport officer, for crimes related to his sexual assaults of a female in his custody, and using his firearm in furtherance of these assaults.
Counts One and Two of the indictment charge Kindley with committing civil rights offenses that include both the use of a dangerous weapon and aggravated sexual abuse. Count Three charges Kindley with knowingly possessing a firearm in furtherance of these crimes of violence.
This indictment stems from Kindley’s arrest in Stockton, California on June 1, 2017, in connection with a criminal complaint filed in the District of Arizona. According to arrest paperwork, Kindley operates Group 6, LLC doing business as Special Operations Group 6, a company that local jails throughout the country hire to transport individuals who have been arrested on out-of-state warrants. The probable cause affidavit associated with the criminal complaint alleged that from January through May of this year, Kindley engaged in sexual misconduct in his Dodge Caravan with three different female prisoners during three different transports. The transports were from California to Arizona, Alabama to Arizona, and Mississippi to New Mexico. In each instance, the victim was handcuffed and restrained, and taken to secluded locations where Kindley sexually assaulted her. All the while, Kindley threatened each victim with his firearm and warned her that he will get away with his conduct because no one will believe her.
Following Kindley’s arrest in the Eastern District of California, the court ordered that Kindley be detained and transported to Arizona for further proceedings. Kindley is currently in custody.
This investigation remains ongoing. Anyone with additional information is encouraged to call the Phoenix Division of the FBI at (623) 466-1999, or can email the Criminal Section of the Civil Rights Division at the U.S. Department of Justice at [email protected].
Kindley faces a maximum of life in prison if convicted of the crimes charged, and a mandatory minimum of five years in prison for use of the firearm.
An indictment is merely a formal accusation of criminal conduct, and Kindley is presumed innocent unless proven guilty.
This case is being investigated by the Phoenix Division of the Federal Bureau Investigation and is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice and Assistant United States Attorney Abbie Broughton Marsh of the District of Arizona.
Former EMT and Volunteer Firefighter Charged with Production of Child PornographyRead the Press Release
NEWARK, N.J. – An Iselin, New Jersey, man who worked as an emergency medical technician and volunteer firefighter was charged today with soliciting a child to take nude pictures of himself and send them online, Acting U.S. Attorney William E. Fitzpatrick announced.
Zachary Motta, 22, is charged by complaint with one count of sexual exploitation of children. He appeared in Newark federal court today before U.S. Magistrate Judge Steven C. Mannion and was detained.
According to the complaint:
Beginning in October 2016, Motta engaged in sexually explicit communications with a boy who told Motta that he was 12-years old. Over the course of their correspondence, Motta sent the minor victim images of himself in his EMT and firefighter uniforms and asked the boy to send him nude pictures. Motta warned the boy, “Just don’t get caught.” In response to Motta’s requests, the boy sent Motta nude images of his genitals on two occasions.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Middlesex County Prosecutor’s Office, under the direction of Andrew C. Carey, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and Motta is presumed innocent unless and until proven guilty.
Defense counsel: Assistant Federal Public Defender Carol Gillen
Former Cartersville Police Officer charged with obstructing an FBI Drug Trafficking InvestigationRead the Press Release
ROME Ga. - Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, has been arraigned on multiple federal charges, including unlawfully accessing a law enforcement database and disclosure of confidential information. Banks was a Cartersville Police Officer who was assigned to a DEA task force and allegedly used his access to law enforcement databases to alert an informant and drug traffickers to an active federal investigation.
“The defendant allegedly used his position to tip off drug traffickers to an active FBI investigation,” said U.S. Attorney John A. Horn. “His conduct is shocking, especially from someone sworn to uphold the law. Leaks of sensitive investigative information undermined the hard work of law enforcement officers and put them in real danger.”
“The federal investigation and its subsequent federal charges in this matter was unfortunate but necessary. A separate extensive and intensive federal investigation was clearly being negatively impacted by someone who was believed to be a law enforcement officer with inside information. The resulting investigation alleged that this officer was Cartersville P.D. Officer Banks who will now have to answer to these very serious allegations in a U.S. District Court,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said of the case, "This Cartersville police officer, assigned to the DEA Task Force, was sworn to uphold the law and protect the public from harm. Instead, he violated his oath by unlawfully accessing a law enforcement database and disclosing confidential information. Thanks to the dedicated law enforcement officers and the U.S. Attorney’s Office who worked tirelessly to make this investigation a success.”
“The Cartersville Police became aware of these allegations, and immediately initiated an internal investigation. Within two weeks, of the start of the investigation, Officer Bryson Taylor Banks was terminated for issues related to conduct, over two years ago. The Cartersville Police Department has been in full cooperation with all agencies involved pertaining to this investigations conclusion,” said Lieutenant Michael Bettikofer, Public Information Officer, Cartersville Police Department.
According to U.S. Attorney Horn, the charges, and other information presented in court: From October 2008 until August 2015, Banks served as a Cartersville Police Officer. As a law enforcement officer, Banks used a confidential informant who provided Banks with inside information about several drug traffickers.
In 2014, however, Banks allegedly began giving the informant information from a confidential law enforcement database, which allowed the informant to warn drug traffickers about the presence of law enforcement. Furthermore, in 2014 and 2015, the FBI was investigating a drug trafficking organization, which included an inmate in a Georgia state prison who was using contraband cellular telephones to coordinate drug deals. In July 2015, the FBI obtained court authorization to wiretap two of the inmate’s cellular telephones. On multiple occasions, the inmate was intercepted discussing drug trafficking activities with fellow drug trafficker Tomas Pineda Mendoza.
On the morning of August 11, 2015, the FBI informed Banks of its wiretap investigation of the inmate, including the fact that the inmate was arranging for the distribution of two kilograms of methamphetamine to Mendoza to occur at 2:00 p.m. that same day. Following this conversation, Banks allegedly warned his informant to advise Mendoza not to pick up drugs that day, and if he did, he would go to jail. Banks then disclosed the FBI wiretap of the inmate’s phones to his informant. Later that day, the FBI intercepted communications which revealed that the inmate had learned of the wiretap. The inmate then discontinued the use of his telephones, and the FBI investigation was compromised.
Banks has been charged as follows:
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Unlawful Notification of Electronic Surveillance;
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Unlawful Disclosure of Wire, Oral, or Electronic Communications;
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Use of a Communication Facility in Causing or Facilitating the Commission of Felonies Under the Controlled Substances Act;
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Misprision of a Felony;
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Unlawfully Accessing a Law Enforcement Database; and
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Disclosure of Confidential Information.
The indictment also alleges that in July 2015, Banks sent his informant a photograph of another law enforcement confidential informant. Banks advised his informant to stay away from that individual because they worked with law enforcement.
Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson. Banks was indicted by a federal grand jury on June 27, 2017.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael Herskowitz is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Former Bank President Sentenced to Five Years for Bank Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – Anthony J. Atkins, 51, of Eufaula, Alabama, was sentenced yesterday to 63 months in prison and ordered to pay more than $2.4 million in restitution for conspiracy to commit bank fraud, four counts of false statements to a federally insured financial institution, bank fraud, and mail fraud affecting a financial institution. Atkins was convicted by a jury on March 10, 2017. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In 2007, an individual went to Anthony J. Atkins, the president of GulfSouth Private Bank, and notified Atkins that the individual’s company, which had been loaned $3.4 million, was no longer able to make payments on the mortgage loans issued by GulfSouth Private Bank that had been secured by three condominiums. To conceal that the $3.4 million in loans were going into default, Atkins devised a scheme to conceal the bad debt.
As a part of the scheme, Atkins and Samuel D. Cobb, who was a vice president at GulfSouth, solicited Bruce A. Houle, Mark W. Shoemaker, Michael Bradley Bowen, and William Blake Cody to take out new loans with the bank to purchase the three condominiums. To persuade Houle, Shoemaker, Bowen, and Cody to engage in the scheme, Atkins and Cobb told these individuals that the loans would be non-recourse, meaning that, if the men defaulted, GulfSouth would have no recourse against them.
Thereafter, Atkins and Cobb caused new mortgage loans and additional lines of credit to be issued for approximately $3.8 million to the men they had solicited. According to the terms of the fraudulent loans issued during the scheme, the men Atkins and Cobb solicited were not required to make any payments on the loans until the loans came due months down the road. These new loans were then used to pay off the old loans that were going into default. Issuing these new loans and new lines of credit created the appearance that the debt was “performing,” which allowed Atkins to avoid having to report the loans associated with the condominiums as bad debt. Further, as a part of the scheme, Atkins and Cobb caused fraudulent security agreements to be prepared that falsely represented that Houle, Shoemaker, Bowen, and Cody were obligated to repay their respective new mortgage loans and lines of credit.
In September 2009, GulfSouth received $7,500,000 in Troubled Asset Relief Program (“TARP”) funds from the United States Treasury. Thereafter, Atkins and Cobb allowed the condominiums that were collateral for the mortgage loans to be sold in short sales, resulting in a loss to GulfSouth. Further, Atkins allowed the deficiencies and the lines of credit to be charged off of GulfSouth’s books and records.
This case resulted from a joint investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG).
“This bank fraud case is a reminder that my office will vigorously prosecute those who do not conduct ethical transactions, especially financial representatives who abuse their positions of trust,” said U.S. Attorney Canova. “I commend the hard work of the investigators and prosecutors who enforce our federal laws and ensure that justice is served.”
“Today, a federal court sentenced to prison a bank president along with the bank’s vice president, who were investigated and arrested by SIGTARP,” said Special Inspector General Christy Goldsmith Romero (SIGTARP). “Taxpayers lost $7.5 million in TARP dollars invested in Gulfsouth Private Bank – a bank that failed after being led by the top two officers committing bank fraud. Bank president Tony Atkins brought in friends and family as co-conspirators in this conspiracy to make troubled loans appear current. Each of those co-conspirators have been convicted. I want to thank the U.S. Attorney for the Northern District of Florida for unwavering dedication, including Assistant United States Attorney Tiffany Eggers who was committed to seeking justice.”
“The Federal Deposit Insurance Corporation – Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address bank fraud cases throughout the country. The American people need to be assured that we are working to ensure integrity in the financial services industries and that those involved in criminal activities that undermine that integrity will be held accountable.” said Jason Moran, Special Agent in Charge, FDIC-OIG.
Assistant United States Attorney Tiffany H. Eggers prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Five Individuals Indicted for Using the U.S. Mail to Commit Several Federal OffensesRead the Press Release
SAN JUAN, P.R. - On June 27, 2017, a Federal Grand Jury in the District of Puerto Rico returned four separate indictments charging five individuals with several offenses against the United States by using the U.S. Mail, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. These cases were investigated by the U.S. Postal Service Office of Inspector General (USPS-OIG) with the collaboration of the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD).
The defendants and the charges they are facing are the following:
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Mary T. Rivera-Rivera, U.S. Postal Service employee, two counts for theft of mail and two counts for delay of mail.
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Yoel A. Escobales-Ramos, U. S. Postal Service Contractor, two counts for theft of mail and one count for obstruction of correspondence.
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Orlando Sánchez-Abreu, U.S. Postal Service employee, one count for possession with the intent to distribute controlled substances, one count for using the USPS Mail facilities to commit a felony, and one count for delay of mail.
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Ismael Berríos-Berríos, U.S. Postal Service employee, two counts for delay of mail; and Nicolás Padilla-Baez, facing one count for obstruction of correspondence.
“The US Attorney’s Office will continue to vigorously pursue those who utilize the U.S. Mail to commit federal offenses and steal other people’s mail,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “Hopefully, the defendants recognize the severity of their actions and others will be discouraged from getting involved in these types of schemes, because we will continue prosecuting these crimes.”
Eileen Neff, Special Agent-in-Charge, U.S. Postal Service Office of Inspector General said: “Special Agents of the U.S. Postal Service Office of Inspector General vigorously investigate and pursue the criminal prosecution of U.S. Postal Service employees and others who would defraud the U.S. Postal Service or utilize its services in their criminal schemes. We thank the U.S. Attorney’s Office and the Drug Enforcement Agency for their assistance with our investigations.”
Special Assistant United States Attorney Amanda C. Soto-Ortega is in charge of the prosecution of these cases. If convicted, the defendants could face a maximum penalty of 5 years of imprisonment and/or fines of up to $250,000.00. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Five Charged in $28 Million Nutraceuticals Credit Card Fraud Affecting Thousands of ConsumersRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and David E. Beach, Special Agent-in-Charge of the New York Field Office of the U.S. Secret Service (“USSS”), announced today the unsealing of charges against JAMES BECKISH, RICHARD WITCHER, JAMES TONER, PETER O’BRIEN, and JOSEPH ANTHONY DEMARIA for their respective roles in operating a series of companies between 2013 and 2016 that were used as a cover to place approximately $28 million of unauthorized charges on thousands of consumers’ credit cards. The websites of the defendants’ companies purported to sell products like dietary supplements but, in reality, were primarily used to repeatedly bill consumers who never ordered their products, or even if they did, almost never received them. All of the defendants were arrested today and presented before Magistrate Judges in the District of New Jersey, the Middle District of Florida, and the Southern District of Florida.
Acting Manhattan U.S. Attorney Joon H. Kim said: “These defendants allegedly created and operated more than 100 companies that specialized in one service: ripping off consumers and credit card companies. By allegedly billing consumers for dietary supplements they didn’t order or receive, the defendants reaped millions of dollars, affecting thousands of consumers and leaving credit companies holding the bag. Thanks to the U.S. Secret Service, this scheme is over.”
Secret Service Special Agent-in-Charge David E. Beach said: “The Secret Service is committed to aggressively investigating these offenses. Emerging technologies and cyber capabilities enable criminal networks to evolve and significantly impact financial markets. This case is another example of the transnational investigative capabilities of the United States Secret Service. Our developed partnerships with other federal, state and local law enforcement agencies as well as private sector stakeholders, enables us to focus our resources to uncover, investigate and prevent these crimes more effectively.”
According to the Complaint unsealed today in Manhattan federal court:[1]
Between 2013 and 2016, BECKISH, WITCHER, TONER, O’BRIEN, DEMARIA and others, created and operated more than 100 companies that purported to sell dietary supplements and similar products called “nutraceuticals.” Although the companies were purportedly distinct, they nonetheless marketed similar products on websites that contained similar photographs, were hosted by the same entity, had similar typographical errors, and used the same or nearly identical JavaScript coding. These websites were used by the defendants and others to serve as justification for unauthorized and recurring charges that were placed on tens of thousands of credit card numbers that the defendants had illicitly purchased or obtained, or had acquired from consumers who had attempted to order the products in question. For example, in one email between TONER and BECKISH in October 2013, TONER stated that they could simply charge unsuspecting customers by falsely “say[ing] they opted in online for something.” In total, more than $28 million in fraudulent charges were placed during the duration of the scheme.
BECKISH, WITCHER, TONER, O’BRIEN, DEMARIA, and others created these different companies and websites, moreover, because they knew that credit card processors would stop doing business with them over time as consumers noticed the unauthorized charges and sought refunds. These refunds, called “chargebacks” by credit card processors, are generally low for legitimate businesses but reached extremely high percentages for many of the companies associated with the defendants’ scheme. In certain instances, the chargeback rates quickly approached or even exceeded 20 percent – that is, consumers were seeking refunds of more than 20 percent of the charges placed by certain of the defendants’ companies. Credit card processors, in turn, paid millions of dollars in refunds for fraudulent charges associated with the defendants’ companies between 2013 and 2016 in attempts to refund affected consumers.
* * *
BECKISH, WITCHER, TONER, O’BRIEN, DEMARIA are each charged with one count of conspiring to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. In addition, they each are charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The charges also carry a maximum fine of $250,000, or twice the gross gain or loss from the offenses. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim praised the investigative work of the USSS and expressed his gratitude for the assistance of the Offices of the United States Attorney in the District of New Jersey, the Southern District of Florida, and the Middle District of Florida.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Sassoon and Robert Allen are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Federal, State and Tribal Trustees Reach $8.2 Million Settlement with Three Companies for Natural Resource Damages Incurred at St. Louis River / Interlake / Duluth Tar Superfund SiteRead the Press Release
The U.S. and the States of Minnesota and Wisconsin today announced an $8.2 million settlement with XIK, LLC, Honeywell International, Inc., and Domtar, Inc. to resolve a claim for natural resource damages at the St. Louis River / Interlake / Duluth Tar (SLRIDT) Superfund Site brought under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as the Superfund Law. The SLRIDT Site consists of 255 acres of land and river embayments located primarily in Duluth, Minnesota, and extends into the St. Louis River, including Stryker Bay.
According to the complaint, filed simultaneously with the settlement today in the District of Minnesota, the three companies are liable for industrial discharges of polycyclic aromatic hydrocarbons (PAHs) at the SLRIDT Site during the first half of the 20th Century. PAHs were identified in river sediments throughout the Site in sufficient concentrations to cause injury to many types of natural resources, including vegetation, fish and birds. In addition, PAH-contaminated natural resources resulted in the loss of recreational fishing and tribal use services.
“The restoration work enabled by this settlement will make significant contributions to the environment in the area of the St. Louis River and nearby Lake Superior,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “We are particularly pleased to have been able to work alongside the State of Wisconsin, the State of Minnesota, affected Tribes, the U.S. Department of Interior, and the National Oceanic and Atmospheric Administration on achieving this positive outcome.”
Under CERCLA, federal, state, and tribal natural resource trustees have authority to seek compensation for natural resources harmed by hazardous industrial waste and by-products discharged into the St. Louis River. The natural resource trustees include the U.S. Department of the Interior, acting through the U.S. Fish and Wildlife Service and the Bureau of Indian Affairs; the U.S. Department of Commerce, acting through the National Oceanic and Atmospheric Administration; the Fond du Lac Band of Lake Superior Chippewa; the 1854 Treaty Authority, representing the Grand Portage Band of Lake Superior Chippewa and the Bois Forte Band of Chippewa; the Minnesota Pollution Control Agency; the Minnesota Department of Natural Resources; and the Wisconsin Department of Natural Resources.
The proposed settlement includes $6.5 million to be used on restoration activities consistent with a proposed Restoration Plan/Environmental Assessment that is also being made available for public review and comment today. Of the possible restoration alternatives, the draft Restoration Plan recommends:
- Kingsbury Bay: Restoration of a 70-acre shallow, sheltered embayment habitat that will add recreational access areas for fishing and a boat launch, improve habitat and reduce invasive vegetation.
- Kingsbury Creek Watershed: Activities to reduce sediment accumulation, improve water quality and support the shallow sheltered bay habitat of the restored Kingsbury Bay.
- Wild Rice Restoration: Enhancement of wild rice stands within the estuary.
- Cultural Education Opportunities: Development of informational displays to communicate importance of the St. Louis River estuary’s cultural and natural resources.
The three Defendants previously paid approximately $80 million to clean up the SLRIDT Superfund site under prior agreements with the Minnesota Pollution Control Agency.
The consent decree is subject to a 30 day public comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.usdoj.gov/enrd/Consent_Decrees.html.
The draft Restoration Plan/Environmental Assessment is also subject to a 30 day public comment period and is available for review at: https://www.pca.state.mn.us/waste/st-louis-river-interlakeduluth-tar-site. Paper copies may be requested by calling 651-259-5157 or 888-646-6367.
Federal Protective Service Officer Indicted for Civil Rights ViolationRead the Press Release
LOS ANGELES – An officer with the Department of Homeland Security’s Federal Protective Service was named today in an indictment that charges him with violating the civil rights of a person in handcuffs by kicking him in the head.
Jason Michael Rouswell, 46, of the El Sereno District of Los Angeles, was charged with one count of deprivation of rights under color of law in relation to the October 20, 2016 incident.
Rouswell, who holds the rank of inspector with the Federal Protective Service, is accused of kicking the victim in the head after the victim had already been handcuffed and while the victim was face down in a prone position. The incident took place outside the offices of the Social Security Administration in Pomona.
The indictment charges Rouswell with willfully depriving the victim of the right to be free from the use of unreasonable force by one acting under the color of law. The indictment further alleges that the victim suffered bodily injury.
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.
Rouswell has agreed to self-surrender to federal authorities on July 5 to face the charge in the indictment.
The civil rights offense alleged in the indictment carries a statutory maximum sentence of 10 years in federal prison.
The case against Rouswell is the result of an investigation by the Department of Homeland Security’s Office of Inspector General and the FBI.
The case is being prosecuted by Assistant United States Attorney Bryant Yang of the General Crimes Section.
Federal Jury Convicts Bank RobberRead the Press Release
CHARLOTTE, N.C. – A federal jury in the Western District of North Carolina convicted Ronald McKnight, 44, of Charlotte, of two charges of bank robbery, following a two-day trial that ended today, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
Evidence presented at trial established that on January 5, 2015, McKnight entered a Fifth Third Bank branch located at 212 South Tryon Street in Charlotte, and presented a note to the teller that read, “Robbery. 100’s 50’s 20’s. No die packs.” The teller handed over $1,732 in U.S. currency from her drawer and McKnight left. Then, on January 9, 2015, McKnight entered a second bank, a Wells Fargo Bank branch located at 2910 South Boulevard, in Charlotte, and presented a note to the teller, using the same wording as in the previous robbery. The teller handed over $1,660 and McKnight left. McKnight was arrested later that same day.
McKnight has been in federal custody since January 2015. He will remain in custody until his sentencing date, which has not been set. McKnight faces a statutory maximum sentence of 20 years for each charge, and a fine of up to $250,000.
The FBI and CMPD led the investigation. Assistant U.S. Attorney Steven R. Kaufman is prosecuting the case.
Fall River Man Sentenced for Cocaine and Heroin DistributionRead the Press Release
BOSTON – A Fall River man was sentenced Tuesday in federal court in Boston in connection with a wide-ranging conspiracy that distributed cocaine and heroin throughout Bristol County, Mass., and Providence, R.I.
Nuno Fonseca, a/k/a “Farigno,” 38, of Fall River, was sentenced by U.S. District Court Judge Rya W. Zobel to 130 months in prison and five years of supervised release. In November 2016, Fonseca pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute cocaine and one count of conspiracy to distribute and possess with the intent to distribute heroin.
Fonseca was one of 10 individuals involved in a drug trafficking operation headed by Luis Lopez that imported hundreds of kilograms of cocaine from Puerto Rico to New Bedford and Fall River, as well as distributed heroin, fentanyl, and acetylfentanyl in Bristol County. Co-defendants Jorge Sanchez-Lopez allegedly coordinated shipments of cocaine through the U.S. Mail with the assistance of Chindy Diaz, who received cocaine-filled packages on Lopez’s behalf and delivered it to Lopez at his Fall River residence. Israel Santiago also helped coordinate the receipt of cocaine on behalf of Lopez. Lopez then sold the cocaine to other drug dealers, including Nuno Fonseca and Tyson Britto.
Fonseca trafficked large quantities of narcotics that he received from Lopez. On three occasions in February, March, and April 2016, federal agents witnessed the transfer of five kilograms of cocaine from Lopez to Fonseca, and in June 2016, agents intercepted telephone calls indicating that Lopez supplied Fonseca with 100 grams of heroin. In addition, Fonseca evaded arrest in June 2016, and fled. He was arrested six weeks later at his home in Fall River.
In June 2016, the 10 defendants were charged for their individual roles in the operation. Nine of the conspirators have pleaded guilty and five, including Fonseca, have been sentenced. In January 2017, Luis Lopez was sentenced to 15 years in prison and five years of supervised release, and Sharik Mendes was sentenced to 30 months in prison. In April 2017, Tyson Britto and Israel Santiago were sentenced to 78 months in prison and two years in prison, respectively. Chindy Diaz pleaded guilty in October 2016 and is awaiting sentencing; Tyson Depina and Eric Desousa pleaded guilty in April 2017 and will be sentenced July 13, 2017. Jorge Sanchez-Lopez has a court date scheduled for Aug. 8, 2017.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eugene Man Sentenced to 10 Years in Prison for Illegal Possession of a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – On Thursday, June 29, 2017, Jose Manuel Vargas, 38, of Eugene, was sentenced by U.S. District Court Judge Ann Aiken to 10 years in prison for being a felon in possession of a firearm and ammunition.
According to court documents, on January 28, 2014, acting on information that persons were selling heroin and methamphetamine within 1,000 feet of a school, Lane County Interagency Narcotics Team detectives entered a residence and arrested Vargas. Vargas, twice convicted in Oregon for the felony sale of illegal drugs, had a revolver, ammunition and body armor. Vargas was on probation for possessing heroin and providing a false name to police.
On July 20, 2017, Vargas appeared before Judge Aiken, pleading guilty to being a felon in possession of a firearm and ammunition. In 2002, an Oregon judge sentenced Vargas to three years in prison for drug trafficking. Vargas received probationary sentences in 2007 for possessing cocaine and in 2013 for possessing heroin. The Lane County District Attorney prosecuted a second person arrested inside the Eugene residence where Vargas was arrested for possession of heroin and methamphetamine.
The case was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon and investigated by agents of the Bureau of Alcohol, Tobacco and Firearms (ATF), detectives from the Interagency Narcotics Enforcement Team (INET), and Springfield, Ore. Police Sergeant Keith Seanor.
Eight Indicted on Federal Drug and Firearms ChargesRead the Press Release
RICHMOND, Va. – A federal grand jury has returned an indictment charging eight individuals with a number of federal drug trafficking and firearms crimes related to their participation in a heroin trafficking conspiracy.
Lawrence Buckner, 37, of King George County, was arraigned today at the federal courthouse in Richmond. The charges are the result of a two-year investigation by the DEA, Naval Criminal Investigative Service, Virginia State Police, King George Sheriff’s Office, Westmoreland County Sheriff’s Office, and the Caroline County Sheriff’s Office.
The following individuals were charged in federal indictments as a result of this joint investigation:
Name
Age
County of Residence
Charges
Date of Jury Trial
Dwayne Alonzo
Proctor
37
Westmoreland
Conspiracy to Distribute Heroin, Fentanyl and Oxycodone;
Distribution of Heroin;
Distribution of Fentanyl;
Maintain Drug Involved Premises;
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Terrell Sylvester
Johnson
28
Westmoreland
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Distribution of Heroin
Maintain Drug Involved Premises
Possession of a Firearm by a Convicted Felon
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Dominic Brown
27
Caroline
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Jeffrey Diaz
Dudley
26
Westmoreland
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Distribution of Heroin
Distribution of Fentanyl
Possession of a Firearm by a Convicted Felon
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Lawrence Buckner
37
King George
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Maintain Drug Involved Premises
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Clifton Wayne
Howdershelt
53
King George
Distribution of Heroin
Possession of a Firearm by a Convicted Felon
July 24
Edward Wayne
Shupe
47
King George
Distribution of Heroin
July 20
Kim Eileen
Capps
47
Fairfax
Distribution of Heroin
July 11
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Jeremy Gauthier, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office; Colonel W. Steven Flaherty, Virginia State Police Superintendent; Steve F. Dempsey, King George County Sheriff; C.O. Balderson, Westmoreland County Sheriff; and A. A. "Tony" Lippa, Jr., Caroline County Sheriff, made the announcement. Assistant U.S. Attorney Olivia L. Norman 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. 3:17-cr-54 (Shupe), 3:17-cr-55 (Howdershelt), 3:17-cr-56 (Capps), 3:17-cr-57 (Proctor).
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.
Durable Medical Equipment Manufacturer Agrees to Pay $2.715 Million to Resolve False Claims AllegationsRead the Press Release
Innovative Therapies, Inc. (“ITI”) and its ultimate parent company Cardinal Health, Inc. (“Cardinal”) have agreed to pay $2.715 million to settle False Claims Act allegations, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The settlement concerns conduct initiated by ITI before being purchased by Cardinal in August 2014 and resolves a qui tam action filed by a whistleblower in May 2015.
“This Office remains committed to enforcement of the False Claims Act,” said Acting United States Attorney Jack Smith. “Fighting fraud and protecting the public fisc are priorities of the Department of Justice, and we will continue to work with our law enforcement partners to vigorously investigate alleged FCA violations. We recognize that through the acquisition of ITI, Cardinal inherited the issues that gave rise to the FCA conduct and ultimately took the necessary steps to resolve this case.”
The settlement resolves allegations that the companies caused the submission of false claims to Medicare through their marketing of certain negative pressure wound treatment (“NPWT”) devices as durable medical equipment (“DME”). Specifically, Relator’s complaint alleged that ITI marketed certain models of its Quantum line of NPWT devices – later renamed the PRO series following Cardinal’s acquisition of the ITI, as DME, despite knowing that these devices did not have the expected life of a durable device. These devices were pre-programmed with a specific number of therapy hours well below the expected life of a DME device, and were never used again once those hours expired. This marketing caused DME suppliers to bill for the devices as DME when they did not meet the standards for a durable device, resulting in the submission of false claims.
“This case is a good example of how the False Claims Act protects taxpayer dollars,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The money recovered will be transferred back to federal health care programs where it can be used to provide medical services for the elderly and disabled.”
The United States’ investigation began with a qui tam complaint filed by a former ITI employee. The qui tam provisions of the False Claims Act allow for whistleblowers, or relators, to file suit for violations of the act on behalf of the United States. A relator is entitled to a percentage of any amount recovered by the United States as a result of the information provided. Relator in this case will receive $488,700.
This matter was investigated by the Department of Justice, the United States Attorney’s Office for the Middle District of Tennessee, and the Department of Health and Human Services Office of Inspector General. The United States was represented by DOJ Trial Lawyer Michael Shaheen and Assistant U.S. Attorney Christopher C. Sabis.
The case is docketed as United States ex rel. Grogan v. Innovative Therapies, Inc., et al., No. 3:15-cv-0568 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Drug Importer Sentenced to PrisonRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MARY ANN B. CANTORES, age 37, was sentenced in U.S. District Court today by Chief Judge Frances Tydingco-Gatewood to a 27-month term of imprisonment, to be followed by two years of supervised release. The Court also ordered CANTORES to pay a mandatory $100 assessment fee. She was convicted of importation of 245 grams of methamphetamine with a 97.8% purity level.
On September 16, 2013, CANTORES arrived in Guam from the Philippines. She was detained at the airport by Guam Customs and Quarantine officers who recovered three plastic ziplock bags containing methamphetamine that were concealed on the bottom of a DVD box. CANTORES knowingly brought the drugs from the Philippines which she carried in one of her luggage. She had agreed with persons in the Philippines to deliver the drugs to an individual in Guam, later identified as Alvin Padua. Padua was arrested on the same day, and on March 31, 2017, he received a sentence of 87 months imprisonment for his role in attempting to possess methamphetamine with intent to distribute, and because of an extensive criminal history record.
Defendant CANTORES pled guilty on October 9, 2013.
The case was investigated by law enforcement agents from the U.S. Department of Homeland Security, Homeland Security Investigations, and Guam Customs and Quarantine Agency, and prosecuted by Assistant United States Attorney Marivic David.
Drug Dealer Pleads Guilty to Conspiracy to Distribute Heroin Resulting in Death and Distribution of Heroin Resulting in DeathRead the Press Release
CHATTANOOGA, Tenn. – On June 28, 2017, Darius Jermaine Blakemore, a.k.a. Tank, 28, of Chattanooga, Tennessee, pleaded guilty to conspiracy to distribute heroin resulting in death, distribution of heroin resulting in death, possession with intent to distribute cocaine, possession with intent to distribute crack, and possession with intent to distribute heroin. He entered this guilty plea during the second day of his trial for the same offenses.
In his plea agreement on file with the U.S. District Court, Blakemore agreed to serve a prison sentence of 23 years. Federal law provides enhanced penalties for drug dealers who distribute controlled substances that lead to overdose deaths, including a 20-year mandatory minimum sentence.
The plea agreement, along with proof at trial, provided that in February 2016, Blakemore sold a gram of heroin to Jessica Rachels for $200.00 in the parking lot of a McDonald’s in Chattanooga. After Rachels arrived at the parking lot, Blakemore gave the heroin to one of his runners, Joshua Corbett, who delivered the heroin to Rachels. Rachels gave a portion of the heroin she received from Corbett to Logan Whiteaker, who drove her to the drug deal. Whiteaker’s stepfather found him dead the next morning on the floor in the bathroom of his residence in Red Bank, Tennessee, with a hypodermic needle clutched in his hand. A blue container with .64 grams of heroin inside was found on the bathroom counter. Whiteaker graduated from Hamilton County Drug Court less than 24 hours prior to his death. Like Blakemore, Rachels and Corbett both previously pleaded guilty to distribution of heroin resulting in death and are all awaiting sentencing.
"Heroin has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Statistics show that in 2016, heroin deaths surpassed gun homicides for the first time in more than 15 years. The U.S. Attorney’s Office for the Eastern District of Tennessee will not stand idle as the death toll continues to rise. We will use all available resources to hold drug dealers like Blakemore, who seek to profit from this epidemic, accountable for their actions,” said U.S. Attorney Nancy Stallard Harr.
John McGarry, Resident Agent in Charge of the DEA Chattanooga Office stated, "The U.S. Drug Enforcement Administration, and its task force partners from the Hamilton County Sheriff’s Office, the Tennessee Highway Patrol, the Red Bank Police Department, the Chattanooga Police Department, and the Tennessee Bureau of Investigation will investigate and pursue overdose deaths in southeast Tennessee to the fullest extent of the law. The prosecution of Darius Blakemore stands as an example of this coalition’s commitment to protecting the most vulnerable elements of our community from the persistent threat of heroin.”
Law enforcement agencies participating in this joint investigation include the Drug Enforcement Administration, Hamilton County Sheriff’s Office, Chattanooga Police Department, Tennessee Bureau of Investigation, Tennessee Highway Patrol, and Red Bank Police Department. Assistant U.S. Attorneys Michael D. Porter and Scott Winne represent the United States.
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Drug Counselor Under Contract with U.S. Probation and Pretrial Services Pleads Guilty to Conspiring to Obstruct JusticeRead the Press Release
June 28, 2017
FOR IMMEDIATE RELEASE Contact Bailey Drumm
www.justice.gov/usao/md at (410) 209-4885
DRUG COUNSELOR UNDER CONTRACT WITH U.S. PROBATION AND PRETRIAL SERVICES PLEADS GUILTY TO CONSPIRING TO OBSTRUCT JUSTICE
Licensed Drug Counselor Did Drugs with Federal Defendant, Helped him Obtain Drugs while in Jail, and Attempted to Conceal his Violations from Federal Judge
Baltimore, Maryland – A licensed drug counselor Jennifer Hamersky, a/k/a Jennifer Maroney a/k/a Jennifer Hurt, age 33, of Severn, Maryland, pled guilty to obstruction of justice and conspiring to conceal alleged violations of pretrial release by one of Hamersky’s clients who was a Federal pretrial defendant.
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.
According to the open plea agreement, Hamersky was a Clinical Professional Addictions Counselor, licensed by the State of Maryland’s Department of Health and Mental Hygiene and a contractor who provided services for United States Probation and Pretrial Service Office (“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, who was on pretrial release under the supervision of USPO, met Hamersky in September 2015, when she conducted an initial substance abuse screening as part of his pretrial release supervision. Hamersky recommended and USPO concurred, that Person A attend individual and group counseling sessions and submit to random urinalysis testing..
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, with a break due to Person A’s incarceration. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions regarding potential violations involving counseling and urinalysis testing to USPO.
Court documents show that Hamersky conspired with a co-conspirator, whose initials are A.S., who was a defendant on federal supervised release. The conspiracy involved obstruction of justice in an effort to conceal from USPO officers and U.S. Magistrate and District Court Judges, Person A’s violations of his conditions of release. The violations include use of narcotic drugs or other controlled substances; failure to appear for urinalysis testing; and failure to appear for counseling sessions.
Specifically, court documents show that Hamersky included false information and material omissions in Person A’s monthly treatment reports which were submitted to USPO, and that she provided false information to Person A’s attorney and USPO regarding Person A’s compliance with conditions of release. In November of 2016, Hamersky submitted to USPO Person A’s urinalysis testing log that Hamersky knew had the forged initials of the urinalysis collector on reports in order to make it appear that Person A had participated in urinalysis testing, when in fact, he had not. To facilitate these false submissions, both Hamersky and her co-conspirator A.S., communicated with Person A to have him sign and complete the required urinalysis testing log for submission to USPO.
According to the open plea, between October 2015 and through February 2017, Hamersky and her co-conspirator A.S. conspired to prevent the communication to a law enforcement officer or judge of the United States information relating to violations of Person A’s conditions of release. Hamersky also used narcotic drugs, including using Oxycodone, with Person A.
While Person A was incarcerated at the Chesapeake Detention Facility, Hamersky facilitated his obtaining narcotic drugs for his personal use, then sent a report to Person A’s attorney to be used in court, which she knew contained false representations.
On January 24, 2017, Hamersky discussed with her co-conspirator A.S. how to conceal from Person A’s USPO officer the fact that Person A had missed a urinalysis test. The Defendant then called Person A’s USPO and left a voice message, falsely indicating that Person A had not missed his urinalysis test.
Acting United States Attorney Stephen M. Schenning commended the Federal Bureau of Investigation, U.S. Probation and Pretrial Services Office, and Drug Enforcement Administration for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Rachel Miller Yasser, who prosecuted the case.
Dominican National Sentenced for Misuse of a Social Security NumberRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for falsely representing a number to be his social security number.
Luis Miguel Mejia Lugo, 25, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served and was taken into federal custody for deportation proceedings. On June 16, 2017, Mejia Lugo pleaded guilty to one count of misuse of a social security number.
On June 3, 2016, a man who identified himself as “Josue Marrero,” but who later was identified as Mejia Lugo, was arrested in Methuen for armed robbery and firearms charges. When Mejia Lugo was booked early the following morning, in order to hide his true identity, he represented a number to be his social security number when in fact it was not.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Essex County Sheriff Kevin F. Coppinger made the announcement today. Assistance with the investigation was provided by the U.S. Citizenship and Immigration Services, the Social Security Administration, and the FBI’s Criminal Justice Information Service. Assistant U.S. Attorneys Kelly Begg Lawrence and Robert E. Richardson of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with a federal immigration crime.
Emerson Geraldo Garcia Alvarez, 35, was charged today with one count of illegal reentry after deportation. Garcia Alvarez was previously deported on June 17, 2014. On May 31, 2017, law enforcement encountered Garcia Alvarez in Boston and determined him to be illegally present in the United States.
Garcia Alvarez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
District Man Found Guilty of First-Degree Murder While Armed in 2014 Slaying in Northeast WashingtonRead the Press Release
WASHINGTON – Jonathan Taylor, 26, of Washington, D.C., has been found guilty of first-degree murder while armed and other charges in a shooting that killed one man and wounded another in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
The jury returned the verdict on June 28, 2017, in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found Taylor guilty of assault with intent to kill while armed and two related firearms offenses. The Honorable José M. Lόpez scheduled sentencing for Aug. 25, 2017. Taylor, who has been held without bond, remains in custody.
According to the government’s evidence, on Aug. 13, 2014, at approximately 9:30 p.m., Taylor and three unidentified associates drove together in a gold Honda Accord, looking to kill their target, 25-year-old Dexter Motley. They found Mr. Motley standing on a corner near the unit block of 46th Place NE, talking casually to his friends and their neighbors. Taylor and his associates then drove around the block and approached Mr. Motley on foot. One of the four men—the triggerman—walked by Mr. Motley, as if walking leisurely down the sidewalk. The triggerman then pulled out a revolver and fired five shots at close range, including a fatal shot into Mr. Motley’s forehead. Another shot hit one of Mr. Motley’s friends. The friend was able to flee into an alley and survived the attack. The defendants fled. Taylor later was linked to the crime through information tying him to the Honda Accord and other evidence.
In a separate case, Taylor is awaiting trial on second-degree murder while armed and other charges in the July 4, 2015 slaying of Dwayne Dillard. Mr. Dillard, 23, was fatally shot at about 11 p.m. in the 2600 block of Douglass Place SE. Taylor has pled not guilty.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD) and the U.S. Park Police. He also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michelle Bradford, Magdalena Acevedo, Christian Natiello, and Michael Spence; Paralegal Specialists Lashone Samuels and Debra Joyner; Victim/Witness Services Coordinators M. Laverne Perry and Tanya Via; Victim/Witness Advocate Marcey Rinker; Investigative Analyst Zachary McMenamin; Litigation Technology Specialist Jeanie Latimore-Brown, and Intern Reed Stadler.
Finally, U.S. Attorney Phillips commended the work of Assistant U.S. Attorneys Thomas N. Saunders and Jin Park, who prosecuted the case.
Dallas, Texas Man Sentenced to 117 Months for Firearm Possession in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CHAD ANTHONY COX, age 27, of Dallas, Texas, was sentenced to 117 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); and for POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A).
The Indictment alleged that on or about October 6, 2016, within the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about October 6, 2016, within the Eastern District of Oklahoma, the Defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Chickasaw Nation Tribal Police, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
DEA Task Force Investigation Dismantles Hartford-Based Heroin and Fentanyl Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Hartford Police Chief James C. Rovella announced that the following 13 individuals were arrested today on federal charges related to the distribution of heroin and fentanyl in the Hartford area and western Massachusetts.
JOEL CORDERO, 37, of Meriden
EDWIN REYES, 34, of Hartford
GISEL DE LA CRUZ, 43, of East Hartford
ANGEL DE JESUS-CONCEPCION, a.k.a. “Blue,” 40, of East Hartford
ANTHONY ACOSTA, 28, of New Britain
GABRIEL CORDERO, 30, of Hartford
ALEXANDER PENA, 25, of East Hartford
AMARILIS PIRELA, 38, of Springfield, Mass.
JONATHAN VELEZ, 23, of Springfield, Mass.
HENRY CARABALLO, 26, of Hartford
FERNANDO TOLENTINO, Jr., a.k.a. “Humacao,” 46, of Hartford
DAILY PENA, 39, of Hartford
ANGEL RIJO-CASTILLO, 41, of Guttenberg, N.J.As alleged in criminal complaints and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers. They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford where some of the defendants also resided, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area. A significant amount of drug trafficking activity occurred at Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford.
During the investigation and in association with today’s arrests, law enforcement executed 12 search warrants in Connecticut and Massachusetts and seized approximately 20 kilograms of suspected heroin, most of which was packaged for resale in hundreds of thousands of bags. Investigators also seized numerous vials of Xylazine, which is a horse tranquilizer used by narcotics traffickers as a heroin additive. Seven firearms also were seized.
“The seizure of 20 kilos of heroin makes clear this was a major drug distribution operation in the Hartford area,” said U.S. Attorney Daly. “The opioid epidemic continues to destroy lives in every corner of Connecticut. In partnership with the DEA, and the state and local police, we will continue to prioritize the prosecution of these responsible for trafficking this deadly drug.”
“Opioid abuse is at epidemic levels across New England and those suffering from opioid addiction need access to treatment and recovery,” said Special Agent in Charge Ferguson. “But those responsible for distributing lethal drugs like fentanyl and heroin to the citizens of Connecticut need to be held accountable for their actions. Today’s seizure of pre-packaged suspected heroin and fentanyl is one of the largest in Connecticut and shows DEA’s commitment to aggressively pursue Drug Trafficking Organizations or individuals who distribute these poisons in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal partners and our strong relationship with the U.S. Attorney’s Office.”
The complaint charges the defendants with conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and distribution of heroin.
Following their arrests, the defendants appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and were ordered detained.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Cross Junction Man Sentenced for Misbranding FlubromazolamRead the Press Release
Harrisonburg, VIRGINIA – A Virginia man who purchased and later distributed a misbranded drug that was intentionally masked to look like candy was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Christopher Michael Sweeney II, 21, of Cross Junction, Va., was sentenced yesterday to four years in federal prison to be followed by three years of supervised release. Sweeney pled guilty on February 3, 2017, to one count of conspiracy to ship and receive a misbranded drug in interstate commerce with the intent to defraud and mislead.
According to evidence presented at the earlier guilty plea hearing and at yesterday’s sentencing, between June 2015 and September 2015, Sweeney bought Smarties candy laced with flubromazolam on the “dark web” and resold it, at substantial profit. Flubromazolam is a designer synthetic drug not approved by the United States Food and Drug Administration for human consumption because it is toxic and can cause serious bodily injury or even death when ingested. However, at the time Sweeney illegally trafficked in it, flubromazolam was not listed as a scheduled drug under either federal or state law. The Commonwealth of Virginia has since listed it as a Schedule I drug.
Sweeney misleadingly told his customers the substance was “Xanax” or “like Xanax,” even though he knew some of his purchasers were blacking out and having car accidents after taking it. On September 21, 2015, distributed Smarties laced with flubromazolam to a female victim, who formerly resided in Winchester, Virginia. That flubromazolam contributed to the female victim’s overdose and death.
“It is unfortunate that we could only prosecute this serious crime with tragic consequences under the FDA’s misbranding statute,” said Acting United States Attorney Mountcastle. “Sweeney distributed this dangerous drug for profit by disguising it as candy and falsely claiming that it was Xanax, ruthlessly ignoring the substantial risk of death posed by this drug. My heart goes out to parents of the young victim and I deeply regret that the unscheduled nature of this drug precluded a prosecution for more serious crimes. I commend AUSA Erin Kulpa, the Northwest Virginia Regional Drug and Gang Task Force, the Virginia State Police, and the Drug Enforcement Administration for bringing Sweeney to justice.”
“This is a great example of the challenge that law enforcement faces in a society where there are constantly evolving controlled substance analogues that are being produced abroad and ordered by utilizing the dark web. We are pleased to have a successful prosecution and even more so that flubromazolam is now recognized as a Schedule I controlled substance in the Commonwealth of Virginia,” said Supervisory Special Agent Josiah C. Schiavone, Coordinator of the Northwest Virginia Regional Drug and Gang Task Force for the Virginia State Police. “The successful prosecution was the result of excellent collaboration between the United States Attorney’s Office of the Western District, the Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force.”
“When you buy drugs from an unscrupulous distributor, who’s only concern is their own profit, you take an unnecessary risk with your own life which may end in tragic consequences. The complexity of the laws regarding synthetic drugs and the use of the dark web made this a difficult case to prosecute,” said DEA Washington Division Special Agent in Charge Karl C. Colder. “We are pleased to be part of the successful prosecution team in this investigation.”
The investigation of the case was conducted by Northwest Virginia Regional Drug and Gang Task Force, the Virginia State Police and the Drug Enforcement Administration. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Columbus Man Pleads Guilty to Providing Material Support to Terrorists, Making False Statements to AuthoritiesRead the Press Release
COLUMBUS, Ohio – Court records unsealed today reveal that Abdirahman Sheik Mohamud, 25, of Columbus, Ohio, pleaded guilty to all counts alleged against him regarding a terrorist plot.
A federal grand jury charged Mohamud in April 2015 with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization – namely, al-Nusrah Front – and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus, Ohio.
Assistant Attorney General for National Security Dana J. Boente, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Prosecutor Ron O’Brien and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the plea unsealed by U.S. District Judge James L. Graham.
“Mohamud admitted to traveling overseas, providing material support to a designated foreign terrorist organization, and receiving training from terrorists. He also admitted to returning to the United States and planning to conduct an attack on American soil. He will now be held accountable for his crimes, said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism. We will remain vigilant in our efforts to identify, disrupt, and bring to justice those who provide material support to foreign terrorist organizations and seek to conduct attacks on our homeland.”
“National security is the first priority of this office, and we will use every tool at our disposal to stop those who support foreign terrorist organizations and those who seek to do harm in the United States,” U.S. Attorney Glassman said.
"Each day the Joint Terrorism Task Force and our law enforcement partners are working to keep the community safe from those who wish to disrupt our way of life," said Special Agent in Charge Byers. "We must continue to remain vigilant against these potential threats."
“This case illustrates the effectiveness of the local JTTF and the cooperative effort in the Columbus area that exists to combat terrorism,” Franklin County Prosecutor O’Brien said.
Mohamud pleaded guilty before U.S. Magistrate Judge Elizabeth Preston Deavers on August 14, 2015, and the plea was sealed because of an ongoing investigation.
According to court documents, Mohamud is a Somali-born naturalized citizen of the United States who, in 2014, obtained a U.S. passport and one-way ticket to Greece. During his travel in April 2014, Mohamud did not board his connecting flight to Athens, Greece; rather, during his layover in Istanbul, Turkey, he completed pre-arranged plans to cross the border into Syria. In Syria, Mohamud received training from al-Nusrah Front, a terrorist organization affiliated with al-Qaeda.
According to a statement of facts supporting Mohamud’s guilty plea, while in Syria, Mohamud trained with al-Nusrah Front on fitness, and on the use of weapons and tactics. Mohamud also engaged in a firefight and expressed his desire to die fighting in Syria.
After his brother was killed while fighting for al-Nusrah Front, Mohamud returned to the United States. According to the statement of facts, after returning to the United States, Mohamud planned to obtain weapons in order to kill military officers or other government employees or people in uniform. Evidence seized by the FBI indicates that Mohamud researched places in the U.S. to carry out such plans.
Mohamud was originally arrested and indicted in state court by Franklin County Prosecutor O’Brien’s office and a $1 million bond was set that maintained him in custody. Those state charges were dismissed when the federal prosecution commenced. Mohamud was transferred into federal custody following the April 2015 indictment and remains in custody.
Providing material support to terrorists and providing material support to a designated foreign terrorist organization are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and U.S. Attorney Glassman commended the cooperative investigation of the FBI’s JTTF with numerous local partners, and Assistant United States Attorneys Douglas Squires, Jessica H. Kim and Salvador Dominguez, as well as Special Assistant United States Attorney Joseph Gibson with the Franklin County Prosecutor’s office and Trial Attorneys Bridget Behling and Lolita Lukose of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
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