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Thursday 29 June 2017
Carmichaels Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH – A Greene County resident has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on June 28, named Cindy Hancheck, 60, of Carmichaels, Pennsylvania, as the sole defendant.
According to the indictment, between July 1999 and January 2016, Hancheck had knowledge of her husband’s continued presence in her household, his continued financial support of her, and the opening and maintenance of bank accounts held jointly between her and her husband, but concealed and failed to disclose those events to the Social Security Administration with the intent fraudulently to secure Supplemental Security Income benefits. Additionally, between January 2000 and February 2016, Hancheck, having filed an application for Supplemental Security Income benefits, received and converted approximately $115,597.94 in benefits to which she knew she was not entitled.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. 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 Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – 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.
California Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was sentenced in federal court today for his role in a conspiracy to mail large quantities of methamphetamine to Columbia, Mo., for distribution.
Kameron Terrell Howard, 26, of Compton, Calif., was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
On Jan. 19, 2017, Howard pleaded guilty to participating in a conspiracy to distribute methamphetamine. Co-defendants Melissa Guerra, 35, Jeremy Dennis Maxwell, 31, and his wife, Stephanie Anne Maxwell, 34, all of Columbia, and Calvanisha Yvette West, 28, of California, have also pleaded guilty to participating in the conspiracy and await sentencing.
Postal inspectors identified a suspicious parcel mailed from California to Guerra’s address on Nov. 6, 2015. After a drug canine alerted to the package, investigators found 444.8 grams of pure methamphetamine. A second suspicious parcel identified on the same day, mailed to a different address, contained almost 1.4 kilograms of pure methamphetamine.
Postal inspectors executed a controlled delivery of the first parcel on Nov. 10, 2015. When federal agents and the Boone County Sheriff’s Department Special Weapons and Tactics Team (SWAT) approached the residence, a co-conspirator who had just arrived ran to the front door of the residence, opened it, and shut the door behind him. SWAT members were unable to breach the door as it had been reinforced. SWAT members entered at another location. Guerra was apprehended inside the residence. Agents saw Howard and co-conspirators running out the back door of the residence attempting to evade law enforcement.
Approximately 30 minutes later, canine units with the Columbia Police Department were able to track Howard to a shed located inside a locked gate at a nearby residence and he was arrested.
A woman who lives at the address to which the second intercepted parcel was addressed reported to investigators that she was contacted by Howard prior to Nov. 6, 2015, and advised that a package was being sent to her residence.
West admitted that, following Howard’s arrest, and in an effort to have his cell phone locked and cause it to be unavailable to investigators, he called her and instructed her to contact Sprint and tell them that his iPhone, which had been seized by investigators, had been stolen. West also admitted that she accompanied Howard when he traveled to Columbia in September 2015 and assisted in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the U.S. Postal Inspection Service, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
California Man Indicted for Marijuana ConspiracyRead the Press Release
ALBANY, NEW YORK – Eric D. McNeil, age 39, of Murietta, California, was indicted yesterday for conspiring to distribute more than 100 kilograms of marijuana in Columbia County, New York.
The announcement was made by United States Attorney Richard S. Hartunian and Inspector in Charge Shelly A. Binkowski, United States Postal Inspection Service (USPIS), Boston Division.
McNeil was arrested May 2, 2017, on a criminal complaint. According to the complaint, McNeil used the United States Postal Service to send more than 100 kilograms of marijuana, from California and to a co-conspirator located in Columbia County. The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent until proven guilty.
McNeil will be arraigned at a later date. If convicted, he faces at least 5 years and up to 40 years in prison, a maximum $5 million fine, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Buffalo Man Pleads Guilty to Bank Fraud and ID TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Carriero, 38, of Buffalo, NY, pleaded guilty to bank fraud and aggravated identity theft before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 30 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between September 27, 2015, and March 16, 2016, the defendant executed a scheme to defraud Citizens Bank and the United States Postal Service. Defendant forged over 50 stolen checks at various Citizen’s Bank and Post Office locations, resulting in losses amounting to $35,577.00.
Carriero also pleaded guilty to two violations of supervised release. The defendant was on supervised release following a 2011 conviction in the Eastern District of Kentucky for theft of government property. Carriero was sentenced to 37 months in prison and three years’ supervised release. On August 11, 2014, the defendant was sentenced once again in the Eastern District of Kentucky for escape.The plea is the result of an investigation by U.S. Postal Inspection Service, under the direction of Boston Division Inspector in Charge Shelly Binkowski.
Sentencing is scheduled for October 6, 2017, at 1:00 p.m. before Judge Arcara.
Buffalo Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Raymond DeJesus, 24, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and distribution of heroin before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between August 2014, and September 28, 2015, the defendant conspired with Daniel Molina Rios, Orlando Rios, Jose Andujar, Luis Montanez, and others to distribute heroin on the West Side of Buffalo. The investigation utilized undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
DeJesus was a street-level distributor or “runner” in a heroin trafficking ring operated by Daniel Molina-Rios. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
A total of 14 defendants have been indicted in connection with this case, and DeJesus is the seventh to be convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
DeJesus is scheduled to be sentenced on October 5, 2017, at 12:30 p.m. before Judge Arcara.
Braddock Man Charged with Escape from Renewal CenterRead the Press Release
PITTSBURGH - A Pittsburgh-area resident has been indicted by a federal grand jury in Pittsburgh on a charge of escape, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on June 27, named Devon Johnson, 29, of Braddock, PA.
According to the indictment, on August 31, 2016, the defendant escaped from the Renewal, Inc. Residential Reentry Center, where he had been confined pursuant to a judgment and commitment order of the United States District Court for the Northern District of West Virginia.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The United States Marshals Service 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.
Barton Man Sentenced to 25 Years in Prison for Child ExploitationRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that District Judge Geoffrey Crawford sentenced William Allen, 32, to twenty-five years in jail based on his conviction for receiving child pornography. Allen, from Barton, Vermont, must serve a lifetime period of supervised release after completing his prison sentence.
Allen, who has prior Vermont convictions for possessing child pornography and for lewd and lascivious conduct with a child, was initially charged in state court with child pornography offenses in June 2014. A federal indictment was returned in July 2015 against Allen and his wife, Kerissa Allen, for child pornography charges. Kerissa Allen pleaded guilty to possessing child pornography in February 2016. William Allen pleaded guilty to receiving child pornography in August 2016. Kerissa Allen was previously sentenced by Judge Crawford to four years in jail based on her guilty plea.
At the sentencing hearing for William Allen, which began June 27, the government presented evidence that Allen sexually abused three children prior to his state arrest. Based on that evidence, the court found that Allen had engaged in a pattern of sexual abuse of children within the meaning of the federal sentencing guidelines. Even though Allen was convicted of receiving child pornography, the court could and did consider Allen’s contact offenses against children in fashioning the appropriate sentence. Because of Allen’s prior convictions, he faced a mandatory minimum sentence of fifteen years in jail. The court agreed with the government that William and Kerissa Allen took digital images of the abuse of two of the children, though the storage media for those images was never located. Further, Judge Crawford found that Allen urged Kerissa Allen to attempt to falsely take the blame for his child pornography crimes charged by the state.
The case was investigated by Homeland Security Investigations, the Vermont Internet Crimes Against Children Task Force, the Vermont State Police, and the Orleans County States’ Attorney Jennifer Barrett. The case represents another example of the extraordinary cooperation in Vermont between federal law enforcement and its state and local partners. The case was prosecuted by Assistant United States Attorney Paul Van de Graaf. Mr. Allen was represented by Burlington Attorney Robert Katims.
Authorities Announce Initiative Targeting Houston Violent OffendersRead the Press Release
HOUSTON – Houston area federal, state and local law enforcement agencies came together today to announce a collaborative initiative to proactively fight violent crime across the Greater Houston area. The Houston Law Enforcement Violent Crime Initiative brings together personnel from 10 area law enforcement agencies to not only augment investigative and prosecutorial efforts, but also to enhance collaborative training and community outreach efforts.
Acting U.S. Attorney Abe Martinez made the announcement along with Tom Berg, First Assistant District Attorney of the Harris County District Attorney’s Office, Chief Art Acevedo of the Houston Police Department (HPD), Chief Deputy Edison Toquica of the Harris County Sheriff’s Office (HCSO), Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Deputy Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Chief Deputy U.S. Marshal Richard Hunter of the U.S. Marshals Service, Commander Philip D. Steen of the Texas Department of Public Safety (DPS), Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration and Administrator George Rhyne of Texas Anti-Gang.
Authorities have also strived to work together in the interests of justice. The announcement today included details about the initiative designed to enhance those partnerships and collaborate on the best avenues for targeting and ultimately prosecuting the most violent offenders in the community. Such specifics included information about intelligence integration, strategic support, working groups and resources, among others.
Aa part of the effort, additional training will also be provided among the agencies. For example, there is a violent crime training initiative which will provide numerous classes to educate agents and officers on the details of developing a violent crime case using the Hobbs Act, VICAR and RICO. The trainings are designed for front line investigators and mid-level managers of patrol and robbery units. The first of such trainings took place earlier this month and trained approximately 60 officers.
As part of the overall effort, several agencies will work together on initiatives designed to target violent offenders in Houston. One such operation involves HCSO and DPS and has already begun which has targeted high-crime areas along the 1960 corridor.
The ATF also provided information today regarding their National Integrated Ballistic Information Network which they use to identify shooters and connect specific guns to multiple crime scenes. The network is a system of 158 sites used by federal, state and local law enforcement and is the most advanced forensic tool available to law enforcement to identify criminals who repetitively use guns to commit crimes. They also have a joint initiative with HPD for intelligence-driven identification of violent offenders and gun-related crime. The goal is to not only “connect the dots” between multiple pieces of information relating to violent crime but also prepare strong cases for state and federal prosecution of these offenders.
HPD also has a Violent Offenders Squad (VOS) which investigates commercial business robberies, take-over style robberies, serial robberies juvenile-related and gang-related robberies in a more innovative and creative manner. It will also provide support to other investigators who are conducting follow-up on high-volume or highly-organized suspects committing serial cases. Further, HPD has a Criminal Apprehension Team (CAT) which will use proactive, reactive and analytical techniques to prevent and suppress serial criminal activity. CAT will identify and target such repeat offenders by proactively investigating their activities and apprehending them for crimes they commit.
The announcement today comes on the heels of news that Houston was recently named as one of 12 cities to join the Department of Justice’s newly-organized National Public Safety Partnership (PSP). As part of that effort, advisers and consultants will provide assistance in capacity building, data collection and analysis, proposed training and technical assistance and community outreach. The partnership provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.
The overall goal of the collaborative initiative is to reduce the amount of violent crime in the city and improve the quality of life for the citizens of Houston.
Attorney General Sessions Speaks with Families of Victims Killed by Illegal AliensRead the Press Release
Today Attorney General Jeff Sessions met with families who have lost loved ones because of crimes committed by illegal aliens. In the meeting they discussed the progress being made by the Trump Administration to strengthen laws protecting Americans from crimes committed by illegal aliens and, the need to keep working to ensure that federal immigration laws are enforced.
“It was a great honor for me to meet with these families, and I was impacted by their stories,” said Attorney General Jeff Sessions. “The tragic burdens they carry remind us of the urgent need by the federal government to fully enforce our immigration laws and to secure the borders of this country. No Americans should experience what these families have suffered. I want to thank these strong moms, dads, siblings and widows for ensuring that their loved ones don’t die in vain by using their voices to affect the real changes that we are implementing. I commit to them, and I commit to the American people that the Department of Justice will do everything in our power to ensure the safety of every American community.”
Attending the meeting with the Attorney General were Maureen Laquerre and Maureen Maloney of Massachusetts, Juan Piña and Sabine Durden of California, Steve Ronnebeck and Mary Ann Mendoza of Arizona and Laura Wilkerson of Texas.
Attleboro Resident Sentenced to 7 Years in Prison for Trafficking 6 1/2 Kilos of HeroinRead the Press Release
PROVIDENCE – Olga Lidia Sandoval, 39, of Attleboro, MA., was sentenced today to 84 months in federal prison for arranging for the transportation of 6 ½ kilograms of heroin from Guatemala through Mexico and into Rhode Island in May 2016.
The heroin was found stashed in the front differential and axle of a truck being towed by another vehicle driven by a New York resident along Interstate 95 on May 22, 2016.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sandoval to serve 5 years supervised release upon completion of her prison term. Sandoval also agreed to forfeit $10,396 in cash seized from her home on the date of her arrest. The court ordered that Sandoval, a Guatemalan national, be turned over to immigration officials for deportation proceedings upon completion of her prison sentence.
Sandoval pleaded guilty on May 1, 2017, to conspiracy to possess with the intent to distribute more than one kilogram of heroin and possession with the intent to distribute more than one kilogram of heroin.
The U.S. Sentencing Guideline range of imprisonment in this matter is 70 to 87 months. The government and the defendant recommended to the court, and the court agreed to impose a sentence of 84 months of incarceration.
Sandoval’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to information presented to the court, in November 2015, Rhode Island State Police and the High Intensity Drug Trafficking Area Task Force began investigating the drug trafficking activities of a co-conspirator in this matter, Jose Luis Amparo Nova, 33, of North Providence, RI.
In January 2016, HSI began investigating Olga Sandoval’s drug trafficking activities, which included arranging the importation and distribution of heroin in Rhode Island and Massachusetts. The investigations, independent of one another, included electronic surveillance which captured conversations between Sandoval and Nova. Frequent conversations captured by HSI between Sandoval and others included discussions of efforts to send substantial sums of narcotics-derived proceeds to her Guatemalan sources of supply.
Beginning on May 13, 2016, law enforcement monitored discussions of a shipment of heroin from Mexico into Rhode Island and Massachusetts. Conversations included discussions of a location to deliver the shipment as well as payment for the drugs. On May 19, law enforcement monitored conversations that indicated that the truck transporting the drugs to New England had been damaged in a rollover accident.
On May 22, 2016, Rhode Island State Police stopped the driver of a U-Haul after witnessing the truck weaving in and out of marked lanes. The U-Haul was towing a heavily damaged truck that matched the description of the truck believed to being used to transport the shipment of heroin from Mexico to New England. As the traffic stop was occurring, law enforcement intercepted a call placed by Olga Sandoval indicating that she received a call informing her that the driver of the U-Haul, Ivan K. Alvarado, 39, of Spring Valley, NY, had been stopped by law enforcement.
The vehicles were towed to Rhode Island State Police headquarters where a court authorized search of the vehicles resulted in the discovery of 6.487 kilograms of heroin stashed in the underside of the truck being towed.
Ivan Alvarado was arrested on May 22, and Olga Sandoval and Jose Nova were arrested on May 24, 2016, on federal criminal complaints charging each with conspiracy to possess with the intent to distribute one kilogram or more of heroin. U.S. District Court Magistrate Judge Patricia A. Sullivan ordered the defendants detained in federal custody.
Sandoval and Nova were indicted by a federal grand jury on June 16, 2016, on charges of conspiracy to possess with the intent to distribute one kilogram or more of heroin and possession with the intent to distribute one kilogram or more of heroin. Nova pleaded guilty on January 26, 2017, as charged in the indictment. He is scheduled to be sentenced on July 14, 2017.
According to a plea agreement filed in this matter, Ivan Alvarado has agreed to plead guilty to an information charging him with drug trafficking. Alvarado is scheduled to be arraigned on July 5, 2017.
The cases are being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
Acting United States Attorney Stephen G. Dambruch thanks the Rhode Island Department of the Attorney General and the DEA for their assistance in this matter.
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Acting Manhattan U.S. Attorney Sues to Shut Down Mamaroneck Fish Smokehouse After Findings of ListeriaRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Melinda K. Plaisier, Associate Commissioner for Regulatory Affairs of the Food and Drug Administration (“FDA”), announced today the filing of a Complaint and the entry of a Consent Decree against defendants SMOKEHOUSE OF NEW YORK, LLC (“Smokehouse”), its director of operations, BRETT H. PORTIER (“Portier”), and its president and owner, PANAGIOTA SOUBLIS (“Soublis”), for violations of the Food, Drug, and Cosmetic Act and related food-safety regulations at Smokehouse’s Mamaroneck facility, where the defendants prepare and sell fish products and other specialty foods to consumers across the country.
Acting U.S. Attorney Joon H. Kim stated: “We will not let businesses put profits over public health. Smokehouse, Portier, and Soublis have repeatedly put their customers at risk of severe illness. Our Complaint and today’s Consent Decree hold them accountable and require them to clean up their operations and protect the public.”
FDA Associate Commissioner for Regulatory Affairs Melinda K. Plaisier said: “The Smokehouse of NY has had several opportunities to come into compliance with the law. Through the use of modern technology, the FDA was able to establish that the company has resident strains of Listeria in its facility that it has consistently failed to eradicate. Conditions like these are unacceptable and the FDA took action to protect Americans.”
According to the Complaint filed Monday in White Plains federal court:
Listeria monocytogenes (“Listeria”) is a bacterium that can be very harmful to human health. In the general population, it can cause severe flu-like symptoms and, in extreme cases, confusion, loss of balance, and convulsions. For pregnant women, it can cause miscarriage, stillbirth, premature delivery, or life-threatening infection of the newborn.
The defendants have repeatedly failed to operate their packaged fish business in compliance with food and safety standards set by FDA. As a result, the FDA has repeatedly found Listeria in their facility. Although the defendants previously have proposed to undertake corrective measures to address the Listeria problems at their facility, they have failed to fix the problem: An FDA inspection conducted between March 8 and April 5, 2017, again found Listeria at various locations within the facility, including on direct food-contact surfaces.
* * *
In the Consent Decree entered today, Smokehouse, Portier, and Soublis admit, acknowledge, and accept responsibility for the following:
- The defendants failed to manufacture, package, and store food under conditions and controls necessary to minimize the potential for microorganism growth and contamination.
- At each of five inspections conducted by FDA between 2011 and 2015, FDA found Listeria in the facility, including on a food-contact surface and in packaged, ready-to-eat food.
- Following the 2011-2015 inspections, the defendants took a number of corrective actions that they stated would address the conditions found by investigators.
- However, during an FDA inspection between March 8 and April 5, 2017, FDA again found Listeria at the facility, including on food-contact surfaces, including a stainless steel table where food is processed and on a plastic tray used interchangeably to hold raw and finished products.
Pursuant to the Consent Decree, Smokehouse, Portier, and Soublis are enjoined from receiving, preparing, processing, packing, labeling, holding, and/or distributing articles of food until they (1) clean and sanitize their facility; (2) implement appropriate pathogen control and other food safety plans; and (3) implement training programs on proper food hygiene and sanitation for all its employees. Additionally, the Consent Decree requires Smokehouse, Portier, and Soublis to destroy their current stock of processed food and recall certain food previously sold by them. The defendants are subject to additional actions by the FDA, including mandated future recalls and shut downs, as well as liquidated damages and costs to cover future necessary inspections and other monitoring actions, if they violate the provisions of the Consent Decree.
Mr. Kim thanked the FDA for its work leading to the Complaint.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorney Stephen Cha-Kim is in charge of the case.
Acting Manhattan U.S. Attorney Announces Historic Jury Verdict Finding Forfeiture of Midtown Office Building and Other PropertiesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found the 36-story office building at 650 Fifth Avenue (the “Building”), worth at least $500 million, and other real property and bank accounts forfeitable to the United States as proceeds of violations of the Iran sanctions and property involved in laundering the proceeds of those sanctions violations. The jury’s verdict, which represents the largest civil forfeiture jury verdict and the largest terrorism-related civil forfeiture in United States history, came after a five-week trial before the Honorable Katherine B. Forrest.
Acting U.S. Attorney Joon H. Kim said: “For over a decade, hiding in plain sight, this 36-story Manhattan office tower secretly served as a front for the Iranian government and as a gateway for millions of dollars to be funneled to Iran in clear violation of U.S. sanctions laws. In this trial, 650 Fifth Avenue’s secret was laid bare for all to see, and today’s jury verdict affirms what we have been alleging since 2008: that through all the efforts to sanction and isolate Iran, a state sponsor of terrorism, the owners of 650 Fifth Avenue gave the Iranian government a critical foothold in the very heart of Manhattan through which Iran successfully circumvented U.S. economic sanctions. The jury’s verdict finding forfeitable a building valued at over $500 million dollars, as well as other real estate and funds, represents the largest civil forfeiture jury verdict and the largest terrorism-related civil forfeiture in U.S. history. This verdict not only vindicates the exemplary work of all the career prosecutors and law enforcement partners who have doggedly pursued this case for almost a decade, but importantly, it also allows for substantial recovery for victims of Iran-sponsored terrorism.”
According to the allegations contained in the Complaint, Amended Complaint, and other filings in this case, and the evidence presented in Court during the trial:
Overview
The International Emergency Economic Powers Act (AIEEPA@) confers upon the President the authority to take certain actions, defined in 50 U.S.C. Section 1702, in response to declared national emergencies. Since 1995, the President has declared national emergencies with respect to the actions and policies of the Government of Iran through a series of Executive Orders. The Treasury Department’s Iranian Transactions Regulations (“ITR”), and Weapons of Mass Destruction Proliferators Sanctions Regulations, implement these Executive Orders. Pursuant to these Orders, and regulations, the provision of services to the Iranian Government has been illegal since 1995.
From before 1995 until the filing of the Government’s civil forfeiture action in 2008, the Alavi Foundation (“Alavi”), Assa Corp. (“Assa”), and the 650 Fifth Avenue Company, a partnership between Alavi and Assa to own the Building (the “Partnership”) were controlled by and provided numerous services to the Government of Iran, including managing the Building for the Iranian Government, running a charitable organization for the Iranian Government, and transferring rental income funds from the Partnership to Bank Melli, an Iranian owned government bank.
Alavi and the Building
Alavi is a New York non‑profit organization originally created by the Shah of Iran in the 1970s, under the name the Pahlavi Foundation, to pursue Iran’s charitable interests in the United States. The Building was constructed in the 1970s by Alavi, financed by a substantial loan from Bank Melli Iran (“Bank Melli”).
Following the Iranian revolution of 1979, the Islamic Republic of Iran established the Bonyad Mostazafan, also known as the Bonyad Mostazafan va Janbazan (“Bonyad Mostazafan”), to centralize, take possession of, and manage property expropriated by the revolutionary government. The Bonyad Mostazafan was created in or about March 1979 by order of the Ayatollah Khomeini and approved by the Revolutionary Council of the Islamic Republic of Iran, and is controlled by the government of Iran. The Bonyad Mostazafan sought to take control of the Shah’s property, including the assets of the Pahlavi Foundation. The Bonyad Mostazafan reports directly to the Ayatollah. The Bonyad Mostazafan assumed control of Alavi shortly after the revolution.
The Creation of Assa and the Partnership
In 1989, Alavi and Bank Melli formed the Partnership in order to avoid paying federal taxes on rental income from the Building. Bank Melli’s ownership interest in the Partnership, however, was disguised through the creation of two shell companies. Alavi transferred 35 percent of the Partnership to Assa, an entity wholly owned by Assa Co. Ltd. Assa Co. Ltd. is a Jersey, Channel Islands, United Kingdom, entity owned by Iranian citizens who represent the interests of Bank Melli. In conjunction with the transfer of the 35 percent interest in the Partnership to Assa, Bank Melli cancelled its loan on the Building. Several years later Assa received an additional 5 percent, leaving Alavi owning 60 percent of the Partnership, and Bank Melli owning 40 percent of the Partnership, through Assa and Assa Co. Ltd.
The decision to convert Bank Melli’s mortgage on the Building into a partnership interest in the Partnership was discussed and approved by high-level Iranian government officials. Among others, the head of the Bonyad Mostazafan (also the Deputy Prime Minister of Iran), the Office of the Prime Minister of Iran, the director of the Central Bank of Iran, and the general director of Bank Melli, as well as other Bonyad Mostazafan and Bank Melli officials, discussed and approved the partnership between Alavi and Bank Melli. After Alavi and Assa Corp. entered into the partnership agreement, a Bonyad Mostazafan official forwarded the agreement to the head of the Bonyad Mostazafan, noting that “the partnership is based on prior agreements between the Ministry of Finance, Bank Melli Iran, and the Bonyad Mostazafan, with the only change being the building will be valued at two million dollars less than as previously agreed. . . .”
The Partnership continued to distribute rental income from the Building to Bank Melli, concealed by the use of Assa as an intermediary, after it became illegal with the imposition of Iranian sanctions in 1995.
The Government of Iran’s Continued Control over Alavi
The Iranian Government’s control of Alavi continued after the creation of the Partnership and the imposition of the sanctions against Iran.
In 1991, the Supreme Leader of Iran, the Ayatollah Ruhollah Khomeini ordered that control of Alavi be transferred from the Bonyad Mostazafan to the Iranian Ambassador to the United Nations. According to the minutes of a May 16, 1991, board meeting held in Zurich, Switzerland, the head of the Bonyad Mostazafan explained that, as directed by the Supreme Leader, several board members were to resign. In a letter, Alavi’s president described how, a few days later, Ambassador Kamal Kharrazi called the president and another board member to his office. The Ambassador said that “the Foundation from here on out is under the oversight of Haj Agha, not Mr. Rafighdoost [then the head of the Bonyad Mostazafan]. . . . [F]rom now on, the role of the Managing Director and the role of the Board of Directors will be just a formality and he [the Ambassador] will be conducting all of its [the Foundation’s] affairs.” The president of Alavi then wrote a letter to the Ayatollah cautioning that although the Ambassador’s “appointment to a position of responsibility connected to the Foundation’s affairs presents enormous political, security, and economic dangers, we feel assured that the Supreme Leader has made this decision with discernment, unique insight, and a thorough knowledge of all pertaining aspects.” In July 1991, the president resigned his position and he was replaced that August by an individual who served as president until the summer of 2007.
In 1992, Alavi’s new president met in New York and in Tehran with Bank Melli officials concerning $1.7 million in real estate taxes owed by the Partnership and $2.2 million in unpaid distributions owed by the partnership to Assa. The Tehran meeting was attended by a Bank Melli board member, the head of Bank Melli’s Overseas Network Supervisory Department, the head of Bank Melli’s New York branch, and the head of Bank Melli’s Foreign Affairs. The head of the board of directors and managing director of Bank Melli forwarded the minutes of the Tehran meeting to the head of the Bonyad Mostazafan along with a cover letter stating, among other things, that “It is hoped that your firm instructions and the extra attention of the brothers from that esteemed Foundation, who are responsible for the Alavi Foundation of New York, will resolve the partnership’s mutual problems quickly . . . .”
Iranian Ambassadors to the U.N. continued to direct the affairs of Alavi and to attend meetings of Alavi’s board. In the late 1990s, two Bank Melli employees sought Ambassador Kharrazi’s permission for Assa to sell its interest in the Partnership. The Ambassador informed Bank Melli that the Building would be sold when the real estate market improved. In 2004, Ambassador Javad Zarif directed Alavi to settle a lawsuit that threatened to expose Assa’s ownership by Bank Melli and Alavi’s relationship with the Government of Iran for $4 million, and then caused these settlement proceeds to be distributed through other New York real estate companies to officials at Iranian Embassies in Europe.
In October 2007, Alavi Foundation board members met with Ambassador Mohammad Khazaee and a former Iranian government official to address issues relating to the Building’s management and Alavi’s charitable services. According to notes taken by a board member, the Ambassador stated, among other things, that it was necessary to increase the profit from the Building; the Ambassador was worried about Assa’s 40 percent share; the Foundation should only allocate to Shiites; and that the Ambassador would determine the composition of the board. The Ambassador ordered a study about the possibility of increasing the Foundation’s revenue and profit, stating that a business plan and comparative analysis had to be done. The Ambassador instructed: “I have to definitely see the proposed allocations before a final decision is reached. I have to be kept informed and I have to be able to state my opinion in order for you to make a decision.” The Ambassador told the board members that “[i]f there is an issue that needs to be conveyed to Tehran, let me know, I will convey it.”
On December 19, 2008, Farshid Jahedi, who at the time was the president of Alavi, was arrested for obstruction of justice for allegedly destroying documents required to be produced under a grand jury subpoena concerning Alavi’s relationship with Bank Melli Iran and the ownership of the Building. Jahedi pled guilty to obstruction of justice on December 30, 2009.
The Complaints and the Jury Verdict
On December 17, 2008, this Office filed a civil Complaint seeking forfeiture of the 40 percent interest held by Assa in the Partnership. In the Amended Complaint, filed on November 12, 2009, the United States sought to forfeit all right, title and interest in the Partnership, including Alavi’s 60 percent interest in the company. The United States also sought to forfeit the contents of bank accounts held by the Partnership, Alavi, and Assa, as well as other real properties owned by Alavi.
After a five-week trial, the jury found that both IEEPA violations and money laundering had been committed, and that all but one of the defendant properties were fully or partially forfeitable as result. Specifically, the jury found the Building and Alavi’s share in the 650 Fifth Avenue Partnership, along with the contents of bank accounts containing in excess of a million dollars, forfeitable in their entirety as a result of their involvement in money laundering. The jury also found certain portions of properties owned by Alavi in Queens, New York; Houston, Texas; Carmichael, California; and Rockville, Maryland partially forfeitable to the United States as proceeds of IEEPA violations and properties traceable to properties involved in money laundering, in the following amounts:
Alavi Foundation Property
Percentage Found Forfeitable
Queens, NY
44%
Houston, TX
15%
Rockville, MD (two properties)
17%
Carmichael, CA
7%
The jury also found Alavi’s share in the 650 Fifth Avenue Partnership entirely forfeitable, and the Building partially forfeitable, as the proceeds of an IEEPA violation in addition to both being entirely forfeitable as property involved in money laundering.
Judge Forrest had previously ruled, on September 11, 2013, that Assa was a front company for Bank Melli Iran and that Assa’s interests in the Partnership and the Building also subject to forfeiture.
Claims against the defendant properties brought by private parties holding terrorism-related judgments against the Government of Iran were also resolved against Alavi and the 650 Fifth Avenue Partnership in a separate ruling issued by Judge Forrest today.
* * *
Mr. Kim praised the investigative work of the Federal Bureau of Investigation (“FBI”), the Internal Revenue Service - Criminal Investigation Division, the New York FBI Joint Terrorism Task Force, and the Police Department of the City of New York. He also thanked the Counterterrorism Section of the Department of Justice National Security Division and the Manhattan District Attorney’s Office for their assistance in this case.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Michael D. Lockard, Martin S. Bell, and Daniel M. Tracer are in charge of the case.
Wednesday 28 June 2017
Woman Sentenced to 34 Months in Prison for Aggravated Identity Theft SchemeRead the Press Release
JUNE 28, 2017
FOR IMMEDIATE RELEASE Contact Bailey Drumm
www.justice.gov/usao/md at (410) 209-4885
WOMAN SENTENCED TO 34 MONTHS IN PRISON FOR AGGRAVATED IDENTITY THEFT SCHEME
Used the Personal Information of Victims to Perpetrate a Fraud Scheme
Greenbelt, Maryland – On June 26, 2017, U.S. District Judge Deborah K. Chasanow sentenced Michelle Renee Marshall, 47, of Washington, D.C., to 34 months in prison followed by three years of supervised release for aggravated identity theft and wire fraud. Marshall was also ordered to pay $27,671.03 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation Division, Washington, D.C. Field Office.
According to court documents, September 2013 and September 2014, Marshall represented to six different victims that she could assist them in preparing and filing federal and state tax returns. She then obtained the victims’ personally identifiable information, which she used to prepare and file their tax returns. However, the victims never received the requested tax refunds. Without authorization from the victims, Marshall instead directed tax refunds into bank accounts she controlled.
In total, Marshall intended to obtain $67,713 from the IRS and the states of Maryland and Virginia. Marshall did, in fact, obtain $27,671 through this scheme.
Acting United States Attorney Stephen M. Schenning thanked the Internal Revenue Service – Criminal Investigation Division. Mr. Schenning commended Assistant U.S. Attorneys Erin B. Pulice and Leah J. Bressack who prosecuted the case.
Wheeling man indicted on firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Wheeling man had his initial appearance in federal court today after being indicted on drug charges by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Levar Jermain Matthews, age 40, was indicted on one count of “Unlawful Possession of a Firearm.” Matthews, having previously been convicted of Distribution of Crack Cocaine Within 1,000 feet of a School in the United States District Court for the Northern District of West Virginia, allegedly possessed a .38 special caliber revolver. The crime is alleged to have occurred in April 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James E. Seibert presided.
Wagoner Man Sentenced to 190 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRANDON J. GRIMLAND, age 42, of Wagoner, Oklahoma, was sentenced to 190 months imprisonment, and 6 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The Indictment alleged that on or about October 15, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Oklahoma Bureau of Narcotics.
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 Shannon Henson represented the United States.
Virginia Man Admits Robbing Four BanksRead the Press Release
CAMDEN, N.J. – A Virginia man admitted today that he robbed four banks – two in New Jersey and two in Baltimore, Maryland – during a spree in December 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Bruce Wayne Higgins, 43, of Herndon, Virginia, pleaded guilty before U.S. District Court Judge Renée Marie Bumb in Camden federal court to a four-count information charging him with robbing: (1) Dec. 10, 2016 – Howard Bank in Baltimore; (2) Dec. 13, 2016 -- Northwest Bank in Baltimore; (3) Dec.15, 2016 – TD Bank N.A. in Ocean City, New Jersey; and (4) Dec. 16, 2016 – Wells Fargo Bank in Atlantic City, New Jersey.
According to documents filed in this case and statements made in court:
On Dec. 15, 2016, a man entered a TD Bank in Ocean City and presented a teller with a note that read: “GUN IN Pocket, MONEY NOW or –BANG-.” He then took cash from the teller and fled on foot. Law enforcement officers issued a bulletin with a bank surveillance photograph. The robber was later identified as Higgins.
Through coordination with the FBI in Baltimore, Maryland, New Jersey agents learned that a robber with a similar physical description had robbed two banks and a business earlier that week in Baltimore.
On Dec. 16, 2017, a man fitting Higgins’s description walked into a TD Bank in Atlantic City. After recognizing Higgins from the police bulletin, a bank employee triggered the bank’s “hold-up” alarm, and Higgins left the bank and got into a taxicab. Officers from the Atlantic City Police Department (ACPD) arrived at the TD Bank and, following up on information provided by witnesses, issued a bulletin describing the taxicab’s number and direction of travel.
Having received the bulletin describing the taxicab, another ACPD officer located the taxicab near a Wells Fargo Bank in Atlantic City while Higgins was allegedly in the process of robbing that bank. Higgins entered the Wells Fargo Bank and presented a teller with a note that read, “Gun in Pocket, Money Now or Bang now.” After Higgins took the money and fled the bank, ACPD officers arrested him.
Higgins admitted to robbing two banks and a business in Baltimore, Maryland, as well as the two New Jersey banks. During each of the bank robberies, Higgins threatened the bank’s employees and fled.
Higgins faces a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense on each bank robbery. Under the terms of the plea agreement, Higgins has agreed to make full restitution to the banks – as well as to the victim of another robbery in Baltimore – for all of the losses resulting from his robbery spree. Sentencing is scheduled for Oct. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark and Special Agent in Charge Gordon Johnson in Baltimore; the Ocean City Police Department, under the direction of Chief Chad Callahan; the Atlantic City Police Department, under the direction of Chief Henry White; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Baltimore County Police, under the direction of Chief Terrance Gordon; and the Fairfax County Police, under the direction of Chief of Police Col., Edwin C. Roessler Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Two men convicted of cigarette smuggling chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Virginia business owner and business manager were convicted of unlawful cigarette smuggling, Assistant United States Attorney, Criminal Chief Randolph J. Bernard announced today.
Manjoth Raj Singh, age 32, of Waldorf, Maryland, and Sukhdev Singh Virdi, age 45, of Dacula, Georgia, pled guilty to one count of “Conspiracy to Traffic in Untaxed Cigarettes .” Singh and Virdi admitted to conspiring to profit from the unlawful sale of contraband cigarettes.
Singh is the owner of American Cigarette Outlet, Inc., in Clearbrook, Virginia, which did business as Virginia Cigarette Outlet and Clearbrook Cigarettes and Virdi was the store manager. The two admitted to transporting large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Each of the defendants faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. Homeland Security Investigations, the Alcohol and Tobacco Tax and Trade Bureau, the Internal Revenue Service Criminal Investigations, the Frederick County, Virginia Sheriff’s Office, and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Toms River, New Jersey, Sports Medicine Doctor Sentenced to One Year in Prison for Accepting $60,000 in Cash Bribes for Prescription Referrals, Health Care FraudRead the Press Release
CAMDEN, N.J. – A sports medicine doctor with a practice in Toms River, New Jersey, was sentenced today to one year and one day in prison for accepting more than $60,000 in cash bribes in return for referring pain cream prescriptions and falsifying health records on behalf of Prescriptions R Us (PRU), a compound pharmacy in Lakewood, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
James Morales, 47, of Toms River, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with conspiracy to accept kickbacks and commit health care fraud. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
PRU was owned and operated by Vladimir Kleyman, 46, of Lakewood, New Jersey. As a compounding pharmacy, PRU prepared medication using different types and dosages of drugs in order to provide more personalized medications for patients. PRU supplied a topical cream for pain treatment that was made from ketamine (a Schedule III non-narcotic), lidocaine, diclofenac and other ingredients.
Morales operated Shore Sports Medicine, a medical practice in Toms River. Morales admitted that from February 2013 through December 2013, he accepted at least $60,000 in cash bribes from PRU in exchange for referring pain cream prescriptions.
Morales also admitted that on Dec. 19, 2013, Kleyman told Morales that the quantity of pain cream that Morales had prescribed was too high to get reimbursed by Horizon, a private health insurance plan. Kleyman asked Morales to start omitting quantity information on his prescriptions for the compounded pain cream. Morales admitted that he agreed to omit quantity information on prescriptions for patients enrolled in Horizon in order to help PRU obtain reimbursements.
In addition to the prison term, Judge Rodriguez sentenced Morales to two years of supervised release and pay $78,018 in restitution. The judge also entered a forfeiture order of $90,000 and fined Morales $5,000.
Kleyman previously pleaded guilty to conspiring to pay kickbacks in exchange for prescription referrals and committing health care fraud. He was sentenced on Nov. 4, 2015, to 20 months in prison, three years of supervised release and ordered to pay restitution of $477,000.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacob T. Elberg, Chief of the Health Care & Government Fraud Unit in Newark.
The health care fraud practice at the New Jersey U.S. Attorney’s Office was reorganized to create a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.36 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: A. Ross Pearlson Esq., Matthew E. Beck Esq., William Finizio Esq., West Orange, New Jersey
Three Birmingham Area Men Plead Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
BIRMINGHAM –Three Birmingham area men have pleaded guilty in federal court to a conspiracy to distribute large amounts of methamphetamine in the Northern District of Alabama, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
JOEL PATRICK McCARN, 43, entered his plea Tuesday before U.S. District Court Judge Abdul K. Kallon to one count of conspiracy to distribute 50 grams or more of methamphetamine in Jefferson County between May 2016 and March 2017.
Two other men, MIGUEL GONZALEZ-JIMINEZ, 41, and MATTHEW HEATH RYAN, 39, pleaded guilty to the same charge last week.
The men were part of a ring distributing methamphetamine in northern Alabama. Their May indictment seeks a money judgment as part of their sentence for $64,000, which represents the proceeds of the methamphetamine sold.
The FBI investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Three Arrested, Eight Kilograms of Cocaine Seized in Takedown of New Brunswick Drug Distribution ConspiracyRead the Press Release
NEWARK, N.J. – Three individuals appeared in federal court today to face allegations that they conspired to distribute multi-kilogram quantities of cocaine in the New Brunswick, New Jersey area, Acting U.S. Attorney William E. Fitzpatrick announced.
Palemon Silvestre Sierra, 41, Indhira de los Santos Padilla, 33, both of New Brunswick, and Yunior Martinez-Jimenez, 30, of Somerset, New Jersey, are charged by complaint with one count of conspiracy to distribute five kilograms or more of cocaine. They were arrested June 27, 2017 and appeared today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
On June 27, 2017, Martinez-Jimenez met two individuals at a location on Remsen Avenue in New Brunswick to allegedly sell two kilograms of cocaine. Padilla was in a car driven by Martinez-Jimenez.
After one of the individuals refused to follow Martinez-Jimenez to a second location to pick up the drugs, Martinez-Jimenez and Padilla traveled to a residence on Redmond Street in New Brunswick. Law enforcement observed Sierra exit the residence, retrieve an empty bag from Martinez- Jimenez’s vehicle, return to the residence and emerge minutes later with the bag, which he gave back to Martinez-Jimenez and Padilla.
Martinez-Jimenez and Padilla went back to meet the two individuals at the Remsen Avenue location. After Padilla handed the bag through the passenger side window of the individuals’ vehicle, law enforcement converged on the scene and arrested Martinez-Jimenez and Padilla. They also found two kilograms of cocaine in the bag.
At the direction of law enforcement, Martinez-Jimenez delivered the narcotics proceeds to Sierra at the Redmond Street residence. Sierra was then arrested. Afterwards, law enforcement searched the residence and seized approximately six more kilograms of cocaine from Sierra’s bedroom.
The possession with intent to distribute charge carries a minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tennessee Man Sentenced to 14 Years in Prison for Coercing Prostitution, Being Felon with a GunRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Tennessee man to 14 years in prison for enticing and coercing two young women into prostitution and for being a convicted felon with a gun, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
CHRISTOPHER TYLER RICHARDS, 26, used physical violence, intimidation and even sexual abuse to coerce the two women to travel among the states of Louisiana, Mississippi, Tennessee and Alabama to prostitute themselves and give the money they made to him, according to government documents. One of the women, identified in court documents as “Victim 1,” was 18 years old. “Victim 2” was 25.
“This defendant preyed on the vulnerabilities of troubled young women and made his living by convincing them – through intimidation and physical assault – to engage in prostitution and turn the money over to him,” Posey said.
“This case shows that human trafficking exists in our backyard, not just in major metropolitan areas,” Archey said. “I am extremely proud of the work done by the Human Trafficking Task Force to bring Richards to justice and hold him accountable for his crimes.”
U.S. District Court Judge Virginia Emerson Hopkins sentenced Richards on two counts of enticement and coercion of a person for prostitution and one count of being a felon in possession of a gun. Richards pleaded guilty to the charges in March. He already is in custody.
Richards’ plea agreement lists prior felony convictions of possession of a controlled substance in January 2012, and in August 2013, failure to appear in court on a felony case and intentionally evading arrest in an automobile. All three convictions were in state court in Shelby County, Tenn.
Richards victimized the women from mid-December 2014 through mid-February 2015 before Homewood Police arrested him after receiving a call from the father of the 18-year-old who texted him that she had been beaten and “possibly trafficked,” according to the government’s sentencing memorandum.
Richards first met Victim 1 when she was 13 years old, according to Richards’ plea agreement. They lost touch, but met again in 2014 near Memphis when the girl was 17. Shortly after she turned 18, according to the plea agreement, Richards convinced her to go with him to Texas, but on the way there changed the destination to New Orleans. It was there that he first pressured her to prostitute herself and began beating her.
Richards also met Victim 2 in New Orleans. He took photos of both of the women and began advertising them for prostitution on the website Backpage.com. At one point, upon learning that Victim 2 would not agree to a certain sex act with customers, Richards sexually assaulted her, forcibly performing the act, according to court documents.
The FBI and the Northern District of Alabama Human Trafficking Task Force investigated the case, which Assistant U.S. Attorney Xavier Carter Sr. prosecuted.
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Staten Island Man Charged with Brokering Sale of Anti-Tank Rocket Launcher and Fifteen AK-47 Rifles in KosovoRead the Press Release
Later today, Albert Veliu and Anthony Noterile will be arraigned at the federal courthouse in Brooklyn, New York on charges relating to the operation of extortion, money laundering and narcotics trafficking schemes that ultimately resulted in Veliu’s sale to law enforcement of over a dozen AK-47s and an M80 Zolja Anti-Tank Rocket Launcher equipped with a 64 millimeter rocket. Defendants Dilber Kukic, Ekram Sejdija, Xhevat Gocaj, Agim Rugova, and Alban Veliu are also charged in connection with a related money laundering scheme.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; James Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; Angel M. Melendez, Special-Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Division, New York Field Office (IRS); James P. O’Neill, Commissioner, New York City Police Department (NYPD); and George Beach, Superintendent, New York State Police (NYSP).
As alleged in the complaint and a detention memorandum, the investigation revealed that Christopher Curanovic, an associate of La Cosa Nostra, sought to recover an extortionate debt from a former criminal associate. Through the use of wiretap evidence and confidential sources working at the direction of law enforcement, agents were able to determine that Veliu, Curanovic and Noterile, another associate of La Cosa Nostra, devised an illicit scheme in which a money laundering operation would facilitate the re-payment of Curanovic’s extortionate debt. During the course of the investigation, the defendants laundered approximately $800,000 in purported drug proceeds. Defendants Kukic, Sejdija, Gocaj, Rugova, and Alban Veliu facilitated the money laundering scheme by, among other things, exchanging the cash for purportedly “clean” checks supported by fraudulent paperwork. Separately, Curanovic and Veliu also brokered the sale of approximately five pounds of marijuana to a confidential source.
In addition, Veliu informed a DEA confidential source that he had access to firearms in Kosovo for distribution. Thereafter, Veliu used his connections to broker the sale of more than a dozen AK-47s and the M80 Zolja Anti-Tank Rocket Launcher equipped with a 64 millimeter rocker. During one recorded conversation, Veliu referred to the AK-47s as “sneakers” and to the rocket launcher as a “Shaq-sized sneaker.” Search warrants conducted by Kosovo law enforcement netted additional weapons, ammunition and over 60,000 euros in cash.
“This case demonstrates the increasingly global reach of our investigations and marks the important disruption a money laundering, drug trafficking, and arms trafficking network that extended into Europe and involved criminals who were prepared to provide a pipeline of dangerous weapons,” stated Acting United States Attorney Rohde. “Through our partnerships with law enforcement agencies around the world, we will continue to target and dismantle criminal organizations.” Ms. Rohde thanked the DEA New York Strike Force, DEA Special Operations Division, DEA Austria Country Office, DEA Croatia Country Office, the New York City Department of Investigation, and the Kosovo Police Force.
“This investigation has shut down an illegal and violent source of weapons in our backyard. In this case, DEA defines weapons as guns and drugs since both are the source of murder and fatal accidents,” stated Special Agent-in-Charge Hunt. “As alleged, extortion, gun trafficking, robbery, and money laundering were some crimes that unfolded as we investigated a drug trafficking operation based in New York City with ties to Kosovo. I would like to thank the brave men and women from our local, state, federal, and international law enforcement partners for their cooperation and hard work.”
“These defendants allegedly participated in an illegal enterprise lining their pockets from their criminal activity,” said Special Agent-in-Charge Robnett of IRS Criminal Investigation. “Tracing the illicit funds and taking assets away from illegal operations is one of the government’s most effective tools against money laundering and organized crime.”
“These individuals allegedly used extortion, money laundering, and narcotics trafficking to aid Mexican drug cartels,” stated ICE-HSI Special Agent-in-Charge Melendez. “They further provided dangerous weapons, including an anti-tank rocket launcher. Protecting the Homeland not only means ensuring that these drugs and weapons do not enter our streets, but it also means they not be distributed abroad.”
“The takedown of this weapons and drug trafficking operation is a direct result of the hard work and cooperation among our law enforcement partners,” said Superintendent Beach. “The New York State Police, along with our other law enforcement partners, will remain vigilant in our efforts to aggressively target and pursue such criminals who perpetuate these crimes that threaten the safety and security of our neighborhoods.”
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn. The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Michael T. Keilty is in charge of the prosecution.
The arrest was the result of a long-term investigation by the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The Defendants:
ALBERT VELIU
Age: 34
Staten Island, New York
CHRISTOPHER CURANOVIC
Age: 35
FCI Fort Dix, New Jersey
ANTHONY NOTERILE
Age: 56
Queens, New York
XHEVAT GOCAJ
Age: 50
Mamaroneck, New York
DILBER KUKIC
Age: 45
Bronx, New York
AGIM RUGOVA
Age: 45
Staten Island, New York
EKRAM SEJDIJA
Age: 40
Brooklyn, New York
ALBAN VELIU
Age: 32
Staten Island, New York
E.D.N.Y. Docket No. 17-M-585
Statement by U.S. Attorney John W. Huber on Kate’s Law and the No Sanctuary for Criminals ActRead the Press Release
Today, at the White House press briefing, U.S. Attorney John W. Huber gave the following statement:
“Just last month, a Utah federal judge issued a sentence of life plus 80 years to Roberto Roman, a criminal alien who had been removed from our country three times prior to 2010. Those three deportations, and even time in state prison, were not enough to dissuade Roman from returning to rural Utah where he trafficked methamphetamine to addicted residents.
“In 2010, Millard County Utah's first female deputy sheriff, Josie Greathouse Fox was working with her partners to curtail drug dealing in the wide open spaces of rural Utah. She intercepted Roman on dark, lonely highway in his big Cadillac. Roman is an amoral criminal, and he had no intention of complying with U.S. Law. Without warning or remorse, he gunned down Deputy Fox with an AK-47 style semi-automatic rifle and left her to die in the middle of the road on a frigid January night.
“In 2011, in a different case, another Utah federal judge sentenced three MS-13 gang members to 15 years each for their role in a Mexican cartel marijuana farm in the pristine Dixie National Forest of Southern Utah. These thugs had been recruited to provide operational security for the illegal farm and were in possession of multiple firearms in connection with the drug operation. Although Utah has not suffered violence at the hands of MS-13 like California and states here in the east, we see its influence creeping ever closer. Even still, other transnational gangs (Nortenos and Surenos) and drug trafficking organizations do have an outsized impact on public safety in Utah and the mountain west.
“I am a career prosecutor and I am beginning my third year as a United States Attorney -- which makes me one of the longest tenured US Attorneys presently serving. Both as a line prosecutor and as a lead prosecutor, I have dutifully served under both Democrat and Republican administrations. Utah perennially leads interior districts in criminal alien prosecutions where we charge and convict hundreds of criminal aliens each year (average 300 in 2015, 2016, and projected 2017) who ignore our laws and re-enter our country unlawfully over and over again. To be clear, these are criminals with Rap sheets as long as their arms in many cases: violent criminals, drug traffickers, gang members, domestic violence abusers, child exploiters and human traffickers.
“From my perspective in the presumptively safe mountain enclave of Utah, criminal aliens significantly impact our quality of life by exposing our nation to an unwarranted risk of violent crime. If it’s a problem in Utah (40% of Utah's cases), it’s a problem nation wide. Law enforcement officers and prosecutors need more tools and unfettered coordination to address the challenge.
“This pending legislation -- "Kate's Law" and the "No Sanctuary for Criminals Act" -- advance the ball for law enforcement in keeping our communities safe. The laws, if passed, would give officers and prosecutors more tools to protect the law-abiding public.
“Stiffer penalties for re-entry offenders make sense. The status quo is just not deterring the criminals from returning. (As an example --- Just today, in Salt Lake City, my office initiated one more prosecution in what is projected to be over 300 federal felony cases by year end against criminal aliens. This defendant's record indicates that he has been convicted 4 times for drug trafficking and 2 times for unlawfully re-entering the United States after deportation. Well, he's back in Utah and this year he was arrested once again for drug trafficking). "Kate's Law" enhances our ability to stem the tide of criminals who seem to almost always return to victimize us.
“Removing unnatural impediments between local and federal law enforcement will enable the coordination we need in this country to keep our neighborhoods safe. The priority for public safety overrides so-called sanctuary policies when those two are matched against one another. The "No Sanctuary for Criminals" bill will help law enforcement partners work together for our safety, as we expect them to do. Criminal aliens don't need encouragement to reside in any of our beautiful cities. Rather, these drug trafficker and gang member aliens need handcuffs and removal. Law enforcement professionals are very good at what they do -- we should not impede them from doing their excellent work in keeping us safe.”
Statement by Attorney General Jeff Sessions on Kate’s Law and the No Sanctuary for Criminals ActRead the Press Release
Attorney General Jeff Sessions today issued the following statement regarding Kate’s Law (H.R. 3004) and the No Sanctuary for Criminals Act (H.R. 3003):
“I urge the House of Representatives to pass Kate’s Law and the No Sanctuary for Criminals Act right away.
“President Trump is committed to the rule of law and public safety, and it is the responsibility of the Department of Justice to enforce that law to keep people safe.
“Countless families and communities have suffered as a result of these ‘sanctuary’ policies, which undermine federal law by safeguarding criminal illegal aliens from federal law enforcement. One victim of these policies was Kate Steinle, who was killed by an illegal alien who had been deported five times and yet still walked the streets freely. Her death was preventable, and she would still be alive today if only the City of San Francisco had put the public’s safety first. How many more Americans must die before we put an end to this madness?
“Violent, transnational gangs like MS-13 take advantage of these policies in order to smuggle in drugs, recruit new members from our schools, and pillage and plunder our communities. Closing these loopholes in our laws must be a priority if we are to make America safe from these dangerous transnational organizations.
“Americans demand that these ‘sanctuary cities’ stop protecting criminals and start protecting law-abiding residents from danger. It should come as no surprise that a Harvard University report found that 80 percent of Americans believe that cities that arrest illegal aliens for crimes should be required to turn them over to federal immigration officials.
“Kate’s Law and the No Sanctuary for Criminals Act would penalize criminal illegal aliens who break our laws and the jurisdictions that attempt to shield them from justice. These bills can restore sanity and common-sense to our system by ending abusive attempts to undermine federal law, and they can prevent future tragedies by empowering law enforcement.
“I urge the House of Representatives to put the American people first before another family loses their child.”
St. Louis Woman Pleads Guilty to Wire Fraud ChargeRead the Press Release
St. Louis, MO – Kathleen Essick, 35, St. Louis, MO, pled guilty today to one charge of wire fraud as part of a scheme to defraud her employer. Essick appeared today before United States District Judge Ronnie L. White. Sentencing is set for September 27, 2017.
According to court documents, Essick was the executive assistant to a principal at an investment firm in Clayton. That executive traveled frequently. During his many absences from the area, Essick paid his personal bills and was given the authority to write checks on the executive’s personal account in order to pay those bills. From January 2015 through June, 2016, Essick wrote a series of unauthorized checks for her personal benefit on that account. She deposited many of the checks into her personal account at Commerce Bank and spent the stolen money. Esscik spent some $34,700.00 of the stolen funds at the David Yurman jewelry store in Frontenac Plaza. She pled guilty to wire fraud involving a debit/wire purchase in the amount of $5,500.00 occurring at that store in May, 2016.
It was determined that Essick stole $176,600.00 as part of her scheme.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James Crowe is handling the case for the U.S. Attorney’s Office.
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South Charleston man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Ray Eads, 35, entered his guilty plea to possession with intent to distribute methamphetamine.
On May 18, 2017, law enforcement executed a search warrant at Eads’ residence on Smith Creek Road in South Charleston. During the search, officers found over 1,200 grams of methamphetamine, digital scales, drug ledgers, and almost $12,000 cash. Officers also located several firearms and a bulletproof vest in Eads’ bedroom. Eads gave a statement admitting to possessing the drugs and guns discovered in his residence.
Eads faces at least five and up to 40 years in federal prison when he is sentenced on September 20, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge Joseph R. Goodwin is presiding over the case.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Sissonville felon who stole seven rifles sentenced to five years in federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Sissonville man was sentenced today to five years in federal prison for a gun charge, announced United States Attorney Carol Casto. Jeffrey Phelix, 32, previously pleaded guilty to being a felon in possession of a firearm.
Phelix admitted that on October 25, 2016, he broke into a garage at the residence of a licensed firearms dealer and stole seven rifles. One of the rifles Phelix stole had a suppressor attached, which functions as a silencer to reduce the noise from firing the gun and is illegal to possess without the registration required by the National Firearms Act. Phelix was arrested after his fingerprint was recovered from the window of the garage. Phelix was prohibited from possessing any firearm under federal law because of a 2011 felony conviction in Kanawha County Circuit Court for burglary by breaking and entering.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Shavertown Man Charged with Embezzling over $428,000 and Obstructing an IRS InvestigationRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard J. Morgan, age 54, of Shavertown, Pennsylvania, was charged on June 27, 2017, in a criminal information with one count of bank fraud and one count of interfering with the administration of the internal revenue laws.
According to United States Attorney Bruce D. Brandler, Morgan owned and operated Wilkes-Barre Bookkeeping, LLC, a Shavertown, Pennsylvania-based business that provided payroll services to its clients. The information alleges that Morgan was contracted to pay employee payroll and salary expenses, to file IRS Form 941 Employer Quarterly Federal Tax Returns, and to remit employment tax liabilities to federal, state and local tax authorities for two of his clients, identified as Non-Profit Corporation #1 and Corporation #1. Morgan allegedly failed to file the Internal Revenue Service (IRS) Forms 941 and to remit the employment taxes to the appropriate authorities for both clients, instead embezzling the funds for his own personal use. The information alleges that between December 13, 2011 and September 16, 2014, Morgan embezzled $305,756.30 from Non-Profit Corporation #1, and that between January 7, 2015 and October 14, 2016, Morgan embezzled $54,607.65 from Corporation #1.
The information also alleges that Morgan served as a Treasurer for an entity identified as Non-Profit Corporation #2, and was tasked with selling its assets and winding up its operations when it closed in February 2010. Between March 16, 2010 and December 9, 2014, after paying Non-Profit Corporation #2’s outstanding liabilities, Morgan allegedly embezzled the remaining residual sales proceeds of $68,172.
The information further charges that when the IRS commenced an investigation of Morgan’s activities, he took steps to obstruct the investigation. Between May 28, 2013, and August 28, 2014, Morgan allegedly made misrepresentations to IRS employees, claimed to be working with fictitious IRS employees to resolve the matter, and provided the IRS with altered bank statements and accounting records to conceal his embezzlements.
The government also filed a plea agreement with Morgan to the charges, which is subject to approval of the court. A date for his initial appearance has not been set.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious charge is 30 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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Registered Nurse Pleads Guilty to Tampering with FentanylRead the Press Release
Abingdon, VIRGINIA – A registered nurse who worked at a medical facility in Roanoke pled guilty yesterday to a federal charge of tampering with a consumer product, namely fentanyl, Acting United States Attorney Rick A. Mountcastle announced.
Kevin Carter, 28, of Roanoke, Va., waived his right to be indicted and pled guilty yesterday to a one count information charging him with tampering with a consumer product, fentanyl, that affects interstate or foreign commerce, with reckless disregard for the risk that another person be placed in danger of death or bodily injury. At sentencing, scheduled for September 20, 2017, at 11:00 a.m., Carter faces a maximum statutory penalty of up to 10 years in prison and/or a fine of up to $250,000.
“In the face of an increasing number of overdoses involving fentanyl across the country and the Commonwealth, prosecuting individuals who divert fentanyl and other opioids is a top priority of the United States Attorney’s Office,” Acting United States Attorney Mountcastle said today. “We are committed to prosecuting, to the maximum extent under the law, individuals who unlawfully divert, import, or distribute fentanyl or other opioids.”
“FDA oversees the U.S. supply of medicines to ensure that they are safe and effective, and those who knowingly tamper with medicines for patients put their health at risk,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health.”
According to information presented at yesterday’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer. On or about December 15, 2016, Carter tampered with liquid syringes of fentanyl by removing a syringe of liquid fentanyl from the anesthesia cart in an operating room for his own use and replacing the stolen syringe with another syringe, labeled fentanyl, which contained no fentanyl.
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations and the Virginia State Police. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Queens Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Anthony David Gentile, age 57, of Queens, New York, pled guilty today to receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Gentile admitted that between July 12, 2014 and September 5, 2014, as a resident of Albany County, he used the Internet and a peer-to-peer file-sharing network to download child pornography. Gentile also admitted that he possessed and stored child pornography on a computer and several hard drives.
Gentile faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on October 24, 2017 by Senior United States District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Upon his release from prison, Gentile will be required to register as a sex offender.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
PureChoice Founder Sentenced to 22 Years in Prison for $28 Million Dollar Investment Fraud SchemeRead the Press Release
Assistant United States Attorney Gregory G. Brooker today announced the sentencing of BRYAN REICHEL, 62, founder and former President and Chief Executive Officer of PureChoice, Inc. (PureChoice), to 22 years in prison for orchestrating a multi-million-dollar investment fraud scheme. On November 3, 2016, REICHEL, who was charged in a 12-count superseding indictment, was found guilty by a federal jury on 11 of the 12 counts. REICHEL was sentenced earlier today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn
“Reichel operated PureChoice solely for his own benefit,” said Acting U.S. Attorney Brooker. “For 18 years straight, through lies, misrepresentations and schemes, Reichel defrauded investors out of millions of dollars simply to enrich himself. Today’s 22 year sentence appropriately underscores Reichel’s momentous and multifaceted criminal conduct.”
“Not only did Bryan Reichel, as a business owner and CEO, take advantage of his investors and steal their hard-earned money, he also engaged in bankruptcy fraud. Concealing assets from the Court was a gross violation of Reichel’s civic duty and undermined the integrity of these important proceedings,” stated Acting Special Agent in Charge Hubbard Burgess of the IRS Criminal Investigation, St. Paul Field Office. “Mr. Reichel deserves the punishment handed down today.”
“Today’s stiff sentence sends a clear message as to how critical a role the U.S. Postal Inspection Service and its law enforcement partners play in protecting the American consumer from these types of fraud schemes,” said Postal Inspector in Charge, Craig Goldberg. “We will continue to protect and ensure the nation’s mail stream is not used by criminals to prey upon our citizens.”
“The sentence handed down today reflects the seriousness of the defendant's crime of defrauding investors,” said Richard T. Thornton, Special Agent in Charge of the FBI Minneapolis Field Office. “The FBI along with our law enforcement partners are committed to ferreting out these types of fraud schemes and holding crooks responsible for their crimes.”
As proven at trial, beginning in 2003 until 2011, REICHEL solicited investments in PureChoice by falsely representing to investors that the money would be used to fund the operations of PureChoice, a Burnsville-based company that sold air quality monitors. As part of the scheme, REICHEL stole millions of dollars from investors by lying about the success of the company and concealing the fact that PureChoice faced defaulted debt that it had no ability to pay.
For example, as proven at trial, in October 2004, REICHEL solicited a $500,000 loan to PureChoice from Victim PH purportedly to fund PureChoice operations until the completion of a private stock offering in early 2005. Rather than using the money to fund PureChoice operations, REICHEL used Victim PH’s funds to pay defaulted PureChoice debt, which REICHEL had personally guaranteed.
As proven at trial, in September 2005, REICHEL solicited a short-term $500,000 “bridge loan” from Victim RB to PureChoice by falsely representing that the money would be used to fund operations until the company received additional financing and investments. Immediately after receiving the loan, REICHEL paid $70,000 to himself and made more than $200,000 in payments toward earlier unpaid loans. In March 2006, REICHEL again asked Victim RB to provide money to fund PureChoice operations, this time in the form of a $3 million line of credit which PureChoice could access through a series of $500,000 loans. Several times between 2006 and 2009, REICHEL several times requested Victim RB to increase the amount, ultimately obtaining more than $5 million in loans for PureChoice from Victim RB. REICHEL used a significant portion of the money to pay off earlier investors, make interest payments to Victim RB, and to make preferential payments to himself.
As proven at trial, between April 2007 and August 2007, REICHEL sold Victim GA $900,000 worth of PureChoice stock, falsely representing that the funds would be used to purchase manufacturing components and to pay for operational expenses. Instead, REICHEL used the funds to purchase stock in other companies and pay personal credit card debt. In May 2008 and July 2008, REICHEL asked Victim GA to provide PureChoice with loans in the amount of $800,000 and $200,000, respectively, stating that the funds were needed to “bridge the gap” until the next round of funding was complete. Again, REICHEL used the majority of the funds for personal use, including the purchase of stock in other companies and paying off thousands of dollars in credit card debt.
As proven at trial, on November 14, 2008, REICHEL sent a sales and marketing update to PureChoice investors and prospective investors in which he made false statements about the company’s corporate agreement with 3M. In the update, REICHEL stated that PureChoice was “currently working to expand [its] existing relationship” with 3M, when, in reality, REICHEL had received notice from 3M of its intent to allow its agreements with PureChoice to expire.
As proven at trial, in September 2009, REICHEL asked Victim GA and Victim DA to provide a $1.5 million loan to PureChoice to purchase manufacturing materials so the company could meet projected sales goals and hire additional staff. In order to secure the loan, REICHEL again misrepresented the company’s relationship with 3M and expressly stated that the funds would be used to purchase products from suppliers. Over the course of four transactions, REICHEL obtained a $1.5 million loan from Victim GA, of which a significant portion was used to pay off earlier investors in PureChoice and to transfer more than $600,000 to himself.
As proven at trial, by June 2010, several of REICHEL’s victims had demanded immediate payment of millions of dollars they had “invested”. To avoid repayment and protect his assets, in April 2011, REICHEL filed for bankruptcy in the District of Minnesota, giving rise to an automatic stay and thereby preventing lawsuits and judgments from being entered by the victims. As part of the scheme, REICHEL made false statements in his bankruptcy case in order to conceal numerous items of personal property and thousands of dollars in personal accounts.
This case was prosecuted by Assistant U.S. Attorneys David J. MacLaughlin and Joseph H. Thompson.
This case was the result of an investigation conducted by the United States Postal Inspection Service, the Internal Revenue Service-Criminal Investigations, and the Federal Bureau of Investigation.
Defendant Information:
BRYAN REICHEL, 62
Prior Lake, MN
Convicted:
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Wire Fraud, 7 counts
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Bankruptcy Fraud, 3 counts
- False Statement Under Penalty of Perjury, 1 count
Sentenced:
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264 months in prison
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Three years supervised release
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$22,346,066 in restitution to victims
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$7,669,731 forfeiture judgment
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Prior Sex Offender from Albuquerque Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE –David Abrisz, 55, of Albuquerque, N.M., pled guilty this morning in federal court to child pornography charges. The guilty plea was entered under a plea agreement that recommends that Abrisz be sentenced to a 25-year term of imprisonment followed by up to a lifetime of supervised release. Abrisz, a previously convicted child sex offender, will be required to register as a sex offender after he completes his prison sentence.
Abrisz was arrested on Aug. 11, 2016, on a four-count indictment charging him one count of distributing child pornography and three counts of possessing child pornography. The indictment charged Abrisz with distributing child pornography from July 2013 through Dec. 2015, and possessing child pornography on two computers and a thumb drive from Aug. 2014 through Feb. 2016. According to the indictment, Abrisz committed the offenses in Bernalillo County, N.M.
During today’s proceedings, Abrisz pled guilty to Count 1 of the indictment charging him with distributing child pornography and Counts 2 through 4 of the indictment charging him possessing child pornography. In entering the guilty plea, Abrisz admitted committing the following criminal acts:
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Distributing approximately 80 child pornography files from July 2013 through Dec. 2015;
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Possessing a computer that contained approximately two video files and 880 image files of child pornography from Dec. 2014 through Feb. 2015;
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Possessing a second computer that contained approximately 145 image files of child pornography from Dec. 2014 through Feb. 2015; and
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Possessing a thumb drive that contained approximately 147 video files and one image file of child pornography from Aug. 2014 through Feb. 2015, Abrisz.
Court records reflect that Abrisz has seven prior convictions for sexual offenses including two convictions for attempted criminal sexual penetration of a child under the age of 13, and five convictions for criminal sexual contact of a child under the age of 13. Abrisz remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bernalillo County Sheriff’s Office and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Abrisz also is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
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Post falls woman sentenced for bankruptcy fraudRead the Press Release
COEUR D’ ALENE - Rebecca C. Buell, 48, of Post Falls, Idaho, was sentenced today by Senior U.S. District Judge Edward J. Lodge in Coeur d’Alene for concealing assets in a bankruptcy proceeding. She was sentenced to three years probation, including 150 hours community service, and ordered to pay $38,960.53 in restitution. Buell pleaded guilty to the felony charge on January 31, 2017.
According to court records, while in bankruptcy proceedings, Buell failed to disclose to the bankruptcy trustee $38,960.53 she received in an inheritance. After discovering the concealment, the trustee referred the matter to the U.S. Attorney' Office for investigation and prosecution.
This case was investigated by the Internal Revenue Service Criminal Investigation section.
Phony Jury Duty ScamRead the Press Release
Citizens of the Treasure Valley are once again being victimized by a phone scam involving federal grand jury duty. Individuals are contacted by telephone from an imposter posing as an Ada County deputy sheriff demanding payment for failing to appear for federal grand jury service. The scam artist then demands payment via cash card or green dot card. After victims purchase the cash cards they are advised to call the imposters back to provide them with the numbers on the back of the card, allowing them to access the money immediately. Individuals are then directed to complete the transaction at a “bond kiosk” located at the Ada County Courthouse.
According to the Ada County Sheriff’s Office, deputies will never threaten citizens for missing jury duty, ask citizens to place funds on pre-paid credit cards or make payments at a courthouse kiosk. Further, the federal jury office will never threaten citizens for missing jury duty or ask for funds. If you do legitimately miss jury duty, you will receive a letter in the mail.
The Better Business Bureau advises that citizens can protect themselves from becoming a victim of identity theft by never disclosing personal information from unsolicited telephone callers.
Please contact the Ada County Sheriff’s Office at (208) 377-6790 or visit the Better Business Bureau online at https://www.bbb.org/snakeriver/.
Pennsylvania Man Charged with Defrauding Baton Rouge Business in Fraudulent SchemeRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Corey R. Amundson announced today that his office has charged a Pennsylvania man by Bill of Information with a wire fraud scheme for allegedly defrauding a Baton Rouge company and causing more than $500,000 in loss. If convicted, the defendant could face imprisonment for up to 20 years, a significant fine, restitution, forfeiture, and supervised release following imprisonment.
The Bill of Information filed today charges MURRAY CARL NEEREN, age 68, of Holland, Pennsylvania, with devising a scheme to defraud, and to obtain money and property from Edgen Murray Corporation of Baton Rouge (“Edgen”), by means of materially false and fraudulent pretenses. Edgen is a global supplier of specialized products for energy and infrastructure markets, and supplies steel plate, pipes, fittings, flanges, valves, and other products to customers all over the world.
The Bill alleges that NEEREN worked for Edgen as an independent contractor and was based in Conshohocken, Pennsylvania. According to the Bill, NEEREN devised a scheme, using email and telephonic communications, to mislead Edgen regarding NEEREN’s work. NEEREN intentionally misled Edgen with respect to the cost of materials he was purchasing, for instance, and caused Edgen to believe that it was making a profit on subsequent sales involving the materials, when in fact NEEREN was re-selling the materials at a small profit or even at a loss. The bill alleges that NEEREN’s scheme caused Edgen to pay him $157,152.31 in fraudulent commission payments, and caused a total loss to Edgen of $592,584.07.
This matter is being investigated by the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant United States Attorneys Pete Smyczek and Rene Salomon.
NOTE: A bill of information is an accusation by the Acting U.S. Attorney. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Operation Riptide Takedown Results in 16 ConvictionsRead the Press Release
NORFOLK, Va. – Over 150 law enforcement agents and officers executed a takedown on March 1, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk. Today, the final federal defendant pleaded guilty to firearm and drug charges, bringing the total number of convictions to 16 within four months of their arrest.
“Operation Riptide was a significant and expertly coordinated takedown of dangerous criminals here in Hampton Roads,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Public safety is our top priority, and through the combined efforts of our prosecutors and law enforcement partners we will continue to pursue and bring to justice those who seek to bring harm to this community. I want to thank our investigative partners for their extraordinary efforts on this case.”
“My top priority as Attorney General is to keep Virginians and their families safe, and Operation Riptide has been an important step in getting dangerous weapons and drugs out of Hampton Roads,” said Mark R. Herring, Attorney General of Virginia. “The cooperation and collaboration between our local, state, and federal partners shows that we all share the commitment to keeping our Commonwealth safe, and I am proud to be a part of the team that took these criminals off our streets.”
The Bureau of Alcohol, Tobacco, and Firearms (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from the U.S. Attorney’s Office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and/or other narcotics. Operation Riptide resulted in the recovery of over 50 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and 47 hand guns, 18 of which had obliterated serial numbers or were stolen), over 170 grams of heroin, 65 grams of powder cocaine, 290 grams of crack cocaine, and a bullet proof vest.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. Magistrate Judge Lawrence Leonard accepted the guilty plea of Michael Ovall Jackson, 34, of Norfolk, who is the 16th federal defendant.
This case was investigated by the ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police with the assistance of the Virginia Beach and Chesapeake Police Departments, the Norfolk and Chesapeake Sheriff’s Offices, and the Virginia National Guard. Attorneys from the Virginia Attorney General’s Major Crimes and Emerging Threats Unit, John F. Butler and James F. Entas, are prosecuting these cases with the assistance of Norfolk Assistant Commonwealth Attorney Catherine Paxson, and Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:17-cr-21, 22, 24, 25, 26, 27, 28, 31, 32, 34, 35, 36, 37, 54, 64.
Name, AKA
Age, Hometown
Pleaded Guilty to the Following Charge(s)
Date of Guilty Plea
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
March 16
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Distribution of a Controlled Substance; Possession of Firearms in Furtherance of a Drug Trafficking Crime
March 21
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
March 22
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
March 29
Evrick Speight
aka “P”
23, Virginia Beach
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
April 5
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin
April 10
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
April 11
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
April 10
Keone Devon Perry
23, Chesapeake
Transfer of Firearm to Prohibited Person
April 10
Carl Lee Walton,
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
April 11
Demetrius Lamont, Davis
aka “Meat”
39, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
April 26
James Curtis Lamb
28, Chesapeake
Felon in Possession of a Firearm
May 2
Adrean Lamont Hall
25, Virginia Beach
Felon in Possession of a Firearm
May 15
James Edward Hill
43, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
May 18
Joseph Maurice Dobey
38, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
May 30
Michael Ovall Jackson
34, Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Cocaine Base
June 28
New York Notary Public Pleads Guilty to Aiding and Abetting VISA FraudRead the Press Release
Concord, N.H. — Acting United States Attorney John J. Farley announced that Mohammed Abdul Baten, 65, of Brooklyn, New York, pleaded guilty today to aiding and abetting visa fraud.
According to court records and statements in court, the case arose out an investigation into falsely notarized documents used to obtain visas. Specifically, when a legal immigrant seeks to petition to have other alien relatives admitted into the country, the National Visa Center (“NVC”) requires that the petitioner demonstrate a sufficient income level to support the relatives upon their arrival. This process is intended to ensure that the new immigrants will not become public charges after they enter the country. If the petitioner does not have enough income, he or she may submit paperwork in which another person, i.e. the “joint sponsor,” agrees to provide financial support for the new arrivals. The joint sponsor also is required to document his or her own income and assets to ensure sufficient resources will be available. The joint sponsor is required to complete an I-864 form under penalties of perjury.
In this case, a number of submissions to the NVC contained repeat joint sponsors appearing to support large numbers of petitioners. Further investigation revealed that many of these joint sponsors had not, in fact, agreed to serve as joint sponsors and did not sign the I-864 forms purporting to bear their signatures. Rather, the I-864 forms had been forged and were falsely notarized by Baten in his capacity as a notary public in Brooklyn, New York. In this respect, Baten’s notarizations were a material aid to the petitioners’ submissions of false and misleading documents to the NVC.
A sentencing hearing has been scheduled for October 3, 2017.
This matter was investigated by the Department of State’s Diplomatic Security Service and is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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New York City School Guidance Counselor Sentenced to Five Years’ Imprisonment for Posting of Child PornographyRead the Press Release
Earlier today, John Capuano, a New York City school guidance counselor and teachers’ union representative, was sentenced at the federal courthouse in Central Islip, New York, to five years’ imprisonment followed by 10 years of supervised release following his March 2016 guilty plea to Transportation of Child Pornography in Interstate and Foreign Commerce. The sentencing proceeding was held before United States District Judge Denis R. Hurley. During his supervised release, Capuano must register as a sex offender, and he will not be allowed unsupervised contact with minors.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
“As a school guidance counselor and educator, Capuano had a mandatory obligation in New York State to report child abuse,” stated Acting United States Attorney Rohde. “Instead, he victimized children by sharing images of their rape and abuse with others online. Protection of our children remains a top priority of this Office, and we will continue to vigorously prosecute such offenses.” Ms. Rohde extended her grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, for its assistance in the investigation.
“Capuano had been a trusted educator within the community while posting pornographic images of children as young as three,” stated ICE-HSI Special Agent-in-Charge Melendez. “Further, he used his work phone as a teachers’ union rep to download images. Protecting children is a priority and we will relentlessly investigate and pursue cases of child predators who hide behind their computer screens and bringing them into the light.”
As set forth in the charging instruments and at the defendant’s plea allocution, in April 2015, an undercover HSI agent, as part of an ongoing effort to locate individuals sharing child pornography, found child pornography images and videos involving children as young as 3-5 years’ old which had been posted by Capuano to a chat room in a publicly available Internet application. After tracing location information for the account used to post the images, law enforcement officers executed a search warrant on May 28, 2015, at Capuano’s residence in Valley Stream, New York.
During the search, Capuano spoke with law enforcement personnel following a waiver of his Miranda rights and admitted that he used the Internet application to trade child pornography and posted the images located by the undercover agent. Capuano also identified his personal telephone and his work telephone as a teachers’ union representative as devices he used to access these materials. Capuano was arrested at that time and remains incarcerated.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen Bode is in charge of the prosecution.
The Defendant:
JOHN CAPUANO
Age: 44
Valley Stream, New York
E.D.N.Y. Docket No. 15 CR 312 (DRH)
New Orleans Man Sentenced to 10 Years Imprisonment for Possession of Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DWIGHT JOSEPH, JR., age 34, of New Orleans, was sentenced today after previously pleading guilty to a two-count Indictment charging him with possession of images and videos depicting the sexual exploitation of children under the age of twelve and failure to register as a sex offender.
U.S. District Judge Sarah S. Vance sentenced JOSEPH to 120 months imprisonment, followed by 5 years of supervised release, and a $200 special assessment. Additionally, JOSEPH was ordered to register as a sex offender under the Sex Offender Registration and Notification Act. A hearing on restitution is pending.
According to court documents, JOSEPH was convicted in 2005 in Lehigh County, Pennsylvania, for dissemination of photo/film of child sex acts, which required him to register as sex offender for at least ten years. Notwithstanding that obligation, JOSEPH temporarily resided in New Orleans beginning in about April 2015, without notifying the appropriate authorities in either Louisiana or Pennsylvania.
Additionally, on about September 9, 2015, law enforcement authorities executed a search warrant at JOSEPH’S residence, during which time they seized numerous electronic items. A forensic examination of the device revealed that JOSEPH used the devices to download and save images and videos of children as young as less than one-year old engaging in sexually explicit conduct, including being raped, forced to perform oral sex on adult men, and being forced to engage in acts of incest. The forensic examination located approximately 725 images and 69 videos depicting prepubescent children engaging in sexually explicit on JOSEPH’S digital devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Louisiana Bureau of Investigation Cyber Crime Unit and the United States Marshals Service, with assistance from the United States Department of Homeland Security – Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
New Hampshire Man Pleads Guilty to Two Bank Robberies During Spring 2016 Crime SpreeRead the Press Release
Concord, N.H.—Acting United States Attorney John J. Farley announced today that Michael Munroe (also known as Michael Monroe), 34, previously of Raymond, New Hampshire, has pleaded guilty to two bank robberies.
According to court records and statements in court, Munroe robbed a Northway Bank branch location in Ossipee, NH on March 28, 2016 and a Granite State Credit Union branch location in Seabrook, NH on April 1, 2016. He committed each robbery by passing a demand note to the teller threatening that he had a gun and demanding money. Following each robbery, Munroe fled the scene.
The two bank robberies were part of a larger two-state multi-week crime spree perpetrated by Munroe in March and April 2016. As part of his plea today and to resolve his pending liability in other jurisdictions, Munroe also has admitted to other criminal conduct, including: (1) the March 19, 2016 assault on an individual in his home in Epping, NH; (2) the March 27, 2016 taking of a victim’s Honda Pilot from her possession in Manchester, NH; (3) the March 30, 2016 taking of a victim’s Lexus ES300 from her possession in Tewksbury, MA; (4) the March 31, 2016 attempted taking of a victim’s Toyota Highlander from her possession in Reading, MA; and (5) the April 1, 2016 theft of a Honda CRV while it was parked in Derry, NH. Munroe has been in custody since his arrest by Hancock Police on April 2, 2016.
As part of his plea agreement, Munroe has agreed to pay $1,645 in restitution to Northway Bank and $8,099 in restitution to Granite State Credit Union. He also has agreed to pay restitution to the victims of the uncharged additional criminal conduct detailed above.
A sentencing hearing has been scheduled for October 3, 2017.
This matter was investigated by the Federal Bureau of Investigation, the Manchester Police Department, the Ossipee Police Department, the Seabrook Police Department, the Hancock Police Department, the Tewksbury, MA Police Department, and the Reading, MA Police Department. Assistance was provided by the County Attorney’s Offices for Hillsborough, Carroll, and Rockingham Counties in New Hampshire and the Middlesex County, MA, District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Monroe County Tobacco Store Owner Sentenced to 54 Months’ Imprisonment for Wire Fraud Conspiracy and Aggravated Identity Theft OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge James M. Munley sentenced Rehan A. Merchant, age 40, of Bushkill Falls, Pennsylvania, to 54 months’ imprisonment and a three-year term of supervised release, for conspiring to commit wire fraud and for committing aggravated identity theft.
According to United States Attorney Bruce D. Brandler, Merchant was the owner and operator of the Cigar and Tobacco Outlet in Tannersville, Pennsylvania. Merchant pleaded guilty in June 2016, admitting that from September 2014, through September 2015, he and his co-conspirators used and attempted to use counterfeit and stolen credit and debit cards to make fraudulent purchases at the Cigar and Tobacco Outlet. Merchant and his co-conspirators also forged the names of cardholders on the associated credit and debit card receipts. The conspirators further trafficked tobacco between Pennsylvania and New York. Merchant obtained $193,219.76 from the fraudulent scheme, and attempted but failed to obtain an additional $983,811.59.
Investigators were able to seize and forfeit $82,762.67 of fraudulently-obtained funds. In pronouncing the sentence of imprisonment, Judge Munley emphasized the number of victims who suffered from Merchant’s criminal activities. Judge Munley also imposed a $193,219.76 order of restitution as part of Merchant’s sentence.
The investigation was conducted by Homeland Security Investigations and the Monroe County District Attorney’s Office. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Middlesex County, New Jersey, Man Charged with Stealing $184,936 in Social Security BenefitsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man charged with stealing his late great aunt’s Social Security benefits for 18 years made his initial court appearance today, Acting U.S. Attorney William E. Fitzpatrick announced.
Lance Nelson, 56, of Perth Amboy, New Jersey, is charged by complaint with stealing $184,936 in benefits from the Social Security Administration between 1998 and 2016. Nelson appeared before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
Nelson’s great aunt received Social Security benefits, which were sent to a joint bank account that she shared with Nelson at Bank of America. In February 1998, Nelson’s great aunt died, and the Social Security Administration, unaware of her death, continued to issue her monthly retirement benefits. From March 1998 until February 2016, the Social Security Administration sent $184,936 to the joint account. Nelson, who was not entitled to receive his great aunt’s retirement benefits, used the money for his own benefit. Between August 2009 and March 2016, Nelson caused $52,367 to be transferred from the joint account into Nelson’s individual savings and checking accounts. He also used ATMs to withdraw approximately $30,000 from the joint account between April 2011 and October 2015. Since at least 1998, Nelson earned $36,868 to $64,272 per year as an assistant zoning officer for the City of Perth Amboy.
The theft of federal funds charge carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000, or twice the gross pecuniary gain or loss associated with the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the Social Security Administration - Office of the Inspector General, under the direction of Special Agent-in-Charge John F. Grasso of the New York Field Division, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced for Assaulting Federal OfficersRead the Press Release
BROWNSVILLE, Texas – A 24-year-old woman from Matamoros, Tamaulipas, Mexico has been ordered to federal prison following her conviction on two different assaults of federal officers, announced Acting U.S. Attorney Abe Martinez. Maribel Tejeda-Fomperosa pleaded guilty in February 2017.
Today, U.S. District Judge Rolando Olvera ordered Tejeda-Fomperosa to serve 21 months in federal prison. Not a U.S. citizen, she is expected to face deportation proceedings following her release from prison. Tejeda-Fomperosa’s sentence includes upward adjustments or increases in her calculated sentencing guideline range because she was found to have made physical contact with the victims and because each victim sustained bodily injury. Tejeda-Fompersa also received an upward adjustment because she assaulted two different federal officers.
Border Patrol (BP) agents arrested Tejeda-Fomperosa on Oct. 24, 2016, after she made an illegal entry into the United States by wading across the Rio Grande River near Brownsville. She became physically and verbally aggressive after being placed in a holding cell following that arrest. As a result, she physically assaulted a BP agent attempting to restrain her and spat at a second agent. The evidence also indicated that on Nov. 15, 2016, while in custody for the Oct. 24, 2016, assault, Tejeda-Foromperosa again became physically and verbally aggressive and assaulted a corrections officer while being held at the Willacy County Regional Detention Center. Tejeda-Frompersoa was indicted separately for both assaults.
The FBI conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Member of Camden, New Jersey, Drug Trafficking Organization Admits Drug DistributionRead the Press Release
CAMDEN, N.J. – A Camden man today admitted selling crack cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Nafeez Griffin, a/k/a “Feez,” 31, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of distribution and possession with intent to distribute cocaine base.
According to documents filed in this case and statements made in court:
Griffin admitted that on Nov. 30, 2015, he sold crack cocaine to an undercover officer on the 1100 block of Lansdowne Avenue, which was then under the control of a drug distribution organization of which he was a member. Griffin also admitted that other members of the organization supplied drugs to him, and that he made sales of crack cocaine on other occasions. Griffin and others were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
The count to which Griffin pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Oct. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s guilty plea.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Justin T. Loughry Esq., Camden
McKean, Pa., Man Indicted on Child Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of McKean, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named Nathan Mark Williams, 37, of McKean, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Williams distributed, received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000, or both. 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police 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.
Manchester Physician Agrees to Pay $133,464 to Settle Civil Health Care Fraud CaseRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy today announced that Charles G. Landry, D.O. (“Dr. Landry”) has entered into a civil settlement agreement with the United States in which he will pay $133,464 to resolve allegations that from January 2011 through August 2014 he submitted false claims to Medicare.
According to a civil complaint, Dr. Landry is alleged to have violated the federal False Claims Acts by submitting claims for certain evaluation and management (“E&M”) services that were not eligible for payment under Medicare and submitting those claims knowing, deliberately ignoring or recklessly disregarding that they were false. Dr. Landry was not entitled to be paid for those E&M services because they were provided in connection with, and integral to, osteopathic manipulative treatment Dr. Landry performed on the same day. In total, Dr. Landry received $66,732 from the Medicare Trust Fund to which he was not entitled. The settlement amount represents twice the amount of damages incurred by the Medicare program.
The case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General. The civil action is docketed United States v. Charles G. Landry, D.O., 17-cv-243 (D. Me.).
Man who spent eight years as a fugitive convicted of drug traffickingRead the Press Release
ATLANTA - Blas Aleman has been sentenced to 17 years, 11 months in federal prison after being convicted of conspiracy to possess with the intent to distribute cocaine and methamphetamine. Aleman participated in the drug conspiracy in 2008, and after that time was believed to be on the run in Mexico. In March 2016, following his apprehension in Mexico, Aleman was extradited to the United States to face the federal drug trafficking charge.
“We will pursue international drug traffickers who distribute their illegal narcotics in this country and take refuge outside of the United States,” said U. S. Attorney John Horn. “Thanks to the diligence of our federal and state law enforcement partners, this drug trafficker has been brought to justice after spending almost eight years as a fugitive.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This cocaine trafficker eluded justice and ran to what he considered a place of refuge (Mexico). With patience, investigative skill and relentless pursuit, this fugitive was captured. This is a shining example of how DEA and its law enforcement partners will work tirelessly to pursue the far stretching tentacles of drug traffickers who seek to run from justice.”
“This is yet another case where federal law enforcement was and will continue to be relentless in finding those who cause drugs to be brought into our neighborhoods,” said Beverly Harvard, U.S. Marshal for the Northern District of Georgia.
According to U.S. Attorney Horn, the charges and other information presented in court: In or around early 2008, in Marietta, Georgia, Aleman met with, and recruited, an individual to become a courier for his drug trafficking organization. Aleman then purchased a car in Smyrna, Georgia, and had it registered and insured in the courier’s name. In early May 2008, Aleman traveled with the courier to Guerrero, Mexico, and oversaw the delivery of the car to his fellow drug traffickers.
While in Mexico, Aleman was responsible for hiding 11.8 kilograms of cocaine and 1.3 kilograms of methamphetamine inside of an after-market compartment installed in the vehicle. Aleman then returned the car to the courier at a hotel on the Mexican side of the U.S. border. Aleman ordered the courier to drive across the U.S. border and to deliver the drugs to Aleman’s conspirators in Atlanta, where the drugs would be further distributed. Although the courier crossed the U.S. border without being detected, he was stopped by a police officer in Mississippi for a traffic violation while traveling eastbound on Interstate 20. During a search of the car, law enforcement discovered the hidden compartment containing the drugs.
In June 2008, a grand jury in the Northern District of Georgia returned an indictment charging Aleman, the courier, and three other conspirators with drug conspiracy in relation to the narcotics seized from the car. The U.S. Marshals Service soon determined that Aleman was in rural Mexico and believed to be in hiding. After a multi-year effort by the U.S. Department of Justice, Aleman was extradited to the United States to face the federal drug charge in March 2016.
U.S. District Judge William S. Duffey, Jr. sentenced Blas Aleman, 38, of Guerrero, Mexico, to 17 years, 11 months in prison to be followed by five years of supervised release. The Court also ordered that Aleman be deported from the United States once he completes his prison term. Aleman was found guilty by a jury on April 13, 2017, following a four-day trial.
This case was investigated by the Drug Enforcement Administration and the U.S. Marshals Service.
Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Man Who Laundered Millions from Massive Computer Hacking and Telecommunications Fraud Scheme Gets 48 Months in PrisonRead the Press Release
NEWARK, N.J. – A Pakistani citizen was sentenced today to 48 months in prison for laundering more than $19.6 million on behalf of the perpetrators of a massive international computer hacking and telecommunications fraud scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
Muhammad Sohail Qasmani, 49, formerly of Bangkok, Thailand, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit wire fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this and related cases and statements made in court:
This massive international telecommunications fraud scheme, allegedly led by Noor Aziz, 55, of Karachi, Pakistan, and responsible for total losses exceeding $70 million, involved unauthorized access to the computer systems – commonly known as PBX systems – that ran the internal telephone networks of numerous businesses and organizations in the United States. Foreign-based hackers targeted the telephone systems of the victim corporations and placed calls to those systems in an attempt to identify unused telephone extensions. Once the hackers identified unused extensions, they illegally reprogrammed the telephone systems so that they could be used to make unlimited long distance calls, all of which were ultimately charged back to the victim corporations.
The hacked telephone systems were then used to make calls to premium telephone numbers – such as purported chat lines, adult entertainment, and psychic hotlines – that generated revenue based on the calls’ duration and were set up and controlled by Aziz. In actuality, the numbers provided no actual services. Telephone company representatives who suspected fraudulent activity and called the numbers heard recordings of fake rings, fake password prompts, fake voicemail messages, music, or dead air on continuous loops.
In 2008, Qasmani, who operated a money laundering and smuggling business in Thailand, agreed to launder proceeds of the scheme for Aziz. In furtherance of the conspiracy, Qasmani established multiple bank accounts to receive the money generated by the illicit telephone traffic. Qasmani also paid the hackers and dialers who worked for Aziz to keep the scheme going.
Specifically, over nearly four years, Qasmani initiated money transfers to approximately 650 unique transferees, located in at least 10 countries, including the Philippines, India, Pakistan, Malaysia, China, the United Arab Emirates, Saudi Arabia, Indonesia, Thailand, and Italy. Qasmani moved a total of approximately $19.6 million in fraud proceeds from November 2008 through Dec. 31, 2012. Qasmani kept laundering the money even after Aziz was arrested in connection with this scheme and later released by foreign authorities.
On Dec. 22, 2014, Special Agents of the FBI arrested Qasmani at Los Angeles International Airport after he arrived on a flight from Bangkok.
In addition to the prison term, Judge Hayden sentenced Qasmani to two years of supervised release. Qasmani must also forfeit $25,000 and pay restitution of $71,761,956.34.
Aziz was charged by indictment on June 20, 2012 and remains a fugitive. For more information, visit the FBI Cyber's Most Wanted list. The charges and allegations against him are merely accusations, and he is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea. He also thanked officers with U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO) and U.S. Customs and Border Protection for their assistance in this case.
The government is represented by Assistant U.S. Attorney L. Judson Welle, coordinator of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit.
Defense Counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark
Madison County Man Sentenced for Child Pornography CrimesRead the Press Release
SYRACUSE, NEW YORK - Brent Dale, 40, of Earlville, NY, was sentenced yesterday to serve 210 months in federal prison following his plea of guilty to all counts of a five-count indictment charging him with child pornography offenses, announced United States Attorney Richard S. Hartunian. He will be placed on a lifetime period of supervised release following the end of his prison sentence. Dale was a registered sex offender at the time he committed the offenses of conviction, and will be required to continue that registration after his release.
Dale’s sentencing yesterday follows his September 2016 pleas of guilty to the distribution, receipt, and possession of child pornography stemming from his trading images of child pornography with other users on the Internet, and amassing a collection of images and videos depicting the sexual exploitation of children.
This case was investigated by the New York State Police, the Madison County Sheriff’s Office, the Madison County District Attorney’s Office, and the Department of Homeland Security, Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Los Zetas Drug Cartel Sicario and Piedras Negras Plaza Boss Sentenced to Life in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 34-year-old Marciano Millan Vasquez, a high ranking member and a former sicario for the Los Zetas drug cartel, to seven (7) consecutive life imprisonment sentences for committing and aiding and abetting the commission of numerous murders and other acts of violence, drug trafficking and weapons trafficking in Northern Mexico in furtherance of a drug distribution operation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, Texas Department of Public Safety Director Steve McCraw.
“Without mercy or compunction he brutally murdered anyone and everyone as it suited him and his cartel, at times inflicting the cruelest of pain, forcing relatives to watch their loved ones murdered before he turned his blades on them,” stated United States Attorney Richard L. Durbin, Jr. “Today’s sentence marks an end to his reign of terror over the drug plaza in Piedras Negras.”
On July 19, 2016, following a three-week trial, the jury found Vasquez (aka “Chano”), guilty on all charges including killing while engaged in drug trafficking; conspiracy to distribute and import marijuana; distribution of controlled substances outside the U.S. intending that they be imported into the U.S.; employing minors in a drug crime; conspiracy to distribute cocaine; conspiracy to distribute methamphetamine; conspiracy to possess firearms in furtherance of a drug trafficking crime; and, making a false statement to a federal official.
Testimony during trial revealed that Vasquez was a member of Los Zetas and served as a sicario (or assassin), drug trafficker and weapons distributor until 2013 when he took over control of the Piedras Negras “Plaza” (or drug trafficking corridor) for the Los Zetas led by Miguel Trevino Morales (aka “Z-40”) and his brother, Oscar Omar Trevino Morales (aka “Z-42”). Testimony also revealed that as the “Plaza boss,” Vasquez oversaw the importation and distribution of more than 100,000 kilograms of marijuana, tens of thousands of kilograms of cocaine into the United States and obtained and distributed firearms amongst Los Zetas members. Vasquez also personally distribute multi-kilogram quantities of methamphetamine in the United States. Furthermore, testimony revealed that Vasquez was responsible for the murders of at least 29 individuals in Northern Mexico between January 2009 and July 2015.
In one incident, testimony revealed that in 2013, Vasquez murdered a young girl by dismembering her with an axe and burning her body in front of her parents while laughing and saying, “so you’ll remember me.” Vasquez then ordered that the mother be killed in similar fashion while forcing the father to watch. Vasquez then ordered that the father be killed. According to testimony, Vasquez did so because he and other Los Zetas wanted the father to suffer. In a prior incident, testimony revealed that Vasquez participated in the massacre of numerous people in Piedras Negras and Allende, Coahuila, Mexico, at the hands of Los Zetas members in March of 2011.
Vazquez has remained in federal custody since his arrest in San Antonio on July 15, 2015.
“The life sentence imposed on Vasquez should be a reminder to all criminals that violence and victimization of the public will not be tolerated and will be met with the full weight of the law,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI and its law enforcement partners are committed to ensuring the safety and security of our communities in south Texas.”“Marciano Millan Vasquez’s sentence to life in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities. It is another example of our success in the fight against major Mexican drug cartels operating in the United States,” stated Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration, Houston Field Division.
This case was investigated by the DEA, HSI, and the Texas Rangers together with the U.S. Marshals Service; U.S. Border Patrol; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI); U.S. Customs and Border Protection (CBP); HSI Office of the Chief Counsel; Texas Department of Public Safety (DPS); Texas National Guard; Guadalupe County Sheriff’s Office; Maverick County Sheriff’s Office; Maverick County Constable’s Office; and the police departments of Austin, San Antonio, Hollywood Park, Castle Hills, Live Oak, Leon Valley, Eagle Pass, Eagle Pass Independent School District, and Richland (MS).
The Los Zetas is a powerful drug trafficking organization operating out of Mexico, which funnels thousands of kilograms of cocaine, marijuana, methamphetamine, and other narcotics into the United States each year. Los Zetas are one of the largest drug cartels operating in Mexico today, with their influence stretching from Central America through Mexico and into cities throughout the United States. organization is based in the city of Nuevo Laredo, Tamaulipas, Mexico, and has control over several other Mexican cities located on the United States-Mexico border, including Ciudad Acuna and Piedras Negras—both located in Coahuila, Mexico. large-scale drug trafficking of this organization generates multi-million dollar revenues.
The Los Zetas were first established to be the lethal enforcers for another Mexican drug cartel: The Gulf Cartel. The leaders of the Gulf Cartel recruited former members of the Mexican Army Special Forces from the Groupo Aeromovil de Fuerza Especiales (GAFES) in the late 1990s. However, over time the Los Zetas broke away from the Gulf Cartel and began to operate independently. Heriberto Lazcano, aka Z-3, was the leader of the Los Zetas from 2004 until his death on October 7, 2012 in Coahuila, Mexico. After his death, Miguel Angel Trevino Morales, aka Z-40 and his brother Oscar Omar Trevino Morales, aka Z-42 assumed the leadership positions. In April 2009 the President of the United States identified the Los Zetas as a significant foreign narcotics trafficker under the Kingpin Act and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Z-40 and Z-42 as specially designated narcotics traffickers pursuant to the Kingpin Act in July 2009 and March 2010, respectively.
The Los Zetas is organized in a hierarchical structure with certain groups or cells operating in tiers of command. Its members purchase bulk quantities of narcotics and sell them abroad as well as to other non-Los Zetas drug traffickers operating in Mexico. In addition to those considered actual members of the Los Zetas, any large scale narcotics trafficker operating in a region controlled by the Los Zetas must support and associate with the Los Zetas or risk execution. The Los Zetas not only supplies the drugs (marijuana, cocaine, methamphetamine, etc.) to the traffickers, they charge the traffickers a fee (called the “quota”) for the privilege of operating in Los Zetas territory. That fee includes cash payments as well as firearms and other munitions (ammunition, magazines, etc.). In addition to allowing these traffickers to operate in their territory, the Los Zetas had control of law enforcement entities and political subdivisions within the State of Coahuila, which allowed them to operate with impunity and to obtain real-time intelligence about the movement and location of the Mexican military and law enforcement within the State.