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15 August 2017
Members of Columbus Clique of MS-13 Arrested and ChargedRead the Press Release
COLUMBUS, Ohio – Thirteen individuals alleged to be members and associates of MS-13 were arrested in Central Ohio and Indiana this morning.
A federal grand jury charged 10 individuals with conspiracy to commit extortion, conspiracy to commit money laundering, and use of a firearm during a crime of violence in an indictment returned here on July 27. Five other individuals were arrested and charged in criminal complaints with federal immigration-related crimes. Two of the 15 remain fugitives.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the indictment that was unsealed following the arrests today.
MS-13, formally La Mara Salvatrucha, is a multi-national criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, Guatemala and Honduras. The organization’s leadership is based in El Salvador, where many of the gang’s high-ranking members are imprisoned.
In 2012, the United States government designated MS-13 as a “transnational criminal organization.” It is the first and only street gang to receive that designation. MS-13 has become one of the largest and most violent criminal organizations in the United States, with more than 10,000 members and associates operating in at least 40 states, including Ohio. In Ohio and elsewhere in the United States, MS-13 is organized into “cliques,” which are smaller groups of MS-13 members and associates acting under the larger mantle of the organization and operating in a specific region, city or part of a city.
- indictment alleges that 10 defendants – members and associates of the Columbus clique of MS-13 – conspired to commit extortion through the use of threatened or actual force, violence or fear to intimidate their victims into paying money to the defendants and their co-conspirators. Many of the proceeds were sent, usually by wire transfer and often through intermediaries, to MS-13 members and associates in El Salvador and elsewhere. The money was then used to promote and facilitate the criminal activities of MS-13 in El Salvador and the United States.
As part of the alleged conspiracy, the defendants and their co-conspirators unlawfully obtained extortion proceeds to be used to, among other things, buy items that MS-13 uses to engage in criminal activity, such as cellular phones, narcotics and weapons; provide financial support and information to MS-13 members, including those incarcerated in El Salvador and the United States, as well as those who have been deported; and aid families of deceased MS-13 members.
The 10 defendants charged in the indictment are:
Name
Also Known As
Age
City
Jose Martin Neftali Aguilar-Rivera
Momia, Pelon
32
Columbus, Ohio/ Indianapolis, Ind.
Pedro Alfonso Osorio-Flores
Smokey
38
Columbus, Ohio
Juan Jose Jiminez-Montufar
Chele Trece
33
Columbus, Ohio
Isaias Alvarado
Cabo
44
Columbus, Ohio
Cruz Alberto-Arbarngas
Cruzito
30
Columbus, Ohio
*Jose Manuel Romero-Parada
Russo
22
Fugitive – Indianapolis, Ind.
Jose Salinas-Enriquez
Martillo
32
Dayton, Ohio
Jorge Cazares
Veneno
37
Columbus, Ohio
Jose Ramiro Aparicio-Olivares
Flaco
42
Columbus, Ohio
*Nelson Alexander Flores
Mula
46
Fugitive – whereabouts unknown
Conspiracy to commit extortion and conspiracy to commit money laundering are each crimes punishable by up to 20 years in prison. Brandishing a firearm in relation to a crime of violence carries a sentence of at least seven years in prison, consecutive to any other sentence imposed in the case.
The five defendants charged with immigration offenses in criminal complaints are:
Name
Also Known As
Age
City
Antonio Galdamez-Figueroa
Pinochio
29
Columbus, Ohio
Juan Pablo Flores-Castro
Duende
29
Columbus, Ohio
Jorge Alberto Landaverde
Grenas
33
Columbus, Ohio
Juan Jose Alvarenga-Alberto
Sailen
27
Columbus, Ohio
Marvin Otero-Serrano
Vaca
31
Columbus, Ohio
Illegally re-entering the United States after having been previously deported is a crime punishable by up to two years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus, Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
If you are a victim of the alleged crimes, or have additional information about MS-13, please call the FBI hotline at 614-849-1765. Callers can remain anonymous.
An indictment or criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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McAllen Man Ordered to Prison for Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 26-year old resident of McAllen has been sentenced to federal prison following his conviction of one count of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez. Daniel Ramirez-Tobias pleaded guilty Dec. 2, 2016.
Today, U.S. District Judge Randy Crane, who accepted the guilty plea, handed Ramirez-Tobias a 72-month sentence. Following completion of his sentence, he will be on supervised release for the rest of his life, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Ramirez-Tobias came to the attention of law enforcement following an investigation which began on Aug. 1, 2016, into persons using the Internet to traffic in child pornography. Authorities were able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On Oct. 6, 2016, authorities executed a federal search warrant at that residence, during which time they seized a desktop computer. A forensic examination on the computer revealed video files of child pornography involving children who were clearly young engaged in sexually explicit conduct. These videos include children under the age of 12 involved in sadistic conduct such as bondage, bestiality and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Ramirez-Tobias admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his computer. He further admitted to downloading and subsequently deleting approximately 100 videos of child pornography.
Previously released on bond, Ramirez-Tobias was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service on Aug. 25, 2017.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Matthew Charo Pleads Guilty to Distributing Fatal Heroin to Saratoga Springs WomanRead the Press Release
ALBANY, NEW YORK – Matthew P. Charo, 36, of Saratoga, New York, pled guilty yesterday to distributing a controlled substance, announced Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Sentencing is scheduled for December 7, 2017 at 9:30 am before Senior United States District Judge Frederick J. Scullin, Jr. According to the terms of the plea agreement, the parties have proposed that Charo should receive a sentence of 10 years imprisonment. He also faces a term of supervised release of between three years and life, a fine of up to $1,000,000, and a special assessment of $100.
As part of his guilty plea today, Charo admitted that on October 2, 2014, he sold heroin to a 30-year-old woman who was his high school acquaintance. Before the sale, the victim told Charo that she had attempted all day to buy heroin without success. Charo agreed to help the victim purchase heroin, and used the victim’s food stamp EBT card to obtain the drug from another individual. Thereafter, Charo distributed it to the victim, who ingested the heroin and died due to acute heroin intoxication.
"The heroin the defendant distributed ended the life of a 30 year old woman he knew from high school. Thanks to a tireless investigation by the FBI, the New York State Police, and the Saratoga Springs Police Department, the defendant will be held accountable for his crime, but that cannot undo the devastating consequences. We will continue to bring federal charges against those who peddle this poison, to pursue just punishments and prevent future tragedies,” said Acting United States Attorney Jaquith.
FBI Special Agent in Charge of the Albany Field Office Vadim D. Thomas stated, “The success of this investigation is the direct result of our federal, state and local partnerships. While we cannot restore the victim to her family, we can continue in our commitment to eliminating the significant threat drugs pose to our community.”
New York State Police Superintendent George P. Beach, II stated, “I commend the dedicated teamwork of all of our law enforcement partners at the federal, state, and local levels for their efforts in bringing this individual to justice. Our members see the deadly effects of heroin on a daily basis. Heroin and other highly addictive drugs not only put lives at risk, but they destroy our communities. We will continue to be vigilant in working together with our law enforcement partners to keep these harmful narcotics off our streets and our neighborhoods safe.”
Saratoga Springs Police Department Chief Gregory Veitch stated, “Saratoga Springs, like all communities, is not immune from the tragic consequences of the opioid epidemic that law enforcement and other first responders deal with on a daily basis. While we continue to keep the victim and her family in our thoughts and prayers, we appreciate the assistance of the New York State Police, FBI and U.S. Attorney’s Office in bringing Matthew Charo to justice for his actions.”
The case was investigated by the FBI, Albany Field Office, the New York State Police, and the Saratoga Police Department, and was prosecuted by Assistant U.S. Attorney Daniel Hanlon.
Mattapan Man Agrees to Plead Guilty to Federal Drug ChargesRead the Press Release
BOSTON – A Mattapan man agreed to plead guilty yesterday in federal court in Boston to distributing cocaine and conspiring with others to distribute cocaine.
Francisco Torres, 37, a former employee at Logan International Airport who held a “Customs Seal,” a badge that permits entry to Federal Inspection Service areas to individuals who require access in order to perform their job duties, agreed to plead guilty to two counts of distributing cocaine and one count of conspiring with others to distribute cocaine. Judge Indira Talwani deferred acceptance of the plea until sentencing, which is scheduled for Nov. 8, 2017.
On Feb. 16, 2017, Torres was arrested in the South End neighborhood of Boston following a sting operation where he was caught exchanging 850 grams of cocaine for a paper bag containing more than $33,000 in cash. Immediately after the exchange, officers approached Torres, who threw the bag of cash over a fence. Officers arrested Torres and recovered the money.
The conspiracy charge and one count of the cocaine distribution charge provide for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. The remaining cocaine distribution charge provides for a maximum of 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Wagner, Director of the New Hampshire State Police; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys John T. McNeil and Christine Wichers of Weinreb’s Criminal Division are prosecuting the case.
Maryland Man Pleads Guilty for Conspiring to Provide and for Providing Material Support to ISISRead the Press Release
Mohamed Elshinawy, 32, of Edgewood, Md., pleaded guilty in federal court to conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS terrorism financing; and making false statements in connection with a terrorism matter.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney of the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about Dec. 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company totaling $8,700 to be used to fund a terrorist attack in the U.S.
In an interview with FBI agents on July 17, 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
The maximum sentence for conspiracy to provide and for providing material support to a designated foreign terrorist organization is 20 years in prison; the maximum sentence for collection of terrorism financing is 20 years in prison; and the maximum sentence for making false statements in a terrorism matter is eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Elshinawy’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. Elshinawy has been detained since his arrest on Dec. 11, 2015, on related charges.
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark and the National Security Division’s Counterterrorism Section are prosecuting the case.
Maryland Man Pleads Guilty for Conspiring to Provide and for Providing Material Support to ISISRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Mohamed Elshinawy, age 32, of Edgewood, Maryland, pleaded guilty in federal court to conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS terrorism financing; and making false statements in connection with a terrorism matter.
The plea was announced by Acting U.S. Attorney of the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General for National Security Dana J. Boente; and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about December 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company totaling $8,700 to be used to fund a terrorist attack in the United States.
In an interview with FBI agents on July 17, 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
The maximum sentence for conspiracy to provide and for providing material support to a designated foreign terrorist organization is 20 years in prison; the maximum sentence for collection of terrorism financing is 20 years in prison; and the maximum sentence for making false statements in a terrorism matter is eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Elshinawy’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. Elshinawy has been detained since his arrest on Dec. 11, 2015, on related charges.
Acting United States Attorney Stephen M. Schenning and Acting Assistant Attorney General for National Security Dana J. Boente commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark and the National Security Division’s Counterterrorism Section who are prosecuting the case.
Martinsville Doctor Arrested on Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Martinsville doctor of osteopathic medicine was arrested and charged by federal authorities with possessing with intent to distribute schedule II controlled substances, Acting United States Attorney Rick A. Mountcastle announced.
Joel A. Smithers, of Greensboro, NC, was arrested today and charged in a federal criminal complaint with illegally possessing with the intent to distribute schedule II substances. At the conclusion of a hearing in U.S. District Court in Abingdon, Smithers was released on a $25,000 bond. As a condition of his release, he is prohibited from prescribing any controlled substances. Smithers, a licensed doctor of osteopathic medicine, has operated The Center for Integrative Health at Smithers Community Healthcare in Martinsville, Virginia since September 2015.
The investigation of the case is being conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorneys Zach Lee and Randy Ramseyer are prosecuting the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Marstons Mills Man Sentenced for Role in Cape Cod Heroin Trafficking ConspiracyRead the Press Release
BOSTON – A Marstons Mills man was sentenced yesterday in federal court in Boston for his role in a heroin trafficking operation on Cape Cod.
Sean Pratt, 29, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison and four years of supervised release. On Sept. 16, 2016, Pratt pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and possession of heroin with the intent to distribute.
Pratt purchased large quantities of heroin from Denzel Chisholm, a former Cape Cod gang leader and drug trafficker, and co-conspirator Brooke Cotell. Pratt then sold this heroin to other distributors and users. During a search of Pratt’s home, law enforcement officers recovered approximately 50 grams of heroin and a firearm.
In June 2017, Chisholm was convicted by a federal jury of multiple counts of federal drug charges, and on Aug. 7, 2017, Cotell was sentenced to 20 months in prison for distributing heroin on Cape Cod.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Marc Henry Johnson Sentenced for Helping Drug Dealer Cover up Role in Woman’s Cocaine OverdoseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARC HENRY JOHNSON was sentenced today to one year and one day in prison for helping cover up a drug dealer’s narcotics offense by moving a woman’s body out of a Manhattan apartment where she had suffered a fatal cocaine overdose. JOHNSON pled guilty on March 21, 2017, to acting as an accessory after the fact to the offense of maintaining a drug-involved premises. JOHNSON entered the guilty plea before U.S. District Judge Jesse M. Furman, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “Faced with a choice between helping his long-time drug dealer avoid arrest or helping a woman survive a cocaine overdose, Marc Henry Johnson chose to help the drug dealer. For his callous and illegal choice, Johnson will now join that drug dealer in federal prison.”
According to documents filed in this case and statements made in related court proceedings:
JOHNSON regularly bought cocaine from James Holder, who lived in and sold cocaine from a third-floor apartment in Chelsea. During the night of October 3, 2015, and the early morning hours of October 4, 2015, JOHNSON met with a 38-year-old woman (“Individual-1”) and others at a bar in Manhattan. Individual-1 had been using cocaine before JOHNSON arrived. Later, JOHNSON and Individual-1 left the bar together in a taxi. They arrived at Holder’s apartment building at approximately 4:25 a.m., and walked upstairs to Holder’s apartment. Hours later, JOHNSON and Holder dragged Individual-1’s apparently unconscious body into the building’s first-floor vestibule. Holder then left the building, and JOHNSON called 911 to summon an ambulance. JOHNSON declined to provide his name to the 911 operator, and he did not identify Individual-1, or describe his relationship to her, or explain what had happened to her or why she needed medical assistance. Emergency Medical Technicians responded and found Individual-1 unresponsive in the Chelsea building’s vestibule. JOHNSON left the building soon after the EMTs arrived.
Individual-1 was taken to a hospital and pronounced dead later on October 4, 2015. Her death was caused by, among other things, cocaine use.
* * *
In addition to the prison term, MARC HENRY JOHNSON, 53, was sentenced to two years of supervised release and ordered to pay a fine of $20,000.
Holder, who pled guilty on December 12, 2016, to maintaining a drug-involved premises, was sentenced on May 11, 2017, to a term of five years in prison.
Mr. Kim praised the outstanding investigative work of the U.S. Drug Enforcement Administration’s (DEA) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, 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 case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Margaret Garnett and David Abramowicz are in charge of the prosecution.
Manhattan U.S. Attorney Obtains Judgment Against Bronx Pastor/Retired Assistant Principal for Fraudulently Retaining Deceased Father’s Social Security Benefits for 14 YearsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and John Grasso, the Special Agent in Charge of the United States Social Security Administration, Office of the Inspector General, announced today the entry of a $330,284 consent judgment against TORRENCE ROBINSON (“ROBINSON”), a Bronx pastor and recently retired New York City assistant principal, for fraudulently misappropriating Social Security retirement benefits. The consent judgment, along with a Stipulation and Order of Settlement (the “Stipulation”), resolves the United States’ civil claims against ROBINSON, brought under the False Claims Act in a complaint filed on October 5, 2016. Both the consent judgment and Stipulation were entered today by U.S. District Judge Valerie E. Caproni.
Acting U.S. Attorney Joon H. Kim said: “Social Security is a critical but limited resource that millions of Americans depend on in retirement. We will not tolerate abuse of this common good. Relatives of deceased beneficiaries have an obligation to notify the Social Security Administration, and those who choose to pocket the cash will be held to account.”
Special Agent in Charge John Grasso said: “This consent judgment should serve as a warning to people who choose to selfishly defraud the Social Security Trust Fund. Such individuals are not only liable for the money that they stole, but potentially additional monetary penalties under the False Claim Act. Our Office vigorously pursues these cases criminally, civilly, and administratively to the fullest extent of the law. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”
This Office filed a civil fraud suit against ROBINSON under the False Claims Act and common law alleging that he misappropriated more than $200,000 in Social Security benefits between 1999 and 2013. These benefits had been paid by the Social Security Administration to Robinson’s father after his father had died. The False Claims Act was amended in 2009 to cover persons who knowingly conceal or improperly avoid repaying amounts owed to the Government, regardless of whether a false claim or statement is made. Thus, those who misappropriate Social Security benefits paid to deceased relatives after 2009 may be subject to treble damages and penalties under the False Claims Act. Up until 2009, the Government could recover only single damages in such cases, in common-law court actions.
Under the Stipulation, ROBINSON agreed to a judgment in the amount of $330,284, representing the amount of benefits he took plus additional damages under the False Claims Act for conduct occurring after the law was amended in 2009.
ROBINSON, 65, of New Windsor, New York, further admitted and accepted responsibility for misappropriating $214,994 in payments from the Social Security Administration. Specifically, ROBINSON admitted that after his father died in 1999, ROBINSON maintained access to a joint bank account into which his father’s Social Security retirement benefits continued to be deposited, and ROBINSON redirected those funds for his own use until 2013. During this time, ROBINSON was employed as the pastor of a Bronx church and as a New York City assistant principal, earning well over six figures from his positions. ROBINSON also admitted that he was aware that he had no right to the payments and that he was obligated to inform the Social Security Administration of the death of his father and to return the payments, but failed to do so.
Mr. Kim thanked the Social Security Administration’s Office of Inspector General for its investigative work.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Stephen Cha-Kim is in charge of the case.
Manchester Man Pleads Guilty to Participating in Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Almir Causevic, 32, of Manchester, New Hampshire, pleaded guilty to conspiracy to possess with the intent to distribute fentanyl.
Court documents and statements in court showed that on April 1, 2016, law enforcement officers conducted a traffic stop in Manchester of a vehicle operated by Almir Causevic. A search of the vehicle resulted in the seizure of approximately 244 grams of fentanyl and $1,200 cash.
A passenger in the vehicle, Muharem Causevic, pleaded guilty to the drug conspiracy charge on August 11, 2017.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to target individuals who are responsible for the distribution of large quantities of fentanyl in New Hampshire,” said Acting U.S. Attorney Farley. “While those who suffer from addiction need access to treatment, those who seek to profit from the distribution of this deadly drug will be prosecuted aggressively. I commend the work of the law enforcement officers who located and seized this significant amount of fentanyl.”
"The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before," said Special Agent in Charge Michael J. Ferguson. "Those suffering from fentanyl and heroin addiction need treatment and recovery, but those that distribute and profit from spreading this misery need to be held accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal partners and our strong relationship with the U.S. Attorney's Office."
Almir Causevic’s sentencing is scheduled for November 28, 2017. As a result of his conviction, he may also face deportation proceedings at the conclusion of his federal prison sentence.
The investigation was conducted by the United States Drug Enforcement Administration, Bedford Resident Office, Bedford, New Hampshire and the Manchester, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Man Sentenced for Failure to RegisterRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Robert Tjepkema, 53, was sentenced today in Lincoln, Nebraska, to 3 years in prison by United States District Judge John M. Gerrard, for failure to register as a sex offender. In addition to his prison term, Tjepkema will be required to serve 8 years of supervised release.
In 1992, Robert Tjepkema was convicted of a sex offense in Minnesota which, under state law, required him to register as a sex offender for 10 years. In 2001, he was convicted of failure to register in Minnesota and sentenced to 9 months imprisonment. Under Minnesota law, the original 10-year registration period began anew when he was released, plus an additional five years for the new conviction, extending his registration requirement under state law to October of 2016.
Tjepkema then moved to Florida. In 2007, he was convicted of failure to register and sentenced to 35.5 months incarceration. His registration requirement under state law was then extended to February 23, 2029.
Under federal law Tjepkema is a Tier III sex offender with a lifetime registration requirement.
Tjepkema began living in Nebraska in 2010. He did not register as a sex offender prior to his arrest on the instant charges in early March, 2017.
This case was investigated by the United States Marshal’s Service.
Long-Running Clean Water Act Dispute Ends, Duarte Agrees to Pay Civil Fines, Restore Streams and WetlandsRead the Press Release
Bringing to a close several years of litigation, John Duarte and Duarte Nursery Inc. have agreed to pay a large civil penalty and preserve and restore creeks, streams, and wetlands to resolve violations of the Clean Water Act on property located in Tehama County, California, the Justice Department announced today.
Duarte has agreed to pay $1.1 million in civil penalties and mitigation for 22 acres of disturbed streams and wetlands and to permanently protect creeks on the property that are connected to the Sacramento River. The agreement follows a federal court determination in 2016 finding Duarte liable for violating the Clean Water Act and will redress illegal "ripping" of federally-protected streams and wetlands. The agreement allows Duarte to return the vast majority of the site to productive use and allows him to seek future determinations concerning jurisdictional waters at the site.
“Today's agreement affirms the Department of Justice's commitment to the rule of law, results in meaningful environmental restoration, and brings to an end protracted litigation,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resource Division. “We are pleased to reach this agreement that serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.”
“The Corps is pleased that this long-standing enforcement action has finally been resolved,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District. “We encourage members of the public to contact the Corps prior to engaging in activities that are regulated under the Clean Water Act. The Corps is always willing to talk to the public about the Regulatory Program and to provide information on permit requirements, jurisdictional determinations, wetland delineations, and any other aspects of the Program.”
This case stems from activities Duarte conducted after he recently purchased property that had laid fallow and unfarmed for more than 20 years. Duarte bought the property in 2012 for $5 million and shortly thereafter sold most of it for approximately $8 million, retaining 450 acres for his own use. Even before the purchase, Duarte received detailed maps showing the location of federally-protected streams and wetlands which took up less than 10 percent of his remaining property.
Despite the small portion of property that was subject to the Clean Water Act, Duarte hired a contractor to conduct "ripping" throughout the entire 450 acres, including in streams and wetlands, even though Duarte's own environmental consultant had warned him that he would be subject to significant penalties for ripping without a permit from the Army Corps of Engineers. This resulted in the ripping of flowing streams, running creeks, and in protected wetlands. In 2016, a federal court rejected Duarte's "plowing" defense based on the facts of this case, finding that no plowing had occurred anywhere on the site for at least 24 years and that (as intended) the ripping activity converted areas of water to dry land. The settlement agreement reached today secures a significant penalty for these violations, while providing fairness for farmers and other landowners who comply with the applicable laws.
In a recent pre-trial brief, the United States gave assurances that this case is not (and will not be used as) a pretext for federal prosecution of farmers who engage in normal plowing on their farms. No federal dredge-or-fill permit is required for plowing as defined in the regulations, and no such permit is required for discharges from "normal farming ... activities" (including plowing) if they are part of an established (i.e., ongoing) farming operation and not for the purpose of converting federally protected waters to new uses. Those protections for farmers remain in the law today and will continue to be recognized.
The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.
Legal Permanent Resident from El Salvador Sentenced to Fifteen Years for Cocaine and Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Remberto Guzman-Dominguez, 34, a legal permanent resident from El Salvador who resided in Las Vegas, Nev., was sentenced today in federal court in Las Cruces, N.M., for his conviction on cocaine and heroin trafficking charges. Guzman-Dominguez was sentenced to 180 months of imprisonment and will be deported after completing his prison sentence.
Guzman-Dominguez and co-defendant Miguel Angel Rodriguez-Flores, 47, of Hawthorne, Calif., were arrested on Nov. 14, 2015, and were charged by criminal complaint after officers of the New Mexico Motor Transportation Police found approximately 117.15 pounds (53.14 kilograms) of narcotics in their commercial tractor-trailer during a routine inspection at the port of entry on Interstate 10 near Lordsburg, N.M. The two men subsequently were indicted on Feb. 17, 2016, on charges that they conspired to distribute cocaine and heroin and possessed cocaine and heroin with intent to distribute. According to the indictment, defendants committed the three offenses in Hidalgo County, N.M., on the evening of Nov. 13, 2014 and the early morning of Nov. 14, 2015.
Trial of Guzman-Dominguez and Rodriguez-Flores on the three-count indictment began July 11, 2016, and concluded on July 15, 2016, when the jury returned a verdict of guilty on all three counts. The evidence at trial established that late on Nov. 13, 2015 and into the early hours of Nov. 14, 2015, the defendants were traveling in a commercial tractor-trailer from Phoenix, Ariz., to Lordsburg. When they entered the port of entry on Interstate 10 in Hidalgo County, the New Mexico Motor Transportation Police stopped their commercial tractor-trailer to conduct a safety inspection. After identifying several safety violations, the inspector continued with a cargo inspection and found that the trailer was fully loaded with large containers of industrial cleaning solution. While inspecting the cargo, the inspector found four cardboard boxes that were different from the industrial cleaning solution containers. One of the boxes was open and contained several cellophane wrapped bundles. The officers opened one of the cellophane bundles and found that it contained white powder that tested positive for cocaine. The four boxes contained 51 bundles with a gross weight of 53.14 kilograms. Laboratory tests later performed on the contents of the 51 bundles determined that 46 of the packages contained an aggregate of 105.6 pounds (47.9 kilograms) of cocaine and five packages contained an aggregate of 11.55 pounds (5.24 kilograms) of heroin.
Rodriguez-Flores was sentenced on March 15, 2017, to 120 months in prison followed by five years of supervised release.
The Border Enforcement Security Taskforce of the Las Cruces office of Homeland Security Investigations, New Mexico State Police, and New Mexico Motor Transportation Police investigated this case.
Assistant U.S. Attorneys Brock Taylor and Richard Williams of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Leader of Sunland Park Heroin Trafficking Ring Sentenced to Six Years for Federal Narcotics Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Raymundo Munoz, 69, of Sunland Park, N.M., was sentenced today in federal court in Las Cruces, N.M., to 72 months in prison for his conviction on heroin trafficking charges. Munoz will be on supervised release for four years after completing his prison sentence.
Munoz was the ringleader of a heroin trafficking organization operating out of Sunland Park, N.M., that obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Tex., that was the target of a DEA-led investigation. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten members of the heroin trafficking ring were charged in July 2016, in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The indictment charged all ten defendants with conspiring to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also included 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
On March 1, 2017, Munoz pled guilty to conspiracy and distribution of heroin. In entering the guilty plea, Munoz admitted to conspiring with Rivera and others to distribute approximately 119 ounces of heroin between April and July 2016, using female body carriers who would cross heroin from Mexico into the United States to give to Rivera who would then give the heroin to Munoz. Munoz also admitted that on dates from April 10, 2016, through July 11, 2016, he facilitated the sale and delivery of more than 64 grams of heroin to other individuals. Munoz’s plea agreement indicated that on July 11, 2016, Blanca Elisa Tovar, 42, of El Paso, Texas, smuggled seven ounces of heroin to the United States, intending to deliver the heroin to Rivera. However, Tovar, Rivera and Munoz were arrested and agents subsequently seized approximately $52,304, several ounces of heroin and a firearm from Munoz’s vehicle and residence.
The following defendants previously entered guilty pleas in the case:
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Carlos Diaz, 37, of El Paso, Texas, pled guilty on Jan. 24, 2017, and was sentenced on June 29, 2017, to 18 months in prison followed by three years of supervised release;
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Sandra Francis Guzman, 53, of El Paso, Texas, pled guilty on March 21, 2017, and was sentenced on July 25, 2017, to 18 months in prison followed by three years of supervised release;
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Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and was sentenced on May 24, 2017 to time served followed by one year of supervised release;
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Blanca Elisa Tovar, 42, of El Paso, Texas, pled guilty on Dec. 13, 2016, and faces a sentence of 24 months in prison under the terms of her plea agreement;
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Juan Francisco Rivera pled guilty on Feb. 7, 2017, and faces a sentence of 108 months in prison under the terms of his plea agreement;
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Armando Daniel Marquez, 54 of Sunland Park, N.M., pled guilty on Feb. 23, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement; and
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Eleodoro Sanchez, 62, of Canutillo, Texas, pled guilty on March 7, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement.
One of the two remaining co-defendants has entered a plea of not guilty to the charges in the indictment; the second has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
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KC Woman Sentenced for Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for using stolen Social Security numbers in a scheme to defraud a series of landlords.
Twyla Lashelle Adair, 41, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to four years and six months in federal prison without parole. The court also ordered Adair to pay $18,497 in restitution.
On April 13, 2017, Adair pleaded guilty to three counts of misuse of a Social Security number and one count of aggravated identity theft.
According to court documents, Adair used the Social Security numbers of four different persons over a period of four years (beginning in 2012) to apply for apartments where she would live for close to a year, abandon the apartment with large amounts of rent unpaid, then move into another apartment using another Social Security number to repeat the process all over again. Adair perpetrated a fraud on multiple landlords by falsely representing that she was a nurse and by providing forged pay stubs showing she had received income from employment as a nurse. She made this misrepresentation not only to convince the landlords that she had income to pay rent, but also to convince the landlords that because she was a nurse she would be a responsible tenant.
Numerous letters from charitable organizations indicate they assisted Adair in paying her rent. One apartment manager, for example, had letters on file from four churches and charitable organizations that gave Adair a total of $849. Adair also falsely claimed on her Facebook page (under the name Twyla Hicks) that she had cancer and got the eviction judge to feel sorry for her and to find agencies to help pay her rent.
Court documents describe Adair as a prolific writer of counterfeit and fraudulent checks. She used the names and identities of other people, along with fraudulent and false names, to open credit accounts that were never paid and to pay for goods and services with worthless checks. With no history of legitimate employment, Adair made her living through identity theft and defrauding others, including churches.
This case was prosecuted by Deputy U.S. Attorney Gene Porter. It was investigated by the Kansas City, Mo., Police Department.
KC Man Sentenced for Illegal Firearm Used in Shooting of 14-Year-Old VictimRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for illegally possessing a firearm that was used in the shooting of a 14-year-old girl five days earlier.
Tyron Young, 28, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays on Monday, Aug. 14, 2017, to nine years and seven months in federal prison without parole. The court ordered the federal sentence to be served consecutively to any sentence Young receives in a pending state case in which he has been charged with shooting the 14-year-old victim.
On Nov. 21, 2016, Young pleaded guilty to being a felon in possession of a firearm. At yesterday’s sentencing hearing, the government introduced evidence that Young possessed the firearm in connection with the commission of another crime, assault with intent to murder. Young has been charged in the Circuit Court of Jackson County with two counts of armed criminal action, unlawful use of a weapon (discharging a weapon at a habitable structure) and assault related to the May 11, 2016, shooting.
Evidence introduced in the sentencing hearing indicates that Young climbed onto the back deck of the victim’s home and fired several gunshots through the victim’s bedroom window. The victim, who was in bed, was struck in the leg and suffered a fracture that required two surgeries (in which an intramedullary rod and three locking screws were implanted) and extensive rehabilitation. The bullet that struck the victim fragmented and consequently, some metal bullet fragments remain in the victim’s leg after surgery. According to testimony, the victim’s brother was actually the intended target for the retaliatory shooting.
According to court documents, Kansas City police officers attempted to stop Young, a documented 57th Street gang member with eight active warrants, on May 16, 2016. Young, driving a Dodge Dart, refused to stop after the officers activated their lights and sirens, and instead began driving at a high rate of speed through a residential neighborhood in the area of 57th Street and Wabash. A police pursuit was not initiated due to public safety concerns, however, an area canvass was immediately initiated for Young and the vehicle.
Officers saw Young walking away from the vehicle at 60th Street and Wabash. When Young saw the officers, he began to flee on foot, but was apprehended. A loaded Taurus 9mm semi-automatic handgun was found lying on the ground in the area where Young had been seen. Young later confessed that he had the firearm in the vehicle with him and threw it down before the police arrested him.
A Kansas City Police Crime Laboratory forensic specialist compared the Taurus handgun that Young possessed on May 16, 2016, to the five spent 9mm caliber cartridge cases and two spent bullets recovered by police from the shooting victim’s home on May 11, 2016. After analysis, the forensic specialist concluded that all five cartridge cases were fired from Young’s firearm. The forensic specialist also determined that one of the spent bullets had likewise been fired from the same Taurus. The analysis on the remaining spent bullet was inconclusive.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Young has a prior felony conviction for attempted robbery.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Irondequoit Man Pleads Guilty to Failing to Pay TaxesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Cannizzo, 54 of Irondequoit, NY, pleaded guilty to willfully failing to pay a tax before U.S. District Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant owned and operated Cannizzo Contacting Corporation, an electrical contracting business. Cannizzo and his business served as an in-house electrical contractor for the company. The Company agreed to pay Cannizzo and his business a wage of approximately $40 per hour for each employee, including defendant. Cannizzo made money from this arrangement by paying his employees less than $40 per hour for their work, in addition to the $40 per hour that defendant earned from his work there.
The defendant's business earned significant income from his arrangement with the Company, and was required to make estimated payroll tax payments. Cannizzo contracted with Paychex to handle the weekly payroll processing, including payments of payroll taxes. In 2002, Paychex stopped paying Cannizzo Contracting Corporation’s business payroll taxes, but continued to process the payroll, informed defendant of the estimated payroll tax payments owed, and provided him with copies of Employer’s Quarterly Federal Tax Returns – Form 941—for each quarter from 2007 forward. The defendant however failed to make the estimated payroll tax payments on behalf of his business. Cannizzo failed to pay a total of $135,360.62 to the Internal Revenue Service.The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for December 11, 2017, at 9:15 a.m. before Judge Siragusa.
Investment Manager Indicted on Fraud Charges for Allegedly Swindling Nearly $1 Million from a Retired School TeacherRead the Press Release
CHICAGO — An investment manager has been indicted for allegedly swindling nearly $1 million from a retired school teacher.
TYRIS D. MAXEY, the owner of RB Mister Enterprises LLC, a Wyoming company with an office in Chicago, persuaded the retired teacher to give him approximately $950,000 for purported investments, according to an indictment returned in federal court in Chicago. Maxey claimed that his investment firm was highly successful and that he put up his own money in the firm’s investments. In reality, Maxey’s investment activity was minimal, and he spent nearly all of the victim’s money to cover personal expenses, the indictment states. The few real investments that Maxey purchased with the victim’s money sustained heavy losses, the indictment states.
The indictment was returned Aug. 10, 2017, and ordered unsealed after Maxey’s arrest on Monday morning. The indictment charges Maxey, 43, of Chicago, with six counts of wire fraud.
Maxey pleaded not guilty at a Monday afternoon arraignment before U.S. Magistrate Judge Sidney I. Schenkier in Chicago. Maxey was ordered released from custody on a $10,000 appearance bond, and a status hearing was set for Sept. 12, 2017, before U.S. District Judge Harry D. Leinenweber.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and E.C. Woodson, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
According to the indictment, Maxey fraudulently represented to the victim that RB Mister Enterprises invested in various sectors, including medical marijuana, construction, oil, real estate, sugar and concerts. Maxey attempted to conceal the scheme by returning some of the victim’s money and fraudulently describing it as a positive return on investment, the indictment states. Maxey also furnished the victim and the victim’s accountant with fraudulent account statements that purported to relate to investments.
The fraud scheme alleged in the indictment began no later than January 2010 and continued until at least November 2013.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of the indictment is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Yusef Dale.
Hammond Man Sentenced to 510 Months ImprisonmentRead the Press Release
HAMMOND- Acting United States Attorney Clifford D. Johnson announced that Eric M. Dillon, 28, of Gary, Indiana was sentenced before Judge Philip P. Simon for Armed Robbery and Use of a Firearm to Cause Death during a Crime of Violence.
Dillon was sentenced to consecutive sentences of 240 months for armed robbery and 270 months for using the firearm to cause death for a total sentence of 510 months imprisonment.
According to documents in this case, on January 20, 2016, at approximately 4:30 am, Dillon entered the 7-Eleven store at 6031 Hohman Avenue in Hammond, Indiana with a handgun, demanded money, and shot and killed the store clerk, Roger Unton.
This case was the result of an investigation by the Federal Bureau of Investigation and Hammond Police Department with assistance from the Lake County Prosecutor’s Office. The case was handled by Assistant United States Attorneys Thomas M. McGrath and Jennifer Chang.
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Fort Worth Man Sentenced to 235 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
FORT WORTH — David Piper, Jr., 52, of Fort Worth, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 235 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Piper and co-conspirator Carlos Cortinas, 39, were convicted following a two-day jury trial in March 2017. Both defendants were convicted on one count of conspiracy to possess with intent to distribute methamphetamine. Cortinas is scheduled to be sentenced on September 5, 2017.
Co-conspirator Chadwick Hernandez, 32, pleaded guilty in February 2017 to the same offense and was sentenced to 60 months in federal prison.
The government presented evidence at trial that beginning in March 2015 until January 20, 2016 Piper and Cortinas possessed with the intent to distribute 500 grams or more of methamphetamine. Evidence elicited at trial showed that methamphetamine distributors from Arlington, including Cortinas, transported multiple pounds of methamphetamine to Piper for re-distribution of methamphetamine in Bolivar, Missouri.
DEA Fort Worth investigated with the assistance of DEA’s Springfield and Tulsa offices, Arlington Police Department, Fort Worth Police Department, North Richland Hills Police Department, Oklahoma DPS, and Polk County, Missouri Sheriff’s Office. Assistant U.S. Attorneys Aisha Saleem and Shawn Smith prosecuted.
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Former Secret Service Agent Pleads Guilty to Money LaunderingRead the Press Release
SAN FRANCISCO– A former Special Agent with the U.S. Secret Service pleaded guilty today to charges of money laundering, announced U.S. Attorney Brian J. Stretch, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, IRS-Criminal Investigation (IRS-CI) Washington D.C. Field Office Cyber Crimes Unit Special Agent in Charge Kimberly A. Lappin, Special Agent in Charge John Bennett of the FBI’s San Francisco Division, and Special Agent in Charge of the Department of Homeland Security Office of the Inspector General Houston Field Office David Green.
Shaun W. Bridges, 35, of Laurel, Md., pleaded guilty to one count of money laundering before U.S. District Court Judge Richard Seeborg of the Northern District of California. Sentencing has been set for November 7, 2017.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Silk Road Task Force, including Ross Ulbricht, a/k/a “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California. In 2015, Bridges pleaded guilty to one count of money laundering and one count of obstruction of justice related to his theft and diversion of over $800,000 in digital currency over which he gained control as part of his role on the Baltimore Silk Road Task Force. In December 2015, Bridges was sentenced to 71 months in prison on those charges.
Prior to reporting to prison to begin serving his sentence for the 2015 conviction, Bridges was arrested and taken into custody on new charges related to another theft of approximately 1,600 bitcoin, valued at the time of the theft at approximately $359,005, (approximately $6.6 million today) from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea in this case, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. In the course of the investigation, U.S. agents were able to locate and seize approximately 600 of the stolen bitcoin and, as part of his plea, Bridges agreed to turn over the remaining stolen bitcoin.
The case is being prosecuted by Assistant U.S. Attorney William Frentzen and Trial Attorney Richard B. Evans of the U.S. Department of Justice Criminal Division’s Public Integrity Section with assistance from Bridget Kilkenny. Assistant U.S. Attorney David Countryman is handling asset forfeiture aspects of the case. The case is being investigated by the FBI’s San Francisco Division, the IRS-CI’s Washington D.C. Field Office Cyber Crimes Unit, and the Department of Homeland Security Office of the Inspector General.
Former Nursery School Teacher, Camp Counselor Gets 97 Months in Prison for Receiving Sexually Explicit Images of ChildrenRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 97 months in prison for downloading sexually explicit videos and images of children to his home computer, Acting U.S. Attorney William E. Fitzpatrick announced.
James Paroline, 28, of Red Bank, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to Count One of an indictment charging him with receiving child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Paroline was employed in Monmouth County as an assistant at a nursery school and as a summer camp counselor at a private school. Between Feb. 26, 2015, and March 2, 2015, Paroline accessed a website known as “PlayPen,” an underground online bulletin board and website dedicated to the advertisement and distribution of child pornography. During that period, Paroline logged into PlayPen under the username “jimbobtropolis,” which he had registered with PlayPen using his personal email address, and downloaded multiple videos and images depicting the sexual abuse of children from the website.
In addition to the prison term, Judge Wolfson sentenced Paroline to 10 years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked officers of the Red Bank Police Department, under the direction of Chief of Police Darren McConnell; officers of the Middletown Police Department, under the direction of Chief Craig Weber; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; for their assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Darren Gelber Esq., Woodbridge, New Jersey
Former Mayor of Lawrence Sentenced for Transporting Stolen FundsRead the Press Release
TOPEKA, KAN. - A former mayor of Lawrence was sentenced Tuesday to ten months in federal prison for embezzling thousands of dollars from a food bank in Douglas County, U.S. Attorney Tom Beall said. The defendant was ordered to pay $81,446 in restitution.
Jeremy James Farmer, 33, Lawrence, Kan., pleaded guilty in September 2016 to one count of interstate transportation of stolen funds. Farmer admitted the crimes took place while he was executive director of Just Food, a food bank in Douglas County. Just Food serves more than 40 partner agencies with frozen meat and fresh produce as well as bread and food donated from community drives. The organization and its partners play a key role in fighting hunger in Douglas County.
From 2013 until Farmer resigned from Just Food and from his position as mayor of Lawrence in August 2015 he used his access to Just Foods’ bank accounts and accounting systems to steal more than $5,000 from the organization.
Beall commended the FBI, the Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Former High School Principal Guilty of Transporting Child PornographyRead the Press Release
Admitted he transferred images from phones confiscated from students, to his personal thumb drive, without their consent or knowledge and shared the images on a Russian website
LOUISVILLE, Ky. – A former Larue County, Kentucky, High School Principal pleaded guilty today in United States District Court, before U.S. District Judge David J. Hale, to transporting child pornography and possessing child pornography that had been transported in interstate commerce announced United States Attorney John E. Kuhn, Jr.
Stephen Kyle Goodlett, 37, of Elizabethtown, Kentucky, remains in federal custody and is scheduled for sentencing in Louisville, before Judge Hale, on October 20, 2017 at 10:00am. Goodlett faces additional State charges in the Commonwealth of Kentucky in Hardin County. Goodlett was initially charged by federal criminal complaint on December 19, 2016 and by federal grand jury indictment on January 4, 2017.
According to the plea agreement, on September 2, 2016, Elizabethtown police received a child sexual exploitation complaint from a female who discovered nude photographs of her that had been uploaded to a website that allowed users to anonymously post sexually explicit images and videos of people and identified the geographic area where the depicted person lived. The photographs are often accompanied by the first and last initial of the person in the photographs. The complainant viewed the images from the website and told police she was 15 years old when the nude photographs were created with a cell phone.
Elizabethtown Police requested and received the detailed IP address information for the person responsible for uploading the images. The IP address was registered to Kyle Goodlett of Elizabethtown, Kentucky. The defendant was the Assistant Principal at Larue County High School from July 4, 2012, until he was promoted to Principal on July 1, 2013 and held that position until he was terminated on October 19, 2016. Goodlett was principal while the complainant was a student there and had access to her nude images when he confiscated her cell phone. The complainant was a student at Larue County High School during that time.
On October 13, 2016, the Kentucky State Police executed a search warrant at Goodlett’s Elizabethtown residence and a preview of his electronic devices, including his iPhone and an eternal hard drive, yielded 60 files of child sexual exploitation.
Further, on December 12, 2016, KSP received a report from the National Center for Missing and Exploited Children stating that several images discovered in Goodlett’s Dropbox account contained images of known minor victims including the complainant and five images from an identified minor female.
Goodlett signed a waiver of his rights and agreed to a recorded interview with KSP Detectives. Goodlett admitted to KSP that he was addicted to pornography and that he transferred images from phones confiscated from students to his personal thumb drive without their consent or knowledge. Goodlett stated he would take the images and share them to a Russian website with the intent of trading for more images. Goodlett told KSP he used his iPhone and laptop to view the images. A forensic review revealed Goodlett possessed 436 images and 11 videos of child pornography as defined by 18 USC Section 2256(8).
If convicted, Goodlett faces no less than five years in prison and no more than 40 years. Further, Goodlett could be fined up to $500,000 and serve a period of supervised release of at least five years and up to and including a lifetime period of supervised release.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Department of Homeland Security, Homeland Securities Investigations with assistance from Kentucky State Police and the Elizabethtown, Kentucky, Police Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
goodlett_plea_agmt_8-15-17_1.pdfFormer Department of Defense Contractor Pleads Guilty to Piloting Cargo Plane While IntoxicatedRead the Press Release
A former Department of Defense contractor pleaded guilty today to piloting a cargo flight from Osan Air Base, South Korea to Yakota Air Base, Japan, while under the influence of alcohol.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Chief Master Sergeant Christopher J. VanBurger of the Air Force Office of Special Investigations (AFOSI) made the announcement.
Daniel R. Criss, 61, of Mims, Fla., pleaded guilty to one count of operating a common carrier (aircraft) under the influence of alcohol while employed by the Armed Forces outside of the U.S., within the special maritime and territorial jurisdiction of the U.S. The plea was entered before U.S. Magistrate Judge Daniel C. Irick of the Middle District of Florida.
According to admissions made in connection with his plea, on July 14, 2015, Criss was employed by a private company that contracted with the Department of Defense’s U.S. Transportation Command to deliver cargo. On that date, Criss was the pilot-in-command of a Boeing 747 aircraft transporting cargo and a flight crew from Osan Air Base, South Korea to Anchorage, Alaska, with a stopover in Yokota Air Base, Japan. Criss admitted that when he arrived at Osan Air Base that morning at about 10:00 a.m., he was already under the influence of alcohol. Before take-off, Criss’ co-pilots observed that he was having difficulty writing down the air traffic control clearance and discussed their concerns with Criss, who responded that he was tired and had not slept well. Throughout the flight, Criss remained in command of the aircraft despite his level of intoxication. Criss admitted that as the aircraft neared Yokota air space and began its descent, he missed numerous radio calls, lost situational awareness and ran an incorrect landing checklist. Criss also admitted that, upon landing, he took control of the aircraft and taxied it to the runway at a higher than normal rate of speed, and, once the aircraft arrived at the ramp, he fell asleep, woke up and fell asleep again.
According to admissions made in connection with his plea, Criss’ co-pilots, who believed that Criss was experiencing a medical emergency, called for assistance at about 2:00 p.m. Medical personnel that attended to Criss noticed that Criss was slurring his speech and had an odor of alcohol on his breath. At about 3:20 p.m., blood drawn from Criss and tested for alcohol revealed an estimated blood alcohol concentration (BAC) of .144%. Medical personnel who examimed this and a second blood test estimated that Criss’ BAC was between 0.152% and 0.146% at the time he last operated the aircraft.
AFOSI investigated this case. Trial Attorneys Sasha N. Rutizer and Mona Sahaf of the Human Rights and Special Prosecutions Section of the Justice Department’s Criminal Division are prosecuting the case.
Former Correction Officer Sentenced to 9 Months in Prison for Violating Inmate’s Civil Rights Through Abusive Sexual ContactRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JEFFREY GREEN, a former correction officer at the Bedford Hills Correctional Facility for Women (the “Bedford Facility”), was sentenced in White Plains federal court to nine months in prison for violating the constitutional rights of an inmate through abusive sexual contact. GREEN pled guilty on May 5, 2017 to sexually assaulting an inmate at the Bedford Facility during the evening hours of March 10, 2016. GREEN pled guilty before U.S. Magistrate Judge Paul E. Davison, who imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Jeffrey Green, a former correction officer, sexually assaulted a female inmate serving time in a Bedford correctional facility. Incarcerated individuals, repaying their debt to society, are entitled to the same protections of the Constitution as the rest of us. For violating an inmate’s constitutional rights, Green will serve time in prison himself.”
According to the Information to which GREEN pled guilty, the related Complaint in which he was originally charged on February 15, 2017, and statements made in related court proceedings:
The Bedford Facility is a jail complex located in Bedford Hills, in Westchester County, New York, maintained by the New York State Department of Corrections and Community Supervision. At the time of the assault, Victim-1 was an inmate incarcerated at the Bedford Facility.
On March 10, 2016, GREEN unlocked and opened Victim-1’s cell and entered it alone. GREEN then grabbed Victim-1 by her arms, held her against the wall of her cell, licked and kissed her neck, and fondled her breasts. After Victim-1 pushed GREEN away, he again grabbed her, pushed her against the wall of her cell, pulled up her shirt and bra and licked and kissed her neck, chest, and breasts. GREEN stopped and left Victim-1’s cell when he was interrupted by the arrival of another correction officer.
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In addition to the prison sentence, GREEN, 48, of Brooklyn, New York, was sentenced to one year of supervised release.
Mr. Kim praised the outstanding investigative work of the New York State Department of Corrections and Community Supervision Office of Special Investigations and the Criminal Investigators at the United States Attorney’s Office. He also thanked the Westchester County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Alex Rossmiller and Ellen Blain are in charge of the prosecution.
Federal Judge Sentences A Huntersville, N.C. Man to More Than Four Years in Prison for Investment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Robert Louis Winecoff, 37, of Huntersville, N.C. to 51 months in prison for operating an investment fraud scheme involving bogus investment products, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Winecoff was also ordered to serve two years under court supervision after he is released from prison and to pay more than $175,000 as restitution.
North Carolina Secretary of State Elaine F. Marshall and David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) join U.S. Attorney Rose in making today’s announcement.
According to documents filed with the court and today’s sentencing hearing, from June 2013 to May 2014, Winecoff executed a scheme to defraud victim-investors by inducing them to invest in a variety of bogus investment instruments and products. Rather than invest his victim-investors’ money as promised, Winecoff diverted the funds for his own personal use. According to court records, Winecoff presented himself to victims as the principal of Winecoff Financial Consulting Group (WFCG), a purported financial consulting firm, and marketed his bogus investment products through a website associated with the firm, www.wfcgnc.com.
Court records show that Winecoff, along with others, recruited victim-investors by making a series of false and fraudulent representations. In particular, Winecoff and his recruiters told victim-investors that Winecoff would use their money as a deposit to obtain a financial instrument known as a “standby letter of credit.” Winecoff fraudulently represented to investors that the investment in the standby letter of credit would result in large payouts within a set period of time, typically between 20 and 30 days. Winecoff falsely assured victim-investors the investments were safe, legal, short-term, and guaranteed.
According to court records, once victim-investors agreed to invest in the fraudulent scheme, Winecoff typically presented them with an “MOU Agreement” and instructed the victim-investors to wire their investment funds, typically between $20,000 and $60,000, to a bank account he controlled. Despite promises of early returns, court records show that Winecoff never invested any money or made any payments to investors.
When victims contacted Winecoff or one of his recruiters to complain about not receiving the promised returns or to otherwise question their investments, Winecoff sent emails providing excuses about why payments had not been made, including that “[p]ayouts were made to some and not others,” and false assurances that victims would receive their money by a certain date.
During the course of the 11 month-scheme, Winecoff induced approximately 12 investors from several different countries to invest a total of approximately $343,000. Winecoff did not invest any of the victim-investors’ funds as promised, he did not make any payments to any victim-investors and he did not return their principal when requested.
Rather, than invest the victim-investors’ funds, Winecoff used the stolen money to fund his personal lifestyle. Court records show that Winecoff made purchases totaling nearly $65,000 at hotels, airlines, gas stations, and retail stores. He also made cash withdrawals totaling nearly $308,000 from the account into which victims had wired their money.
Winecoff pleaded guilty in March 2017 to one count of wire fraud. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation of the case was led by the Securities Division of the North Carolina Secretary of State and USPIS.
Assistant U.S. Attorney William Miller, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Employee of “Fast Cash Tax” Pleads Guilty to Conspiring to Defraud the IRSRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jessica Rosario, 36, of Rochester, NY, pleaded guilty to conspiring to defraud the Internal Revenue Service, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Rosario was an employee of an income tax return preparation business known as Fast Cash Tax, which was owned and operated by Jason Jiminez.
Between January 2012 and February 2015, Jiminez conspired with other employees of Fast Cash Tax, including Rosario, to prepare false tax returns on behalf of numerous clients. The returns were falsified to increase the amount of the Earned Income Tax Credit claimed, which yielded larger refunds for the clients than they were entitled to receive. In total, the conspiracy netted approximately $105,000 in fraudulently obtained refunds.
The plea is the result of an investigation by Special Agents with the Internal Revenue Service, under the direction of Special Agent-in-Charge James D. Robnett.
Sentencing is scheduled for December 8, 2017, at 10:00 a.m., before Judge Wolford.
Eagle Grove Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Jason Marvets, age 30, of Eagle Grove, Iowa, has been charged with sexual exploitation of a child, enticement of a minor, extortion, destruction of evidence, and distribution, receipt, and possession of child pornography. The charges are contained in an Indictment filed on August 8, 2017 in United States District Court in Cedar Rapids.
The Indictment alleges that, between June 2016 and April 2017, Marvets persuaded, induced, and enticed a minor to produce depictions of sexually explicit conduct, that he threatened to distribute depictions of minors, that he caused another person to destroy evidence, and that he distributed, received, and possessed child pornography.
If convicted, Marvets faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $2,000,000 fine, $30,800 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Marvets appeared for a detention hearing today in federal court in Cedar Rapids and was held without bond. Marvets’ next appearance for trial is set for September 18, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Wright County Sheriff’s Office, the Webster County Sheriff’s Office, the Georgia Bureau of Investigation, and the Michigan State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-3034.
Follow us on Twitter @USAO_NDIA.
Durant Man Pleads Guilty to Bank RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GRAHAM ALLEN HELMS, age 29, of Durant, Oklahoma, pled guilty to two counts of BANK ROBBERY, in violation of Title 18, United States Code, Section 2113(a), punishable by not more than 20 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about July 24, 2017, in the Eastern District of Oklahoma, the defendant, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of IBC Bank, located in Ardmore, Oklahoma, a bank whose deposits were then insured by the Federal Deposit Insurance Corporation.
The Indictment further alleged that on or about August 1, 2017, in the Eastern District of Oklahoma, the defendant, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of Shamrock Bank, located in Coalgate, Oklahoma, a bank whose deposits were then insured by the Federal Deposit Insurance Corporation.
The charges arose from an investigation by the Ardmore Police Department, the Coal County Sherriff’s Office, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Chris Wilson represented the United States.
Defense Contractor Agrees to Pay $9.2 Million to Settle False Billing AllegationsRead the Press Release
WASHINGTON - Huntington Ingalls Industries Inc. (HII), a publicly traded company headquartered in Newport, Virginia, has agreed to a $9.2 million settlement of allegations that it violated the False Claims Act by knowingly overbilling the government for labor on U.S. Navy and Coast Guard ships at its shipyards in Pascagoula, Mississippi. Under the settlement, HII will make a payment of $7.9 million which, combined with earlier repayments, will result in the settlement recovery of approximately $9.2 million.
“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate defense contractors who falsely charge the armed forces or any agency of the United States.”
"Our Armed Forces depend on defense contractors to follow the rules, and this civil settlement, the second largest in the District’s history, should remind all those who conduct business with the United States Government that they are expected to abide by the rules,” said Acting U.S. Attorney Harold Brittain, who also noted three earlier guilty pleas in a related criminal matter in the Southern District of Mississippi. Two individuals pleaded guilty in United States v. N. R. Holden & R.G. Gardner, Criminal No 1:15-cr-42 HSO-RHW, and were sentenced in 2015. Another individual pleaded guilty in United States v. R.M. Wilson, Criminal No 1:16-cr-34-LG-RHW, and was sentenced in 2016. According to Acting U.S. Attorney Brittain, “the Southern District of Mississippi will remain vigilant in identifying and prosecuting those involved in nefarious activities and fraudulent billing, which ultimately result in substantial cost overruns on Navy and Coast Guard shipbuilding projects.”
Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Southeast Field Office, Mike Wiest, says "Corruption, fraud and bribery are not victimless crimes. Overcharging for work not done is not only criminal on its face, investigating those crimes siphoned resources and time which would have been better invested in protecting the nation. Multiple federal agencies spent years investigating this lack of integrity, to help hold accountable those who would squander American taxpayer dollars."
"Today's results are part of ongoing efforts by the Coast Guard Investigative Service (CGIS) and its law enforcement partners to protect the integrity of the Coast Guard's acquisition systems by holding individuals and corporations accountable when they attempt to defraud U.S. taxpayers", said Special Agent in Charge Brian Jeanfreau.
"Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the Department of Defense (DOD)," commented John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This settlement is the culmination of hard work by DCIS, our investigative partners, the Department of Justice, Civil Division, Commercial Litigation Branch, and the U.S. Attorney's Office for the Southern District of Mississippi; and clearly demonstrates that combatting fraud, waste and abuse within DOD contracting remains a top priority."
The civil settlement resolves alleged labor mischarging on various U.S. Navy and Coast Guard contracts dating back to 2003. HII allegedly mischarged labor incurred on particular contracts to other contracts, even though the costs were not actually incurred by those contracts. The settlement also resolves claims disclosed by HII that it had billed the Navy and Coast Guard for dive operations to support ship hull construction that did not actually occur as claimed.
The labor mischarging allegations resolved by the settlement were originally raised in a lawsuit brought by Bryon Faulkner, a former HII employee, under the qui tam, or whistleblower, provisions of the False Claims Act (FCA), which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Act also allows the government to intervene and take over the action, as it did in this case. Mr. Faulkner will receive $1,590,144 as a result of the civil action he filed, which is captioned United States ex rel. Faulkner v. Huntington Ingalls Industries, Inc. 1:13-cv-295 HSO RHW in the Southern District of Mississippi.
This settlement was the result of a coordinated effort by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, the Defense Contract Audit Agency, DCIS, NCIS, and CGIS. The claims made in the complaint are allegations only, and there has been no determination of liability.
Defense Contractor Agrees to Pay $9.2 Million to Settle False Billing AllegationsRead the Press Release
Huntington Ingalls Industries Inc. (HII), a publicly traded company headquartered in Newport, Virginia, has agreed to a $9.2 million settlement of allegations that it violated the False Claims Act by knowingly overbilling the government for labor on U.S. Navy and Coast Guard ships at its shipyards in Pascagoula, Mississippi. Under the settlement, HII will make a payment of $7.9 million which, combined with earlier repayments, will result in the settlement recovery of approximately $9.2 million.
“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate defense contractors who falsely charge the armed forces or any agency of the United States.”
"Our Armed Forces depend on defense contractors to follow the rules, and this civil settlement, the second largest in the District’s history, should remind all those who conduct business with the United States Government that they are expected to abide by the rules,” said Acting U.S. Attorney Harold Brittain, who also noted three earlier guilty pleas in a related criminal matter in the Southern District of Mississippi. Two individuals pleaded guilty in United States v. N. R. Holden & R.G. Gardner, Criminal No 1:15-cr-42 HSO-RHW, and were sentenced in 2015. Another individual pleaded guilty in United States v. R.M. Wilson, Criminal No 1:16-cr-34-LG-RHW, and was sentenced in 2016. According to Acting U.S. Attorney Brittain, “the Southern District of Mississippi will remain vigilant in identifying and prosecuting those involved in nefarious activities and fraudulent billing, which ultimately result in substantial cost overruns on Navy and Coast Guard shipbuilding projects.”
Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Southeast Field Office, Mike Wiest, says "Corruption, fraud and bribery are not victimless crimes. Overcharging for work not done is not only criminal on its face, investigating those crimes siphoned resources and time which would have been better invested in protecting the nation. Multiple federal agencies spent years investigating this lack of integrity, to help hold accountable those who would squander American taxpayer dollars."
"Today's results are part of ongoing efforts by the Coast Guard Investigative Service (CGIS) and its law enforcement partners to protect the integrity of the Coast Guard's acquisition systems by holding individuals and corporations accountable when they attempt to defraud U.S. taxpayers", said Special Agent in Charge Brian Jeanfreau.
"Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the Department of Defense (DOD)," commented John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This settlement is the culmination of hard work by DCIS, our investigative partners, the Department of Justice, Civil Division, Commercial Litigation Branch, and the U.S. Attorney's Office for the Southern District of Mississippi; and clearly demonstrates that combatting fraud, waste and abuse within DOD contracting remains a top priority."
The civil settlement resolves alleged labor mischarging on various U.S. Navy and Coast Guard contracts dating back to 2003. HII allegedly mischarged labor incurred on particular contracts to other contracts, even though the costs were not actually incurred by those contracts. The settlement also resolves claims disclosed by HII that it had billed the Navy and Coast Guard for dive operations to support ship hull construction that did not actually occur as claimed.
The labor mischarging allegations resolved by the settlement were originally raised in a lawsuit brought by Bryon Faulkner, a former HII employee, under the qui tam, or whistleblower, provisions of the False Claims Act (FCA), which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Act also allows the government to intervene and take over the action, as it did in this case. Mr. Faulkner will receive $1,590,144 as a result of the civil action he filed, which is captioned United States ex rel. Faulkner v. Huntington Ingalls Industries, Inc. 1:13-cv-295 HSO RHW in the Southern District of Mississippi.
This settlement was the result of a coordinated effort by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, the Defense Contract Audit Agency, DCIS, NCIS, and CGIS. The claims made in the complaint are allegations only, and there has been no determination of liability.
Convenience Store, Owner Resolve Charges Relating to Food Stamp Fraud SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has entered a plea of guilty to charges of food stamp fraud and theft or conversion of government funds, and in the process causing a loss to the federal food stamp program of $85,000, Acting United States Attorney Soo C. Song announced today. In the course of the proceeding Imran also indicated that he had entered into a civil settlement agreement with the United States and had agreed to make restitution of $85,000.
United States District Judge David S. Cercone presided over the plea proceeding involving Atif Imran, 41, of Monroeville, Pa.
According to information presented to the court, Imran was the owner and operator of A to Z Convenience Store, Inc., a gas station and convenience store located on West Street in Homestead. A to Z participated in the United States Department of Agriculture’s Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items at A to Z using food stamp benefit cards. The defendant was aware that Food Stamp Program rules prohibited the exchange of food stamp benefits for cash. Despite this knowledge, on multiple occasions, Mr. Imran and employees of his exchanged food stamp benefits for cash on a discounted basis, usually giving his customers only 50 cents on the dollar for food stamp benefits. A typical exchange would involve the customer purchasing a bottled drink and a snack food item and then providing $100 in food stamp benefits for which he would receive $50 cash.
Assistant United States Attorney Colin Callahan litigated the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
Acting U.S. Attorney Song commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations for the investigation leading to the successful prosecution of Imran.
Chicago Podiatrist Sentenced for Health Care Fraud ChargesRead the Press Release
St. Louis, MO – Dr. Yev Gray was sentenced to 90 months in prison and ordered to pay $6,974,895.00 in restitution related to the submission of false reimbursement claims for non-rendered podiatric services.
According to court records, Dr. Yev Gray was the owner and president of Aggeus Healthcare, headquartered in Chicago, Illinois, which provided podiatry services to residents of long- term care facilities. As of September 2015, Aggeus was operating in at least 16 states. In Missouri, Aggeus contracted with podiatrists to provide services in eleven facilities, with seven of the facilities located in the cities of Bourbon, Hannibal, Maryland Heights and Poplar Bluff, Missouri.
According to court records, Dr. Gray created an electronic medical record (EMR) system, which automatically inserted into patient records, diseases and symptoms that the patients did not have. Dr. Gray also pressured Aggeus podiatrists to provide unneeded services, such as Doppler studies, the incision and drainage of abscesses, and the removal of calluses. Some of the podiatrists complied, provided the unneeded services, and signed the false treatment notes; others refused. Despite repeated complaints from patients, nursing homes, and some of their podiatrists, Dr. Gray and his co-defendants continued to create false patient records and to bill for medically unnecessary services. From 2009 to September 2015, Medicare paid Aggeus Healthcare millions of dollars based on the false reimbursement claims submitted by Aggeus.
Yev Gray, 49, Chicago, IL, pled guilty on May 12, 2017 to one felony count of conspiracy to commit healthcare fraud and one felony count of making false statements relating to health care matters.
Natalie Gray, a lawyer and the wife of Dr. Gray, is currently serving a one-year prison term for her role in the health care fraud conspiracy. The CEO of Aggeus and four Aggeus podiatrists are awaiting sentencing.
This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Dorothy McMurtry, Gwendolyn Carroll, and Gilbert Sison are handling the case for the U.S. Attorney’s Office.
Chicago Man Sentenced to Seven Years in Federal Prison for Illegally Brokering the Sale of More Than 75 GunsRead the Press Release
CHICAGO — A convicted felon from Chicago has been sentenced to seven years in federal prison for illegally brokering the sale of more than 75 guns.
JOHN THOMAS illegally brokered at least 23 transactions involving the total sale of 77 guns, including rifles, shotguns and handguns. Some of the guns had obliterated serial numbers or were previously reported stolen. The case against Thomas arose out of a larger federal investigation that has removed more than 100 illegal guns from the streets of Chicago. The federal probe involved controlled firearm sales to cooperating individuals.
Thomas, 33, also known as “Batman,” pleaded guilty earlier this year to two counts of illegal possession of a firearm by a felon, and one count of dealing firearms without a license. U.S. District Judge Andrea R. Wood on Friday imposed the 84-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thomas admitted in a plea agreement that he either obtained the firearms himself and then sold them to individuals, or he arranged for the owner of the firearms to sell the guns in exchange for a fee to Thomas for setting up the transaction. Unbeknownst to Thomas, the individuals who purported to purchase the guns were cooperating with law enforcement.
Thomas was previously convicted of a felony and was not legally authorized to possess any firearms.
One of the sales occurred on July 23, 2014, when Thomas arranged a meeting between a man identified in court records as Individual A, along with JAMEL DAVIS and a cooperating individual. The transaction, which took place in Davis’ garage in the Auburn Gresham neighborhood on Chicago’s South Side, involved the sale of two .38-caliber revolvers. A federal jury last year convicted Davis of illegal possession of a firearm by a felon, and he was sentenced to two years in prison.
Charleston meth dealer sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston drug dealer was sentenced today to three years and five months in federal prison for a methamphetamine crime, announced United States Attorney Carol Casto. Shannon L. Mitchell, 36, previously pleaded guilty to distribution of methamphetamine.
Mitchell admitted that on July 18, 2016, he sold methamphetamine to a confidential informant working with law enforcement. The drug deal took place near Mitchell’s home on Maryland Avenue in Charleston. As part of the plea agreement, Mitchell also admitted to evidence of all the criminal conduct charged in the indictment.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John Frail is responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was 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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Career Offender from Carlsbad Sentenced to Ten Years for Federal Heroin and Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Sylvester Hall, 55, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by four years of supervised release for his heroin and crack cocaine trafficking conviction.
Hall, a career offender whose criminal history includes at least three prior drug trafficking convictions, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Hall was arrested on March 12, 2015, on a criminal complaint alleging heroin and crack cocaine trafficking offenses. According to the complaint, law enforcement agents located approximately 213.64 grams of heroin, 31.7 grams of crack cocaine, 100.7 grams of marijuana and $15,080.26 in cash inside a storage unit owned by Hall.
Hall was subsequently indicted on July 23, 2015, and charged with possession of heroin and crack cocaine with intent to distribute. According to the indictment, the offenses were committed on Feb. 10, 2015, in Eddy County, N.M. Hall entered a guilty plea to the indictment without the benefit of a plea agreement on Nov. 10, 2016.
This case was investigated by the Pecos Valley Drug Task Force which is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
The case was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Buffalo Man Pleads Guilty to FraudRead 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 Randy Jarrett, 45 of Buffalo, NY, pleaded guilty to conspiracy to commit access device fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that between July and December, 2013, the defendant conspired with others, including Ricky Butler, Tamika Favors, and Catherine Jarrett, fraudulently to obtain and use unauthorized access devices, namely credit cards, without the knowledge or authorization of the true account holders. Co-conspirator Ricky Butler used the true account holder’s personal identifying information and account access information to contact financial institutions and have new or replacement credit cards issued to addresses in the Western District of New York. During the course of the fraudulent scheme, 17 unauthorized credit cards were mailed to properties which were owned and/or controlled by Randy Jarrett and his mother, Catherine Jarrett. Those credit cards were used by the defendant and the other conspirators to make, and attempt to make, purchases at Walmart stores and other retail establishments totaling over $330,000.
Tamika Favors and Catherine Jarrett have been convicted and are awaiting sentencing.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for November 30, 2017, at 10:00 a.m. before Judge Vilardo.
Boone County man sentenced to six years in federal prison for dealing pain pillsRead the Press Release
CHARLESTON, W.Va. – A Boone County pain pill dealer was sentenced today to six years in federal prison for a drug crime, announced United States Attorney Carol Casto. Howard D. Williamson, Jr., 55, of Madison, previously pleaded guilty to both counts of a two-count indictment charging him with distribution of oxycodone.
Williamson admitted that on July 23, 2015, and again on October 25, 2015, he sold oxycodone pills to a confidential informant working with law enforcement. Williamson further admitted that the drug deals took place at his Lincoln Avenue residence in Madison.
The investigation was conducted by the West Virginia State Police and the U.S. Route 119 Drug and Violent Crime Task Force. Assistant United States Attorney John Frail is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Albuquerque Man Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Miguel Ordonez, 24, of Albuquerque, N.M., was sentenced today in federal court to 70 months in prison followed by four years of supervised release for his conviction on heroin trafficking charges. Miguel Ordonez was also ordered to pay a $7,400 money judgment.
Miguel Ordonez and his four co-defendants, Gonzalo Montenegro-Coronel, 31, a Mexican national, Esther Ordonez, 48, and Reydecel Lopez-Ordonez, 24, both of Albuquerque, and Fernando Gomez-Campos, 21, of El Paso, Tex., were charged in a 13-count indictment that was filed on Dec. 2, 2015. The indictment charged the defendants with participating in a heroin trafficking conspiracy between Nov. 2014 and Sept. 2015, distributing heroin on eight occasions between Nov. 2014 and Sept. 2015, and with using telephones to facilitate drug trafficking crimes. It also charged Esther Ordonez, Miguel Ordonez and Montenegro-Coronel with maintaining a residence for the purpose of manufacturing and distributing heroin between Nov. 2014 and Sept. 2015. According to the indictment, the defendants committed the crimes in Bernalillo County, N.M.
On April 24, 2017, Miguel Ordonez pled guilty to two counts of distributing heroin, using a communication facility in furtherance of a drug trafficking crime, and maintaining a drug involved premises. In entering the guilty plea, Miguel Ordonez admitted participating in telephone communications on March 27, 2015, in order to arrange heroin sales with individuals who unbeknownst to him were undercover agents. Miguel Ordonez admitted selling 148 grams of heroin for $4,200 on March 27, 2015, and 98 grams of heroin for $3,200 on May 7, 2015, to the undercover agent. He also admitted that from Nov. 10, 2014 and until his arrest in July 2015, he helped others store heroin for distribution at 2620 Katrina Dr. SW in Albuquerque.
Three of the other defendants have entered guilty pleas and one has been sentenced. Lopez-Ordonez pled guilty on Oct. 19, 2016, and was sentenced to 60 months of imprisonment followed by four years of supervised release on March 30, 2017. Gomez-Campos pled guilty on March 10, 2017, and Esther Ordonez pled guilty on April 12, 2017. Gomez-Campos and Esther Ordonez have yet to be sentenced.
Montenegro-Coronel has entered a not guilty plea to the indictment and is pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Drug Task Force as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The HIDTA Region I Drug Task Force is comprised of officers from the Albuquerque Police Department, Rio Rancho Police Department, Valencia County Sheriff’s Office, Pueblo of Pojoaque Tribal Police Department and DEA. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys Shaheen P. Torgoley and Stephen R. Kotz are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Albuquerque Man Sentenced for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Isaiah Gallegos, 22, of Albuquerque, N.M., was sentenced this morning in federal court to 37 months in prison followed by three years of supervised release for his conviction on an armed bank robbery charge.
Isaiah Gallegos was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Martin Huerta, 43, Christian Herrera, 21, and Christopher Gallegos, 33, all of Albuquerque, with bank robbery. According to the complaint, a source identified the co-defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. The complaint alleged that Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. The complaint alleged that three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Isaiah Gallegos, Huertta, Miera, Herrera and Christopher Gallegos were indicted on April 27, 2016, and charged with bank robbery.
On April 25, 2017, Isaiah Gallegos pled guilty to the indictment and admitted that on March 30, 2016, he participated in the robbery of the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque by acting as lookout while his co-defendants robbed the bank.
Isaiah Gallegos’ four co-defendants have entered guilty pleas and two have been sentenced. Huertta pled guilty on Sept. 9, 2016 and was sentenced on March 14, 2017 to 108 months in prison followed by five years of supervised release. Miera pled guilty on Oct. 11, 2016, and was sentenced on June 8, 2017, to 78 months in prison followed by five years of supervised release. Christopher Gallegos entered a guilty plea on Feb. 13, 2017, and Herrera entered a guilty plea on Feb. 24, 2017. At sentencing, Christopher Gallegos and Herrera each face a statutory maximum penalty of 25 years in federal prison. They remain in custody pending sentencing hearings.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Active-Duty U.S. Navy Commander Pleads Guilty to Conspiring with Foreign Defense Contractor to Defraud the U.S. NavyRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – August 15, 2017
SAN DIEGO – U.S. Navy commander Bobby Pitts pleaded guilty today in connection with his efforts to obstruct a federal criminal investigation into the exploits of Singapore-based defense contractor Leonard Glenn Francis.
Pitts, 48, of Chesapeake, Va., pleaded guilty to one count of conspiracy to defraud the United States, admitting that he attempted to protect Francis, owner and chief executive of Glenn Defense Marine Asia (GDMA). Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts – from cash, prostitutes and luxury travel to Cuban cigars, Kobe beef and Spanish suckling pigs.
Pitts is scheduled to be sentenced on December 1, 2017 by U.S. District Judge Janis L. Sammartino of the Southern District of California.
According to admissions made as part of his plea agreement, from August 2009 to May 2011, Pitts served as the officer in charge of the U.S. Navy’s Fleet Industrial Supply Command (FISC) in Singapore. As part of his duties, Pitts learned that Naval Criminal Investigative Service and several civilian employees of the U.S. Navy were investigating whether Francis was over-billing the U.S. Navy on ship husbanding contracts.
Pitts had access to internal U.S. Navy documents pertaining to investigative steps that the U.S. Navy was considering and admitted that he shared this information with Francis, with the intent to impede and obstruct the U.S. Navy’s oversight of its contracts with GDMA. On Nov. 23, 2010, for example, Pitts forwarded to a representative of GDMA an internal U.S. Navy email discussing FISC’s intention to contact officials with the Royal Thai Navy to determine whether GDMA had been billing the U.S. Navy for services in fact rendered by the Thai government.
In pleading guilty, Pitts admitted, among other things, to working with Francis and other foreign-defense-contractor personnel to help them cover up GDMA’s overcharging practices with respect to providing protection to U.S. Navy forces deployed in the Western Pacific.
So far, 18 of 27 defendants charged in the U.S. Navy bribery and fraud scandal have pleaded guilty. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 16-CR-1207
Commander Bobby Pitts Age 48 Chesapeake, Virginia
SUMMARY OF CHARGES
Conspiracy to Defraud the United States, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Active-Duty U.S. Navy Commander Pleads Guilty to Conspiring with Foreign Defense Contractor to Defraud the U.S. NavyRead the Press Release
An active-duty U.S. Navy commander pleaded guilty today in connection with his efforts to obstruct a federal criminal investigation of the owner and chief executive officer of a multi-national defense contracting firm headquartered in Singapore.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana Robinson of the Southern District of California, Director Dermot O’Reilly of the Department of Defense’s Defense Criminal Investigative Service (DCIS) and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Bobby Pitts, 48, of Chesapeake, Va., pleaded guilty to one count of conspiracy to defraud the U.S. in connection with the NCIS’s investigation of Leonard Glenn Francis, the owner and CEO of Glenn Defense Marine Asia (GDMA). Pitts is set to be sentenced on December 1, by U.S. Magistrate Judge Bernard Skomal of the Southern District of California, who accepted his plea today.
According to admissions made as part of his plea agreement, from August 2009 to May 2011, Pitts served as the officer in charge of the U.S. Navy’s Fleet Industrial Supply Command (FISC) in Singapore. As part of his duties, Pitts learned that NCIS and several civilian employees of the U.S. Navy were investigating whether Francis was over-billing the U.S. Navy on ship husbanding contracts. Pitts had access to internal U.S. Navy documents pertaining to investigative steps that the U.S. Navy was considering and admitted that he shared this information with Francis, with the intent to impede and obstruct the U.S. Navy’s oversight of its contracts with GDMA. On Nov. 23, 2010, for example, Pitts forwarded to a representative of GDMA an internal U.S. Navy email discussing FISC’s intention to contact officials with the Royal Thai Navy to determine whether GDMA had been billing the U.S. Navy for services in fact rendered by the Thai government.
In pleading guilty, Pitts admitted, among other things, to working with Francis and other foreign-defense-contractor personnel to help them cover up GDMA’s overcharging practices with respect to providing protection to U.S. Navy forces deployed in the Western Pacific.
So far, 18 of 27 defendants charged in the U.S. Navy bribery and fraud scandal have pleaded guilty. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California.
Acting Manhattan U.S. Attorney Announces Agreement with Swiss Asset Management Firm to Resolve Criminal Tax InvestigationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that Prime Partners SA (“Prime Partners”) entered into a non-prosecution agreement (“NPA”) with the U.S. Attorney’s Office and agreed to pay $5 million to the United States for assisting U.S. taxpayer-clients in opening and maintaining undeclared foreign bank accounts from 2001 through 2010. The NPA was based on Prime Partners’ extraordinary cooperation, including its voluntary production of approximately 175 client files for non-compliant U.S. taxpayer-clients, and provides that Prime Partners will not be criminally prosecuted. The NPA requires Prime Partners to forfeit $4.32 million to the United States, representing certain fees that it earned by assisting its U.S. taxpayer-clients in opening and maintaining these undeclared accounts, and to pay $680,000 in restitution to the IRS, representing the approximate unpaid taxes arising from the tax evasion by Prime Partners’ U.S. taxpayer-clients.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Prime Partners admits to helping its clients conceal their ownership of foreign bank accounts to avoid their U.S. tax obligations. They created sham entities and even counseled their clients to use pay phones and prepaid debit cards to avoid detection of their tax fraud scheme. The resolution of this matter through a non-prosecution agreement, along with forfeiture and restitution, reflects the extraordinary cooperation provided by Prime Partners to our investigation. It should serve as proof that cooperation has tangible benefits. We will continue to pursue financial services firms around the world that help their clients evade U.S. taxes.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “The message is clear to those using foreign bank accounts to engage in schemes to evade U.S. taxes – you can no longer assume your ‘secret’ accounts will remain concealed, no matter where they are located. In our ongoing investigations, we will continue to draw on information from a variety of sources and to provide substantial credit to those around the globe who provide full and timely cooperation regarding the identity of U.S. tax cheats and the phony trusts and shell companies they seek to hide behind.”
IRS-CI Special Agent in Charge James D. Robnett said: “Today’s NPA signals the continued erosion of the tax secrecy safe havens that helped facilitate this criminal activity at a significant cost to the US taxpayer. IRS-CI is focused on tracking funds of individuals hiding income offshore and will continue to investigate international tax evasion.”
As part of the NPA, Prime Partners admitted various facts concerning its wrongful conduct and the remedial measures that it took to cease that conduct. Specifically, Prime Partners admitted that it knew certain U.S. taxpayers were maintaining undeclared foreign bank accounts with the assistance of Prime Partners in order to evade their U.S. tax obligations, in violation of U.S. law. Prime Partners acknowledged that it helped certain U.S. taxpayer-clients conceal from the IRS their beneficial ownership of undeclared assets maintained in foreign bank accounts by, among other things: (i) creating sham entities, which had no business purpose, that served as the nominal account holders for the accounts; (ii) advising U.S. taxpayer-clients not to retain their account statements, to call Prime Partners collect from pay phones, and to destroy any faxes they received from Prime Partners; (iii) providing U.S. taxpayer-clients with prepaid debit cards, which were funded with money from the clients’ undeclared accounts; and (iv) facilitating cash transfers in the United States between U.S. taxpayer-clients with undeclared accounts.
The NPA recognizes that, in early 2009, Prime Partners voluntarily implemented a series of remedial measures to stop assisting U.S. taxpayers in evading federal income taxes. The NPA further recognizes the extraordinary cooperation of Prime Partners, including its voluntary production of approximately 175 client files for non-compliant U.S. taxpayers, which included the identities of those U.S. taxpayers.
As part of the NPA, Prime Partners has agreed to forfeit $4.32 million to the United States, representing a portion of the gross revenues from services that it provided to U.S. taxpayers with undeclared foreign bank accounts from 2001 through 2010. In connection with this forfeiture, Prime Partners has agreed not to contest a civil forfeiture action to be filed by the United States.
The U.S. Attorney’s Office entered into the NPA based on factors including:
- Prime Partners’ voluntary and extraordinary cooperation, including its voluntary production of account files containing the identities of U.S. taxpayer-clients;
- Prime Partners’ voluntary implementation of various remedial measures beginning in or around early 2009, before the investigation of its conduct began;
- Prime Partners’ willingness to continue to cooperate to the extent permitted by applicable law; and
- Prime Partners’ representation – based on an investigation by outside counsel, the results of which have been reviewed by the U.S. Attorney’s Office and the Tax Division – that the misconduct under investigation did not, and does not, extend beyond that described in the Statement of Facts.
The NPA requires Prime Partners to continue to cooperate with the United States for at least three years from the date of the agreement. In the event that Prime Partners violates the NPA, the U.S. Attorney’s Office may prosecute Prime Partners.
Mr. Kim thanked the IRS for its outstanding work in the investigation of this matter and the Tax Division of the Department of Justice for its assistance in the investigation.
This investigation is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Kiersten A. Fletcher are in charge of the matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Acting Manhattan U.S. Attorney Announces Agreement with Swiss Asset Management Firm to Resolve Criminal Tax InvestigationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that Prime Partners SA (“Prime Partners”) entered into a non-prosecution agreement (“NPA”) with the U.S. Attorney’s Office and agreed to pay $5 million to the United States for assisting U.S. taxpayer-clients in opening and maintaining undeclared foreign bank accounts from 2001 through 2010. The NPA was based on Prime Partners’ extraordinary cooperation, including its voluntary production of approximately 175 client files for non-compliant U.S. taxpayer-clients, and provides that Prime Partners will not be criminally prosecuted. The NPA requires Prime Partners to forfeit $4.32 million to the United States, representing certain fees that it earned by assisting its U.S. taxpayer-clients in opening and maintaining these undeclared accounts, and to pay $680,000 in restitution to the IRS, representing the approximate unpaid taxes arising from the tax evasion by Prime Partners’ U.S. taxpayer-clients.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Prime Partners admits to helping its clients conceal their ownership of foreign bank accounts to avoid their U.S. tax obligations. They created sham entities and even counseled their clients to use pay phones and prepaid debit cards to avoid detection of their tax fraud scheme. The resolution of this matter through a non-prosecution agreement, along with forfeiture and restitution, reflects the extraordinary cooperation provided by Prime Partners to our investigation. It should serve as proof that cooperation has tangible benefits. We will continue to pursue financial services firms around the world that help their clients evade U.S. taxes.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “The message is clear to those using foreign bank accounts to engage in schemes to evade U.S. taxes – you can no longer assume your ‘secret’ accounts will remain concealed, no matter where they are located. In our ongoing investigations, we will continue to draw on information from a variety of sources and to provide substantial credit to those around the globe who provide full and timely cooperation regarding the identity of U.S. tax cheats and the phony trusts and shell companies they seek to hide behind.”
IRS-CI Special Agent in Charge James D. Robnett said: “Today’s NPA signals the continued erosion of the tax secrecy safe havens that helped facilitate this criminal activity at a significant cost to the US taxpayer. IRS-CI is focused on tracking funds of individuals hiding income offshore and will continue to investigate international tax evasion.”
As part of the NPA, Prime Partners admitted various facts concerning its wrongful conduct and the remedial measures that it took to cease that conduct. Specifically, Prime Partners admitted that it knew certain U.S. taxpayers were maintaining undeclared foreign bank accounts with the assistance of Prime Partners in order to evade their U.S. tax obligations, in violation of U.S. law. Prime Partners acknowledged that it helped certain U.S. taxpayer-clients conceal from the IRS their beneficial ownership of undeclared assets maintained in foreign bank accounts by, among other things: (i) creating sham entities, which had no business purpose, that served as the nominal account holders for the accounts; (ii) advising U.S. taxpayer-clients not to retain their account statements, to call Prime Partners collect from pay phones, and to destroy any faxes they received from Prime Partners; (iii) providing U.S. taxpayer-clients with prepaid debit cards, which were funded with money from the clients’ undeclared accounts; and (iv) facilitating cash transfers in the United States between U.S. taxpayer-clients with undeclared accounts.
The NPA recognizes that, in early 2009, Prime Partners voluntarily implemented a series of remedial measures to stop assisting U.S. taxpayers in evading federal income taxes. The NPA further recognizes the extraordinary cooperation of Prime Partners, including its voluntary production of approximately 175 client files for non-compliant U.S. taxpayers, which included the identities of those U.S. taxpayers.
As part of the NPA, Prime Partners has agreed to forfeit $4.32 million to the United States, representing a portion of the gross revenues from services that it provided to U.S. taxpayers with undeclared foreign bank accounts from 2001 through 2010. In connection with this forfeiture, Prime Partners has agreed not to contest a civil forfeiture action to be filed by the United States.
The U.S. Attorney’s Office entered into the NPA based on factors including:
- Prime Partners’ voluntary and extraordinary cooperation, including its voluntary production of account files containing the identities of U.S. taxpayer-clients;
- Prime Partners’ voluntary implementation of various remedial measures beginning in or around early 2009, before the investigation of its conduct began;
- Prime Partners’ willingness to continue to cooperate to the extent permitted by applicable law; and
- Prime Partners’ representation – based on an investigation by outside counsel, the results of which have been reviewed by the U.S. Attorney’s Office and the Tax Division – that the misconduct under investigation did not, and does not, extend beyond that described in the Statement of Facts.
The NPA requires Prime Partners to continue to cooperate with the United States for at least three years from the date of the agreement. In the event that Prime Partners violates the NPA, the U.S. Attorney’s Office may prosecute Prime Partners.
* * *
Mr. Kim thanked the IRS for its outstanding work in the investigation of this matter and the Tax Division of the Department of Justice for its assistance in the investigation.
This investigation is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Kiersten A. Fletcher are in charge of the matter.
12 Members of Heroin Drug Trafficking Organization Operating in Manhattan, Bronx, and New Jersey Charged in Manhattan Federal CourtRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Carl J. Kotowski, the Special Agent in Charge of the New Jersey Division of the Drug Enforcement Administration (“DEA”), today announced the unsealing of an indictment charging 12 defendants with participating in a drug trafficking organization that distributed large quantities of heroin in and around Monmouth and Ocean Counties, New Jersey, and obtained the heroin from Washington Heights and the Bronx, among other places. In conjunction with the unsealing of the Indictment, search warrants were executed at several locations in New Jersey.
Defendants MIGUEL ARIEL SUSANA, a/k/a “Jariel Santos,” QUADREE HUBBARD, JAMES F. SMITH III, a/k/a “Trey,” a/k/a “Brim Reaper,” a/k/a “Reaper,” TAHMIR RICE, DAMAR BIVINS, JAIR OLIVER, TYSHEEM SMITH, JOEL ROSADO, AVEENA VITRANO-MANLEY, and FRANK DESANTO were arrested by DEA agents this morning and will be presented in federal court in Manhattan before U.S. Magistrate Judge Barbara C. Moses later today. Defendant MARCELLUS CUTLER has not yet been apprehended. Defendant TYRON TROTMAN is currently in custody on state charges and will be transferred to federal custody and presented at a later date. The case has been assigned to U.S. District Judge Richard J. Sullivan.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, this organization transported large quantities of heroin from Washington Heights and the Bronx across the Hudson to Monmouth and Ocean Counties in New Jersey, helping to fuel the opioid epidemic plaguing our nation. Today’s arrests of twelve alleged members of this heroin distribution organization is part our sustained commitment, along with our partners at the DEA, to stop the flow of heroin into and out of New York.”
DEA Special Agent in Charge Carl J. Kotowski said: “Today’s arrests should send a clear message to the drug traffickers that DEA and our partners are committed to keeping our neighborhoods safe. Those arrested are facing significant time in prison and will no longer be pushing their poison.”
According to the Indictment[1] unsealed in Manhattan federal court:
MIGUEL ARIEL SUSANA, a/k/a “Jariel Santos,” QUADREE HUBBARD, JAMES F. SMITH III, a/k/a “Trey,” a/k/a “Brim Reaper,” a/k/a “Reaper,” TAHMIR RICE, DAMAR BIVINS, JAIR OLIVER, MARCELLUS CUTLER, TYSHEEM SMITH, JOEL ROSADO, AVEENA VITRANO-MANLEY, TYRON TROTMAN, and FRANK DESANTO conspired to distribute significant amounts of heroin from May 2017 to August 2017, as members of a drug trafficking organization (the “DTO”) that obtained narcotics for resale from Washington Heights, New York, and the Bronx, New York, among other places, and packaged and sold those narcotics throughout Monmouth and Ocean Counties. SUSANA acted as a source of supply for HUBBARD and SMITH. RICE, BIVINS, OLIVER, CUTLER, and TYSHEEM SMITH each assisted either HUBBARD or SMITH in managing certain aspects of the DTO, including in obtaining, packaging, storing, and distributing narcotics. DESANTO and TROTMAN sold heroin obtained from SMITH to street-level customers. ROSADO and VITRANO-MANLEY worked with SMITH to obtain significant quantities of narcotics, including by pooling money with SMITH.
* * *
Each defendant is charged with one count of conspiracy to distribute narcotics. Defendants SUSANA, HUBBARD, JAMES F. SMITH III, RICE, OLIVER, and CUTLER are charged with conspiring to distribute and possess with the intent to distribute one kilogram and more of mixtures and substances containing a detectable amount of heroin, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. Defendants BIVINS, TYSHEEM SMITH, ROSADO, and VITRANO-MANLEY are charged with conspiring to distribute and possess with the intent to distribute 100 grams and more of mixtures and substances containing a detectable amount of heroin, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. Defendants TROTMAN and DESANTO are charged with conspiring to distribute and possess with the intent to distribute a quantity of mixtures and substances containing a detectable amount of heroin, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. A chart with the defendants’ ages and residences is below.
Mr. Kim thanked the DEA Monmouth Ocean HIDTA Task Force for their outstanding work on the investigation. The Monmouth Ocean HIDTA Task Force comprises representatives from the DEA, the ATF, the New Jersey State Police, Monmouth County Prosecutor’s Office, Ocean County Prosecutor’s Office, Toms River Police Department, and the Neptune Township Police Department. Mr. Kim also thanked the Howell Police Department, the Freehold Township Police Department, the Lakewood Police Department, the Monmouth County Sheriff’s Office, Ocean County Sheriff’s Office, the Passaic County Sheriff’s Office, the Union County Sheriff’s Office and the United States Attorney’s Office for the District of New Jersey for their assistance in this investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Elizabeth A. Hanft and Michael D. Neff are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
14 August 2017
“Great Outdoors Bandit” Arrested in Los AngelesRead the Press Release
LOS ANGELES -On Sunday, August 13, 2017, Josue Daniel Alfaro, a/k/a Danny Alfaro, a/k/a the “Great Outdoors Bandit,” was arrested, pursuant to an arrest warrant for bank robbery, at the Los Angeles International Airport while attempting to board a Wow Airlines flight to Brussels, Belgium.
Previously, on Friday, August 11, 2017, Mr. Alfaro was charged by criminal complaint in the District of Idaho with bank robbery, and an arrest warrant issued. According to the affidavit accompanying the criminal complaint, which was unsealed today, the following banks were robbed on the following dates by a person matching Mr. Alfaro’s description and wearing a baseball-style cap and sunglasses:
-On December 21, 2016, the U.S. Bank at 10500 West Overland Road in Boise, Idaho;
-On December 21, 2016, the Idaho Central Credit Union at 1615 South Celebration Avenue in Meridian, Idaho;
-On March 24, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho;
-On May 24, 2017, the Alpine Credit Union at 351 East 800 South in Orem, Utah;
-On August 7, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho;
-On August 7, 2017, the Pioneer Federal Credit Union at 850 East Fairview Avenue in Meridian, Idaho;
-On August 7, 2017, the Clarity Federal Credit Union at 555 South Meridian Road in Meridian, Idaho.
According to the affidavit, on August 7, 2017, a person matching Mr. Alfaro’s description appeared at the Idaho Independent Bank in Mountain Home, Idaho. The person was not wearing sunglasses or disguising his face in any way. The person requested to exchange $1,500 in $100 bills for $50 bills. The bank denied the request and provided photographs of the person’s face and the vehicle he was driving – a black Mitsubishi Outlander – to law enforcement. A vehicle appearing to be a black Mitsubishi Outlander was also photographed during the August 7, 2017 robbery of the Pioneer Federal Credit Union in Meridian.
According to the affidavit, on August 9, 2017, the FBI sent out a media release of the Idaho Independent Bank surveillance photographs. Two people – an acquaintance and Mr. Alfaro’s brother – positively identified Mr. Alfaro as the person in the photographs.
According to the affidavit, Mr. Alfaro’s brother advised law enforcement that, on August 5, 2017, Mr. Alfaro and his sister drove in a rental car from their residence in Los Angeles, California to the family’s residence in Utah. On the morning of August 7, 2017, Mr. Alfaro borrowed his mother’s black Mitsubishi Outlander, left the residence in Utah, and did not return until two days later. On the morning of August 10, 2017, Mr. Alfaro argued with his sisters and appeared to have cried. Mr. Alfaro’s brother learned that the argument was initiated when Mr. Alfaro’s sisters confronted Mr. Alfaro about the bank surveillance photographs in the media. Mr. Alfaro drove back to California in the rental car.
On Monday, August 14, 2017, Mr. Alfaro had his initial appearance and arraignment on the criminal complaint before the United States Magistrate Court for the Central District of California. Mr. Alfaro was detained and will be transported to the District of Idaho for trial.
The case is being investigated by the Federal Bureau of Investigation, United States Customs and Border Protection, Boise Police Department, and Meridian Police Department.
A criminal complaint is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wichita Business Owner Sentenced in $250,000 Tax CaseRead the Press Release
WICHITA, KAN. - A Wichita business owner was sentenced Monday to two years on supervised release and ordered to pay $256,000 in restitution for withholding taxes from employee salaries that he failed to pay over to the government, U.S. Attorney Tom Beall said.
Michael J. Skladzien, 54, Wichita, Kan., pleaded guilty to one count of failing to pay over taxes. In his plea, he admitted that while he owned S&S Floor Maintenance he withheld approximately money from salaries of employees to pay federal taxes. Instead of paying the funds over to the government, he spent the money on personal expenses including gambling.
Beall commended the Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.
Virginia Business Owners Charged with Tax EvasionRead the Press Release
A federal grand jury in the Western District of Virginia returned an indictment charging two business owners with tax evasion and conspiring to structure currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores, and operated it out of their home in Hillsville, Virginia. The Daltons allegedly filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income they earned from BRS, but failed to pay the taxes, penalties and interest owed. The indictment alleges that despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, they refused to pay their outstanding tax liability, used nominees to conceal their ownership of property and filed false documents with the IRS. After the IRS levied the Dalton’s personal bank accounts, they allegedly used funds from the BRS business bank account to start a cattle business and pay for their children’s wedding expenses.
The indictment also charges Jeffery and Karen Dalton with conspiring to withdraw cash from the BRS business bank account, in increments less than $10,000, to evade federal bank-reporting requirements. According to the indictment, they withdrew more than $250,000 in this piecemeal fashion.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Jeffery and Karen Dalton each face a statutory maximum sentence of five years in prison on both the tax evasion and conspiracy charge. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Sean Beaty of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.