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11 August 2017
Orono Pharmacy and Owner Agree to Pay $60,000 to Settle Controlled Substances Act CaseRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy today announced that Orono Pharmacy, Inc. and its owner, Ali Aghamoosa, of Orono, have entered into a civil settlement agreement with the United States pursuant to which they will pay $60,000 to resolve allegations that they violated the Controlled Substances Act (“CSA”).
Controlled substances are strictly regulated in the United States because of their potential for abuse and the danger they pose if improperly used. The CSA establishes a closed system of controls over the handling of controlled substances by registrants, including pharmacies. Violations of the CSA concerning dispensing and administering, distribution, recordkeeping, and other related activities can result in civil penalties.
The settlement resolves allegations that, from 2014 through 2016, Orono Pharmacy and Aghamoosa negligently failed to make and maintain complete and accurate records of pharmacy transactions concerning the receipt and dispensation of controlled substances. The Government alleged that Orono Pharmacy and Aghamoosa failed to consistently record when, and in what quantities, controlled substances were received and failed to record sales and dispensations from pharmacy inventory. The Government also alleged that thousands of doses of controlled substances were unaccounted for, a pharmacist diverted controlled substances, and another pharmacist falsified records.
Orono Pharmacy and Aghamoosa admitted no wrongdoing in settling the matter and cooperated fully throughout the investigation.
The case was investigated by the U.S. Drug Enforcement Administration’s Office of Diversion Control. The civil action is docketed United States v. Orono Pharmacy, Inc., et al., 17-cv-00305-GZS (D. Me.).
Orlando Man and Woman Plead Guilty to Copyright Infringement of Microsoft Products and Conspiracy to Commit Wire FraudRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Robert F. Stout (51) and Kasey N. Riley, a/k/a Kasey Stout (33), both of Windermere, have pleaded guilty to conspiracy to commit wire fraud and copyright infringement relating to the sale of illegal activation keys for Microsoft products. If convicted on all counts, each faces a maximum penalty of 20 years in federal prison. The defendants have also been notified that the United States is seeking a money judgment in the amount of $1,480,227, the proceeds of the charged criminal conduct.
According to court documents, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. They purchased unauthorized activation keys from various websites and provided them, in exchange for PayPal payments, to at least 13,000 customers throughout the United States. They received at least $1.4 million from customers in exchange for providing them with the unauthorized, and often invalid, activation keys. Even after receiving customer complaints that specific activation keys were not functioning properly, Stout and Riley continued to sell them. For example, between September 2013 and June 2014, Stout and Riley sold one specific activation key approximately 880 times.
The Better Business Bureau received at least 140 complaints from customers who purchased the unauthorized software from the sham businesses. Over the course of two years, Stout and Riley also received – and ignored at least four warnings to stop from Microsoft.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Albany Field Office of the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor, ICE, in the Middle District of Florida, and Assistant United States Attorney Wayne A. Myers from the Northern District of New York.
Ohio woman admits to trafficking heroin and cocaineRead the Press Release
WHEELING, WEST VIRGINIA – An East Liverpool woman pled guilty to heroin and cocaine trafficking, Acting United States Attorney Betsy Steinfeld Jividen announced.
Michelle Green, age 48, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.” Green admitted to distributing heroin near Allison Elementary School in Hancock County. The crime occurred in March 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Norton Doctor Pleads Guilty to Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Norton, Virginia physician who specialized in urology pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to a federal drug distribution charge, Acting United States Attorney Rick A. Mountcastle, Virginia Attorney General Mark Herring and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Office announced.
Felix Eugene Shepard, Jr., 56, pled guilty yesterday to one count of distributing oxycodone, a schedule II controlled substance. A sentencing hearing has been scheduled for November 1, 2017 at 10:30 a.m. in U.S. District Court in Big Stone Gap.
According to evidence presented to the court at yesterday’s guilty plea by Special Assistant United States Attorney Suzanne Kerney-Quillen, Shepard admitted to writing 47 prescriptions for oxycodone to a patient he was involved in a sexual relationship with. Shepard admitted to the Virginia Board of Medicine that the narcotic prescriptions were written to the patient outside of a bona fide doctor-patient relationship. Shepard continuously prescribed narcotic medications to the patient over an extended period without performing adequate physical examinations, evaluations, or diagnostic testing, for conditions that were outside the scope of his urological practice. In a statement Shepard made to an investigator from the Virginia Board of Medicine, he expressed concern regarding the amount of oxycodone he had prescribed the patient and said the amounts were indicative of addiction. However, Shepard took no action to address the patient’s possible addiction and/or diversion of the oxycodone he prescribed the patient. Shepard prescribed the patient over 2,000 dose units of oxycodone, yet the patient’s file contained few notes or records concerning treatment or the reason the prescriptions were written.
The investigation of the case was conducted by the Drug Enforcement Administration-Tactical Diversion Squad. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Nicaraguan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Nicaraguan national was indicted yesterday in federal court in Boston on a federal immigration charge.
Alberto Jose Mora-Hurtado, 43, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, law enforcement officers in Chelsea encountered Mora-Hurtado on July 24, 2017, and determined him to be illegally present in the United States. Mora-Hurtado was previously deported on Sept. 1, 2010.
Mora-Hurtado faces a sentence of no greater than two years in prison, up to one year of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced to over 17 Years Imprisonment on Firearms ChargeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KERMERIC JOHNSON, age 34, of New Orleans, was sentenced yesterday after previously pleading guilty to conspiracy to use a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Court Judge Lance M. Africk sentenced JOHNSON to 215 months of incarceration, to be followed by 5 years of supervised release.
According to court documents, in October 2015, JOHNSON received a jail phone call from a local heroin dealer and co-conspirator, KEITH FOSTER, wherein FOSTER informed JOHNSON that a confidential informant had caused him and a second co-conspirator to be arrested. Foster then told JOHNSON where to locate a firearm and instructed JOHNSON to “take care” of the informant. JOHNSON agreed to do so and in subsequent jail calls, stated that he was attempting to locate the informant.
On October 29, 2015, St. Bernard Parish Sheriff’s Office deputies surveilled JOHNSON’s residence, and observed JOHNSON and an unknown male, exit the residence. Deputies observed JOHNSON carrying two items, one wrapped in a blue shirt, and the other in a red blanket. JOHNSON placed both items inside the trunk of a vehicle before he and the other male drove away. Deputies conducted a traffic stop and obtained a search warrant for the vehicle. In the trunk of the vehicle, deputies found a Smith and Wesson, 9mm caliber semi-automatic handgun wrapped in the shirt and a Marlin Model Glenfield 65, .22 caliber rifle, wrapped in the blanket.
FOSTER pled guilty and is scheduled to be sentenced on August 24, 2017.
Acting U.S. Attorney Evans praised the work of the ATF New Orleans Division Office, St. Bernard Parish Sheriff’s Office, and New Orleans Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
New Hampshire Man Sentenced to 10 Years for Bank RobberiesRead the Press Release
CONCORD, N.H. - Acting U.S. Attorney John J. Farley announced that Michael Giles, 41, was sentenced today to 10 years in federal prison after committing three bank robberies and attempting to rob a fourth bank.
According to documents filed with the court and statements made at today’s sentencing hearing, on November 23, 2016, Giles robbed a TD Bank branch located at 70 Bay Street in Manchester, and on November 27, 2016, he robbed a TD Bank branch at1255 South Willow Street in Manchester. Giles was arrested by the Manchester Police on November 27, 2016, near the bank shortly after the robbery when the motor scooter Giles was riding failed to start. The police recovered the robbery proceeds from Giles.
Giles’ arrest led police to link him to the November 23, 2016, robbery of the TD Bank; the January 22, 2016, robbery of the Citizens Bank located at 1283 Hooksett Road in Hooksett; and the January 22, 2016, attempted robbery of the Citizens Bank located at 1550 Elm Street in Manchester. Images captured by the bank’s surveillance system definitively identified Giles as the robber.
The Manchester Police Department and the Hooksett Police Department led the investigations into the robberies in Manchester and Hooksett. The FBI assisted in the identification and prosecution of Giles. This case is being prosecuted by Assistant United States Attorney Don Feith.
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Nassau County Man Indicted for Multiple Child Pornography OffensesRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces today the return of an indictment charging Charles Cory Thornton (36, Yulee) with production and attempted production of child pornography; receipt, transportation, and attempted transportation of child pornography; and possession of child pornography. He faces potential cumulative penalties of not less than 45 years, up to 140 years, in federal prison, and a potential life term of supervision. Thornton was arrested on July 28, 2017, and has been detained pending trial.
According to the criminal complaint and information provided in court, on July 20, 2017, FBI agents and local officers executed a search warrant at Thornton’s residence based on suspected online child exploitation activity. Thornton was not at home, but he was located and interviewed later that day at Naval Air Station Jacksonville where he worked as a machinist. During an interview, Thornton admitted that he had been searching for child pornography for several years using a file sharing program, that he knew that other users were able to download images and videos from his computer, and that he was a “pedophile” and was sexually attracted to children. In subsequent interviews, Thornton admitted that he had used a small camera hidden in a digital clock in a bathroom to surreptitiously film videos of children during 2008 and 2009. Agents recovered this camera from Thornton’s home. A search of his electronic media revealed numerous images of at least two children in various stages of undress in a bathroom taken from several different vantage points, as well as images of Thornton setting up the hidden camera.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Columbia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mobile County Man Sentenced to 18 Months for Possession with Intent to Distribute 25.66 Kilograms of MarijuanaRead the Press Release
The Acting United States Attorney Steve Butler announces that Collie Bo Young Evans, Jr, a 34 year old, resident of Eight Mile, Alabama was sentenced today to 18 months incarceration followed by three years of supervised release for possession with intent to distribute 25.66 kilograms of marijuana.
On July 20, 2017, Mr. Evans pled guilty to possession with intent to distribute 25.66 kilograms of marijuana. Evans intended to sell the marijuana for $48,000.00 during an undercover sting operation. He was arrested when he arrived at the buy location in a Camry with two large garbage bags filled with 58 individually packaged bags of marijuana and $1,081 in U.S. Currency in his front pocket.
The Mobile, Alabama Police Department investigated the case and presented it to the United States Attorney's Office for prosecution. Assistant United States Attorney, Gina S. Vann was the prosecutor assigned to the case.
Mexican Citizen Sentenced for Methamphetamine OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Armando Lozano, 42, of Long Beach, California, was sentenced to 60 months’ imprisonment on August 11, 2017, for Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine. After release from prison, Lozano will be placed on four years of supervised release. Lozano was also fined $200 and ordered to pay a $200 special assessment.
At his change of plea hearing on April 25, 2017, Lozano admitted that he conspired with others to mail methamphetamine from California to a residence in Fairview Heights, Illinois on several occasions. Lozano also admitted to possessing the methamphetamine with the intent to distribute.
Co-defendant Shannon Escobedo, a/k/a "Shannon Lozano," was also charged in the indictment. Escobedo has not appeared before the Court. If anyone has knowledge of Shannon Escobedo’s whereabouts, please contact the United States Marshals Service.
This investigation was conducted by the United States Postal Inspection Service.
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 Muharem Causevic, age 25, 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 in which Muharem Causevic was a passenger. A search of the vehicle resulted in the seizure of approximately 244 grams of fentanyl and $1,200 cash.
The operator of the vehicle, Almir Causevic, is scheduled to plead guilty to the drug conspiracy charge on August 15, 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.”
Muharem 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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Local Tortilla Company and Four Leaders Convicted and Sentenced on Charges Relating to the Employment of Illegal AliensRead the Press Release
HOUSTON – La Espiga De Oro (Espiga) forfeited $1 million as a result of a felony conviction of conspiracy to induce and encourage unlawful immigration through a pattern and practice of hiring and employing illegal aliens at the tortilla factory, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Owners Alfredo Sosa Lira, 72, his wife Lydia Botello-Lira, 68, their daughter Lydia Lira, 25, and night manager Roberto Guerra, 45, all of Houston, pleaded guilty to misdemeanor violations associated with their continued employment of undocumented aliens between October 2011 and August 2015.
“Employers who knowingly hire immigrants with fraudulent or suspect documents face serious consequences under the law,” said Martinez. “This company violated the law by allowing more than half of its employees to work as undocumented immigrants. The $1 million forfeiture will help pay for the investigation and assist immigration authorities in their continued pursuit of employers who engage in similar conduct. Enforcement of our immigration laws is serious business and employers must only hire those with legitimate documentation to demonstrate they are legally in the United States.”
Espiga has been in operation since 1977 and is located on the 1200 block of 15th Street in the Heights in Houston. The company manufactures tortillas for distribution to restaurants and businesses throughout Texas, Louisiana and Colorado.
A series of complaints about the company’s hiring practices between 2008 and 2010 led to the HSI investigation. An undercover operation later led to evidence that the company knowingly hired aliens not authorized to work in the United States. In some instances, the company knew that aliens used fraudulent documents to secure employment. The illegal immigrants were from Mexico, Guatemala and El Salvador.
“Those who think that they can build their businesses by taking advantage of vulnerable individuals will ultimately see their day in court,” said Dawson. “Today’s plea shows that companies will be held accountable for violating our nation’s laws.”
HSI executed a search warrant at the company on Aug. 4, 2015, which led to the discovery of 10 illegal aliens working there as well as evidence demonstrating that 55% of their employees were not authorized by law to work at the factory. One long-term employee that the company knew to be employed illegally was injured on the job and received a settlement under her true name after using an alias for more than six years. The company owners and managers continued to employ this alien knowing that she was illegally in the United States.
Following the search warrant, the company was charged by criminal complaint and began cooperating with HSI and the U.S. Attorney’s Office to revise their hiring practices and implement new procedures to prevent future violations of federal law.
The company paid $1 million, representing an amount that at least equals the value of property used to facilitate the crime, the value of wages paid to the unauthorized work force and the value of products manufactured and services provided by the illegal workforce during the conspiracy. This money will go directly to immigration authorities to assist them with their future enforcement efforts.
U.S. District Judge Gray Miller accepted the company’s plea as well as that of the owners/managers. Alfredo Lira, Botello-Lira, Lydia Lira and Guerra were sentenced to time served – the 18 months they were forced to serve on court-imposed supervised release during the course of this prosecution. The company itself will be on probation for a term of 12 months.
The Occupational Safety and Health Administration (OSHA) also had actions against Espiga for labor-related violations. OSHA settled with Espiga on Aug. 23, 2016, with Espiga paying $85,360 and Espiga must correct the hazards that OSHA had identified. There are also provisions in that agreement requiring Espiga to protect the employees while the hazards are being addressed.
HSI conducted the investigation. Assistant U.S. Attorneys Julie Searle and Edward Gallagher prosecuted this case.
Lead Defendants in A Rochester-Based Heroin Trafficking Conspiracy Sentenced to 14 Years in PrisonRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of ANTONIO JERMAINE SNELL, a/k/a “Fatty” or “Lord,” 36, for leading a heroin distribution conspiracy based in southern Minnesota that resulted in two overdose deaths. ANTONIO SNELL, who was charged along with four additional co-defendants on June 14, 2016, pleaded guilty to Count 1 of the indictment. ANTONIO SNELL was sentenced on August 9, 2017, before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minn. His half-brother, MELVIN HUNTER, was sentenced on August 10, 2017. Both defendants were sentenced to 168 months in prison.
“These defendants brought large amounts of heroin from Chicago to southern Minnesota and sold it for $200 a gram,” said Assistant U.S. Attorney Jeffrey Paulsen. “Even after two of their customers died from heroin overdoses, the defendants continued dealing these dangerous drugs. The imposed sentences appropriately reflect the defendants’ callous disregard for human life.”
According to the defendants’ guilty pleas and documents filed in court, from January 2013 through June 2016, ANTONIO SNELL, the leader of the organization, and co-defendants RANDLE SNELL, MELVIN HUNTER, DARRELL SMITH, and ERNEST THOMAS, ran a heroin distribution conspiracy in and around the Rochester, Minnesota area. Members of the conspiracy recruited other individuals to act as sub-distributers or runners and used their houses to process and store drugs. In addition to the organization’s widespread drug dealing activity, heroin sold by the conspiracy was linked to two heroin overdose deaths in Austin, Minnesota. According to testimony at a sentencing hearing held on July 18, 2017, HUNTER supplied the heroin that killed Tyler Burkey, 23, on December 18, 2015, and Jordan Jensen, 20, on March 27, 2016. In sentencing HUNTER, Judge Michael Davis stated, “you were selling poison . . . and it caused death.”
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Austin Police Department, and the Southeast MN Violent Crimes Enforcement Team.
This case was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.
Defendant Information:
ANTONIO JERMAINE SNELL, a/k/a “Fatty” or “Lord,” 36
Albert Lea, Minn.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
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168 months in prison
- Five years of supervised release
RANDLE SNELL, a/k/a “Pee Wee,” 27
Dolton, Ill.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
92 months in prison
- Five years of supervised release
MELVIN HUNTER, a/k/a “Mello,” 23
Chicago, Ill.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
168 months in prison
- Five years of supervised release
DARRELL LENARDO SMITH, a/k/a “Duke,” 44
Rochester, Minn.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
84 months in prison
- Five years of supervised release
ERNEST JERELLE THOMAS, a/k/a “Rel Rel,” 38
Rochester, Minn.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
77 months in prison
-
Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Jay E. Town Sworn in as U.S. Attorney for Northern District of AlabamaRead the Press Release
BIRMINGHAM – U.S. Attorney Jay E. Town began work today in the Northern District of Alabama after taking his oath of office from Chief U.S. District Court Judge Karon O. Bowdre.
“I am incredibly proud to inherit an extraordinarily capable and competent office with such great potential,” Town said. “The Northern District already is endowed with a full spectrum of law-enforcement of sincere mettle and great devotion. We are all eager to undertake the worthy cause of the ambitious priorities of the Attorney General and this administration.”
Town is one of the first three U.S. Attorneys nominated by President Donald J. Trump to be confirmed by the U.S. Senate.
A former judge advocate in the U.S. Marine Corps, Town comes to the U.S. Attorney’s Office from a senior prosecutor’s role in the Madison County District Attorney’s Office in Huntsville, where he lives. Town worked as an assistant district attorney in the Madison County office from 2005 until the Senate confirmed his appointment as U.S. Attorney in July.
Before moving to Alabama, he was outside counsel at a large firm in New Jersey focused on commercial defense of major pharmaceutical, commercial and surety companies involved in litigation with federal agencies.
Town served in the Marine Corps for 12 years and was honorably discharged in 2008, attaining the rank of major. He has remained committed to veterans’ issues and was instrumental in forming the Madison County Veterans Court, one of the first such diversionary courts in Alabama dedicated to the physical and mental health needs of veterans in the criminal justice system.
He has served on several charitable boards, to include the Congressional Medal of Honor Foundation, a national organization promoting educational, patriotic and veterans’ initiatives directed by the living Medal of Honor recipients. He also serves as a director for America’s Warrior Partnership, which is a national organization that empowers communities to empower veterans through community integration. The National Society of the Daughters of the American Revolution awarded Town the Medal of Honor for his many charitable activities.
Town has taught as an adjunct professor at the University of Alabama-Huntsville in the Department of Political Science with the curriculum focused on executive war powers and the Geneva Conventions.
He earned a bachelor’s degree in Government & International Relations from the University of Notre Dame in 1995 and received his Juris Doctor from the Seton Hall University School of Law in 1998.
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Jason Galanis Sentenced to More Than 14 Years in Prison for Defrauding Tribal Entity and Pension Funds of Tens of Millions of DollarsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JASON GALANIS was sentenced today by the Honorable Ronnie Abrams to 173 months for defrauding a Native American tribal entity and numerous pension fund investors of tens of millions of dollars in connection with the issuance of bonds by the tribal entity.
Acting U.S. Attorney Joon H. Kim said: “In a brazen securities scheme designed to enrich themselves at the expense of everyone else, Jason Galanis and his co-conspirators cheated both their tribal clients as well as the investing public. After defrauding a Native American tribe into issuing bonds, Jason Galanis and his cohorts sold the illiquid bonds to unwitting pension funds, and then stole the proceeds for themselves. For his role in this campaign of theft and deception, Jason Galanis will now spend over 14 years in federal prison.”
According to the allegations contained in the Indictment filed against JASON GALANIS and his co-conspirators and statements made in related court filings and proceedings[1]:
From March 2014 through April 2016, JASON GALANIS and others engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by JASON GALANIS and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
Documents governing the Tribal Bonds specified that an investment manager would invest the proceeds of the Tribal Bonds in investments that would generate annuity payments sufficient to pay interest on the Tribal Bonds and provide funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, significant portions of the proceeds were misappropriated by JASON GALANIS and his co-defendants for their own personal use.
Specifically, the proceeds of the Tribal Bonds were deposited into a bank account in the name of Wealth Assurance Private Client Corporation (“WAPCC”). More than $38 million from the WAPCC account to an account controlled by JASON GALANIS, who then misappropriated more than $8.5 million of the proceeds for his personal use, including for expenses associated with his home, jewelry and clothing purchases, travel and entertainment, and restaurant meals.
There was no ready secondary market for the Tribal Bonds. Nonetheless, without prior notice, JASON GALANIS directed others to use funds belonging to clients of two related investment advisers, Hughes Capital Management, Inc. (“Hughes”) and Atlantic Asset Management, LLC (“Atlantic”) to purchase the Tribal Bonds, even though JASON GALANIS and others were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients and of the Atlantic pooled investment vehicle in which the Tribal Bonds were purchased. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds in their accounts, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, no Tribal Bonds have been sold from any Hughes or Atlantic client accounts. In addition, JASON GALANIS and his co-conspirators failed to apprise clients of Hughes and Atlantic regarding substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
In addition, a portion of the misappropriated proceeds was recycled and provided by JASON GALANIS to entities affiliated with co-conspirators in order to enable the purchase of subsequent Tribal Bonds issued by the WLCC. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.
* * *
In addition to the prison term, JASON GALANIS, 47, was sentenced to three years of supervised release. GALANIS was also ordered to forfeit $43,277,436 and to make restitution in the amount of $43,785,176.
Trial with respect to the remaining defendants is scheduled to begin on February 5, 2018, before the Honorable Ronnie Abrams.
This conviction represents JASON GALANIS’s second conviction in this District in the past year. On February 15, 2017, GALANIS was sentenced by the Honorable P. Kevin Castel to 135 months in prison in connection with his participation in a scheme to manipulate the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defraud the shareholders of that company.
Mr. Kim praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brian Blais, Aimee Hector, and Andrea Griswold are in charge of the prosecution.
[1] As for the defendants who have not pled guilty, the description of the charges set forth herein constitute only allegations.
High Ranking Los Zetas Plaza Boss Heads to Federal Prison for Multi-Year Drug ConspiracyRead the Press Release
HOUSTON – Jose Manuel Saldivar-Farias aka “Z-31” or “El Borrado” has been ordered to federal prison for his role in a seven-year conspiracy that resulted in an estimated 40,000 kilograms of marijuana imported into the United States from Mexico, announced Acting U.S. Attorney Abe Martinez. Saldivar-Farias, 29, of Nueva Ciudad Guerrero, Tamaulipas, Mexico, entered a guilty plea July 26, 2017, and admitted he and his co-conspirators coordinated the importation multi-kilogram loads of marijuana on a monthly basis.
Today, U.S. District Judge Melinda Harmon formally accepted the plea and imposed a 30-year term of imprisonment.
Saldivar-Farias was initially arrested on immigration charges related to his illegal presence in the U.S. in March 2015.
In early 2015, Pedro Perez-Ocampo, 39, of Estado de Guerrero, Mexico, and Osiel Hernandez-Martinez, 29, of Nueva Ciudad Guerrero, Tamaulipas, Mexico, had obtained permission from Saldivar-Farias and paid him the “piso” or “tax” to transport approximately one ton of marijuana from Nueva Ciudad Guerrero, Tamaulipas, Mexico, into the United States across Falcon Lake by boat. On the night of March 12, 2015, they were at the Lake’s shore preparing to load the marijuana onto boats when they encountered Saldivar-Farias. He was fleeing from the Mexican military as they were attempting to capture him. Saldivar-Farias jumped into Hernandez-Martinez’s boat and ordered him to take him across to the United States.
While crossing Falcon Lake, Saldivar-Farias instructed everyone in the boat to lie about his identity in the event they were apprehended, to deny association with the Zetas and to tell U.S. authorities that he was “Carlos Cruz-Jimenez.” Shortly after crossing the lake, law enforcement apprehended the men. At that time, Saldivar-Farias identified himself as “Carlos Cruz-Jimenez” and claimed he traveled to the United States to find employment.
Today, Saldivar-Farias admitted his true identity was Jose Manuel Saldivar-Farias and that he was a Zeta plaza boss and then regional commander of the northern region of Mexico to include the states of Coahuilla, Taumalipas and Nuevo Leon, Mexico, as well as Zapata, Texas. As such, he was in charge of all narcotics moving through the area. Throughout the conspiracy, Saldivar-Farias and other Zeta members and associates, secured, maintained and regulated the transportation routes used to import marijuana from Mexico to the United States across Falcon Lake. Saldivar-Farias charged and collected a “piso” or “tax” for permission to store and transport marijuana and other controlled substances through the transportation routes and areas he controlled. Individuals who did not pay the “piso” or “tax” faced a potential consequence and potentially would be threatened, beaten, kidnapped, tortured or murdered.
To date, 18 defendants have been indicted for their roles in the conspiracy. Fourteen have been convicted, while the remaining four are fugitives.
The FBI and Border Patrol conducted the investigation with the assistance of Drug Enforcement Administration and Texas Department of Public Safety. Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz are prosecuting the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was charged yesterday in federal court in Boston on a federal immigration charge.
Selvin Danilo Herrera-Arana, 33, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, law enforcement officers in Boston discovered Herrera-Arana on July 16, 2017, and determined him to be unlawfully present in the United States. Herrera-Arana was previously deported on July 29, 2014.
Herrera-Arana faces a sentence of no greater than 10 years in prison, no greater than three years of supervised release, a fine of $250,000, and he will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was indicted yesterday in federal court in Boston on a federal immigration charge.
Jary Vincente Valenzuela, 27, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on July 26, 2017, law enforcement officers in Nantucket encountered Valenzuela and determined him to be illegally present in the United States. Valenzuela was previously deported on Aug. 8, 2013.
Valenzuela faces a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former letter carrier from Cleveland Heights sentenced to prison for trafficking cocaineRead the Press Release
A Cleveland Heights woman was sentenced to more than two years in prison for trafficking cocaine.
Rayvonna Taylor, 28, worked as a U.S. Postal Service mail carrier in Cleveland. Between August 2015 and May 2016, she facilitated the delivery of approximately 20 parcels containing cocaine.
Taylor was assigned to various routes on days when the narcotics parcels were delivered. She provided addresses on her route that parcels could be addressed to, then diverting those parcels to a drug dealer in exchange for money, according to court documents.
The case was investigated by the U.S. Postal Service Office of Inspector General and the U.S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation.
Former church administrator pleads guilty to embezzling church fundsRead the Press Release
ATLANTA – Sherie Britton, a former church administrator, has pleaded guilty to embezzling over $315,000 from a church in Clayton County, Georgia.
“Britton took advantage of her access to the congregation’s donations to fund her extravagant personal expenses,” said U. S. Attorney John Horn. “For years she siphoned money away from the church’s charitable work and spent it on everything from clothing to vacations for herself. Stealing from your employer is always a crime, but it is more reprehensible when the money consists of donations for charitable purposes.”
According to U.S. Attorney Horn, the charges and other information presented in court: Britton was the church administrator for a church located in Rex, Georgia. As church administrator, Britton managed a Paypal account that received donations from members of the congregation. These funds were intended to be used for the needs of the church, for civic events, and to help poor members of the community.
Beginning in 2012 and continuing through February 2017, Britton stole over $257,000 in donations from the church’s Paypal account and over $58,000 from the church’s payroll account. Britton then spent the stolen church funds on a variety of personal expenses, including on vacations, clothing, restaurants, and home furnishings. On February 3, 2017, FBI agents interviewed Britton about the transfer of church funds to her personal Paypal account. During that interview, Britton falsely told the agents that she had the permission of the church to transfer these funds and that they were being spent on church-related events.
Sentencing for Sherie Britton, 44, of McDonough, Georgia, is scheduled for November 7, 2017, at 2:30 p.m., before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Searcy Business Owner Sentenced to Prison for False Statement to Social Security AdministrationRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Robert G. Feldt, Special Agent-in-Charge, Social Security Administration(SSA), Office of the Inspector General, announced today that Julie Anna DeLarm, formerly known as Julianna England, 51, appeared before United States District Court Judge Billy Roy Wilson and was sentenced to 24 months in prison for making a false statement to the Social Security Administration.
Julie Anna DeLarm had been approved for Social Security Disability benefits in March 2009. Starting in 2011, she assisted in operating a bakery out of her house in Searcy. In January 2014, the bakery moved to a Searcy storefront called “Tookies.” In March 2014, a Social Security Administration employee who was familiar with DeLarm saw her working at the bakery. In May 2014, DeLarm submitted a “Continuing Disability Review Report” to the SSA that falsely stated that she had not worked since the date of her last medical decision from the SSA.
The sentence imposed yesterday will run consecutive to a sentence she is currently serving for her federal conviction out of California for wire fraud for embezzling more than $360,000 from her employer between 2000-2007. DeLarm was also ordered to pay restitution in the amount of $62,003. Special Agent-in-Charge Robert G. Feldt stated that “the Social Security Administration, Office of the Inspector General, will tirelessly investigate and bring to justice those who commit fraud against Social Security programs.”
This investigation was conducted by SSA-Office of the Inspector General and the Searcy Police Department. Assistant United States Attorney Jana Harris prosecuted the case for the United States.
Former Kentucky State Police Detective Charged with Making False Statements, While Under Oath, During A United States District Court HearingRead the Press Release
Allegedly made false declarations about the destruction of evidence
Eastern District of Kentucky recused from prosecution
LEXINGTON, Ky. – John E. Kuhn, Jr., United States Attorney for the Western District of Kentucky, announced the grand jury indictment of a former Kentucky State Police Detective for making false statements, while under oath, during a United States District Court hearing in Lexington. The statements were made while testifying about the destruction of evidence tied to the prosecution of defendants charged by the United States Attorney for the Eastern District of Kentucky. For that reason, the Eastern District was granted a recusal in this prosecution.
According to the May 18, 2017, grand jury indictment, that was unsealed yesterday before Magistrate Judge Edward B. Atkins, in Lexington, Charles J. Senters, 41, of Manchester, located in Clay County, Kentucky, committed perjury when he made three false statements while testifying during a hearing on a motion to dismiss charges. The hearing was held on July 24, 2014, in U.S. District Court in Lexington.
Senters, while a detective with Kentucky State Police (KSP), participated in the investigation of the murder of Eli Marcum, whose body was found in Clay County, Kentucky, on December 8, 2012. In his official capacity, Senters had custody of physical evidence collected at or near the homicide scene including a yellow telephone cord and a small silver knife.
As lead detective, Senters submitted numerous items of evidence to the Kentucky State Police Lab for DNA testing. On October 1, 2013, Senters destroyed the telephone cord and silver knife without first submitting the items for DNA testing by the KSP Lab. Senters later stated that he had prior permission to destroy the items, from the Clay County Coroner and KSP DNA analyst, and that the two items were of no evidentiary value and should be destroyed.
Defense counsel for the defendants charged in case number 12-CR-59-SS-ART (conspiracy to kill a federal informant; Eli Marcum), alleged that the government had violated the Constitutional Rights of their clients when it (Senters) destroyed evidence that could have proven someone else committed the murder of Marcum.
Senters testified that he had permission to destroy the evidence from the Clay County Coroner, the KSP DNA analyst, and that a supervisor witnessed him throwing the evidence away – when, in fact, these were materially false statements, according to the indictment, and were made while under oath.
If convicted at trial, Senters could be sentenced to no more than 15 years in prison, serve a three year period of supervised release and pay a $750,000 fine. After making a first appearance yesterday afternoon, Senters was released on bond. His trial is scheduled before U .S. District Judge Karen Caldwell on October 16, 2017, in Lexington.
This case is being prosecuted by Assistant United States Attorneys Randy Ream and Marisa J. Ford, and the investigation is being conducted by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
senters_indictment.pdf
Former Coralville Lawyer Sentenced for Mail FraudRead the Press Release
DAVENPORT, IA – On August 11, 2017, Dennis A. Bjorklund, 52, a former attorney from Coralville, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to 30 months in prison after pleading guilty to 11 counts of mail fraud, announced United States Attorney Kevin E. VanderSchel. Bjorklund was ordered to serve three years of supervised release, pay $10,000 in restitution, and pay $1,100 to the Crime Victims’ Fund. Bjorklund was originally indicted in April of 2010, and has remained in custody after being arrested in Colorado on April 16, 2015.
Bjorklund was an attorney with a law office in Coralville, Iowa. The Iowa Supreme Court revoked his law license in December of 2005. As part of his former legal practice, Bjorklund provided legal representation to multiple clients on state Operating While Intoxicated (OWI) charges. Bjorklund met with OWI clients, discussed costs and provided legal advice from August of 2005 to January of 2006. As part of both written and verbal OWI discussions, Bjorklund would direct and counsel clients that in order to obtain a more favorable resolution of pending OWI charges, the clients should make a voluntary contribution to a charity named “Re-Adapt.”
Re-Adapt was an alleged substance abuse charity created by Bjorklund. Bjorklund created a scheme to defraud these OWI clients to make charitable donations under the false expectation of receiving a more favorable disposition on their criminal charges. Bjorklund irected another person to open a post office box under the name of Re-Adapt, file articles of incorporation, and opened a bank account in Wisconsin to deposit the charitable donations.
Bjorklund would then solicit charitable donations by his false and fraudulent representations to these clients that a more favorable sentence would result from a charitable contribution to Re-Adapt. These donations were then mailed to the post office box and deposited in the Wisconsin bank account. Bjorklund concealed the material fact that Re-Adapt was in fact, Bjorklund.
As a result, from August of 2005 to January of 2006, multiple victims agreed to have Bjorklund represent them on OWI charges, and as part of the agreement, donated between $100 to $500 to Re-Adapt. In August of 2006, Bjorklund caused checks written and drawn on the Wisconsin Re-Adapt bank account to be paid to McKinley Building LLC and Bjorklund Law LLC, effectively withdrawing the paid charitable donations to entities owned and controlled by Bjorklund.
The Federal Bureau of Investigations, Internal Revenue Service - Criminal Investigation Division, and Coralville Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Former City of Nashua Volunteer Pleads Guilty to Fraudulent Use of a Social Security NumberRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dana Michelle Lawrence, 43, of Nashua pleaded guilty to fraudulent use of social security number.
According to court documents, in 2006, Lawrence was sentenced in a Rhode Island state court to a one-year period of incarceration followed by nine years of probation for a theft offense. Shortly after Lawrence completed the prison sentence, she absconded from supervision and a warrant was ultimately issued for her arrest.
In November 2016, Lawrence, using the alias “Genevieve Kaplan,” began working as a volunteer for the City of Nashua, preparing grant applications. On May 7, 2017, the Nashua Police Department (NPD) and FBI were told that “Kaplan” tried to obtain routing numbers and account numbers for bank accounts that belonged to the City.
While investigating the matter, the NPD and FBI obtained a copy of a lease application that “Kaplan” had used to rent an apartment in Nashua. On the application, “Kaplan” used a different first name, “Genna,” and a social security number assigned to another person. While searching “Kaplan’s” Nashua apartment, the NPD and FBI found documents that contained different names, addresses, dates of births, and social security numbers.
Sentencing is scheduled for November 28, 2017.
The Federal Bureau of Investigation, Social Security Administration, Office of Inspector General, and the Nashua Police Department investigated the case.
Assistant United States Attorneys Anna Dronzek and Robert Kinsella are prosecuting the case.
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Former Bibb County School District Superintendent Romain Dallemand Enters Guilty Plea in Federal Court to Felony Tax ChargesRead the Press Release
The United States Attorney for the Middle District of Georgia, G. F. Peterman, III, announced that, on Wednesday, August 9, 2017, former Bibb County School District Superintendent Romain Dallemand, age 49, of Naples, Florida, entered his guilty plea to a one-count information charging him with filing a false tax return, in violation of Title 26, United States Code, Section 7206(1) in the United States District Court for the Middle District of Florida, Fort Myers Division. The statutory maximum sentence authorized for filing a false tax return is three years in federal prison. A sentencing date has not been scheduled.
In his plea agreement, Mr. Dallemand admitted, among other things, that on or about May 8, 2014, he signed and submitted to the Internal Revenue Service a false United States Individual Income Tax Return Form 1040 for the tax year 2012 from his residence in Naples, Florida. In his 2012 Form 1040, Dallemand both under-reported his income and over-reported his itemized deductions. Of note, Mr. Dallemand failed to report an unauthorized $100,000 payment which was intended to influence Mr. Dallemand to perform, and to continue to perform, certain actions in his official capacity while he served as the Superintendent of the Bibb County School District.
Given the fact that Mr. Dallemand submitted his false 2012 tax return from his residence in Naples, Florida, venue for this charge is proper in the United States District Court for the Middle District of Florida. Two federal prosecutors from the Middle District of Georgia, based in Macon, were given specific authorization to prosecute this case before the United States District Court for the Middle District of Florida.
“This plea is the result of a long standing and ongoing investigation into activities involving the Bibb County School District during and after the period when Mr. Dallemand served as the Superintendent. While this investigation has been conducted by authorities of the Middle District of Georgia, I want to acknowledge the cooperation and assistance of the Acting United States Attorney for the Middle District of Florida, Stephen Muldrow, and especially his staff in the Fort Myers Division of that office, in the prosecution of this case,” said United States Attorney Peterman.
This case was investigated by the Federal Bureau of Investigation, Macon Resident Agency and the Internal Revenue Service, Criminal Investigation, Macon Office. Assistant U.S. Attorneys for the Middle District of Georgia Beth Howard and Danial Bennett, designated as Special Assistant U.S. Attorneys for the Middle District of Florida, are prosecuting the case for the Government.
Florida Resident Charged with Stealing Federal Student Aid Funds and Aggravated Identity TheftRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROMAN WILLIAMS, age 36, of Pensacola, Florida, was charged yesterday in a two-count Bill of Information with theft of government funds and aggravated identity theft.
According to court documents, WILLIAMS falsified federal student loan applications using stolen identities and then used the stolen student aid monies for his own personal use.
The maximum penalty for theft of government funds is ten years imprisonment, followed by up to 3 years of supervised release, a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person, and a $100 special assessment.
The maximum penalty for aggravated identity theft is a two-year consecutive term of imprisonment, followed by up to one year of supervised release, a fine of $250,000 or the greater of twice the gross gain to defendant or twice the gross loss to any person, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Department of Education, Office of the Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Five Plead Guilty in Multi-State Dog Fighting ProsecutionRead the Press Release
Four defendants pleaded guilty today and yesterday to federal charges for their roles in an inter-state dog fighting network spanning from New Mexico to New Jersey, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, and Acting United States Attorney for the District of New Jersey William E. Fitzpatrick. A fifth defendant pleaded guilty in June. U.S. District Judge Mary L. Cooper in Trenton accepted the following pleas:
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Anthony “Monte” Gaines, 36, of Vineland, New Jersey, a/k/a “Whiteboy,” pleaded guilty yesterday to two felony counts of conspiracy to buy, sell, receive, transport, deliver, and possess dogs intended for use in an animal fighting venture, and one felony count of possessing a dog intended for use in an animal fighting venture.
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Lydell Harris, 32, of Vineland, New Jersey, a/k/a “Sinn,” pleaded guilty yesterday to one felony count of conspiracy to sponsor or exhibit a dog in an animal fighting venture, and one felony count of possessing a dog intended for use in an animal fighting venture.
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Frank Nichols, 40, of Millville, New Jersey, pleaded guilty today to one felony count of conspiracy to transport, deliver and receive dogs intended for use in an animal fighting venture, and one felony count of possessing a stolen firearm subsequent to a felony conviction.
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Pedro Cuellar, 47, of Willow Springs, Illinois, pleaded guilty today to one felony count of conspiracy to transport, deliver, and receive dogs intended for use in an animal fighting venture.
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Mario Atkinson, 42, of Asbury Park, New Jersey, pleaded guilty on June 15, 2017 before Judge Anne E. Thompson in U.S. District Court in Trenton to one count of sponsoring or exhibiting a dog in an animal fighting venture, and one count of possessing a dog intended for use in an animal fighting venture.
Nichols and Harris pleaded guilty to indictments. Gaines, Cuellar, and Atkinson were charged with Bills of Information. Charges remain pending against four defendants.
According to court documents filed in connection with the cases, from October 2015 through June 1, 2016, the pleading defendants and their co-defendants and associates fought dogs – including to the death – and trafficked in dogs with other dog fighters in Indiana, Illinois, New Mexico, and elsewhere so that those dogs could be used in dog fights. They also maintained fighting dogs and dog fighting equipment such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. Agents found canine blood on the floor, walls, and ceiling of the basement of one defendant’s residence, indicating that the area was likely used as a dog fighting pit. Among other acts involved in the charges, one of the pleading defendants admitted that his dog died in his car on the way home after losing a dog fight.
“Justice is being delivered in these cases,” said Acting Assistant Attorney General Wood. “Ending animal fighting ventures and other inhumane practices depends upon the hard work of investigators and lawyers like those who brought these cases, and will also require continued partnership with federal, state, and local law enforcement agencies. Our Division is proud to be a leader in this worthy cause. We also applaud the work of the Humane Society in partnering with us to provide hope of recovery for the abused animals."
“The criminal conduct speaks to the cruel conditions in which these animals live,” Acting U.S. Attorney Fitzpatrick said. “This office, along with our law enforcement partners and the Humane Society, is working to end this illegal activity and punish those who abuse animals for their own enjoyment.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent-in-Charge Bethanne M. Dinkins of the U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Each animal fighting charge carries a maximum sentence of five years in prison and a $250,000 fine. The weapons charge against defendant Nichols carries a maximum sentence of ten years in prison and a $250,000 fine. The investigation is ongoing.
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Edwardsville/Glen Carbon/Springfield Bank Robber Pleads GuiltyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Adrianna C. Frye-Williamson, 21, Springfield, Illinois, pled guilty today to three bank robberies she committed in Illinois between January 12 and February 9, 2017. The first bank robbery occurred in Springfield on January 12, the second occurred in Edwardsville on January 20, and the third occurred in Glen Carbon on February 9, 2017. Frye-Williamson faces up to 20 years’ imprisonment, three years’ supervised release, a $250,000 fine, and a $100 special assessment on each count. Restitution is mandatory.
According to court documents, on January 12, 2017, Frye-Williamson, wearing a hat and sunglasses, entered the Illini Bank in Springfield and presented a note that stated, "This is a robbery. I have a bomb strapped to me. Large bills only," or words similar as described by the teller. On January 20, 2017, Frye-Williamson, wearing a hooded sweatshirt and sunglasses, entered the National Bank in Edwardsville and presented a note reading, "This is a robbery. I have a gun – BIG BILLS ONLY." On February 9, 2017, Frye-Williamson, wearing a baseball cap, entered the U.S. Bank in Glen Carbon and presented a note indicating that she was committing a robbery and had a gun. The tellers complied in each robbery by handing over money from their teller drawers. The banks were insured by the FDIC at the time of the robberies.
Law enforcement arrested Frye-Williamson on February 10, 2017, in Springfield. During a search of her car, the baseball cap worn by Frye-Williamson during the U.S. Bank robbery, and a note that read, "This is a robbery [sic] I have a gun," were located. Law enforcement recovered some of the stolen money during a search of Frye-Williamson’s home. Following advice of rights, Frye-Williamson acknowledged committing the bank robberies.
Information leading to the charges against Frye-Williamson was obtained in an investigation conducted by the Federal Bureau of Investigation. Sentencing is scheduled for November 2, 2017.
Drug Trafficker Sentenced to 37 Years in Prison for Supplying Heroin to Chicago’s West Side and Murdering a Federal InformantRead the Press Release
CHICAGO — A federal judge has sentenced a violent drug trafficker to 37 years in prison for supplying large amounts of heroin to Chicago’s West Side and murdering a friend who cooperated with law enforcement.
For seven years DAVID PRICE operated a violent drug operation responsible for supplying more than 90 kilograms of heroin to numerous open-air markets. Price used his drug proceeds to fund a lavish lifestyle that included luxury homes in Chicago and the suburbs, high-end vehicles, diamond jewelry and designer fashion. He ruthlessly protected his heroin operation through violence, including by personally murdering a former business partner who cooperated with law enforcement. Price also ordered the murder of another former drug partner, who was shot but survived and testified against Price at trial.
A federal jury in 2014 convicted Price, 38, of Brookfield, on all 13 counts against him, including charges of heroin conspiracy, money laundering and illegally possessing an Uzi-style, semi-automatic pistol with an extended magazine. U.S. District Judge Harry D. Leinenweber imposed the sentence Thursday in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and Eddie T. Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Woodridge Police Department and the DuPage County Major Crimes Task Force.
“Defendant’s senseless violence was motivated by greed and his love for money,” Assistant U.S. Attorneys Angel M. Krull and Erik Hogstrom argued in the government’s sentencing memorandum. “Defendant is a lifelong criminal, becoming a millionaire by pushing heroin on a suffering community, and putting money, power, and unspeakable violence above his family, above his childhood friends, above his community, and above everything.”
Evidence at trial showed that Price ran the heroin distribution ring from 2005 through 2011. Price used the profits to purchase or lease luxury residences, including a high-rise apartment on South Michigan Avenue in Chicago and homes in Naperville, Country Club Hills, Bolingbrook, Lombard, Darien and Brookfield. Price also owned numerous vehicles, including a Chevrolet Corvette and a Harley-Davidson “Touring” motorcycle.
Price and others involved in the conspiracy used an apartment in the Austin neighborhood to mix heroin with a sleeping pill and package it for sale on the street. Price then “fronted” wholesale quantities of the drug to be sold at locations on the West Side of Chicago, including at open-air drug markets in various neighborhoods. Price shared the profits with supervisors of those locations.
Evidence at trial established that one of the supervisors, James Brown, 35, of Chicago, was wounded in a shooting ordered by Price. Price directed two members of his crew to shoot and kill Brown on Jan. 25, 2008, because Price believed Brown was cooperating with law enforcement. Brown survived the shooting and testified against Price at trial.
After hearing two days of evidence during the sentencing hearing, Judge Leinenweber found that, in addition to ordering Brown’s shooting, Price also personally murdered Greg Holden, a lifelong friend and business partner who cooperated with law enforcement. On Dec. 8, 2011, Price broke into Holden’s apartment in Woodridge and shot him approximately 20 times while Holden was home with his two young daughters.
The federal investigation resulted in the convictions of several other conspirators, including Price’s cousin, KEITH CARR, 35, of Chicago. Carr was sentenced in 2016 to 20 years in prison. Two others, RASHID BOUNDS and CHRISTOPHER SAUNDERS, were convicted at trial and are serving prison terms of 17 and a half years apiece.
District Man Sentenced to 30 Years in Prison for Sexually Assaulting Woman in Southwest WashingtonRead the Press Release
WASHINGTON – Kevin Thompson, 28, of Washington, D.C., was sentenced today to 30 years in prison for forcing and abducting a woman off a street in Southwest Washington and sexually assaulting her, U.S. Attorney Channing D. Phillips announced.
Thompson was found guilty by a jury in May 2017 of first-degree sexual abuse, third-degree sexual abuse, and kidnapping. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Hiram E. Puig-Lugo. Following his prison term, Thompson will be placed on supervised release for the rest of his life.
According to the government’s evidence, on Aug. 22, 2016, at approximately 11 p.m., the victim had just left work and was walking in the area of the 4800 block of 1st Street SW when Thompson walked up to her. Thompson, a stranger, approached and asked if she remembered him. She told him “no” and to leave her alone. She pulled out her phone in an attempt to deter him, but Thompson kept following her.
As the woman continued down the street, Thompson grabbed her by the shirt and hair and dragged her into a wooded area and, ultimately, to the bottom of a trash-filled ditch. She repeatedly screamed, but, unfortunately, no one could hear her. Thompson then forcibly sexually assaulted her. As she testified at trial, as Thompson inflicted one assault after another on her, she thought that it was her “last day on earth.” But in a moment when Thompson was distracted, she ran away and made it to safety. The victim called 911. Officers with the Metropolitan Police Department (MPD) quickly located Thompson in the area and arrested him. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Division; Assistant U.S. Attorney Mark Aziz; Paralegal Specialists Michelle Wicker, Angelina Slagle and T.J. McPhail; Litigation Technology Specialist Anisha Bhatia, and Victim/Witness Advocates Tracy Owusu and Tracey Hawkins. Finally, he commended the work of Assistant U.S. Attorney Danny Nguyen, who investigated and indicted the case, and Assistant U.S. Attorneys Julianne Johnston and Kathleen “Katie” Kern, who investigated the case and prosecuted it at trial.
Des Moines Woman Sentenced to Prison & Ordered to Pay Restitution for Embezzling from Bankers TrustRead the Press Release
DES MOINES, IA – On August 10, 2017, Lacey M. Nicolino, 34, of Des Moines, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to five months in federal prison for embezzlement by a bank employee, announced United States Attorney Kevin E. VanderSchel. Nicolino will serve five years of supervised release following her imprisonment, including five months of home confinement, pay $100 to the Crime Victims’ Fund, and pay $69,996 in restitution to Bankers Trust.
Nicolino pleaded guilty to this charge on March 30, 2017. According to the plea agreement, Nicolino was a cash vault teller employed by Bankers Trust in Des Moines. Nicolino’s teller duty was to accurately count and report deposits made by various commercial depositors with Bankers Trust. Nicolino was responsible for the nearly daily cash deposits to the Des Moines Area Regional Transit Authority (DART) account.
Beginning on or about December 15, 2015, and continuing through on or about June 16, 2016, Nicolino frequently underreported cash actually present in DART deposits. Nicolino then removed the excess, unreported funds from the vault, and used it for personal expenses. Nicolino under credited DART’s deposit account by $34,600.
Nicolino also took other funds belonging to Bankers Trust from the vault during this same time. These funds had already been accurately processed into the bank computer system, and, therefore did not impact the accounts of any depositors.
Upon discovery of Nicolino’s conduct, Bankers Trust notified DART and fully compensated their account. Accordingly, Nicolino’s conduct resulted in a monetary loss to Bankers Trust of $69,996. In committing this crime, Nicolino manipulated a deposit process unique to the DART account. Bankers Trust subsequently changed the process to prevent similar crimes from occurring in the future.
The Federal Bureau of Investigation conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Del Rio Resident Receives Lengthy Prison Sentence for Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On August 10, 2017, Ricky Dale Munsey, 48, of Del Rio, Tennessee, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Court Judge, to serve 262 months in federal prison following a conviction for his role in a conspiracy to distribute methamphetamine in the Eastern District of Tennessee.
According to the plea agreement on file with the U.S. District Court, Munsey admitted that he was responsible for at least 4.5 kilograms of actual methamphetamine.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Morristown Police Department and Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Defendants Plead Guilty in Multi-State Dog Fighting ProsecutionRead the Press Release
New Jersey and Chicago-Area Defendants Convicted as Part of Operation Grand Champion
TRENTON, N.J. – Four men have admitted their respective roles in an interstate dog fighting network spanning from New Mexico to New Jersey, Acting U.S. Attorney William E. Fitzpatrick, District of New Jersey, and Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, announced today.
The four defendants, arrested and charged as part of a coordinated effort across numerous federal judicial districts to combat organized dog fighting, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court:
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Frank Nichols, 40, of Millville, New Jersey, pleaded guilty today to one felony count of conspiracy to transport, deliver and receive dogs intended for use in an animal fighting venture, and one felony count of possessing a stolen firearm subsequent to a felony conviction.
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Pedro Cuellar, 47, of Willow Springs, Illinois, pleaded guilty today to one felony count of conspiracy to transport, deliver, and receive dogs intended for use in an animal fighting venture.
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Anthony “Monte” Gaines, 36, of Vineland, New Jersey, a/k/a “Whiteboy,” pleaded guilty yesterday to two felony counts of conspiracy to buy, sell, receive, transport, deliver, and possess dogs intended for use in an animal fighting venture, and one felony count of possessing a dog intended for use in an animal fighting venture.
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Lydell Harris, 32, of Vineland, New Jersey, a/k/a “Sinn,” pleaded guilty yesterday to one felony count of conspiracy to sponsor or exhibit a dog in an animal fighting venture, and one felony count of possessing a dog intended for use in an animal fighting venture.
A fifth defendant, Mario Atkinson, 42, of Asbury Park, New Jersey, pleaded guilty on June 15, 2017, before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of sponsoring or exhibiting a dog in an animal fighting venture, and one count of possessing a dog intended for use in an animal fighting venture. Nichols and Harris pleaded guilty to indictments. Gaines, Cuellar, and Atkinson pleaded guilty to informations. Charges remain pending against four defendants.
According to court documents filed in these cases and statements made in court:
From October 2015 through June 1, 2016, the defendants who pleaded guilty and their co-defendants and associates participated in dog fights – including to the death – and trafficked in dogs with other dog fighters in New Jersey, Indiana, Illinois, New Mexico, and elsewhere so that those dogs could be used in fights. They also maintained fighting dogs and dog fighting equipment, such as treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. Agents found canine blood on the floor, walls, and ceiling of the basement of one defendant’s residence, indicating that the area was likely used as a dog fighting pit. One of the defendants admitted that his dog died in his car on the way home after losing a dog fight.
“The criminal conduct speaks to the cruel conditions in which these animals live,” Acting U.S. Attorney Fitzpatrick said. “This office, along with our law enforcement partners and the Humane Society, is working to end this illegal activity and punish those who abuse animals for their own enjoyment.”
“Justice is being delivered in these cases,” Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division said. “Ending animal fighting ventures and other inhumane practices depends upon the hard work of investigators and lawyers like those who brought these cases, and will also require continued partnership with federal, state, and local law enforcement agencies. Our Division is proud to be a leader in this worthy cause. We also applaud the work of the Humane Society in partnering with us to provide hope of recovery for the abused animals."
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent-in-Charge Bethanne M. Dinkins, U.S. Department of Agriculture - Office of Inspector General, said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
The charges are part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
Each animal fighting charge carries a maximum sentence of five years in prison and a $250,000 fine. The weapons charge against defendant Nichols carries a maximum sentence of ten years in prison and a $250,000 fine. Sentencing for Nichols and Cuellar is scheduled for Nov. 29, 2017. Sentencing for Gaines and Harris is scheduled for Nov. 28, 2017. Sentencing for Atkinson is scheduled for Oct. 3, 2017. All sentencings are before Judge Thompson.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary, District of New Jersey, and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
The investigation by the U.S. Department of Agriculture - Office of Inspector General; the U.S. Department of Homeland Security - Homeland Security Investigations; and the FBI is ongoing.
Nichols: Michael Calabro Esq., Newark
Cuellar: Joseph Rotella Esq., Newark
Harris: Herbert Waldman Esq., Springfield, New Jersey
Gaines: Vincent LaPaglia Esq., Hoboken, New Jersey
Atkinson: Christopher D. Adams Esq., Holmdel, New Jersey
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Dallas Woman Pleads Guilty to Disaster Fraud after May 2013 Moore TornadoRead the Press Release
Oklahoma City, Oklahoma –dorothy d. barney, 58, of Dallas, Texas, pled guilty today before United States District Court Judge Stephen P. Friot to disaster fraud for her claim for federal assistance after the May 2013 tornado in Moore, Oklahoma, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
A devastating tornado hit Moore on May 20, 2013. Later that day, the President issued a disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which provides for assistance administered by the Federal Emergency Management Agency ("FEMA"). Today Barney admitted in court that on June 5, 2013, she used the name, date of birth, and Social Security number of another person on an application for FEMA assistance related to a purportedly damaged property at 854 S.W. 10th Street in Moore. She also admitted that she did not have the other person’s permission to complete the FEMA application and that neither she nor the other person ever lived at that address. According to Barney, she forged the other person’s signature on FEMA forms and then e-mailed them to a FEMA investigator in support of the false application. A federal grand jury indicted her on December 6, 2016.
Sentencing will take place in approximately 90 days. Barney faces up to 30 years in prison, five years of supervised release, a $250,000 fine, and $14,974.83 in restitution to FEMA.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General. Assistant U.S. Attorney Amanda Maxfield Green is prosecuting the case.
The public may report suspected disaster benefits fraud by contacting the Department of Homeland Security, Office of Inspector General (www.oig.dhs.gov or 1-800-323-8603) or by calling the Disaster Fraud Hotline at 1-866-720-5721.
Chicago Area Man Sentenced for Nationwide Scam Involving Five Victims in WisconsinRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 9, 2017, Gregory J. Kuczora (age: 55) of Elgin, Illinois, was sentenced to 70 months in federal prison for wire fraud, in violation of Title 18, United States Code, Section 1343/
The Green Bay branch of the Federal Bureau of Investigation began looking into Kuczora’s activities after it learned that several residents of Marinette County had paid Kuczora approximately $100,000 in up-front fees in exchange for “guaranteed” business loans. To carry out his scheme, Kuczora set up a sham corporation known as “Kensington Capital Partners,” which Kuczora represented was based in London, England. In reality, Kensington Capitol Partners’ address in London was a rented mailbox that forwarded all correspondence to Kuczora at his Elgin, Illinois home. Kuczora also created a website for Kensington Capital Partners that made lofty claims that Kuczora had funded billions of dollars in loans in a dozen countries; the FBI investigation failed to locate a single successful loan involving Kuczora.
The FBI’s investigation revealed that Kuczora defrauded 68 individuals of approximately $1.2 million operating under the names “Kensington Capital Partners,” “KCS Financial,” and “Alliance Capital Banc.” Kuczora used the money to pay his family’s living expenses, including the purchase of new vehicles, horses, a lavish salary and bonuses. The investigations also revealed that Kuczora underpaid approximately $200,000 in federal income taxes during this time.
Chief Judge William C. Griesbach heard from numerous victims of Kuczora’s fraud. The victims detailed the effects of Kuczora’s crimes including several who lost their businesses or business opportunities, and one who ended up homeless. Judge Griesbach called Kuczora’s actions “severe” and noted that Kuczora’s expression of remorse was largely focused on himself. The judge found a strong need to protect the public from Kuczora and was convinced that without substantial punishment, the defendant would continue his illegal behavior. Ultimately, the judge rejected Kuczora’s request for probation, and instead declared it the exceptional case requiring incarceration beyond even established federal guidelines. The court also ordered 3 years of supervised release and ordered Kuczora to pay full restitution to his victims.
This case was investigated by the Federal Bureau of Investigation and the Marinette County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Matthew D. Krueger and Daniel R. Humble.
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For further information contact:
Public Information Officer Dean Puschnig
(414) 297-1700
Cell phone store robbers convicted in federal courtRead the Press Release
Robbery team terrorized stores around the Midwest.
PRESS RELEASE
New Albany – United States Attorney Josh J. Minkler announced today a jury in New Albany, Indiana, convicted two Northern Illinois men for a series of cell phone store robberies. Jeffrey A. Kemp, 41, Dolton, Illinois, and Lawrence D Adkinson, 28, Hazel Crest, Illinois, were convicted in federal court before U. S. District Judge Tanya Walton Pratt for their roles as ringleaders of a group of armed robbers who wreaked havoc across the upper Midwest in the summer and fall of 2015. The defendants were convicted of conspiracy to commit robbery, conspiracy to brandish a firearm in furtherance of a crime of violence, robbery, and brandishing a firearm in furtherance of a crime of violence.
“This group used violence to terrorize retail store employees around the Midwest,” said Minkler. “Putting the safety of shoppers, employees and law enforcement in jeopardy will never be tolerated. They will now be held accountable.”
The investigation began when a T-Mobile store in Clarksville, Indiana, and a Verizon store in Lexington, Kentucky, were robbed at gun point on successive days in July 2015. The investigation led by the FBI and a coalition of state and local law enforcement agencies and offices determined that Kemp and Adkinson led a group of ten men who committed armed robberies of cell phone retailers in various cities and towns in Illinois, including Joliet, Bloomington, Batavia, and DeKalb, and in St. Louis, Missouri, and Waterloo, Iowa, in addition to those in Clarksville, Indiana, and Lexington, Kentucky. The defendants were ultimately arrested in Iowa, while still in possession of phones stolen from many of the other locations.
The robberies were violent in nature. The robbers often held firearms to the faces of the victims before ultimately restraining them in the back rooms of the retail stores. Kemp and Adkinson, as the leaders of the group, provided all the vehicles, guns, and other instrumentalities of the robberies, selected all of the stores to be robbed, and decided who would rob each store. The other eight defendants have all pled guilty for their roles in the offenses.
"These men victimized the Midwest over the course of four months, traumatizing employees who were simply trying to do their jobs and had no idea their 'customers' were really violent criminals out do to them harm," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "This conviction is a testament to the dedication of our agents and our partners whose hard work on this investigation ensured this group is no longer a threat to the community."
According to Assistant United States Attorneys Bradley Shepard and Pamela Domash who prosecuted this case for the government, both defendants face up to life in prison at sentencing. No sentencing date has been set by the court.
Brooklyn Man Sentenced to 10 Years’ Imprisonment for 11 Robberies of Cell Phone Stores in Brooklyn and QueensRead the Press Release
Earlier today at the federal courthouse in Brooklyn, United States District Judge LaShann DeArcy Hall sentenced the defendant Arthur Sam to 10 years’ imprisonment for his role in 11 robberies of cell phone stores in Brooklyn and Queens. Sam, also known as “16,” had previously pled to Hobbs Act robbery conspiracy. The sentence also included a term of three years of supervised release and $304,179 in restitution.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, New York Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
According to court filings, between April 15, 2015 and December 8, 2015, members of Sam’s robbery crew restrained and threatened store employees and customers by pretending to have a firearm or brandishing an imitation firearm. The co-conspirators then fled on foot or to a waiting vehicle, which on one occasion resulted in a high-speed chase and a car crash. Sam used, among others, teenage minors to commit these robberies while he watched nearby from inside his BMW sedan. During the commission of some of the robberies, Sam maintained telephone contact with the participants so he could monitor what was occurring inside the store. Sam and his co-conspirators stole cell telephones and other merchandise with a total value of more than $300,000 from the stores. Four other members of Sam’s crew who pled guilty in this matter remain to be sentenced.
“As charged, Arthur Sam and his co-conspirators committed numerous robberies of cell phone stores in Brooklyn and Queens, terrifying employees and customers alike,” stated Acting United States Attorney Rohde. “Through the cooperative efforts of federal and local law enforcement, we have brought Sam to justice and will be vigilant in pursuing others who would place our community in fear.”
“Arthur Sam ran an organized robbery crew responsible for the theft of approximately $300,000 in cell phones and other electronics from nearly a dozen stores over a four-month period in 2015,” stated ATF Special Agent-in-Charge Benedict. “The stolen items would be sold to an intermediary who would send them overseas. These thefts all occurred under the threat of force while crew members brandished imitation firearms, and with Sam carefully monitoring and orchestrating the brazen robberies as they occurred. All members of the conspiracy have pled guilty and Sam is the first to be sentenced. His sentence today sends a powerful message that violent crime and threats of force will not be tolerated. I would like to extend my gratitude to the ATF special agents, NYPD detectives, and prosecutors for their hard work on this investigation.”
“The defendant in this case recruited teenage accomplices and committed about a dozen robberies in Brooklyn and Queens in 2015,” stated NYPD Commissioner O’Neill. “Numerous victims were made to fear for their lives as the cellphone stores where they worked were held up by these perpetrators, who simulated firearms or displayed imitation pistols. I want to thank the members of the NYPD and its partners who worked to make the arrests and secure the guilty pleas in order to bring today’s sentencing.”
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Nomi D. Berenson and David Gopstein are in charge of the prosecution.
The Defendant:
ARTHUR SAM (“16”)
Age: 37
Residence: Brooklyn, New York
E.D.N.Y. Docket No. 16-CR-21 (S-1) (LDH)
Brockton Man Charged with Federal Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man was indicted yesterday in federal court in Boston on firearm and drug charges.
Douglas Norris, 38, was charged with one count of being a felon in possession of a firearm and one count of possession with intent to distribute cocaine. Norris is prohibited from possessing a firearm based on a prior 2005 conviction.
According to court documents, on June 20, 2017, law enforcement officers executed a search warrant at Norris’ home where they recovered a backpack containing bags of cocaine/cocaine base, various rounds of assorted ammunition and a loaded Smith & Wesson, model 6906, 9 mm pistol.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of no greater than 20 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 on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Robert E. Richardson of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Charged with Federal Firearm OffenseRead the Press Release
BOSTON – A Brockton man was indicted yesterday in federal court in Boston on a firearm charge.
David Upshaw, 33, was indicted on one count of being a felon in possession of a firearm and ammunition. Upshaw is prohibited from possessing a firearm based on a prior conviction in Plymouth County Superior Court.
According to court documents, on various days in April and May 2017, law enforcement officers in Brockton and Taunton responded to a number of calls reporting shots fired. After conducting surveillance in the locations where shots were reported, law enforcement stopped a vehicle in which Upshaw was in the passenger seat. During the stop, officers found a Glock, model 22, .40 caliber semi-automatic pistol and .40 caliber ammunition.
The charging statute provides for a mandatory minimum sentence of 15 years and up to a lifetime in prison, no greater than five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Robert E. Richardson of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Algiers Woman Indicted for Theft of Nearly $300,000 in Social Security FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PAMELA THOMPSON, age 62, of Algiers, was charged yesterday in a one-count Indictment with Theft of Government Funds.
According to the Indictment, THOMPSON had continued to receive her mother’s Social Security Administration (“SSA”) benefits after her mother’s death 2008. SSA determined that the $2,973.20 monthly benefits for THOMPSON’s mother were deposited directly into her bank account. The investigation revealed that THOMPSON had access to her mother’s account and spent $297,325.70 in SSA benefits that were intended for her mother.
Acting U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, THOPMSON faces a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.
Acting U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution
Albuquerque Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Marcos Montoya, Jr., 29, of Albuquerque, N.M., was sentenced today in federal court to 66 months in prison followed by five years of supervised release for his conviction on a methamphetamine trafficking charge.
Montoya was arrested in Dec. 2015, on a two-count indictment charging him with possession of methamphetamine with intent to distribute on Feb. 20, 2015, and maintaining a place for the purpose of storing, distributing and using methamphetamine and marijuana from Dec. 2014 through Feb. 20, 2015. According to the indictment, Montoya committed the crimes in Bernalillo County, N.M.
On Jan. 17, 2017, Montoya pled guilty to possession of methamphetamine with intent to distribute, and admitted that on Feb. 20, 2015, he possessed methamphetamine, which he intended to distribute to others. Montoya also admitted storing most of the methamphetamine in a storage locker, but selling some of the drugs out of his house in Bernalillo County.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Letitia C. Simms.
Academy Medical, LLC and its Owners to Pay $335,000 to Resolve False Claims Act LiabilityRead the Press Release
ALBANY, NEW YORK – West Palm Beach, Florida-based government contractor Academy Medical, LLC (Academy) and its owners, Edward D. Desser and Daniel M. Shaw, have agreed to pay $335,000 to resolve allegations that they took advantage of federal contracting opportunities reserved for certified service-disabled veteran-owned small businesses (SDVOSBs), announced Acting United States Attorney Grant C. Jaquith. During the time at issue, Academy was not a SDVOSB.
“We will continue to hold accountable individuals and entities who defraud federal programs and take opportunities away from our nation’s service-disabled veterans,” said Acting United States Attorney Jaquith. “Settlements like this one help to ensure the integrity of programs designed to help our wounded warriors succeed in starting and growing small businesses.”
The United States has long used government contracting to promote small businesses in general, and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with SDVOSBs. To be eligible for these contracts, an applicant must qualify as a small business. In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that Academy exploited the SDVOSB certification of a service-disabled veteran to profit from VA contracting opportunities that Academy would not have qualified for on its own. To do this, Academy prepared teaming and other business agreements for the parties to sign. Before Academy signed the documents, however, it was specifically warned that the veteran must have tangible and substantive tasks to perform in their relationship and must not act as a “pass-through” for Academy. Rather than heed that warning, Academy structured its dealings with the veteran so as to relegate the veteran to the role of a pass through. For example, an Academy employee prepared and submitted a bid to the VA in the name of the veteran’s company. After the VA awarded that contract to the veteran as a SDVOSB set-aside, Academy arranged to procure the goods for the VA from a third party. When the VA paid the veteran under the contract, an Academy employee (who was also a signatory on the veteran’s bank account) transferred that money to Academy. Academy, Desser, and Shaw each admitted in the settlement agreement that their conduct violated federal regulations designed to encourage contract awards to SDVOSBs.
“There are significant consequences to those who wrongfully obtain benefits from the Small Business Administration’s (SBA) preferential contracting programs,” said Acting Inspector General Hannibal “Mike” Ware. “It is particularly troubling when opportunities set aside for our nation’s service disabled veterans are involved. I want to thank the Department of Justice for its leadership and dedication to serving justice in this case.”
SBA General Counsel Christopher M. Pilkerton said: “This case is yet another example of the tremendous results achieved through the joint efforts of the SBA and the Department of Justice to uncover and forcefully respond to civil fraud committed by a participant in a Federal Government contracting program such as the Service-Disabled Veteran-Owned Small Business Concern Program. Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs is one of SBA’s top priorities.”
“This civil settlement should send a clear message to individuals who exploit opportunities meant to support our nation’s veterans,” said Michael J. Missal, Inspector General for the Department of Veterans Affairs (VA-OIG). “VA-OIG and its law enforcement partners will vigorously investigate and expose procurement fraud in order to safeguard the American taxpayer and deserving veteran business owners with disabilities who should properly be receiving these contracts.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $67,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-17.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the SBA-OIG, and the VA-OIG. The United States was represented by Assistant U.S. Attorney Adam J. Katz.
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2 Defendants Plead Guilty, 2 More Arrested in $15 Million Oil Investment Fraud SchemeRead the Press Release
SAVANNAH, GA – A federal indictment was unsealed yesterday charging Richard Paul Underwood, 65, of Fort Lauderdale, Florida, and Colin P. Purcell, 56, of Simpsonville, Kentucky, with conspiracy to commit wire fraud and mail fraud in connection with a $15 million oil investment Ponzi scheme. Both Defendants were arrested by Special Agents of the United States Secret Service.
The arrests of Defendants Underwood and Purcell follow the guilty pleas of David R. Greenlee, 41, of Seguin, Texas, andDavid A. Stewart, 46, of Portland, Kentucky. Greenlee and Stewart pled guilty earlier this month in Savannah before United States District Court Judge Lisa Godbey Wood for their roles in the Ponzi scheme. Greenlee and Stewart will be sentenced after the United States Probation Office completes a presentence investigation.
The federal Indictment unsealed yesterday alleges the following:
From 2012 to 2016, Underwood, Purcell, Greenlee, Stewart and others claimed to investors nationwide that they operated companies selling supposed investments in oil and natural gas projects in Texas, Oklahoma, and Kansas. The Defendants assumed false identities during contacts with investors; they provided false information about the experience and background of the management of the companies; they failed to reveal that the individuals truly responsible for the management of the companies were convicted felons who had perpetrated other investment scams; and they repeatedly made other false statements in order to fraudulently obtain over $15 million from investors. Underwood, Purcell, Greenlee, Stewart and others then used the monies defrauded from investors for their own benefit.
Acting United States Attorney James D. Durham stated, “While this U. S. Attorney’s Office works hard with our federal and state law enforcement partners to shutter investment fraud schemes and to hold fraudsters accountable, our work often follows the disappearance of an unsuspecting victims’ life savings. Investment ideas sounding too good to be true usually are. Be vigilant when investing your money. And when you see a scam, let law enforcement know.”
"There are two points in common with most investment schemes – an exceptionally attractive rate of return and a great backstory on why the company or the return is so great,” said Glen Kessler, Savannah Resident-Agent-in-Charge of the United States Secret Service. “Use caution when approaching any investment. A company’s use of national advertising or glossy brochures should not serve as proof that they are offering legitimate investments. If the subject or company pushing the investment is promising consistently high returns with little or no losses and you are being told overly complicated methods of how the investment works, that should raise a red flag for any investor,” Kessler added.
"Unfortunately, investment fraud is pervasive and entrenched in our society as it promises the golden ticket to instant wealth. While we may not be able to make all the victims whole we can and will hold the perpetrators accountable,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “IRS Criminal Investigation is proud to work with our law enforcement partners providing its financial expertise to bring criminals to justice."
Underwood and Purcell are both charged with conspiracy to commit wire fraud and mail fraud, which carries a maximum sentence of 20 years’ imprisonment and a fine of up to $250,000. Greenlee and Stewart face up to five years in prison and a $250,000 fine for conspiring to commit securities fraud, wire fraud, mail fraud and money laundering. Upon conviction, the Defendants would also be required to forfeit the proceeds of their crimes and pay restitution to their victims for the losses they caused.
Acting U. S. Attorney Durham emphasized that the indictment filed against Underwood and Purcell is only an accusation and is not evidence of guilt. Underwood and Purcell are entitled a fair trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation that led to today=s arrests was the result of a multi-agency team of federal, state, and local agents working together to combat investment fraud. The team was led by the United States Secret Service, the Internal Revenue Service’s Criminal Investigation Division, and the United States Securities and Exchange Commission. Acting U. S. Attorney Durham also expressed appreciation for assistance provided by the Indiana Securities Division, the Office of the Floyd County (Indiana) Prosecutor, the Texas State Securities Board, the Tennessee Securities Division, the Texas Railroad Commission and the Florida Office of Financial Regulation.
Assistant United States Attorneys Brian T. Rafferty and Theodore S. Hertzberg are prosecuting the case on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 201-2522.
12 Charged in Two Galveston Domestic Sex Trafficking CasesRead the Press Release
GALVESTON, Texas - Nine men and three women are in custody on allegations of conspiracy and sex trafficking of children among other charges in two separate, but related indictments, announced Acting U.S. Attorney Abe Martinez.
Those taken into custody in a coordinated effort between federal and local law enforcement include Joseph Church, 31, and Angela Marks, 23, both of Sweeney; Jamaal Crane, 25, of Angleton; Norris Moon, 23, and Christopher Walton, 23, both of Brazoria; Ronnie Beasley, 19, of Rosharon; and William Franklin, 18, of Wharton. They are expected to make their initial appearances before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today along with Jamier Coleman, 20, and Lurkesha Baugh, 35, both of Wharton, who were previously in state custody on unrelated charges. Alisa Kimber, 24, of Freeport, was already in federal custody on earlier similar charges. Authorities arrested Stephanie Walker, 35, of Houston, in Beaumont yesterday, while the final defendant - Eric Page, 19 - was taken into custody on unrelated charges on Wednesday in Sherman. They are expected to appear in Galveston in the near future.
With the exception of Walker and Kimbler who were indicted for using an interstate facility to promote sex trafficking of children, all are charged with conspiracy to traffic children for the purpose of commercialized sex, sex trafficking of children and sex trafficking by force, fraud and coercion. Church and Marks are also charged with production of child pornography. Moon and Walton have an additional charge of carrying a firearm while engaging in the crime of sex trafficking of minors.
The defendants allegedly employed sexually-oriented websites to advertise their illicit business employing four minors as young as 16 for commercial sex. The charges allege the young girls were induced into posing for pictures used in online advertisements for sex and engaged in commercial sex acts for money. The defendants collected all of the money the girls earned, according to the indictment. In one particular online advertisement, the defendants allegedly photographed an adult prostitute performing oral sex on a 16-year-old runaway victim whom the defendants also prostituted.
Those charged in the sex trafficking conspiracy face up to life in prison, if convicted. Moon and Walton face the same penalty for the firearms offense. Walker and Kimbler face a penalty of up to five years in prison for using an interstate facility to promote sex trafficking of children, while Church and Marks also face an additional possible 30 years in prison for the child pornography charge, upon conviction. All charges carry up to a $250,000 fine.
The FBI and Texas Department of Public Safety conducted the investigation with assistance of sheriff’s offices in Brazoria and Galveston Counties and police departments in Galveston, Sherman, Wharton, La Marque and the University of Texas Medical Branch
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards are prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
10 August 2017
Wyoming Man is Sentenced to Life in Prison for the Murder and Assault of Crow ResidentsRead the Press Release
BILLINGS – Jesus Deniz Mendoza, 20, of Worland, Wyoming, was sentenced today to life in prison in Billings federal court after pleading guilty to a superseding information charging him with two counts of second-degree murder, assault with intent to commit murder, assault with a dangerous weapon, and three counts of using a gun during crimes of violence. In addition, the defendant was ordered to pay $12,713 in restitution. U.S. District Court Judge Susan P. Watters presided over the sentencing.
The charges in this case stemmed from the following events that occurred on July 29, 2015. At approximately 10:11 a.m., on July 29, 2015, Crow Agency dispatch received a call about a shooting on Pryor Gap Road in Pryor, Montana, between the St. Charles Mission School and Plenty Coups Park. The first law enforcement officers on the scene saw a deceased male and a deceased female lying in the road, face down. Also observed at the scene was a 1990 Ford Taurus, green, bearing Wyoming license plate number 20-2934, registered to the mother of Deniz Mendoza.
The daughter of the deceased male and female was with her parents when they were shot. She was interviewed by law enforcement and stated that her mother came to her house and told her that there was a guy who needed assistance. The three took the daughter’s car and drove past the St. Charles Mission School on Pryor Gap Road, where they met up with Deniz Mendoza who was in a green vehicle that was parked on the side of the road. When they approached Deniz Mendoza, he stepped out of his vehicle, pointed a gun at them, and told them to get out of the car. They complied and got out of their car. Deniz Mendoza told them to stand behind the car and asked them for money. They told him that they did not have any money. Deniz Mendoza then told them to start walking away from their car. As they were walking, the daughter heard a gunshot. When she turned around, she saw her father lying on the road. She started running. As she was running, she heard her mother scream, but she did not turn around because she was scared. She kept running and, as she did, she felt blood running down her face, which was later determined to be the result of a bullet wound. She heard another gunshot and felt a bullet hit her in the back. She then turned around and saw Deniz Mendoza get into her car and drive off.
The daughter was able to yell for help, and she caught the attention of some individuals at the St. Charles Mission School. A car drove to her location, and she told the female driver that she had been hurt. The female driver got out of the car and walked towards the daughter’s parents lying in the road. Fearing that the unknown male would come back, the daughter got into the female driver’s car. When the daughter saw her car coming back toward her, she got behind the wheel of the female driver’s car and drove away.
Two males drove from the St. Charles Mission School to the scene after someone had informed them that gunshots were fired nearby. They were at the scene when Deniz Mendoza returned to the scene in the daughter’s car, got out of the car, and started shooting. Because the female driver was outside of her car (the daughter had driven her car away), the males pushed the female driver into a ditch and told her to play dead. Both males confirmed that Deniz Mendoza shot at the female driver and pointed the gun at all of them.
As a result of a law enforcement bulletin, the daughter’s vehicle was located near Meeteetse, Wyoming by a Park County Wyoming Sheriff’s Deputy. Deniz Mendoza was driving the vehicle.
On July 29, 2015, law enforcement conducted a recorded interview of Deniz Mendoza. During the interview, Deniz Mendoza admitted to shooting three people with a .22 caliber rifle and then driving away from the scene in the victims’ vehicle. Deniz Mendoza also described the rifle that he used, and he told the interviewing agents that the rifle was still in the vehicle that he was driving when he was arrested.
"The victims were good Samaritans, trying to help a stranded motorist when their lives ended in a horrible act of violence that also injured their daughter," said Supervisory Senior Resident Agent Travis Burrows. "The cooperation among the numerous law enforcement agencies that worked this case allowed us to provide some measure of justice for the victims' family and friends."
This case was prosecuted by Assistant U.S. Attorneys Lori Harper Suek, John D. Sullivan, and Joseph E. Thaggard and investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, and the Montana Highway Patrol.
Worcester Man Charged with Fraud and Identity TheftRead the Press Release
BOSTON – A Worcester man was indicted today in federal court in Worcester in connection with using the identity of a disabled Medicare beneficiary for 17 years.
Jose Agosto, 56, was charged with four counts of wire fraud, four counts of misuse of a social security number, three counts of making false statements relating to health care services, and five counts of aggravated identity theft. Agosto was charged yesterday in a criminal complaint and arrested. He is being detained pending a detention hearing scheduled for Aug. 11, 2017.
According to the charging documents, since at least August 2000, Agosto has fraudulently used the identity of a disabled Medicare beneficiary. Agosto received medical treatment in the victim’s name, resulting in more than $140,000 being billed to Medicare, and also obtained Massachusetts driver’s licenses, replacement Social Security cards, and opened bank accounts all in the victim’s name. Agosto used the victim’s identity to enter into a promissory note with a Massachusetts-based bank and then almost immediately defaulted on the loan.
Court documents further allege that Agosto, pretending to be his own cousin, made death threats to a relative of the victim. Agosto left two voicemail messages for the victim’s relative in July 2017 threatening that if his “cousin” went to jail, he would “start killing all [the victim’s] family one by one.” He continued to say that if he finds out his “cousin” is in jail, there will be a massacre, and that he would terminate the victim’s family.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, up to three years of supervised release and a fine of $250,000. The charges of Social Security fraud and making false statements provide for a sentence of no greater than five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Christina Scaringi, Special Agent in Charge of the U.S Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The U.S. Department of Agriculture, Office of Inspector General and the Massachusetts Bureau of Special Investigations provided assistance with the investigation. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wildboys Gang Associate Sentenced to 10 Years for Attempted Murder in Aid of RacketeeringRead the Press Release
WASHINGTON – An associate of the Wildboys gang was sentenced today in federal court in Charleston, South Carolina, to 10 years in prison after pleading guilty to attempted murder for his role in a gang-related shooting.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.U.S. District Court Judge Richard M. Gergel sentenced Joshua Edward Manigault, aka “J-Rizzle” or “Rizzle Back,” 31, of Green Pond, South Carolina, to 10 years in prison.
According to admissions made in connection with his plea agreement, Manigault was an associate of the Wildboys, a violent street gang from the Green Pond area of Walterboro, S. C., with members operating in various cities in South Carolina, including Summerville and Walterboro As part of his plea, Manigault admitted that Wildboys gang members committed a wide range of violent criminal activities, including robberies, attempted murder, and narcotics trafficking.
Further, in connection with his guilty plea, Manigault admitted his involvement in an April 7, 2015 drive-by shooting in Walterboro, during which Manigault and others fired multiple shots into a home believed to be occupied by members of a rival gang. Manigault admitted that as a result of this shooting, an individual inside the home was struck by gunfire and sustained serious bodily injury.
As part of the sentence, the court ordered Manigault to serve a term of three years of supervised release and to pay the costs of medical care for the victim of the April 7, 2015, shooting.
Three other members or associates of the Wildboys also charged in the indictment, Damien Robinson, 21, and Brian Manigo, 25, both of Green Pond, S.C.; and Kelvin Mitchell, 30, of Ruffin, S.C., were sentenced on June 2, 2017, after pleading to related charges. On June 29, 2017, a jury convicted a fourth gang member, Devin Brown, 23, of Walterboro, S.C., of violent crime in aid of racketeering and a related firearms charge for his role in the April 7, 2015, shooting. Brown has yet to be sentenced.
The case was investigated by the ATF Charleston, South Carolina, in partnership with the Walterboro Police Department; the Colleton County Sheriff’s Office; the Charleston County Sheriff’s Office; the Dorchester County Sheriff’s Office; the Summerville Police Department; the Fourteenth Judicial Circuit Solicitor’s Office; the First Judicial Circuit Solicitor’s Office; the South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Organized Crime and Gang Section in the Justice Department’s Criminal Division, Washington, D.C., and Tameaka A. Legette, Special Assistant United States Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, S.C.
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White County, Tennessee Business Owner Pleads Guilty in $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tenn., pleaded guilty today in U.S. District Court, to wire fraud and money laundering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. Gentry was charged on July 5, 2017, with operating a $43 million investment scheme in which he bilked investors out of more than $10 million.
According to court documents, Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tenn. Beginning in 2012 and continuing to mid-December of 2016, Gentry devised and executed a scheme to defraud and obtain money and property from investors, promising high rates of return on investments, purportedly used to purchase farm-related equipment to satisfy state contracts and producing significant profits.
Gentry falsely represented to investors, including customers, friends, acquaintances, and family members, many of whom lived in White County, Tennessee, that he was bidding on and winning contracts from various states, including Tennessee, to supply equipment, including tractors, lawn mowers, and other farm-related equipment through his tractor supply company.
Through this scheme, Gentry convinced more than 50 individuals to invest funds totaling approximately $43 million and caused financial loss to investors of more than $10 million.
Despite his assurances to investors of significant returns, Gentry admitted that he never intended to invest the funds as promised but instead, used the money to subsidize his lifestyle, amassing assets worth a substantial amount of money, including numerous tracts of real estate and vehicles.
In March 2016, Gentry also used investor funds to start up and support a new business venture, Gentry Auto, a used car lot, transferring more than $365,000 of investor funds from the Gentry Brothers Tractor Supply Company to the Gentry Auto business between March 24, 2016 and December 6, 2016.
The Government also seeks a monetary judgement of at least $10 million to recover losses suffered by the victims in this case.
During this investigation, the Asset Forfeiture Unit of the U.S. Attorney’s Office and the U.S. Marshals’ Service seized the assets of Gentry, including his businesses, vehicles, farm equipment and livestock, houses, tracts of land and approximately $300,000 cash. On August 26, 2017, the U.S. Marshals’ Service will liquidate these assets at auction in Sparta, Tenn. Details of the auction are available at www.txAuction.com.
Gentry faces up to 20 years in prison on each count and monetary fines when he is sentenced by Judge AletaTrauger later this year.
This case was investigated by the FBI, the IRS-Criminal Investigation and the U.S. Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Kathryn Risinger and Assistant U.S. Attorney Debra Phillips is handling the asset forfeiture.
Wheeling man admits to failing to update his sex offender registryRead the Press Release
WHEELING, WEST VIRGINIA - A Wheeling man pled guilty today to failing to update his sex offender registration, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jeremy Crinkey, age 40, pled guilty to one count of “Failure to Update Registration as a Sex Offender.” Crinkey, having previously being convicted of Possession of Child Pornography in U.S. District Court, Northern District of West Virginia, allegedly failed to update his registry to his North 8th Street, Wheeling, address. The crime occurred from March 17, 2017 to May 30, 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshal Service investigated.
U.S. Magistrate Judge James E. Seibert presided.
Vansant Woman Sentenced for Stealing Mail, Aggravated Identity TheftRead the Press Release
Abingdon, VIRGINIA – A Vansant woman was sentenced today for stealing mail after authorities determined she was breaking into Post Office boxes and stealing bankcards and other items, Acting United States Attorney Rick A. Mountcastle announced.
Jada Ratliff, 38, of Vansant, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon to 28 months in prison and ordered to pay $2,669 in restitution. Ratliff previously pled guilty to one count of theft of mail and one count of aggravated identity theft
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Ratliff used a screwdriver to open Post Office Boxes at a number of locations and steal the contents of those boxes. Some of the items Ratliff stole were bankcards issued in the names of others, which she then used, without authorization or approval.
The investigation of the case was conducted by the United States Postal Inspection Service. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.