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8 August 2017
Former Cocoa Company Executives Arrested for Defrauding Lenders of $400 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging PETER G. JOHNSON, PETER B. JOHNSON, and THOMAS REICH with defrauding a group of lenders (the “Banks”) with false “borrowing base” reports designed to secure and maintain a $400 million line of credit for their company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”). PETER G. JOHNSON was Transmar’s president and chief executive officer. PETER B. JOHNSON, the son of PETER G. JOHNSON, was responsible for the operations of Transmar affiliate Euromar Commodities GMBH (“Euromar”), and was also involved in Transmar’s affairs. THOMAS REICH was a vice president in Transmar’s finance department. When Transmar filed for bankruptcy in December 2016, it owed the Banks approximately $360 million. PETER G. JOHNSON and PETER B. JOHNSON were arrested at their New Jersey homes this morning. THOMAS REICH surrendered to the FBI this afternoon.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, these executives of a major cocoa company that supplied some of the world’s largest confectionary conglomerates defrauded lenders out of hundreds of millions of dollars by lying repeatedly about the financial condition of their company. As they allegedly deceived lenders about the collateral available to secure their borrowings, the defendants regularly emailed each other about how the paperwork was fake. Together with our partners at the FBI, we remain committed to rooting out corporate fraud of all types and holding the alleged perpetrators accountable.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged, Johnson, Johnson, and Reich falsely represented Transmar’s financials, manipulating their monetary value in more ways than one, in order to receive loans they didn’t qualify for – plain and simple. In the end, it became clear the payoff would be a score they couldn’t settle. This is not a crime to be taken lightly, as our charges today prove.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million. To secure and maintain these hundreds of millions of dollars in credit, PETER G. JOHNSON, PETER B. JOHNSON, THOMAS REICH, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.
The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension. The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks.
Beginning no later than 2014, THOMAS REICH and others manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending. PETER G. JOHNSON and PETER B. JOHNSON directed and encouraged this manipulation. The manipulation involved, among other devices, counting inventory that Transmar had already sold, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions with amenable third-party intermediaries which agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar.
The defendants acknowledged their manipulative devices in internal Transmar correspondence. On June 14, 2016, for example, PETER B. JOHNSON responded to an email from REICH about a circle arrangement by lamenting, “this is the problem with fake circles and non-existent last minute intermediary deals, there is never a payment to settle them.” After suggesting a further device to rectify an immediate problem related to a BB Report, JOHNSON continued, “[t]here isn’t going to be an audit [of the BB Report] for a year and its [sic] causing huge problems to keep writing up fictitious contracts and paperwork.”
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PETER G. JOHNSON, 68, of Harding Township, New Jersey, PETER B. JOHNSON, 38, of Morristown, New Jersey, and THOMAS REICH, 59, of Montvale, New Jersey, have each been charged in the Indictment with one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, one count of bank fraud, and one count of wire fraud affecting a financial institution. Each charge carries a maximum prison term of 30 years.
Mr. Kim praised the investigative work of the FBI.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Sarah Eddy and Benet Kearney are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Chicago Drug Treatment Worker Sentenced to Six Years in Prison for Distributing Heroin via the InternetRead the Press Release
A 47-year-old Chicago man was sentenced today in U.S. District Court in Seattle to six years in prison for distributing a controlled substance, announced U.S. Attorney Annette L. Hayes. KEVIN C. CAMPBELL marketed and sold various drugs, such as ecstasy, marijuana, steroids, and prescription drugs, such as Xanax and valium, using the dark web. In August 2013, CAMPBELL sold heroin and prescription medications to a 27-year-old Bellevue, Washington, man who died after shooting up with heroin. U.S. District Judge John C. Coughenour ordered CAMPBELL to serve three years of supervised release following prison.
According to records filed in the case, emergency crews were called to a home in Bellevue in August 2013, when a house guest found the 27-year-old man unconscious in his bedroom, surrounded by evidence of recent heroin use. On the computer in front of him was the ‘Silk Road’ website, an online black market where illegal goods and services were anonymously marketed and sold. On the screen were messages from a vendor, later determined to be CAMPBELL’s online identity. The investigation revealed that CAMPBELL was a drug dealer on the dark web site, sending prescription drugs and other illegal substances to customers across the country who ordered online and paid via Bitcoin. CAMPBELL concealed and delivered the drugs in altered DVD cases sent via the U.S. mail. One DVD case recovered near the deceased man’s body was found to have CAMPBELL’s fingerprint on it. Even after the Silk Road website was shut down by law enforcement, CAMPBELL continued to sell drugs to customers, in one instance sending Xanax pills to a customer in Colorado who was working with law enforcement. In May 2014, law enforcement obtained a warrant to search CAMPBELL’s Chicago home and found evidence of his drug trafficking, including a small amount of drugs, digital scales, notes, empty DVD cases, and shipping materials. The investigation revealed that CAMPBELL did not typically distribute heroin before selling to the Bellevue man and ceased selling heroin after the death.
The case was investigated by the U.S. Postal Inspection Service, the Bellevue Police Department, and the Eastside Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Steven Masada.
Florida Financial Advisor and Oklahoma Man Plead Guilty to Bank Fraud ConspiracyRead the Press Release
Oklahoma City, Oklahoma – LYLE LIVESAY, 29, of Delray Beach, Florida, and BRANT HOLLOWAY, 36, of Del City, Oklahoma, have both pled guilty to conspiring to commit bank fraud against seven financial institutions, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On May 2, 2017, in a nine-count indictment, a federal grand jury charged Livesay and Holloway with conspiracy to commit bank fraud against multiple financial institutions in Oklahoma and elsewhere. The indictment also charges Livesay with making a false statement to a federally insured financial institution and money laundering and charges Holloway with making a false statement to an FBI agent.
According to the indictment, Livesay and Holloway submitted false loan applications in the name of Holloway’s roommate, T.M., purportedly for the purpose of purchasing vehicles from True Cars Express, a luxury car dealership in Florida. T.M., however, did not intend to purchase any vehicles—rather, T.M. and Holloway planned to use the loans to open a used car lot. In addition, the applications inflated T.M.’s income by falsely indicating that T.M. worked at Thunder Vapor, a business that sold electronic cigarettes and related products in Del City, Oklahoma. In exchange for a commission, Livesay gave Holloway and T.M. vehicle purchase agreements and certificates of title from True Cars Express, as well as fabricated Thunder Vapor pay stubs.
Last week, Livesay pled guilty to one count of money laundering, based on his transfer of fraud proceeds from his True Cars Express bank account to one under the control of Beta Capital Group, his financial consulting firm. At a plea hearing yesterday, Holloway pled guilty to a superseding information that charges him with conspiracy for his role in the fraud scheme.
At sentencing, Livesay faces up to 10 years in prison; Holloway faces up to 5 years of imprisonment. Both defendants face up to three years of supervised release and a maximum $250,00.00 fine. They have also agreed to pay restitution to victims.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Federal Inmate Charged with Possessing MarijuanaRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, Acting United States Attorney Soo C. Song announced today.
The indictment named Edward R. Harris, 42.
According to the indictment presented to the court, on January 9, 2017, Harris possessed a quantity of marijuana.
The law provides for a maximum sentence of five years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Harris.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Authorities Successfully Prosecute Defendants in Theft of $103,318.00 from the Department of Veteran AffairsRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Chief Judge Kristi K. DuBose sentenced Sophia McGadney on August 4, 2017 to 5 years on probation and ordered her to pay the total amount of loss for the theft. McGadney was charged with violating 18 USC § 641, Theft of Government Funds.
Sophia McGadney’s grandfather, an Armed Services veteran, earned veteran benefits that were continued on to his surviving spouse, Ms. McGadney’s grandmother, upon his death. The funds were directly deposited into a bank account that Ms. McGadney shared with her grandmother.
Upon her grandmother’s death, Ms. McGadney did not inform the Department of Veteran Affairs, and continued to receive the funds. Ms. McGadney transferred the funds each month, from the account she held jointly with her grandmother, to another bank account that she opened as the sole account holder. She continued to receive the funds for five years, resulting in the total theft of
$ 103,113.00.
The Veteran Affairs Office of the Inspector General investigated this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
Eastern District of Tennessee Selected to Participate in Department of Justice Opioid Fraud and Abuse Detection UnitRead the Press Release
KNOXVILLE, Tenn. – On August 2, 2017, Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a new Department of Justice pilot program to utilize data to help combat the devastating opioid crisis that is ravaging families and communities across America. This new unit will focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this prescription opioid epidemic.
The U.S. Attorney’s Office for the Eastern District of Tennessee was one of 12, out of 94 districts across the country, chosen to participate in this program. The district will receive funding for an Assistant U.S Attorney, for a three-year term, to focus solely on investigating and prosecuting healthcare fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes. The 12 districts selected represent areas with a significant prescription opioid problem, where the Department of Justice can effectively investigate and prosecute the medical providers that are contributing to this epidemic by unlawfully diverting or dispensing opioids outside the scope of professional practice and not for a legitimate medical purpose.
“Sadly, statistics show that Tennessee is one of the most highly opioid-addicted states in the country. While our current Assistant U.S. Attorneys have already made tremendous efforts toward combatting opioid-related healthcare fraud in the district, the U.S. Attorney’s Office is pleased to receive these additional resources, including funding for an aggressive prosecutor, to enhance these endeavors,” said U.S. Attorney Nancy Stallard Harr.
"Assistant U.S. Attorney David P. Lewen, Jr., has been selected to fill this position in the U.S. Attorney’s Office for the Eastern District of Tennessee. Working with the FBI, DEA and HHS, as well as our state and local law enforcement partners, Assistant U.S. Attorney Lewen will lead the district in the investigation and prosecution of opioid-related healthcare fraud cases involving doctors, pharmacies and medical providers who are furthering this epidemic in east Tennessee,” said U.S. Attorney Harr.
Assistant U.S. Attorney Lewen has served as a federal prosecutor in east Tennessee for nearly 10 years. Prior to that time, he served on active duty for five years in the U.S. Army JAG Corps, serving in Korea, Hawaii, and Fort Bragg, North Carolina. Assistant U.S. Attorney Lewen has experience in prosecuting a wide range of federal crimes, including large-scale drug trafficking and money laundering organizations, violent crimes, public corruption, and complex white-collar and corporate fraud crimes. Two of the higher profile defendants Lewen has prosecuted in U.S. District Court include former Knox County Criminal Court Judge Richard Baumgartner and bank extortionist Michael Benanti.
The Opioid Fraud and Abuse Unit was created to focus specifically on opioid-related healthcare fraud using data to identify and prosecute individuals that are contributing to this opioid epidemic. Data analytics will reveal important information about the prescription opioid problem, such as: which physicians are writing opioid prescriptions at a rate that far exceeds their peers, taking into account speciality and other factors; how many of a doctor’s patients died within 60 days of an opioid prescription; the average age of the patients receiving these prescriptions; pharmacies that are dispensing disproportionately large amounts of opioids; and regional hot spots for opioid issues.
In addition to the Eastern District of Tennessee, other districts selected to participate in the program include: Eastern District of Kentucky; Northern District of Alabama; Middle District of North Carolina; Southern District of West Virginia; Middle District of Florida; Eastern District of Michigan; District of Nevada; District of Maryland; Western District of Pennsylvania; Southern District of Ohio; and Eastern District of California.
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East Helena Man Sentenced for Trafficking Methamphetamine While Armed with FirearmsRead the Press Release
MISSOULA – Robert William Stubbins, 39, of East Helena was sentenced to ten years in prison and five years supervised release. Stubbins entered guilty pleas to conspiracy to possess with intent and to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime in April. Senior U.S. District Court Judge Sam Haddon issued the sentence.
According to the Offer of Proof filed in the case, Stubbins possessed firearms while dealing methamphetamine and heroin in East Helena from November 2016 through January 2017. During much of that time, Stubbins was armed and traded firearms for drugs and/or money. Stubbins sold methamphetamine, heroin, and a firearm during the investigation. The investigation ended in January when law enforcement executed a search warrant at his residence. Methamphetamine, heroin, and a rifle were seized.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart. The case was investigated by the Missouri River Drug Task Force, Federal Bureau of Investigation, Helena Police Department, Lewis and Clark County Sheriff’s Office, and the DEA Western Laboratory.
Eagle Butte Man Sentenced on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on July 17, 2017, by U.S. District Judge Roberto A. Lange.
Charlie Warren Marshall, age 27, was sentenced to 78 months in custody and 4 years of supervised release, on each count, to run concurrently, a fine of $1,000, forfeiture of six firearms and ammunition, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Marshall was indicted by a federal grand jury on November 9, 2016. He pled guilty on March 13, 2017.
Between January 1, 2015, and November 9, 2016, Marshall knowingly and intentionally conspired with others to distribute methamphetamine in South Dakota.
Marshall received distributable quantities of methamphetamine and distributed some of that methamphetamine in South Dakota. The individuals who provided Marshall with the methamphetamine knew that he intended to engage in further distribution. Marshall admitted that his distribution activities involved at least 350 grams or more of methamphetamine, and that he had in his possession firearms for protection while distributing methamphetamine.
Marshall was arrested by Cheyenne River Sioux Tribal police on various occasions, in which he had firearms, ammunition, and/or narcotics or paraphernalia in his possession. On March 5, 2016, Marshall was arrested with a firearm and marijuana. Marshall admitted to using methamphetamine and marijuana, and because he is an unlawful user of, or addicted to, a controlled substance, he is unable to lawfully possess firearms.
This case was investigated by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
Dubuque Man Pleads Guilty to Robbing Maquoketa BankRead the Press Release
A man who robbed a bank and led police on a high speed chase pled guilty on August 7, 2017, in federal court in Cedar Rapids.
Dante Rhodes, age 41, from Dubuque, Iowa, was convicted of one count of bank robbery, stemming from the March 8, 2017 robbery of the Fidelity Bank and Trust in Maquoketa.
At the plea hearing, Rhodes admitted that he robbed the Fidelity Bank and Trust. Court records show that Rhodes entered the bank and handed a note to the teller demanding money. After the robbery, Rhodes led police on a high speed chase through Dubuque, colliding with multiple vehicles.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Rhodes remains in custody of the United States Marshal pending sentencing. Rhodes faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
Gregory Stapleton, age 31, from Dubuque, has also been charged in the bank robbery. Stapleton told the Court that he intends to plead guilty to the bank robbery charge, although a plea hearing has not yet been scheduled.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Federal Bureau of Investigation, the Maquoketa Police Department, the Dubuque County Sheriff’s Office, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1022.
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Dominican National Sentenced for Passport Fraud and Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for passport fraud and identity theft.
Alvaro Luis Soto-Martinez, 31, a Dominican national who was residing in Hyde Park, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison, three years of supervised release, and will face deportation proceedings upon completion of his sentence. In May 2017, Soto-Martinez pleaded guilty to one count of passport fraud, one count of misuse of a social security number, and one count of aggravated identity theft.
On Oct. 15, 2014, Soto-Martinez used the name, date of birth, and social security number of a United States citizen from Puerto Rico to apply for a United States passport at a Post Office in Lowell.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Julio Ernesto Gomez, 46, a Dominican national living in Boston, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge George A. O’Toole Jr., who scheduled sentencing for Nov. 9, 2017.
Gomez was deported in 2004 after he was convicted by a jury in federal court in Boston of making false statements in a passport application and using a fraudulent Social Security number. He later reentered the United States.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised released and a fine of up to $250,000. Gomez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
Dallas Man Sentenced to 18 Months’ Imprisonment for Money Laundering at Mohegan Sun CasinoRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mark Heltzel, age 53, of Dallas, Pennsylvania, was sentenced on August 4, 2017, by Senior United States District Court Judge A. Richard Caputo to 18 months’ imprisonment for conspiracy to commit money laundering.
According to United States Attorney Bruce D. Brandler, Heltzel pleaded guilty to a money laundering conspiracy in December 2016. Heltzel conspired with Rochelle Poszeluznyj, age 39, of Kingston, and Robert Pellegrini, age 51, of Mountain Top, to defraud the Mohegan Sun Casino by engaging in a money laundering scheme involving the use of stolen names and PINs (personal identification numbers) that were tied to players’ loyalty club cards. While employed as a cocktail waitress at the casino, Poszeluznyj had access to the names and PINs of casino players as she served them beverages. Poszeluznyj stole the names and PINs of those players and provided them to Pellegrini, who then used the stolen information to create duplicate player club cards. Pellegrini then loaded the duplicate cards with “free play” credits and provided them to Heltzel to gamble with, primarily at poker slot machines. The scheme began in May 2014 and continued to April 2015, netting the defendants winnings of approximately $422,147.
Robert Pellegrini was previously sentenced by Judge Caputo to 32 months’ imprisonment. A sentencing date for Poszeluznyj is pending.
Senior Judge Caputo also ordered that Heltzel be supervised by a probation officer for one year following his release from prison and to pay restitution in the amount of $420,147.
The case was investigated by the Internal Revenue Service Criminal Investigations Division and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Deangelo Tarryl Grant, 32, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to eight years and three months in federal prison without parole.
On April 3, 2017, Grant pleaded guilty to being a felon in possession of a firearm.
According to court documents, Columbia police officers observed Grant driving in Columbia on Oct. 6, 2016, and were aware that Grant’s driver’s license was expired. Officers tried to stop Grant, but he fled in his car. He stopped his car after a short pursuit, and he and his passenger fled on foot. Both individuals were quickly taken into custody, and officers retraced the path taken by Grant’s car. Officers found a loaded Glock .45-caliber pistol along the roadway. Video surveillance from a Columbia Public Housing camera depicted Grant’s car, and showed his arm coming out of the driver’s side window in the area where the Glock was recovered.
During a search of Grant’s car, according to court documents, a small amount of marijuana was found inside a purse. Grant admitted possessing the marijuana, but denied knowledge of the gun until officers confronted him with the video. He then admitted that he had purchased the gun “on the street” for protection.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Grant has a prior felony conviction for possession of cocaine with the intent to distribute and distribution/delivery/manufacture of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Chicago Cousins Facing Federal Firearms Charges for Allegedly Dealing Guns on City’s South SideRead the Press Release
CHICAGO — Two cousins from Chicago are facing federal firearms charges for allegedly dealing guns on the city’s South Side.
Over a four-month period earlier this year, BENJAMIN VASQUEZ JR. illegally sold 16 firearms, including a sawed-off shotgun and an AK-47 rifle, according to criminal complaints and affidavits filed in federal court in Chicago. Unbeknownst to him, the buyer was cooperating with law enforcement and had secretly recorded the transactions, the complaints state. One of the deals occurred in a residence in the New City neighborhood of Chicago on Feb. 21, 2017, involving the sale of a .22-caliber pistol, the complaints state.
Benjamin Vasquez’s cousin, JORGE VASQUEZ, has also been involved in dealing illegal firearms, the charges state. On Feb. 13, 2017, Jorge Vasquez sold a rifle to an individual who was cooperating with law enforcement, the complaints state. The deal, which occurred in an alley in the West Englewood neighborhood of Chicago, netted Jorge Vasquez $1,000, according to the complaints.
Benjamin Vasquez Jr., 26, was arrested Aug. 4, 2017, on a charge of knowingly possessing a firearm with an altered, removed or obliterated serial number. A preliminary hearing is set for Aug. 10, 2017, at 9:30 a.m., before U.S. Magistrate Judge Jeffrey Cole.
Jorge Vasquez, 27, is charged with illegal possession of a firearm by a felon. He was arrested last month and remains in federal custody. His next court date has not been set.
The complaints were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; 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.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Knowingly possessing a firearm with an altered, removed or obliterated serial number is punishable by a maximum sentence of five years in prison. Possession of a firearm by a felon is punishable by up to ten years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew L. Kutcher.
Chelsea Gang Member Sentenced for Crack Cocaine TraffickingRead the Press Release
BOSTON – An East Side Money Gang member was sentenced today in federal court in Boston for trafficking crack cocaine.
Moises “Moi” Casado, 21, of Chelsea, was sentenced by U.S. District Court Senior Judge Richard G. Stearns to five years in prison and four years of supervised release. In April 2017, Casado pleaded guilty to one count of possession with intent to distribute cocaine base and distribution of cocaine base.
In 2015 and 2016, a federal investigation identified a network of street gangs, which had created alliances to traffic weapons and drugs throughout Massachusetts and generate violence against rival gang members. Based on the investigation, 53 defendants were indicted in June 2016 on federal firearms and drug charges, including defendants who are allegedly leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Street Gang. These gangs operated primarily in the East Boston, Boston, Chelsea, Brockton, Malden, Revere and Everett areas. During the course of the investigation, over 70 firearms, cocaine, cocaine base (crack), heroin and fentanyl were seized.
During the investigation, Casado, who was identified by investigators as an East Side Money Gang member, sold approximately 55 grams of cocaine base to a cooperating witness in Malden on Dec. 29, 2015.
Casado is one of 13 defendants to have pleaded guilty.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Massachusetts Attorney General Maura Healey; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bronx Man Charged in Manhattan Federal Court with Sex Trafficking of Minors and Other OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that JAMEL GODDARD, a/k/a “Payroll,” was arrested for his alleged role as the leader of a sex trafficking and prostitution enterprise, which exploited vulnerable minor girls and adult women. GODDARD was charged in an Indictment with conspiracy to commit sex trafficking, sex trafficking by force, fraud or coercion, and sex trafficking of a minor. GODDARD was also charged with the use of interstate facilities and interstate travel to promote a prostitution enterprise. GODDARD will be presented before U.S. Magistrate Judge Ronald L. Ellis in Manhattan federal court this afternoon. The case has been assigned to U.S. District Judge Loretta A. Preska.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Jamel Goddard sexually exploited and trafficked vulnerable minor girls and adult women for profit. He used physical violence, threats, and intimidation to control his victims and force them to engage in sex work. Along with our partners at the FBI and the NYPD, we will continue to find, investigate, and prosecute those engaged in sex trafficking.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “For Goddard to allegedly take advantage of these helpless young girls and women— their lack of education, stability, and history of trauma, illustrates his lack of respect and regard for the victims as human beings. They did not deserve to be used, abused, and sold for the sake of Goddard greedily filling his pockets. The FBI will continue to investigate trafficking enterprises, and we will not allow disturbing crimes of this nature to plague our communities.”
According to the allegations in the Indictment[1] filed in Manhattan federal court:
Since at least 2012, GODDARD directed and conducted a criminal sex trafficking and prostitution enterprise (the “Enterprise”) that recruited and exploited minor girls and adult women, and then prostituted them using an online classifieds website for his own profit. GODDARD operated the Enterprise out of motels in the Bronx and Brooklyn, New York, upstate New York, and in or around other states, including New Jersey, Connecticut, Rhode Island, and Florida.
GODDARD typically recruited vulnerable minor and adult victims who lacked education, a stable home, and family support, and who had suffered past physical and emotional trauma. He then exploited those victims’ need for shelter, stability, and affection as a means to prostitute them for his own financial gain. Once GODDARD recruited his victims, he advertised them on classifieds websites, such as Backpage.com (“Backpage”).
To evade detection by law enforcement, the Enterprise’s advertisements often purported to be offering individuals as escorts. However, such advertisements often signaled that they were, in fact, offering individuals for sale for commercial sex acts through a variety of cues, including pictures of scantily-clad minor and adult women in sexually provocative poses, with coded language indicating that the people being offered would perform commercial sex acts.
GODDARD’s victims typically engaged in commercial sex with multiple customers in a single day. Customers typically paid for commercial sex with GODDARD’s victims in cash, and the victims were able to earn thousands of dollars from commercial sex in a single day. All or most of the victims’ earnings from commercial sex was taken by GODDARD.
GODDARD set rules for his victims, controlled their actions, and punished violations of his rules and disobedience by using physical violence. GODDARD threatened violence and physically beat his victims for, among other things, being disrespectful, owing GODDARD money, and holding back commercial sex earnings from GODDARD.
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GODDARD, 31, of the Bronx, is charged with one count of conspiracy to commit sex trafficking, which carries a maximum sentence of life in prison; one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; one count of sex trafficking of a minor victim, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; and one count of use of interstate facilities and interstate travel to promote a prostitution enterprise, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning JAMEL GODDARD, a/k/a “Payroll,” that may be relevant to the investigation, or information regarding other sex trafficking crimes, should contact the Federal Bureau of Investigation at (212) 384-1000 or https://tips.fbi.gov/, or the New York City Police Department at (646) 610-7272.
Mr. Kim praised the outstanding investigative work of the FBI and the NYPD. Mr. Kim also thanked the Port Authority of New York and New Jersey - Youth Services Unit and the New York City Administration for Children’s Services for their assistance during the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Elizabeth Hanft, Sagar K. Ravi, and Alexandra N. Rothman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bowie County Man Guilty of Texarkana Bank RobberyRead the Press Release
TEXARKANA, Texas – A 44-year-old Texarkana man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Dixon Kelley, III, pleaded guilty to armed bank robbery and use of a firearm during a violent crime today before U.S. Magistrate Judge Caroline Craven.
According to information presented in court, on Apr. 5, 2017, Kelley entered the Bank of the Ozarks on Richmond Road in Texarkana, Texas, pointed a semi-automatic handgun at the tellers and demanded cash. Kelley left the bank with the cash before fleeing in his vehicle. Law enforcement authorities were to locate Kelley, but when they attempted to stop him, he fled in the vehicle before eventually getting it stuck in a field. Kelley exited the vehicle and fired upon the officers before attempting to flee on foot. He was arrested and indicted by a federal grand jury.
Under federal statutes, Kelley faces up to 25 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and the Texarkana, Texas Police Department and is being prosecuted by Assistant U.S. Attorney Jonathan D. Ross.
Bank Officer Pleads Guilty to Embezzling from His EmployerRead the Press Release
PITTSBURGH - A resident of Butler, Pennsylvania, pleaded guilty in federal court to a charge of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.
Keith A. Simpson, 60, of Butler, Pennsylvania, pleaded guilty on Monday to one count of embezzling from a federally insured bank before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from around April 2014 until around April 2016, while serving as Chief Accounting Officer of West View Savings Bank, Simpson embezzled approximately $41,806.90 from his employer.
Judge Bissoon scheduled sentencing for December 6, 2017. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys David Lew and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Deposit Insurance Corporation, Office of Inspector General, conducted the investigation that led to the prosecution of Simpson.
Arizona Man Sentenced to Prison for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Adrian Soto, 32, of Phoenix, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 48 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Soto was arrested on March 29, 2016, and charged with a methamphetamine trafficking offense after the DEA seized a total of 4.95 kilograms (11.08 pounds) of methamphetamine during an interdiction investigation at the Greyhound Bus Station. The methamphetamine was concealed in various bundles inside Soto’s luggage.
Soto was subsequently indicted on April 27, 2016, and was charged with possession of methamphetamine with intent to distribute on March 29, 2016, in Bernalillo County, N.M.
On Sept. 19, 2016, Soto pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Soto admitted transporting methamphetamine to Albuquerque on a Greyhound bus by concealing the methamphetamine in a gift-wrapped package in his luggage.
This case was investigated by the Albuquerque office of the DEA and Assistant U.S. Attorney Paul H. Spiers prosecuted the case.
Altoona Man Facing Child Pornography Distribution and Possession ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. was indicted today by a federal grand jury in Johnstown on charges of distribution and possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The superseding indictment named Kenneth Scott Boyd, 34, of Altoona, Pa., as the sole defendant.
According to the superseding indictment presented to the court, on June 2, 2016, Boyd distributed material depicting the sexual exploitation of a minor, and on June 17, 2016, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and Altoona Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better 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.
Albuquerque Man Sentenced for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Kenneth Columbus Burwell, 54, of Albuquerque, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 46 months in prison followed by three years of supervised release for his conviction on a bank robbery charge.
Burwell was arrested in Nov. 2016, on a criminal complaint charging him with robbing the US Bank branch located at 3000 Central Ave. SE in Albuquerque on Oct. 14, 2015. Burwell subsequently was indicted on Nov. 15, 2016, and charged with bank robbery.
On March 7, 2017, Burwell pled guilty to the indictment, and admitted that on Oct. 14, 2015, he robbed the US Bank branch by approaching the bank teller, demanding money, and threatening to shoot the teller if she pulled the alarm. Burwell further admitted that after threatening the teller, he pulled his shirt tight showing an impression of a gun-shaped item concealed beneath his clothing.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Albuquerque Felon Charged with Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – This morning Abran Apodaca, 37, of Albuquerque, N.M., made his initial appearance before a U.S. Magistrate Judge on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. The charge arises from an Aug. 4, 2017 incident during which FBI Special Agents and a Task Force Officer fired at Apodaca after he allegedly pointed a rifle at an Agent.
The criminal complaint alleges that on Aug. 4, 2017, after learning that Apodaca had an active state arrest warrant for an alleged probation violation, FBI Special Agents and Task Force Officers conducted surveillance at Apodaca’s residence. During their surveillance, the agents and officers observed Apodaca and two other individuals drive up to the residence in a gray vehicle. After observing Apodaca enter and exit the residence and re-enter the gray vehicle, FBI Special Agents engaged their vehicles’ emergency lights and approached the gray vehicle with the intention of arresting Apodaca. Apodaca, who was driving the gray vehicle, allegedly responded by accelerating into an agent’s vehicle and maneuvering around the agent’s vehicle. Apodaca then allegedly pointed a rifle at the agent, and FBI Special Agents and a Task Force Officer responded by firing at Apodaca. Apodaca sustained a gunshot wound. Special Agents rendered aid to Apodaca, and then arrested him and transported him to a hospital.
According to the criminal complaint, FBI Special Agents and Task Force Officers seized a rifle, which was found adjacent to the gray vehicle in the area where they arrested Apodaca. The criminal complaint alleges that Apodaca was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
FBI agents arrested Apodaca on the criminal complaint this morning. Apodaca remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled at 9:30 a.m. tomorrow morning.
If convicted on the crime charged in the criminal complaint, Apodaca faces a statutory maximum penalty of ten years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Alexander M. Uballez is prosecuting the case.
Apodaca ComplaintAiken Man Sentenced for Investor FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Arthur Vann, age 65, of Aiken, South Carolina, was sentenced to four years’ incarceration for participation in a Conspiracy to defraud investors, in violation of 18 U.S.C. § 371. United States District Judge J. Michelle Childs, of Columbia, also ordered Vann to pay over $3.2 million in restitution to fourteen victims.
Evidence presented during his change of plea hearing in November 2016 established that Vann had an interest in various offshore bank accounts and companies, primarily located in the Caribbean. As a financial adviser, he directed a number of clients to invest in a particular fund focused on the Cayman Islands. When money was transferred for this purpose, Vann diverted some of it into accounts he controlled and spent it for his own benefit. When confronted by a number of investors, he sent them fake statements purporting to reflect the investments made.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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7 August 2017
‘Shot-Caller’ of Boyle Heights Gang Controlled by Mexican Mafia Sentenced to 15-Year Prison Term in Federal Racketeering CaseRead the Press Release
LOS ANGELES – One of the leaders of the Hazard street gang – a Mexican Mafia-controlled criminal enterprise that has been responsible for criminal activity in and around the Ramona Gardens housing complex in Boyle Heights for decades – was sentenced today to 15 years in prison for his conviction on federal racketeering and drug trafficking offenses.
Victor Barrios, 43, a Mexican national who most recently resided in Boyle Heights, was sentenced by United States District Judge Christina A. Snyder.
Barrios pleaded guilty on April 26 to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiring to traffic narcotics. When he pleaded guilty, Barrios admitted he played “a leadership role for the gang’s criminal activities,” which included overseeing drug sales, the collection of extortionate “tax” payments from area drug dealers, and plots to commit acts of violence.
Barrios was one of 27 defendants named in a racketeering indictment unsealed in December 2014. The 110-page indictment outlined a wide range of criminal activity, including dozens of drug deals, acts of intimidation and violence against people believed to have cooperated with law enforcement, illegal weapons sales, and threats made against African-American residents of Ramona Gardens. Barrios is one of 18 defendants who have pleaded guilty. The remaining nine defendants are scheduled to go on trial on November 28.
The investigation into the Hazard gang was conducted by the Federal Bureau of Investigation; the Los Angeles Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and IRS Criminal Investigation, which worked in conjunction with the Los Angeles County Sheriff’s Department and the Alhambra Police Department.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Christopher Kendall of the Organized Crime Drug Enforcement Task Force.
Wichita Restaurant Owner Pleads Guilty to Drug TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty in federal court Monday to drug trafficking and agreed to forfeit the building where his restaurant is located as well as other assets, U.S. Attorney Tom Beall said. Two co-defendants also entered guilty pleas.
Gerald Beasley, 62, Wichita, Kan., owner of Tiara’s Place, pleaded guilty to one count of possession with intent to distribute cocaine and one count of unlawful possession of a firearm in furtherance of drug trafficking.
Also on Monday, co-defendant Terry Beasley, 63, Wichita, Kan., pleaded guilty to one count of money laundering. Co-defendant Brandon Smith, 46, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute marijuana.
In his plea, Gerald Beasley admitted he stored cocaine and other narcotics in a residence in the 2400 block of North Piatt Street in Wichita, meeting with buyers both at the residence and the restaurant at 1339 N. Hillside. He carried a High Standard derringer handgun to protect himself during drug transactions.
In his plea agreement, Gerald Beasley agreed to forfeit his home in Andover, his restaurant, a number of real estate properties, more than $75,000 in cash and bank accounts with a value of more than $75,000, as well as other assets.
In his plea, Terry Beasley admitted he made money through the trafficking of controlled substances, illegal gambling and the illegal production and sale of false documents. He kept the proceeds hidden in a safe in a storage facility. The plea agreement calls for him to forfeit more than $67,000 in cash that was seized from him.
In Smith’s plea, he admitted he conspired to distribute marijuana. Investigators recorded calls in which he ordered drugs from Gerald Beasley.
Sentencing is set for Gerald Beasley on Oct. 30, for Terry Beasley on Nov. 6 and for Smith on Nov. 13. Both parties have agreed to recommend Gerald Beasley be sentenced to 108 months in federal prison and Terry Beasley be sentenced to a year and a day. Smith faces a sentence of up to 10 years and a fine up to $250,000.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal revenue Service, the Sedgwick County District Attorney’s Office, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Wichita Man Sentenced for Armed Robbery SpreeRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 11 years in federal prison for a series of armed robberies, U.S. Attorney Tom Beall said.
Brandon V. Wells, 23, Wichita, Kan., pleaded guilty in April to five counts of robbery and one count of brandishing a firearm during a robbery.
In his plea, Wells admitted to the following robberies:
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Jan. 27, 2017, Circle K, 1250 S. Rock Road, Wichita.
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Jan. 28, 2017: O’Reilly Auto Parts, 4818 E. Lincoln, Wichita.
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Jan. 30, 2017: O’Reilly Auto Parts, 4636 S. Broadway, Wichita.
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Feb. 4, 2017: O’Reilly Auto Parts, 4130 W. Central, Wichita
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Feb. 5, 2017: O’Reilly Auto Parts, 3220 N. Rock, Wichita.
During the robberies, Wells and an accomplice threatened employees with a weapon and demanded money. The firearm charge is tied to a Feb. 6, 2017, robbery at O’Reilly Auto Parts, 3109 E. Pawnee.
Beall commended the Wichita Police Department, the FBI Safe Streets Task Force and Assistant U.S. Attorney Lanny Welch for their work on the case.
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Virginia man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wilbur Reid, Jr., of Roanoke, Virginia, was sentenced today to 46 months incarceration for possessing heroin, Acting United States Attorney Betsy Steinfeld Jividen announced.
Reid, age 42, pled guilty to one count of “Possession with Intent to Distribute Heroin” in April 2017. Reid admitted to committing the crime in September 2016 in Berkeley County.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Violent Carjacker Ordered to Federal PrisonRead the Press Release
HOUSTON – A 21-year-old Houston man has been ordered to federal prison after shooting a victim multiple times during an attempted carjacking, announced Acting U.S. Attorney Abe Martinez. Adarrion Christie pleaded guilty May 2, 2017.
Today, U.S. District Judge Lynn Hughes ordered Christie to serve 51 months for the attempted carjacking as well as a consecutive 10 years for aiding and abetting the discharging of a firearm during a crime of violence. Following his total 171-month sentence, he will serve five years of supervised release. Additional information was also presented today including letters from the victims in the case. The court also heard from a relative who explained the pain and suffering the families have endured. Christie was further ordered to pay $25,000 in restitution to the victims. In handing down the sentence, Judge Hughes told Christie he knew what would happen when he pulled the trigger, noting “you did what you wanted to do regardless of the consequences.”
Co-defendant Derek Harper, 22, also of Houston, pleaded guilty to aiding and abetting the discharging of a firearm and is set for sentencing Sept. 5, 2017.
On March 31, 2016, Christie and Harper attempted to commit a carjacking. Christie admitted that he “tousled” with the male driver over the keys, which the victim did not want to relinquish because his wife and two-year-old daughter were also in the vehicle. Christie ultimately shot the victim multiple times at close range with a .45 caliber gun. Harper was unarmed and had been ordering the man’s wife to get the baby out of the car. Christie and Harper fled without obtaining the vehicle, but were later found and taken into custody.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Harris County Sherriff’s Office and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Two Former Ellis County Sherriff’s Office Employees Admit to Stealing and Selling FirearmsRead the Press Release
DALLAS — Thomas Glen Smith, 50, and Philip Gary Slaughter, 42, both appeared in federal court and pleaded guilty to one count of possession or sale of stolen firearms, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith and Slaughter were charged in separate, but related cases in June 2017 and May 2017, respectively. The maximum penalty for the offense charged is 10 years in federal prison and a $250,000 fine. Restitution may also be ordered. Both defendants will remain on bond pending sentencing.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey and Errin Martin are in charge of the prosecution.
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Two Eastern Panhandle residents indicted on drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Kearneysville, West Virginia residents were indicted by a federal grand jury on July 25, 2017 on drug distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Gerald Gibbs, age 29, was indicted on one count of “Conspiracy to Distribute a Controlled Substance,” two counts of “Distribution of a Controlled Substance,” and two counts of “Possession with Intent to Distribute a Controlled Substance.”
Jennifer Gibbs, age 31, was indicted on one count of “Conspiracy to Distribute a Controlled Substance,” two counts of “Distribution of a Controlled Substance,” and two counts of “Possession with Intent to Distribute a Controlled Substance.”
The crimes are alleged to have taken place from June 2016 to March 2017 in Jefferson County, West Virginia.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Statement by Attorney General Sessions on the City of Chicago’s Lawsuit Against the U.S. Department of JusticeRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the city of Chicago’s lawsuit against the U.S. Department of Justice:
“No amount of federal taxpayer dollars will help a city that refuses to help its own residents.
“This administration is committed to the rule of law and to enforcing the laws established by Congress. To a degree perhaps unsurpassed by any other jurisdiction, the political leadership of Chicago has chosen deliberately and intentionally to adopt a policy that obstructs this country’s lawful immigration system. They have demonstrated an open hostility to enforcing laws designed to protect law enforcement — Federal, state, and local — and reduce crime, and instead have adopted an official policy of protecting criminal aliens who prey on their own residents. This is astounding given the unprecedented violent crime surge in Chicago, with the number of murders in 2016 surpassing both New York and Los Angeles combined. The city’s leaders cannot follow some laws and ignore others and reasonably expect this horrific situation to improve.
“The Mayor complains that the federal government’s focus on enforcing the law would require a ‘reordering of law enforcement practice in Chicago.’ But that’s just what Chicago needs: a recommitment to the rule of law and to policies that rollback the culture of lawlessness that has beset the city.
“This administration will not simply give away grant dollars to city governments that proudly violate the rule of law and protect criminal aliens at the expense of public safety. So it’s this simple: Comply with the law or forego taxpayer dollars.”
Solano County Man Indicted for Possessing Marijuana and Cocaine for Distribution Near a School ZoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Maurice Antoine Jefferson, 42, of American Canyon, charging him with possessing marijuana and cocaine for distribution within 1,000 feet of the Will C. Wood High School on Marshall Road in Vacaville and for possessing a firearm as a felon, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Jefferson was the sole proprietor of Shredders Federation clothing store in Vacaville and allegedly used the business as a cover to distribute marijuana and cocaine to high school students and others and as a front for money laundering. When law enforcement officers executed a search warrant at the store in August 2016, they found 6.4 pounds of marijuana, 129 grams of cocaine, and other indicia of drug distribution. Jefferson was carrying a 9 mm pistol with him when Vacaville Police Officers arrived at the business. Jefferson has a felony conviction and is not allowed to possess any firearms.
This case is the product of an investigation by the Federal Bureau of Investigation’s Solano County Violent Crime Task Force, the Vacaville Police Department and the Napa Special Investigations Bureau with assistance from the Solano County District Attorney’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.
If convicted of possessing marijuana with intent to distribute near a school zone, Jefferson faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of possessing cocaine with intent to distribute near a school zone, Jefferson faces a maximum statutory penalty of 60 years in prison and a $20 million fine. If convicted of possessing a firearm as a felon, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sinaloa Cartel Cell Leader Self-Surrenders at BorderRead the Press Release
Assistant U.S. Attorney Adam Braverman (619) 546-6717
NEWS RELEASE SUMMARY – August 7, 2017
SAN DIEGO – Sinaloa Cartel Cell Leader Damaso Lopez-Serrano, aka Mini Lic, was arraigned in federal court today following his self-surrender to United States law enforcement authorities at the Calexico West Port of Entry on July 27.
Lopez-Serrano, 29, is believed to be the highest-ranking Mexican cartel leader ever to self-surrender in the United States. Lopez-Serrano was arraigned on an indictment returned by a federal grand jury in San Diego on August 19, 2016, charging him and five of his close associates, including Nahum Sicairos-Montalvo, aka Kinceanero, with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances.
United States District Court Judge Dana M. Sabraw arraigned Lopez-Serrano on these charges today and unsealed the indictment against these two defendants. Lopez-Serrano did not seek bond and will remain in custody. A status hearing is scheduled for November 2, 2017 at 10 a.m. before Judge Sabraw.
The announcement was made by Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney for the Southern District of California Alana Robinson.
The United States also announced today the unsealing of an additional indictment returned December 4, 2016, in the Eastern District of Virginia by the U.S. Attorney’s Office for the Eastern District of Virginia and the Criminal Division’s Narcotic and Dangerous Drug Section charging father and son, Damaso Lopez Nunez and Damaso Lopez Serrano, respectively, with Conspiracy to Distribute Controlled Substances Intended for Importation. Damaso Lopez Nunez was arrested by Mexican authorities on May 2, 2017, and the United States is in the process of seeking his extradition on the December 4 indictment. Lopez Serrano will be arraigned on this indictment at a future date.
“At a time when more Americans than ever are dying from drug overdoses, the Department of Justice has made it a top priority to target the Mexican Cartel leaders responsible for the dangerous drugs that poison our families,” said Attorney General Sessions. “We will continue to go after these cartel leaders in order to dismantle their organizations from top to bottom, and today’s announcement should send them a clear message: you can turn yourselves in the easy way, or we will find you and bring you to justice the hard way. No matter what, you will face the consequences.”
“This extraordinary case is this district’s most significant, comprehensive and large-scale cartel prosecution,” said Acting U.S. Attorney Alana Robinson. “Today marks another important step in the dismantling of the Sinaloa Cartel and is a reflection of law enforcement’s focused efforts these last several years to put an end to this most powerful drug trafficking organization.”
“The arrest of this key cartel leader is a significant blow to the Sinaloa Cartel,” said DEA San Diego Special Agent in Charge William R. Sherman. “DEA remains vigilant in its mission to keep investigating this organization and arresting these individuals who sell their poison to the citizens of the United States.”
The Southern District of California indictment unsealed today marks the conclusion of the fourth phase of a five-year investigation that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel. This investigation has also offered one of the most comprehensive views to date of the inner workings of one of the world’s most prolific, violent and powerful drug cartels. Cartel members and associates were targeted in this massive investigation involving multiple countries, numerous law enforcement agencies around the United States, a number of federal districts and over 250 court-authorized wiretaps in this district alone.
This case began in late 2011 as an investigation of what was at first believed to be a small-scale drug distribution cell in National City and Chula Vista. It became evident that the drugs were being supplied by the Sinaloa Cartel, and the case evolved into a massive multi-national, multi-state probe that resulted in scores of arrests and seizures of 1,397 kilograms of methamphetamine, 2,214 kilograms of cocaine, 17.2 tons of marijuana, 95.84 kilograms of heroin, and $27,892,706.00 in narcotics proceeds.
The primary indictment in this investigation was previously unsealed targeting the alleged leader of the cartel, Ismael Zambada-Garcia, known as “El Mayo,” as well as two of his four sons - Ismael Zambada-Sicairos, known as “Mayito Flaco,” and Ismael Zambada-Imperial, known as “Mayito Gordo.” Zambada-Imperial was arrested by Mexican authorities in November 2014 and is pending extradition to the Southern District of California. Also part of that indictment is Ivan Archivaldo Guzman-Salazar, known as “Chapito,” whose father Joaquín “El Chapo” Guzmán Loera was the alleged leader of the Sinaloa Cartel along with Mayo.
As part of this investigation, U.S. authorities previously arrested and prosecuted another son of Mayo - Serafin Zambada-Ortiz, who pleaded guilty in the Southern District of California in September 2014 to drug trafficking charges.
José Rodrigo Aréchiga-Gamboa, commonly referred to by his alias "El Chino Ántrax,” was arrested in the Netherlands, extradited to the United States by Dutch authorities in July 2014 and pleaded guilty to drug trafficking charges in May 2015. Arechiga-Gamboa is believed to have worked for the Sinaloa Cartel as the leader of a violent enforcement arm of the Sinaloa Cartel called “Los Antrax” and a key lieutenant of Mayo.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 16CR1896-DMS
Damaso Lopez-Serrano, aka Mini Lic Age: 29 Culiacan, Mexico
Nahum Abraham Sicairos-Montalvo, aka Kinceanero Age: 29 Culiacan, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
Internal Revenue Service
Federal Bureau of Investigation
United States Attorney’s Office, Northern District of Illinois
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
*An indictment or complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Sinaloa Cartel Cell Leader Self-SurrendersRead the Press Release
A cell leader of the Sinaloa drug cartel was arraigned in federal court today following his self-surrender to U.S. law enforcement authorities at the Calexico West Port of Entry in California, on July 27.
Damaso Lopez-Serrano, aka Mini Lic, 29, is believed to be the highest-ranking Mexican cartel leader ever to self-surrender in the U.S. Lopez-Serrano was arraigned on an indictment returned by a federal grand jury in San Diego on Aug. 19, 2016, charging him and five of his close associates, including Nahum Sicairos-Montalvo, aka Kinceanero, with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. U.S. District Court Judge Dana M. Sabraw arraigned Lopez-Serrano on these charges and unsealed the indictment against these two defendants.
The announcement was made by Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana Robinson for the Southern District of California and Special Agent in Charge William R. Sherman of the Drug Enforcement Administration’s San Diego Field Office.
The U.S. also announced today the unsealing of an additional indictment returned Dec. 14, 2016, in the Eastern District of Virginia by the U.S. Attorney’s Office for the Eastern District of Virginia and the Criminal Division’s Narcotic and Dangerous Drug Section charging father and son, Damaso Lopez Nunez and Damaso Lopez Serrano, respectively, with Conspiracy to Distribute Controlled Substances Intended for Importation. Damaso Lopez Nunez was arrested by Mexican authorities on May 2, and the U.S. is in the process of seeking his extradition on the December 14 indictment. Lopez Serrano will be arraigned on this indictment at a future date.
“At a time when more Americans than ever are dying from drug overdoses, the Department of Justice has made it a top priority to target the Mexican Cartel leaders responsible for the dangerous drugs that poison our families,” said Attorney General Sessions. “We will continue to go after these cartel leaders in order to dismantle their organizations from top to bottom, and today’s announcement should send them a clear message: you can turn yourselves in the easy way, or we will find you and bring you to justice the hard way. No matter what, you will face the consequences.”
The Southern District of California indictment unsealed today marks the conclusion of the fourth phase of a five-year OCDETF investigation Operation Narco Polo that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Sergeant Bluff Woman Pleads Guilty to Making False Statements in Connection with a Highway ProjectRead the Press Release
A woman who made false statements in connection with a highway project pled guilty August 7, 2017, in federal court in Sioux City.
Jenna Danielle Wilson, 31, from Sergeant Bluff, Iowa, was convicted of one count of making false statements in connection with a highway project.
At the plea hearing, Wilson admitted that between January 28, 2016, and July 28, 2016, she knowingly made false representations, false reports, and false claims with respect to the cost of work performed or to be performed or materials furnished or to be furnished in connection with the construction of a highway or related project approved by the Secretary of Transportation. Wilson, while an officer of K&L Inc., submitted falsified Expanded Polystyrene Fill (EPS) invoices to general contractor, Godbersen-Smith Co., and ultimately, the Iowa Department of Transportation for stockpiled materials on the I-29 Sioux Interchange Project. In all, Wilson fraudulently increased the amounts on the Benchmark invoices by $807,637.10. Wilson’s fraudulent actions, in effect, amounted to Wilson wrongfully writing K&L a no-interest loan, in attempt to remedy K&L’s cash-flow problems. Depending on the methodology employed in the accounting analysis, (FIFO or LIFO) the interest cost Wilson saved K&L, through her fraudulent actions, was $34,432.02 or $34,501.61, respectively.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wilson remains free on bond previously set pending sentencing. Wilson faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jamie Bowers and was investigated by the U.S. Department of Transportation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4045. Follow us on Twitter @USAO_NDIA.
San Joaquin County Man Convicted of 5 Felony Counts in International Drug-Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — A jury found Francisco Felix, 44, of Mountain House, guilty today of five felony counts for his role in leading a large, multi-defendant drug-trafficking conspiracy that moved significant quantities of methamphetamine from Mexico into California and throughout the United States, and that controlled at least three marijuana grows in the Central Valley of California, U.S. Attorney Phillip A. Talbert announced.
On February 13, 2014, Felix and 13 other defendants were charged with a number of drug-trafficking crimes. Today the jury found Felix guilty on all five counts submitted to the jury: one count of conspiracy to distribute methamphetamine; one count of conspiracy to manufacture, distribute, and to possess with intent to distribute marijuana; and three counts of using a telephone to facilitate a drug-trafficking crime. Felix is the only defendant to go to trial; 10 co-defendants pleaded guilty and three are fugitives.
This case arose from a year-long investigation that revealed a drug-trafficking organization with connections to the state of Sinaloa in Mexico. The organization was based in the Central Valley of California, and actively imported large amounts of methamphetamine into the United States. Evidence at trial established that Felix and his network were capable of importing 50 pounds of methamphetamine (with a wholesale value of approximately $200,000) into the United States every eight days.
In addition, the evidence at trial also established that the organization was cultivating substantial quantities of marijuana at many properties in both Stanislaus and San Joaquin counties.
Over nine months, investigators acquired over 80 pounds of methamphetamine, approximately 20 pounds of marijuana, and six firearms, including three assault rifles and a “Desert Eagle” .50-caliber handgun, from members of the organization. Finally, on the day of Felix’s arrest, investigators seized over 2,100 growing marijuana plants at properties under Felix’s control.
This case is the product of an investigation by the California Department of Justice’s Mountain and Valley Marijuana Investigation Team (MAVMIT), under the auspices of the Central Valley High Intensity Drug Trafficking Area (HIDTA) Program; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Placer County District Attorney’s Office; the Placer County Special Investigations Unit (SIU); the Sheriff’s Departments from Placer, El Dorado and Sacramento Counties; the California Department of Fish and Wildlife; the California Department of Corrections and Rehabilitation; the California National Guard, Counterdrug Task Force; and the Yolo Narcotic Enforcement Team (YONET). In addition, at the conclusion of the investigation, hundreds of law enforcement officers from several states took part in a 28-location takedown.
Assistant U.S. Attorneys Justin Lee, Ross Naughton, and Michael Beckwith are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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.
Felix is scheduled to be sentenced by U.S. District Judge William B. Shubb on December 4, 2017. Felix faces a maximum statutory penalty of life in prison, with a mandatory minimum sentence of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Registered Sex Offender Sentenced to 15 Years in Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE – Ryan J. Lebrun, 24, of Pawtucket, was sentenced today to 180 months (15 years) in federal prison for possessing and distributing child pornography. According to court records, Lebrun, a registered sex offender, was previously convicted in Rhode Island state court in two unrelated child pornography cases.
At sentencing, U.S. District Judge John J. McConnell, Jr., also ordered Lebrun to serve 10 years supervised upon completion of his prison term. Lebrun pleaded guilty on February 14, 2017, to two counts of distribution of child pornography and one count of possession of child pornography.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 180-188 months. The government recommended the court impose a sentence of 180 months in prison.
Lebrun’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court records and information presented to the court, in June 2015, while conducting an investigation into the sharing of child pornography, German law enforcement accepted an online solicitation on a Peer to Peer (P2P) file sharing program from an individual later identified as Ryan Lebrun. German authorities were able to access Lebrun’s files and library from which they downloaded several files of child pornography.
In September 2015, HSI in Rhode Island was notified by HSI Cyber Crimes Center via Interpol, Wiesbaden, Germany, of Lebrun’s online activities. HSI agents in Rhode Island viewed Lebrun’s files and library, and identified approximately 21 images and 3 videos of child pornography.
In October 2015, it was learned that the FBI was also investigating Lebrun’s activities on the P2P file sharing program. The FBI also downloaded images of child pornography from Lebrun’s files and engaged in online chats with Lebrun.
Additionally, in October 2015, the Rhode Island State Police Internet Crimes Against Children (ICAC) task force received information from the National Center for Missing and Exploited Children regarding a Google email account that contained child pornography. The email account, which also contained an image of Lebrun, was determined by Rhode Island State Police to belong to Lebrun.
On November 9, 2015, HSI, FBI and a Rhode Island State Trooper assigned to the ICAC executed a court authorized search warrant at Lebrun’s Pawtucket residence. The search resulted in the seizure of, among other things, numerous electronic devices and digital storage cards. A forensic examination of the devices and storage cards identified more than 200 videos and 90 images of child pornography.
According to court records, Lebrun, a registered sex offender, was twice convicted in Rhode Island state court on child pornography charges. On April 16, 2011, Lebrun was arrested by the Warwick Police Department and charged with possession of child pornography. He pleaded guilty and on November 10, 2011, he was sentenced to 3 years of probation. On April 17, 2013, Lebrun was arrested by Rhode Island State Police and charged with possession and transfer of child pornography. He pleaded guilty and on November 20, 2013, was sentenced to 5 years of incarceration with 2 years to serve.
Lebrun has been detained in federal custody since his arrest on November 10, 2015.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Warwick Police Department for their assistance in the investigation of this matter.
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Providence Resident Sentenced to 12 Years in Prison for Sex Trafficking 14-Year-Old Group Home ResidentRead the Press Release
PROVIDENCE, R.I. – Paul Monteiro, a/k/a Peezy, 32, of Providence, was sentenced today to 144 months (12 years) in federal prison for transporting a 14-year-old Rhode Island girl to New Jersey for the purpose of engaging in commercial sexual activity.
Monteiro and the minor female were located in a hotel room in Franklin Township, New Jersey, on April 6, 2015, by agents and officers from Homeland Security Investigations (HSI), the FBI and Franklin Township police, five months after she was reported missing from a group home in Rhode Island.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Monteiro to serve 5 years supervised release upon completion of his term of incarceration. The court deferred ruling on restitution to the victim to a later date. Monteiro pleaded guilty on October 6, 2016, to sex trafficking of a child.
The mandatory minimum sentence in this matter is 120 months imprisonment. The U.S. Sentencing Guidelines range of imprisonment in this matter is 151-188 months. The government recommended the court impose a sentence of 188 months in prison.
Monteiro’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
In March 23, 2015, Rhode Island State Police detectives received information from the National Center for Missing and Exploited Children of a report of a juvenile female from Rhode Island who had allegedly been sexually molested by an adult male she met on Facebook. The investigation determined that the victim was a 14-year-old girl reported missing on November 20, 2014, from a group home in Rhode Island.
According to court documents, on April 6, 2015, Rhode Island State Police tracked a cell phone in the possession of the missing teenager to Franklin Township, New Jersey. Agents from HSI and the FBI, and police officers from Franklin Township located the missing girl and Paul Monteiro in a hotel room in Franklin Township. Monteiro was arrested by Franklin Township police on New Jersey state charges and detained.
As a result of information provided to investigators by the victim, an HSI agent located a Backpage.com advertisement depicting the young girl and a solicitation for male companionship. The girl later confirmed for investigators that she was the person in the picture and that Monteiro arranged for her to participate in sex acts with at least two individuals who responded to the advertisement.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The United States Attorney’s Office acknowledges and thanks the Somerset County, New Jersey, Prosecutor’s Office for their assistance in ensuring the quick return of Paul Monteiro to Rhode Island for prosecution in U.S. District Court in Providence.
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Pennsylvania Banker Pleads Guilty to Conspiracy to Commit Bank Fraud, Admits Business Relationship with Physician ClientRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, and Stephen M. Schenning, Acting United States Attorney for the District of Maryland, announced today that Tae H. Kim, age 47 of Wayne, Pennsylvania, entered a guilty plea to separate bank fraud charges filed in the District of Delaware and the District of Maryland, respectively.
In resolving the Delaware charge, Kim admitted that he conspired with his client, Dr. Zahid Aslam,[1] to obtain loans from Citibank and WSFS Bank under false pretenses. In particular, Kim admitted that he and Dr. Aslam agreed to submit loan requests in the names of third parties when they knew that the loan proceeds would be controlled by Dr. Aslam. The loans at issue consisted of a $1.76 million loan funded by Citibank (and guaranteed by the Small Business Administration) in July 2012, and a $2.183 million loan funded by WSFS Bank in August 2013. In addition, Kim failed to disclose to Citibank and WSFS Bank the existence of an extensive business relationship between himself and Dr. Aslam, as well as his receipt of a $60,000 loan and a BMW from Dr. Aslam, during the period in which he acted as Dr. Aslam’s loan officer. As part of his guilty plea, Kim agreed to forfeit the BMW and $60,000 in cash.
In resolving the Maryland charge, Kim admitted that he submitted a false “Request for Verification of Deposit” form on behalf of Dr. Aslam, who had requested a $5 million loan from Cecil Bank in Maryland for a separate business venture. Although the Verification of Deposit Form represented that Dr. Aslam had maintained a checking account for the business, with an average balance of $1.6 million, Kim admitted that the account had been opened the day before he submitted the form and funded via a single check from a different entity controlled by Dr. Aslam. The Verification of Deposit Form was important because Cecil Bank had determined that the business needed to show proof of equity or cash on hand of at least $1.38 million to qualify for a Small Business Administration Guarantee. Although Cecil Bank approved the $5 million loan, the loan was never funded because the Small Business Administration determined that the loan did not qualify for the guarantee.
United States Judge Richard G. Andrews Scheduled sentencing for January 11, 2018 at 9:00 a.m.
The maximum penalty for the Delaware Charge (Conspiracy to Commit Bank Fraud) is a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution. The maximum penalty for the Maryland Charge (Attempted Bank Fraud) is a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
Acting U.S. Attorney Weiss said, “Tae Kim abused his position as a loan officer by defrauding three financial institutions and the Small Business Administration for the benefit of a key client. He further leveraged his position to profit personally from an extensive business relationship with that client, all of which he concealed from his employers. I applaud the diligence of federal law enforcement in Delaware and Maryland in uncovering the breadth and scope of Kim’s criminal conduct. Our office remains committed to ensuring the integrity of the federal banking system.”
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue, Service, Criminal Investigation Division; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Special Inspector General of the Troubled Asset Relief Program (SIGTARP).
The case is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Jennifer L. Hall in Delaware and Assistant United States Attorney Martin J. Clarke in Maryland.
Palm Harbor Oncologist Sentenced to Nearly Six Years for Treating Patients with Unapproved Cancer DrugsRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced D. Anda Norbergs to 5 years and 10 months in federal prison for receipt and delivery of misbranded drugs, smuggling goods into the United States, health care fraud, and mail fraud. As part of her sentence, the Court also entered a money judgment in the amount of $848,671.19, the proceeds of the criminal conduct. A federal jury found Norbergs guilty on November 18, 2016.
According to testimony and evidence presented during the nine-day trial, Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least May 2009, she ordered, and directed others at ELO to order, drugs from foreign, unlicensed distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and other foreign, unlicensed distributors were not FDA-approved. In fact, QSP had reportedly sold counterfeit versions of a chemotherapy medication that did not have the key ingredient in the drug. Norbergs learned of this news from other sources yet continued to have QSP drugs administered to patients. When QSP shut down, Norbergs switched to buying drugs from another foreign, unlicensed distributor. Many of the drugs were shipped directly to ELO from a location outside the United States, usually from the United Kingdom. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries, such as Turkey, India, and Germany.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare. In submitting those claims, Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions had been given to patients. In so doing, Norbergs intended to generate profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General and the U.S. Food and Drug Administration. It was prosecuted by Assistant United States Attorneys Adam M. Saltzman and Jay Trezevant.
Ohio drug dealing couple sentenced to federal prison for methamphetamine crimesRead the Press Release
HUNTINGTON, W.Va. – A Proctorville, Ohio, couple was sentenced to federal prison today on drug charges, announced United States Attorney Carol Casto. Charley G. Myers, 37, and Tracie M. Reed, 39, both previously pleaded guilty to distribution of methamphetamine. Myers was sentenced to 10 years and a month in federal prison. Reed was sentenced to nine years in federal prison.
Between February and September of 2016, Myers and Reed travelled on several occasions to Texas and returned to the Tri-State area with at least a kilogram of methamphetamine on each trip. The pair would then sell the methamphetamine to customers in Putnam and Kanawha counties in West Virginia, as well as to customers in the Proctorville area. Laboratory results indicated that the methamphetamine seized from the couple was close to 100% pure. As part of their plea agreements, both Myers and Reed admitted responsibility for the other drug trafficking conduct charged in the indictment.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team and Homeland Security Investigations. Assistant United States Attorney R. Gregory McVey is responsible for these prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Ohio Man Sentenced to 51 Months in Prison for Bethel Park Pharmacy BurglaryRead the Press Release
PITTSBURGH – A former resident of Columbus, Ohio has been sentenced in federal court to 51 months in prison, to be followed by three years of supervised release, on his convictions for burglary of a pharmacy and conspiracy to possess with intent to distribute a Schedule II controlled substance, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on William Dishman, 35.
According to information presented to the court, on September 4, 2015, Foughty used a crowbar to break into the Spartan Pharmacy in Bethel Park, Pa., and proceeded to steal over 6,000 Schedule II pills from the pharmacy.
Assistant United States Attorney Timothy M. Lanni prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration and the Bethel Park Police Department for the investigation leading to the successful prosecution of Dishman.
Miami Resident Sentenced to 4 Years in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Miami resident was sentenced to 48 months in prison, to be followed by three years of supervised release for possessing personal identifying information (PII) of other individuals and using the PII to file false tax returns.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, made the announcement.
Gregory Clermont, 25, of Miami, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on May 7, 2013, Clermont was in possession of official tax documents and handwritten lists of names, dates of birth, and social security numbers belonging to other individuals, as well as other handwritten notes relating to the filing of tax returns. Clermont was also in possession of a composition book containing the names, dates of birth, and social security numbers of approximately 140 individuals, three H&R Block debit cards in other people’s names, and a laptop that contained approximately 185 user identification numbers associated with the filing and attempted filing of tax returns through TurboTax online. Clermont admitted that he tried to file tax returns with almost all of the names in the composition book, but was notified that half of the people were deceased when he filed the returns.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Merced Man Pleads Guilty to Distributing Marijuana and Cocaine Nationwide Through Dark Web MarketplacesRead the Press Release
FRESNO, Calif. — David Ryan Burchard, 40, of Merced, pleaded guilty today to conspiracy to distribute and to possess with intent to distribute marijuana on dark web marketplaces, U.S. Attorney Phillip A. Talbert announced.
According to the criminal complaint, Burchard, using the moniker “Caliconnect,” was a major narcotics vendor on the Silk Road and other dark web marketplaces, including Agora, Abraxas, and AlphaBay. Dark-web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. In addition, dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
According to the complaint, Burchard accepted orders for marijuana and cocaine on dark web marketplaces and then mailed the narcotics from post offices in Merced and Fresno County to his customers throughout the United States. Burchard was paid primarily in bitcoin. Burchard conducted sales in excess of $1.4 million on Silk Road before that dark web marketplace was closed. The complaint alleges that after federal law enforcement shut down the Silk Road website and arrested its founder in October 2013, Burchard transferred his narcotics business to Agora and then to AlphaBay, which are other dark web marketplaces.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department. Assistant U.S. Attorney Grant Rabenn is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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.
Burchard is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 30, 2017. Burchard faces a maximum statutory penalty 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Massachusetts Resident Detained on Meth Trafficking ChargeRead the Press Release
PROVIDENCE – Gregory Lee, 48, of Provincetown, MA, was ordered detained in federal custody following an initial appearance today in U.S. District Court in Providence on a criminal complaint charging him with possession with intent to distribute methamphetamine.
Lee was arrested by Warwick Police on Saturday after they allegedly seized more than 230 grams of methamphetamine from his vehicle.
According to an affidavit in support of a criminal complaint, it is alleged that Warwick Police received a call Saturday morning reporting that an individual was passed out in a vehicle parked in a retail store parking lot. After several attempts, an officer was able to roust Lee, who appeared nervous and then began to look around his vehicle, under his body and legs, and grab various items within the vehicle. An officer ordered Lee to exit the vehicle.
According to the affidavit, after Lee exited the vehicle, at least twice he allegedly attempted to the shield the interior of the vehicle from police. After allegedly denying he was in possession of any illegal narcotics, Lee agreed to allow the officers to search his vehicle. It is alleged in the affidavit that inside a backpack located on the front seat of the vehicle officers seized two large plastic bags, which tested positive for methamphetamine. The bags of methamphetamine weighed 115.9 and 115.6 grams respectively.
Lee’s arrest and detention are announced by Acting United States Attorney Stephen G. Dambruch and Warwick Police Chief Colonel Stephen M. McCartney.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Makah Tribal Member Sentenced to 30 Months in Prison for Sexual Abuse of a MinorRead the Press Release
A 25-year-old member of the Makah Indian Tribe was sentenced today in U.S. District Court in Tacoma to 30 months in prison and ten years of supervised release for sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. MITCHEL CANAS pleaded guilty in May 2017, admitting he sexually molested a 13-year-old child. At the sentencing hearing, U.S. District Judge Benjamin H. Settle ordered CANAS to register as a sex offender.
According to records in the case, CANAS was indicted by the grand jury in November 2016. The indictment charged that, between November 2015 and October 2016, CANAS sexually abused a person that was 13 years old. At the time of the offense CANAS was 23 years old. The federal court has jurisdiction in this case because the abuse occurred on Makah Tribal trust land.
The case was investigated by the Makah Tribal Police Department and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.
Media AdvisoryRead the Press Release
PRESS CONFERENCE
INDIANAPOLIS-United States Attorney Josh Minkler will hold a press conference tomorrow, August 7, 2017, at 10am in the Plainfield Town Courtroom, 1075 W. Main Street, Plainfield, Indiana.
Minkler will be discussing charges in the 2015, Plainfield-area cyber threats case which resulted in school and shopping center closures. Minkler will be joined by Special Agent in Charge W. Jay Abbott, from the Indianapolis FBI Office, Superintendent Doug Carter, Indiana State Police and officials from the Plainfield and Brownsburg Police Departments.
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Long Island Investment Adviser Pleads Guilty to Stealing $3 Million from Investors in Wire Fraud SchemeRead the Press Release
Eric Erb, a former investment adviser, pleaded guilty earlier today to wire fraud in connection with a scheme to defraud investors utilizing his Babylon, New York-based investment advising business. Erb entered his guilty plea before United States Magistrate Judge Anne Y. Shields at the federal courthouse in Central Islip, New York. When sentenced, Erb faces up to 20 years in prison. In connection with his guilty plea, Erb has agreed to pay approximately $5.3 million in restitution to victims of his crime. Erb has also agreed to forfeit $215,000 in proceeds that he earned from the sale of his former residence in Bay Shore, New York, as well as the net proceeds from the sale of his 2004 Porsche 911 (with vanity license plate “HEDGER”) and the net proceeds from the sale of his 25-foot Regulator boat.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“With his investors relying on him to act with professionalism and integrity, Erb instead took millions of dollars from them,” stated Acting United States Attorney Rohde. “We will continue to work closely with our law enforcement partners to vigorously prosecute unscrupulous investment professionals and divest them of their ill-gotten gains.”
“Erb deliberately deceived investors by causing them to believe they were making money, when in reality, he was making millions off their losses,” stated FBI Assistant Director-in-Charge Sweeney. “Aiming to eliminate the prevalence of fraud, we will continue to diligently investigate unlawful schemes of this manner.”
According to court filings and facts presented at the plea hearing, between approximately January 2016 and February 2017, Erb solicited approximately $5.4 million from investors under the promise that he would follow investors’ instructions when making various investments, including in Individual Retirement Accounts, annuities, real estate investment trusts, hedge funds and an initial public offering, but instead he chose the investment vehicles. Erb also emailed investors false earnings statements showing that their investments were earning profits when, in fact, they were generating losses; made wire transfers between banks in Long Island and Florida to fund investments that investors did not authorize him to make; and falsified payee information on checks that investors wrote to fund investments so that Erb could use investors’ monies to benefit himself and his companies. During his plea allocution, Erb admitted to stealing approximately $3 million from 38 investors.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
ERIC ERB
Age: 39
Residence: Levittown, New York
E.D.N.Y. Docket No. 17-CR-413 (ADS)
Las Cruces Man Pleads Guilty to Federal Marriage Fraud ChargesRead the Press Release
ALBUQUERQUE – Santiago Aveles, 31, of Las Cruces, N.M., pled guilty on Aug. 4, 2017, in federal court to charges arising out of a scheme to obtain immigration status for foreign nationals through fraudulent marriages.
On April 19, 2017, Aveles and five co-defendants – Yi Lee, 44, a naturalized U.S. citizen residing in Santa Fe, N.M., and Chia-Jung Chang, 39, Dan Zheng, 32, Lian Xiang Deng, 42, and Xiao-Yin Le, 50, all Chinese nationals illegally in the United States – were indicted and charged with participating in a conspiracy to commit marriage fraud. The indictment also charged Aveles and Zheng with committing marriage fraud for the purpose of evading the federal immigration laws.
The indictment alleged that from June 2016 through March 2017, the six defendants conspired to obtain immigration status for foreign nationals by committing marriage fraud. The scheme involved having U.S. citizens enter into fraudulent marriages with foreign nationals in return for financial gain. Lee allegedly facilitated the conspiracy by arranging meetings between foreign nationals and U.S. citizens and assisting them in obtaining marriage licenses, working permits and green cards for the foreign nationals who paid Lee and the U.S. citizens. According to the indictment, Lee allegedly attempted to arrange fraudulent marriages between certain of his co-defendants and undercover law enforcement agents.
On Aug. 4, 2017, Aveles pled guilty to a felony information charging him with conspiracy and marriage fraud. In entering the guilty plea, Aveles admitted that from Jan. 2016 through April 30, 2017, he and others conspired to commit marriage fraud. Aveles also admitted that he entered into a sham marriage for the purpose of evading immigration laws and in exchange for a monetary payment.
At sentencing, Aveles faces a maximum penalty of five years in federal prison and a fine of up to $250,000. A sentencing hearing has yet to be scheduled.
Aveles’ co-defendants have entered pleas of not guilty to the charges in the indictment. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and is being prosecuted by Assistant U.S. Attorneys Dustin C. Segovia and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office.
Laredo Man Pleads Guilty to Conspiracy to Harbor AliensRead the Press Release
LAREDO, Texas – A 43-year-old resident of Laredo has pleaded guilty to a conspiracy charge for his role in an alien smuggling incident which led to the kidnapping of multiple illegal aliens, announced Acting U.S. Attorney Abe Martinez.
Jesus Osorio admitted during his re-arraignment hearing today that he conspired to harbor and transport undocumented aliens in violation of law.
On July 5, 2016, law enforcement responded to an incident at a residence in Laredo where eight undocumented aliens were kidnapped and held hostage against their will. They had previously made arrangements to be smuggled into the United States. After their arrival, they stayed at a Laredo residence for two weeks.
They were then transported to a second location where Angel Alexis Diaz, 20, Jose Israel Diaz, 43, and Julio Osorio, 40, all of Laredo, held them hostage. The victims reported being beaten, forced to undress and ordered to contact family members to pay a ransom for their release.
Through further investigation, authorities learned Jesus Osorio was the man who drove the aliens from the stash house to the second residence where they were eventually kidnapped. During the course of the offense, one of the undocumented aliens was seriously injured and required hospitalization.
U.S. Magistrate Judge Diana Song Quiroga accepted the plea. Sentencing has been set for Jan. 2, 2018, before U.S. District Judge Marina Garcia Marmolejo. At that time, the Osorio faces up to 20 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
Angel Diaz, Jose Diaz and Julio Osorio were convicted of conspiracy to kidnap illegal aliens and received sentences of 262-360 months in prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.